Texas Life and Health Insurance Questions With Answers Latest Graded A+ | 100% Verified

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 -Marital status - Occupation - marital status An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors? -Height - Weight -Gender -Medical history - gender What type of group plan involves employees sharing the cost? - contributory plan A noncontributory group term life plan is characterized by - the entire cost of the plan is paid for by the employer W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) -Flexible Premium Deferred annuity -Variable annuity -Immediate annuity -Straight Life annuity - Immediate annuity T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? - Life Annuity with Period Certain The annuity that represents the largest possible monthly payment to an individual annuitant is a(n) - Straight Life annuity Which of these statements concerning an Individual Straight Life annuity is accurate? - Payments are made to an annuitant for life Which type of contract liquidates an estate through recurrent payments? - Annuity P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase? - Deferred One becomes eligible for Social Security disability benefits after having been disabled for - 5 months What is Old Age and Survivors Health Insurance (OASDHI) also known as? - Social Security Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? - 5 Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - Annuity An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? - 59 1/2 A Key Employee policy is taken out by Company X on its vice president. Ten years later, this employee leaves Company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed? - Company X All students attending a large university could be covered by - a blanket policy The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for - health information Which type of provider is known for stressing preventative medical care? - Health Maintenance Organizations (HMO's)