Life & Health License Test Texas Exam FX questions with correct answers

What is the main purpose of the Seven-pay Test? CORRECT ANSWER-It determines if the insurance policy is an MEC. Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? CORRECT ANSWER-Third-party ownership Which of the following best defines the "owner" as it pertains to life settlement contracts? CORRECT ANSWER-The policyowner of the life insurance policy Which of the following is NOT an example of a business use of Life Insurance? CORRECT ANSWER-Workers Compensation An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? CORRECT ANSWER-Viatical settlement Which of the following is INCORRECT concerning a noncontributory group plan? CORRECT ANSWER-The employer receives a master policy, and employees receive a certificate of insurance.