Texas Life and Health Insurance Exam Questions With Answers - Latest Update 2023/2024

Texas Life and Health Insurance Exam Questions With Answers - Latest Update 2023/2024. What type of life policy covers 2 lives and pays the face amount after the first one dies? - Joint Life Policy Life insurance that covers an insured's whole life with level premiums paid over a limited time is called - Limited-Pay Life What kind of life insurance product covers children under their parent's policy? - Term rider P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase? - Family Maintenance policy Which of the following statements about a Variable Whole Life policy is CORRECT? -It provides a minimum guaranteed Death benefit - It is a combination of a Limited Period Endowment and a Decreasing Term policy - Its premiums and benefits are variable - It has a guaranteed rate of return - It provides a minimum guaranteed Death benefit Credit Life insurance is - issued in an amount not to exceed the amount of the loan When does Term Life expire? - At the end of the policy period What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? - Face amount plus the policy's cash value A life policy with a death benefit that can fluctuate according to the performance of its underlying investment portfolio is referred to as - Variable Life What type of life policy covers two people and pays upon the death of the last insured? - Survivorship T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this? - Renewable F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed? - Decreasing term policy G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income? - 10 years The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is - the cost 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 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? - $100,000 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 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, where will the money go? - To P's estate A policyowner's rights are limited under which beneficiary designation? - Irrevocable A level premium indicates - the premium is fixed for the entire duration of the contract On a life insurance policy, who is qualified to change the beneficiary designation? - Policyowner J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct? -The gross premium is higher on a monthly payment mode as compared to being paid annually -The gross premium is lower on a monthly payment mode as compared to being paid annually -The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis -The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis - The gross premium is higher on a monthly payment mode as compared to being paid annually Any changes made on an insurance application requires the initials of whom? - Applicant In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and - the initial premium Which of these factors do NOT play a role in the underwriting of a life insurance policy? -Avocations -Credit status