TEXAS LIFE AND HEALTH UPDATED COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT - ✔✔beneficiary's age
✔✔When an insurer issues a policy that refuses to cover certain risks, this is referred to
as a(n) - ✔✔exclusions
✔✔Which statement regarding the Misstatement of Age provision is considered to be
true?
Coverage will be adjusted to reflect the insured's true age if a misstatement of age is
discovered
Requires that a new policy must be applied for if a misstatement of age is found on the
current policy
Misstatement of Age provision is valid only during the contestable period
Insurer may void the policy if a misstatement of age is discovered - ✔✔Coverage will
be adjusted to reflect the insured's true age if a misstatement of age is discovered
✔✔Which of these is NOT considered to be a right given to a policyowner? - ✔✔Modify
a provision in the insurance contract
✔✔J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ✔✔Reinstatement
provision
✔✔T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will the insurer
pay? - ✔✔50,000
✔✔D was actively serving in the Marines when he was killed in an automobile accident
while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How
much will D's beneficiary's receive? - ✔✔The full face amount
✔✔Which of these statements about a Guaranteed Insurability Option rider is NOT
TRUE?
Coverage can be added at specific events such as marriage or having a child
Evidence of insurability is not required when the option is exercised
Evidence of insurability is required when the option is exercised
Coverage can be added at specific ages - ✔✔Evidence of insurability is required when
the option is exercised
, ✔✔An insured is past due on his life insurance premium, but is still within the Grace
Period. What will the beneficiary receive if the insured dies during this Grace Period? -
✔✔Full face amount minus any past due premiums
✔✔Which of these are NOT an example of a Nonforfeiture option?
Extended Term
Reduced Paid-up
Cash Surrender
Life Income - ✔✔life income
✔✔A provision in a life insurance policy that pays the policyowner an amount that does
not surpass the guaranteed cash value is called the - ✔✔Policy Loan provision
✔✔The Consideration clause in a life insurance contract contains what pertinent
information? - ✔✔Amount of premium payments and when they are due
✔✔What does the insuring agreement in a Life insurance contract establish? - ✔✔An
insurer's basic promise
✔✔A young, married teacher has two children and owns a Whole Life policy. If the
teacher wants an increasing Death Benefit to protect against inflation, the teacher
should select which of the following Dividend Options? - ✔✔Paid-Up Additional
Insurance
✔✔Which of the following statements is CORRECT about accumulated interest earned
on dividends from an insurance policy? - ✔✔It is taxed as ordinary income
✔✔When can a policyowner change a revocable beneficiary? - ✔✔anytime
✔✔K has a life insurance policy where her husband is beneficiary and her daughter is
contingent beneficiary. Under the Common Disaster clause, if K and her husband are
both killed in an automobile accident, where would the death proceeds be directed? -
✔✔daughter
✔✔M purchased an Accidental Death and Dismemberment (AD&D) policy and named
his son as beneficiary. M has the right to change the beneficiary designation at anytime.
What type of beneficiary is his son? - ✔✔revocable
✔✔K is the insured and P is the sole beneficiary on a life insurance policy. Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision, which of these statements is true? - ✔✔Proceeds will be paid to P's estate
EXAM QUESTIONS AND ANSWERS GRADED A+
✔✔S would like to use dividends from her life insurance policy to purchase paid-up
additions. All of these would be factors that determine how much coverage can be
purchased EXCEPT - ✔✔beneficiary's age
✔✔When an insurer issues a policy that refuses to cover certain risks, this is referred to
as a(n) - ✔✔exclusions
✔✔Which statement regarding the Misstatement of Age provision is considered to be
true?
Coverage will be adjusted to reflect the insured's true age if a misstatement of age is
discovered
Requires that a new policy must be applied for if a misstatement of age is found on the
current policy
Misstatement of Age provision is valid only during the contestable period
Insurer may void the policy if a misstatement of age is discovered - ✔✔Coverage will
be adjusted to reflect the insured's true age if a misstatement of age is discovered
✔✔Which of these is NOT considered to be a right given to a policyowner? - ✔✔Modify
a provision in the insurance contract
✔✔J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ✔✔Reinstatement
provision
✔✔T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will the insurer
pay? - ✔✔50,000
✔✔D was actively serving in the Marines when he was killed in an automobile accident
while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How
much will D's beneficiary's receive? - ✔✔The full face amount
✔✔Which of these statements about a Guaranteed Insurability Option rider is NOT
TRUE?
Coverage can be added at specific events such as marriage or having a child
Evidence of insurability is not required when the option is exercised
Evidence of insurability is required when the option is exercised
Coverage can be added at specific ages - ✔✔Evidence of insurability is required when
the option is exercised
, ✔✔An insured is past due on his life insurance premium, but is still within the Grace
Period. What will the beneficiary receive if the insured dies during this Grace Period? -
✔✔Full face amount minus any past due premiums
✔✔Which of these are NOT an example of a Nonforfeiture option?
Extended Term
Reduced Paid-up
Cash Surrender
Life Income - ✔✔life income
✔✔A provision in a life insurance policy that pays the policyowner an amount that does
not surpass the guaranteed cash value is called the - ✔✔Policy Loan provision
✔✔The Consideration clause in a life insurance contract contains what pertinent
information? - ✔✔Amount of premium payments and when they are due
✔✔What does the insuring agreement in a Life insurance contract establish? - ✔✔An
insurer's basic promise
✔✔A young, married teacher has two children and owns a Whole Life policy. If the
teacher wants an increasing Death Benefit to protect against inflation, the teacher
should select which of the following Dividend Options? - ✔✔Paid-Up Additional
Insurance
✔✔Which of the following statements is CORRECT about accumulated interest earned
on dividends from an insurance policy? - ✔✔It is taxed as ordinary income
✔✔When can a policyowner change a revocable beneficiary? - ✔✔anytime
✔✔K has a life insurance policy where her husband is beneficiary and her daughter is
contingent beneficiary. Under the Common Disaster clause, if K and her husband are
both killed in an automobile accident, where would the death proceeds be directed? -
✔✔daughter
✔✔M purchased an Accidental Death and Dismemberment (AD&D) policy and named
his son as beneficiary. M has the right to change the beneficiary designation at anytime.
What type of beneficiary is his son? - ✔✔revocable
✔✔K is the insured and P is the sole beneficiary on a life insurance policy. Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision, which of these statements is true? - ✔✔Proceeds will be paid to P's estate
