TEXAS HEALTH AND LIFE
INSURANCE EXAM QUESTIONS WITH
VERIFIED SOLUTIONS.
1) Why does an insurer have a 2-year suicide clause?
A) because the commissioner of insurance requires it.
B) suicide is never paid for in life insurance.
C) to prevent payment of an immediate claim for a person
contemplating suicide.
D) to help an insurer be more profitable. -- Correct Answer ✔✔ C
To prevent payment of an immediate claim for a person
contemplating suicide.
2) Which of these could the owner of a life insurance policy do when
there is a collateral assignment?
A) determine how the dividends are used.
B) cash surrender the policy.
C) obtain another loan.
D) cancel the policy. -- Correct Answer ✔✔ A
Determine how the dividends are used.
3) When only the insurer is allowed to alter an insurance contract, the
clause that provides this is called?
A) ownership
B) entire contract
C) consideration
D) incontestable -- Correct Answer ✔✔ B
Entire contract
4) Which of these is required to reinstate a lapsed policy?
A) obtain a loan
B) fill out a new application
, C) pay a late fee
D) provide evidence of insurability -- Correct Answer ✔✔ D
Provide evidence of insurability
5) The insuring clause in an adjustable life policy has all the following
EXCEPT?
A) insured
B) insurer
C) amount of premium
D) amount of death benefit -- Correct Answer ✔✔ C
Amount of premium
6) Which of the following cannot request or make a change to alter a
life insurance policy?
A) the agent who wrote the policy
B) the policy owner
C) an executive officer of the insurer
D) a person who has absolute assignment -- Correct Answer ✔✔
A
The agent who wrote the policy
7) Which of these cannot sign or request a change in an insurance
contract?
A) policy owner
B) insured
C) executive officer of insurer
D) producer of insurer -- Correct Answer ✔✔ D
Producer of insurer
8) When the policy owner pays a premium in exchange for the
insurer's promise to pay, what provision is this?
A) consideration
B) entire contract
C) insuring clause
D) changes -- Correct Answer ✔✔ A
Consideration
,9) When the insurer cannot contest a claim after 2 years, that is
called?
A) suicide clause
B) incontestability clause
C) entire contract
D) consideration clause -- Correct Answer ✔✔ B
Incontestability clause
10) Misstatement of age or gender on the application will result in?
A) the policy being considered void or cancelled
B) return of premiums
C) death benefit paid adjusted to fit true age and gender
D) full death benefit regardless -- Correct Answer ✔✔ C
Death benefit paid adjusted to fit true age and gender.
11) What happens if a person returns a policy during the free look
period?
A) the insured may apply for another policy without a medical
exam
B) the policy is immediately terminated; the insurer retains the
premium for the underwriting costs
C) a refund of premiums minus the number of days the policy
was in effect
D) a full refund of all premiums paid is returned -- Correct
Answer ✔✔ D
A full refund of all premiums paid is returned.
12) An applicant did not disclose a medical condition on a life
insurance application 5 years later that person died due to the non
disclosed condition. The insurer will?
A) keep all premiums and void the policy
B) refund all premiums and void the policy
C) pay the whole amount of the policy to the beneficiary
D) pay half of the policy to the beneficiary -- Correct Answer ✔✔
C
Pay the whole amount of the policy to the beneficiary
, 13) An applicant lied about their age for a universal life policy. The
insurer found out the truth at the time of death. The insurer will?
A) request the beneficiary to pay back the premiums for the
correct age before paying the death benefit
B) refund all premiums and void the policy
C) pay the policy death benefit to reflect the correct age
D) pay the policy as it was issued -- Correct Answer ✔✔ C
Pay the policy death benefit to reflect the correct age
14) A policy owner/insured takes a loan of 1/2 the cash value. The
owner doesn't pay any interest that accumulates on the loan.
Which of these would be true?
A) dividends are withheld until the loan is paid back
B) interest is added to the loan annually
C) interest is deducted from the loan annually
D) dividends and interest are both withheld until the loan is paid
back -- Correct Answer ✔✔ B
Interest is added to the loan annually
15) Which of the following is NOT a non forfeiture option?
A) reduced paid up
B) extended term
C) cash surrender
D) life income -- Correct Answer ✔✔ D
Life income
16) When an insured die with an outstanding loan on the policy which
of the following applies?
A) nothing is payable the loan voids the policy's death benefits
B) the death benefit is payable minus any outstanding loans plus
interest on the loan
C) all of the death benefit is paid without reductions
D) the loan must be repaid before any death benefits are paid --
Correct Answer ✔✔ B
The death benefit is payable minus any outstanding loans plus
interest on the loan
INSURANCE EXAM QUESTIONS WITH
VERIFIED SOLUTIONS.
1) Why does an insurer have a 2-year suicide clause?
A) because the commissioner of insurance requires it.
B) suicide is never paid for in life insurance.
C) to prevent payment of an immediate claim for a person
contemplating suicide.
D) to help an insurer be more profitable. -- Correct Answer ✔✔ C
To prevent payment of an immediate claim for a person
contemplating suicide.
2) Which of these could the owner of a life insurance policy do when
there is a collateral assignment?
A) determine how the dividends are used.
B) cash surrender the policy.
C) obtain another loan.
D) cancel the policy. -- Correct Answer ✔✔ A
Determine how the dividends are used.
3) When only the insurer is allowed to alter an insurance contract, the
clause that provides this is called?
A) ownership
B) entire contract
C) consideration
D) incontestable -- Correct Answer ✔✔ B
Entire contract
4) Which of these is required to reinstate a lapsed policy?
A) obtain a loan
B) fill out a new application
, C) pay a late fee
D) provide evidence of insurability -- Correct Answer ✔✔ D
Provide evidence of insurability
5) The insuring clause in an adjustable life policy has all the following
EXCEPT?
A) insured
B) insurer
C) amount of premium
D) amount of death benefit -- Correct Answer ✔✔ C
Amount of premium
6) Which of the following cannot request or make a change to alter a
life insurance policy?
A) the agent who wrote the policy
B) the policy owner
C) an executive officer of the insurer
D) a person who has absolute assignment -- Correct Answer ✔✔
A
The agent who wrote the policy
7) Which of these cannot sign or request a change in an insurance
contract?
A) policy owner
B) insured
C) executive officer of insurer
D) producer of insurer -- Correct Answer ✔✔ D
Producer of insurer
8) When the policy owner pays a premium in exchange for the
insurer's promise to pay, what provision is this?
A) consideration
B) entire contract
C) insuring clause
D) changes -- Correct Answer ✔✔ A
Consideration
,9) When the insurer cannot contest a claim after 2 years, that is
called?
A) suicide clause
B) incontestability clause
C) entire contract
D) consideration clause -- Correct Answer ✔✔ B
Incontestability clause
10) Misstatement of age or gender on the application will result in?
A) the policy being considered void or cancelled
B) return of premiums
C) death benefit paid adjusted to fit true age and gender
D) full death benefit regardless -- Correct Answer ✔✔ C
Death benefit paid adjusted to fit true age and gender.
11) What happens if a person returns a policy during the free look
period?
A) the insured may apply for another policy without a medical
exam
B) the policy is immediately terminated; the insurer retains the
premium for the underwriting costs
C) a refund of premiums minus the number of days the policy
was in effect
D) a full refund of all premiums paid is returned -- Correct
Answer ✔✔ D
A full refund of all premiums paid is returned.
12) An applicant did not disclose a medical condition on a life
insurance application 5 years later that person died due to the non
disclosed condition. The insurer will?
A) keep all premiums and void the policy
B) refund all premiums and void the policy
C) pay the whole amount of the policy to the beneficiary
D) pay half of the policy to the beneficiary -- Correct Answer ✔✔
C
Pay the whole amount of the policy to the beneficiary
, 13) An applicant lied about their age for a universal life policy. The
insurer found out the truth at the time of death. The insurer will?
A) request the beneficiary to pay back the premiums for the
correct age before paying the death benefit
B) refund all premiums and void the policy
C) pay the policy death benefit to reflect the correct age
D) pay the policy as it was issued -- Correct Answer ✔✔ C
Pay the policy death benefit to reflect the correct age
14) A policy owner/insured takes a loan of 1/2 the cash value. The
owner doesn't pay any interest that accumulates on the loan.
Which of these would be true?
A) dividends are withheld until the loan is paid back
B) interest is added to the loan annually
C) interest is deducted from the loan annually
D) dividends and interest are both withheld until the loan is paid
back -- Correct Answer ✔✔ B
Interest is added to the loan annually
15) Which of the following is NOT a non forfeiture option?
A) reduced paid up
B) extended term
C) cash surrender
D) life income -- Correct Answer ✔✔ D
Life income
16) When an insured die with an outstanding loan on the policy which
of the following applies?
A) nothing is payable the loan voids the policy's death benefits
B) the death benefit is payable minus any outstanding loans plus
interest on the loan
C) all of the death benefit is paid without reductions
D) the loan must be repaid before any death benefits are paid --
Correct Answer ✔✔ B
The death benefit is payable minus any outstanding loans plus
interest on the loan
