FINAL EXAM REVIEW - TEXAS LIFE AND HEALTH QUESTIONS AND ANSWERS 2025

FINAL EXAM REVIEW - TEXAS LIFE AND HEALTH
QUESTIONS AND ANSWERS 2025
If,OatOtheOtimeOofOanOinsured'sOdeath,OtheOinsuranceOcompanyOdiscoversOthatOtheOins
ured'sOageOwasOmisstatedOonOtheOapplicationOforOlifeOinsurance,OtheOcompanyOwillOm
ostOlikelyO-OcorrectOanswer-
payOtheOpolicyOproceedsOinOtheOamountOtheOpremiumsOwouldOhaveOpurchasedOatOthe
Oinsured'sOactualOage


TheOprovisionOinOaOhealthOinsuranceOpolicyOthatOsuspendsOpremiumsObeingOpaidOtoOt
heOinsurerOwhileOtheOinsuredOisOdisabledOisOcalledOthe:O-OcorrectOanswer-
WaiverOofOPremium


POandOQOareOmarriedOandOhaveOthreeOchildren.OPOisOtheOprimaryObeneficiaryOonOQ'
sOAccidentalODeathOandODismembermentO(AD&D)OpolicyOandOQ'sOsisterOROisOtheOc
ontingentObeneficiary.OP,OQ,OandOROareOinvolvedOinOaOcarOaccidentOandOQOandORO
areOkilledOinstantly.OTheOAccidentalODeathObenefitsOwillObeOpaidOto:O-
OcorrectOanswer-POonly


WhichOofOtheseOstatementsOaccuratelyOdescribesOtheOWaiverOofOPremiumOprovisionOin
OanOAccidentOandOHealthOpolicy?O-OcorrectOanswer-
*PremiumsOareOwaivedOafterOtheOinsuredOhasObeenOtotallyOdisabledOforOaOspecifiedOti
meOperiod


(TheOWaiverOofOPremiumOprovisionOwaivesOtheOpaymentOofOpremiumsOafterOtheOinsu
redOhasObeenOtotallyOdisabledOforOaOspecifiedOperiodOofOtime.)


AllOofOtheOfollowingOprovisionsOmustObeOincludedOinOlifeOinsuranceOpoliciesOEXCEP
TO-OcorrectOanswer-
AllOofOtheOfollowingOprovisionsOmustObeOincludedOinOlifeOinsuranceOpoliciesOEXCEP
T


QOappliedOforOlifeOinsuranceOandOsubmittedOtheOinitialOpremiumOonOJanuaryO1.OThe
OpolicyOwasOissuedOFebruaryO1,ObutOitOwasOnotOdeliveredObyOtheOagentOuntilOFebru
aryO7.OQOisOdissatisfiedOandOreturnsOtheOpolicyOFebruaryO13.OHowOwillOtheOinsurer

,OhandleOthisOsituation?O-OcorrectOanswer-olicyOwasOreturnedOwithinOtheOfree-
lookOperiod,OpremiumOwillObeOfullyOrefunded


WhoOcanOpurchaseOaOplanOthroughOtheOMarketplace?O-OcorrectOanswer-
AnyOlegalOresidentOexceptOthoseOincarcerated


AOmajorOmedicalOpolicyOtypically:O-OcorrectOanswer-
providesObenefitsOforOreasonableOandOnecessaryOmedicalOexpenses,OsubjectOtoOpolicyOl
imits


WhichOofOtheOfollowingOBESTOdescribesOaOshort-termOmedicalOexpenseOpolicy?O-
OcorrectOanswer-Nonrenewable


AOWholeOLifeOInsuranceOPolicyOendowsOwhenOtheO-OcorrectOanswer-
CashOvalueOequalsOtheOdeathObenefit


TheOinsuringOclauseO-OcorrectOanswer-StatesOtheOscopeOandOlimitsOofOtheOcoverage


AnOinsurerOmustOprovideOanOinsuredOwithOclaimOformsOwithinO__OdaysOafterOreceivi
ngOnoticeOofOaOloss.O-OcorrectOanswer-15


AOFamilyOIncomeOPolicyOisOaOcombinationOofOWholeOLifeOandO-OcorrectOanswer-
DecreasingOtermOinsurance


TOandOSOareOnamedOco-
primaryObeneficiariesOonOaO$500,000OAccidentalODeathOandODismembermentOpolicyOin
suringOtheirOfather.OTheirOmotherOwasOnamedOcontingentObeneficiary.OFiveOyearsOlater,
OSOdiesOofOnaturalOcausesOandOtheOfatherOisOkilledOinOaOscubaOaccidentOshortlyOafte
rwards.OHowOmuchOofOtheOdeathObenefitOwillOtheOmotherOreceive?O-OcorrectOanswer-
$0


WhichOofOtheseOstatementsOdescribeOaOModifiedOEndowmentOContractO(MEC)?O-
OcorrectOanswer-

, ExceedsOtheOmaximumOamountOofOpremiumOthatOcanObeOpaidOintoOaOpolicyOandOstil
lOhaveOitOrecognizedOasOaOlifeOinsuranceOcontract


WhatOgroupOtermOlifeOfeatureOpermitsOanOindividualOtoOdepartOfromOtheOgroupOandO
continueOtoObeOcoveredOwithoutOprovidingOevidenceOofOinsurability?O-OcorrectOanswer-
conversion


AnOinsuranceOcompanyOmayObeOjudgedOguiltyOofOfalseOadvertisingOifOitO-
OcorrectOanswer-exaggeratesOitsOdividendsOinOaOnewspaperOadvertisement


AOpolicyOofOadhesionOcanOonlyObeOmodifiedObyOwhom?O-OcorrectOanswer-
theOinsuranceOcompany


VariableOWholeOLifeOInsuranceOcanObeOdescribedOas:O-OcorrectOanswer-
bothOanOinsuranceOandOsecuritiesOproduct


WhichOtypeOofOcontractOliquidatesOanOestateOthroughOrecurrentOpayments?O-
OcorrectOanswer-annuity


ManyOsmallObusinessOownersOworryOhowOtheirObusinessOwouldOsurviveOfinanciallyOif
OtheOownerObecomesOdisabled.OTheOpolicyOwhichOBESTOaddressesOthisOconcernOis:O-
OcorrectOanswer-businessOoverheadOexpense


WhatOisOtheOeliminationOperiodOofOanOindividualOdisabilityOpolicy?O-OcorrectOanswer-
timeOperiodOaOdisabledOpersonOmustOwaitObeforeObenefitsOareOpaid


InOTexas,OaOdomesticOinsuranceOcompanyOisOdefinedOasOaOcompanyOthatO-
OcorrectOanswer-isOincorporatedOandOformedOinOTexas


UnderOaORenewableOTermOpolicy,O-OcorrectOanswer-
theOrenewalOpremiumOisOcalculatedOonOtheObasisOofOtheOinsured'sOattainedOage.