TEXAS LIFE AND HEALTH UPDATED EXAMINATION SET
QUESTIONS AND ANSWERS GRADED A+
✔✔A retirement plan that may be established by an employee, regardless of any other
retirement plan is called a(n) - ✔✔Individual Retirement Account (IRA)
✔✔Q and H are co-primary beneficiaries on the $100,000 Accidental Death and
Dismemberment policy insuring their mother. Their father is the contingent beneficiary.
If Q dies of cancer and the mother is killed in an auto accident two months later, the
father will receive a MAXIMUM of - ✔✔$0
✔✔Under the Claims Forms provision of a health policy, if the insurance company fails
to send out the claim forms within the time period required by the provision, the insured
should - ✔✔submit the claim in any form, which must be accepted by the company as
adequate proof of loss
✔✔The policy feature that permits the policyowner to select the timing of premium
payments is - ✔✔Premium Mode
✔✔An injured insured receives Disability income benefits for two months and then
returns to work. Three months later, the insured is not able to continue because of the
same condition. In this situation, the insurer may regard the second period of disability
as a continuation of the first and pay benefits on the basis of which of the following
provisions? - ✔✔Recurrent Disability
✔✔Changes made on an insurance application should be signed or initialed by which of
the following parties - ✔✔The applicant
✔✔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
✔✔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
✔✔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
, ✔✔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
an automobile accident while the Key Employee policy is still in force. In this situation,
the insurance company will pay the proceeds to which of the following entities? - ✔✔Z
Company
✔✔If a forty-five year old individual bought an annuity to provide income for life
beginning at age sixty-five, the insured did NOT buy - ✔✔an immediate annuity
✔✔A terminated employee who was covered under a group life policy for $15,000 of
Term Life insurance may convert to a - ✔✔$15,000 Whole Life policy
✔✔Under a group Credit Life policy, the amount of insurance on the life of a debtor is
limited to - ✔✔the total amount of the insured's loan
✔✔M is covered by a group health insurance plan through his employer. M is also
covered as a dependent on his spouse's group health plan. Under the Model Group
Coordination of Benefits provision, when M files a claim, his employer's plan is
considered the - ✔✔primary carrier
✔✔Long Term Care policies require that in order for an insured to be qualified for
benefits they must be unable to perform a minimum of how many Activities of Daily
Living (ADL)? - ✔✔2
✔✔Group insurance differs from individual insurance in that group insurance usually -
✔✔provides coverage at a lower cost
✔✔Coverage for the cost of a regular physical examination for preventative care would
most likely be provided by a - ✔✔Health Maintenance Organization
✔✔A Probationary Period provision in a health insurance contract becomes effective -
✔✔at the inception of the policy
✔✔A rider on a life insurance policy that guarantees that the premium will be paid if the
insured is disabled for a specified period of time is referred to as - ✔✔Waiver of
Premium
✔✔A life insurance policy that provides protection for the insured's whole life with level
premiums for a limited number of years is - ✔✔Limited Pay Life
QUESTIONS AND ANSWERS GRADED A+
✔✔A retirement plan that may be established by an employee, regardless of any other
retirement plan is called a(n) - ✔✔Individual Retirement Account (IRA)
✔✔Q and H are co-primary beneficiaries on the $100,000 Accidental Death and
Dismemberment policy insuring their mother. Their father is the contingent beneficiary.
If Q dies of cancer and the mother is killed in an auto accident two months later, the
father will receive a MAXIMUM of - ✔✔$0
✔✔Under the Claims Forms provision of a health policy, if the insurance company fails
to send out the claim forms within the time period required by the provision, the insured
should - ✔✔submit the claim in any form, which must be accepted by the company as
adequate proof of loss
✔✔The policy feature that permits the policyowner to select the timing of premium
payments is - ✔✔Premium Mode
✔✔An injured insured receives Disability income benefits for two months and then
returns to work. Three months later, the insured is not able to continue because of the
same condition. In this situation, the insurer may regard the second period of disability
as a continuation of the first and pay benefits on the basis of which of the following
provisions? - ✔✔Recurrent Disability
✔✔Changes made on an insurance application should be signed or initialed by which of
the following parties - ✔✔The applicant
✔✔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
✔✔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
✔✔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
, ✔✔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
an automobile accident while the Key Employee policy is still in force. In this situation,
the insurance company will pay the proceeds to which of the following entities? - ✔✔Z
Company
✔✔If a forty-five year old individual bought an annuity to provide income for life
beginning at age sixty-five, the insured did NOT buy - ✔✔an immediate annuity
✔✔A terminated employee who was covered under a group life policy for $15,000 of
Term Life insurance may convert to a - ✔✔$15,000 Whole Life policy
✔✔Under a group Credit Life policy, the amount of insurance on the life of a debtor is
limited to - ✔✔the total amount of the insured's loan
✔✔M is covered by a group health insurance plan through his employer. M is also
covered as a dependent on his spouse's group health plan. Under the Model Group
Coordination of Benefits provision, when M files a claim, his employer's plan is
considered the - ✔✔primary carrier
✔✔Long Term Care policies require that in order for an insured to be qualified for
benefits they must be unable to perform a minimum of how many Activities of Daily
Living (ADL)? - ✔✔2
✔✔Group insurance differs from individual insurance in that group insurance usually -
✔✔provides coverage at a lower cost
✔✔Coverage for the cost of a regular physical examination for preventative care would
most likely be provided by a - ✔✔Health Maintenance Organization
✔✔A Probationary Period provision in a health insurance contract becomes effective -
✔✔at the inception of the policy
✔✔A rider on a life insurance policy that guarantees that the premium will be paid if the
insured is disabled for a specified period of time is referred to as - ✔✔Waiver of
Premium
✔✔A life insurance policy that provides protection for the insured's whole life with level
premiums for a limited number of years is - ✔✔Limited Pay Life
