TEXAS LIFE AND HEALTH UPDATED EXAMS SCRIPTED
QUESTIONS AND ANSWERS GRADED A+
✔✔Changes made on an insurance application should be signed or initialed by which of
the following parties - ✔✔The applicant
✔✔Which of the following policies guarantees to pay the face value either to the
beneficiary when the insured dies or to the insured when age 100 is attained? -
✔✔Whole Life
✔✔Which of the following persons has the right to change the beneficiary designation
on a life insurance policy? - ✔✔The policyowner
✔✔Which of the following statements about the Waiver of Premium provision is
INCORRECT? - ✔✔The insured must receive Social Security disability benefits before
the waiver claim becomes valid
✔✔Which of the following statements about a group accident & health policy issued to
an employer is CORRECT? - ✔✔A policy must be issued to the employer and a
certificate must be issued to each employee
✔✔All of the following provisions are required in a group life policy EXCEPT - ✔✔an
Accidental Death and Dismemberment provision
✔✔Credit policies MUST be issued in which of the following forms? - ✔✔Term
✔✔Which of the following statements is CORRECT about accelerated death benefits? -
✔✔Only available to the terminally ill with a restricted life expectancy
✔✔Which of the following statements is CORRECT about a Variable insurance
contract? - ✔✔It does not guarantee a return on investment accounts
✔✔If a life policyowner wants to take out a bank loan and the bank insists on collateral,
the insured may - ✔✔assign the policy to the bank
✔✔All of the following persons must sign an application for life insurance EXCEPT the -
✔✔revocable beneficiary
✔✔A producer who discovers that answers to a series of questions on a life insurance
application were omitted should take which of the following actions? - ✔✔Schedule
another appointment with the applicant to complete the unanswered questions
, ✔✔L purchased a life insurance contract on July 16, 2004. L became severely
depressed and on November 1, 2004 took his own life. Which of the following
statements best describes how the insurance company settled the claim with L's
beneficiaries? - ✔✔The claim was denied under the Suicide clause of the policy
✔✔Which of the following statements is CORRECT if the premiums on a participating
policy are waived because of an insured's disability? - ✔✔The insurer will continue to
pay declared dividends
✔✔Which of the following provisions of a life insurance policy will pay a stated amount
to an insured if the insured is blinded in an accident? - ✔✔Accidental Death and
Dismemberment clause
✔✔When an employer provides noncontributory group term life insurance, which of the
following statements is CORRECT? - ✔✔The employer pays the entire cost of the plan
✔✔An applicant for life insurance must be informed of their rights under the Fair Credit
Reporting Act at which of the following times? - ✔✔When the producer completes the
insured's application
✔✔Which of the following statements is CORRECT about the Misstatement of Age
provision? - ✔✔It requires that an adjustment be made in the amount of insurance if the
age of the insured is misstated
✔✔Which of the following beneficiary designations may limit a policyowner's rights? -
✔✔Irrevocable
✔✔Investor-Originated Life Insurance (IOLI) is an arrangement in which the death of the
insured benefits the - ✔✔owner
✔✔N takes out a loan against a life insurance policy which is equal to one-half of the
cash value. If N decides not to pay the interest when it is due, the insurance company
will automatically - ✔✔add to the loan balance the amount of interest due
✔✔Which of the following policies provides temporary coverage that may be changed to
permanent coverage without regard to the insured's health? - ✔✔Convertible Term
✔✔An insured named his wife beneficiary and his son as contingent beneficiary. If the
insured and his wife are killed in the same accident, the Common Disaster clause
provides for payment to whom? - ✔✔The insured's son
✔✔The Z Company takes out a Key Employee policy on its director of operations.
Several years later the employee leaves Z company, joins A Company and is killed in
QUESTIONS AND ANSWERS GRADED A+
✔✔Changes made on an insurance application should be signed or initialed by which of
the following parties - ✔✔The applicant
✔✔Which of the following policies guarantees to pay the face value either to the
beneficiary when the insured dies or to the insured when age 100 is attained? -
✔✔Whole Life
✔✔Which of the following persons has the right to change the beneficiary designation
on a life insurance policy? - ✔✔The policyowner
✔✔Which of the following statements about the Waiver of Premium provision is
INCORRECT? - ✔✔The insured must receive Social Security disability benefits before
the waiver claim becomes valid
✔✔Which of the following statements about a group accident & health policy issued to
an employer is CORRECT? - ✔✔A policy must be issued to the employer and a
certificate must be issued to each employee
✔✔All of the following provisions are required in a group life policy EXCEPT - ✔✔an
Accidental Death and Dismemberment provision
✔✔Credit policies MUST be issued in which of the following forms? - ✔✔Term
✔✔Which of the following statements is CORRECT about accelerated death benefits? -
✔✔Only available to the terminally ill with a restricted life expectancy
✔✔Which of the following statements is CORRECT about a Variable insurance
contract? - ✔✔It does not guarantee a return on investment accounts
✔✔If a life policyowner wants to take out a bank loan and the bank insists on collateral,
the insured may - ✔✔assign the policy to the bank
✔✔All of the following persons must sign an application for life insurance EXCEPT the -
✔✔revocable beneficiary
✔✔A producer who discovers that answers to a series of questions on a life insurance
application were omitted should take which of the following actions? - ✔✔Schedule
another appointment with the applicant to complete the unanswered questions
, ✔✔L purchased a life insurance contract on July 16, 2004. L became severely
depressed and on November 1, 2004 took his own life. Which of the following
statements best describes how the insurance company settled the claim with L's
beneficiaries? - ✔✔The claim was denied under the Suicide clause of the policy
✔✔Which of the following statements is CORRECT if the premiums on a participating
policy are waived because of an insured's disability? - ✔✔The insurer will continue to
pay declared dividends
✔✔Which of the following provisions of a life insurance policy will pay a stated amount
to an insured if the insured is blinded in an accident? - ✔✔Accidental Death and
Dismemberment clause
✔✔When an employer provides noncontributory group term life insurance, which of the
following statements is CORRECT? - ✔✔The employer pays the entire cost of the plan
✔✔An applicant for life insurance must be informed of their rights under the Fair Credit
Reporting Act at which of the following times? - ✔✔When the producer completes the
insured's application
✔✔Which of the following statements is CORRECT about the Misstatement of Age
provision? - ✔✔It requires that an adjustment be made in the amount of insurance if the
age of the insured is misstated
✔✔Which of the following beneficiary designations may limit a policyowner's rights? -
✔✔Irrevocable
✔✔Investor-Originated Life Insurance (IOLI) is an arrangement in which the death of the
insured benefits the - ✔✔owner
✔✔N takes out a loan against a life insurance policy which is equal to one-half of the
cash value. If N decides not to pay the interest when it is due, the insurance company
will automatically - ✔✔add to the loan balance the amount of interest due
✔✔Which of the following policies provides temporary coverage that may be changed to
permanent coverage without regard to the insured's health? - ✔✔Convertible Term
✔✔An insured named his wife beneficiary and his son as contingent beneficiary. If the
insured and his wife are killed in the same accident, the Common Disaster clause
provides for payment to whom? - ✔✔The insured's son
✔✔The Z Company takes out a Key Employee policy on its director of operations.
Several years later the employee leaves Z company, joins A Company and is killed in
