TEXAS LIFE AND HEALTH INSURANCE FINAL EXAM QUESTIONS
WITH THE LATEST SCORE.
1) If, at the time of an insured's death, the insurance company discovers that the insured's
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age was misstated on the application for life insurance, the company will most likely --
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Answer ✔✔ pay the policy proceeds in the amount the premiums would have
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purchased at the insured's actual age t t t t t
2) The provision in a health insurance policy that suspends premiums being paid to the
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insurer while the insured is disabled is called the: -- Answer ✔✔ Waiver of Premium
t t t t t t t t t t t t t t
3) P and Q are married and have three children. P is the primary beneficiary on Q's
t t t t t t t t t t t t t t t t
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the t t t t t t t t t t t t
contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed
t t t t t t t t t t t t t t t t t t
instantly. The Accidental Death benefits will be paid to: -- Answer ✔✔ P only
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4) Which of these statements accurately describes the Waiver of Premium provision in an
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Accident and Health policy? -- Answer ✔✔ *Premiums are waived after the insured
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has been totally disabled for a specified time period
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(The Waiver of Premium provision waives the payment of premiums after the insured
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has been totally disabled for a specified period of time.)
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5) All of the following provisions must be included in life insurance policies EXCEPT --
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Answer ✔✔ All of the following provisions must be included in life insurance policies
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EXCEPT
6) Q applied for life insurance and submitted the initial premium on January 1. The policy
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was issued February 1, but it was not delivered by the agent until February 7. Q is
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dissatisfied and returns the policy February 13. How will the insurer handle this
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, situation? -- Answer ✔✔ policy was returned within the free-look period, premium will
t t t t t t t t t t t t
be fully refunded
t t t
7) Who can purchase a plan through the Marketplace? -- Answer ✔✔ Any legal resident
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except those incarcerated t t
8) A major medical policy typically: -- Answer ✔✔ provides benefits for reasonable and
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necessary medical expenses, subject to policy limits t t t t t t
9) Which of the following BEST describes a short-term medical expense policy? --
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Answer ✔✔ Nonrenewable t t
10) A Whole Life Insurance Policy endows when the -- Answer ✔✔ Cash value equals the
t t t t t t t t t t t t t t t
death benefit t
11) The insuring clause -- Answer ✔✔ States the scope and limits of the coverage
t t t t t t t t t t t t t
12) An insurer must provide an insured with claim forms within __ days after receiving
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notice of a loss. -- Answer ✔✔ 15
t t t t t t t
13) A Family Income Policy is a combination of Whole Life and -- Answer ✔✔ Decreasing
t t t t t t t t t t t t t t t
term insurance t
14) T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
t t t t t t t t t t t t t
Dismemberment policy insuring their father. Their mother was named contingent t t t t t t t t t t
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
t t t t t t t t t t t t t t t t t
accident shortly afterwards. How much of the death benefit will the mother receive? --
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Answer ✔✔ $0 t t
15) Which of these statements describe a Modified Endowment Contract (MEC)? --
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Answer ✔✔ Exceeds the maximum amount of premium that can be paid into a policy
t t t t t t t t t t t t t t t
and still have it recognized as a life insurance contract
t t t t t t t t t
, 16) What group term life feature permits an individual to depart from the group and
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continue to be covered without providing evidence of insurability? -- Answer ✔✔
t t t t t t t t t t t t
conversion
17) An insurance company may be judged guilty of false advertising if it -- Answer ✔✔
t t t t t t t t t t t t t t t
exaggerates its dividends in a newspaper advertisement t t t t t t
18) A policy of adhesion can only be modified by whom? -- Answer ✔✔ the insurance
t t t t t t t t t t t t t t t
company
19) Variable Whole Life Insurance can be described as: -- Answer ✔✔ both an insurance
t t t t t t t t t t t t t t
and securities product
t t
20) Which type of contract liquidates an estate through recurrent payments? -- Answer
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✔✔ annuity t
21) Many small business owners worry how their business would survive financially if the
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owner becomes disabled. The policy which BEST addresses this concern is: -- Answer
t t t t t t t t t t t t t
✔✔ business overhead expense
t t t
22) What is the elimination period of an individual disability policy? -- Answer ✔✔ time
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period a disabled person must wait before benefits are paid
t t t t t t t t t
23) In Texas, a domestic insurance company is defined as a company that -- Answer ✔✔ is
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incorporated and formed in Texas t t t t
24) Under a Renewable Term policy, -- Answer ✔✔ the renewal premium is calculated on
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the basis of the insured's attained age.
t t t t t t
25) Group life policies MUST include all of the following provisions EXCEPT -- Answer
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✔✔ right to loan proceeds
t t t t
26) The Commissioner of Insurance may issue a temporary agent's license for a maximum
t t t t t t t t t t t t t
of how many days? -- Answer ✔✔ 90
t t t t t t t
WITH THE LATEST SCORE.
1) If, at the time of an insured's death, the insurance company discovers that the insured's
t t t t t t t t t t t t t t t
age was misstated on the application for life insurance, the company will most likely --
t t t t t t t t t t t t t t t
Answer ✔✔ pay the policy proceeds in the amount the premiums would have
t t t t t t t t t t t t t
purchased at the insured's actual age t t t t t
2) The provision in a health insurance policy that suspends premiums being paid to the
t t t t t t t t t t t t t t
insurer while the insured is disabled is called the: -- Answer ✔✔ Waiver of Premium
t t t t t t t t t t t t t t
3) P and Q are married and have three children. P is the primary beneficiary on Q's
t t t t t t t t t t t t t t t t
Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the t t t t t t t t t t t t
contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed
t t t t t t t t t t t t t t t t t t
instantly. The Accidental Death benefits will be paid to: -- Answer ✔✔ P only
t t t t t t t t t t t t t
4) Which of these statements accurately describes the Waiver of Premium provision in an
t t t t t t t t t t t t
Accident and Health policy? -- Answer ✔✔ *Premiums are waived after the insured
t t t t t t t t t t t t t t
has been totally disabled for a specified time period
t t t t t t t t
(The Waiver of Premium provision waives the payment of premiums after the insured
t t t t t t t t t t t t t
has been totally disabled for a specified period of time.)
t t t t t t t t t
5) All of the following provisions must be included in life insurance policies EXCEPT --
t t t t t t t t t t t t t t
Answer ✔✔ All of the following provisions must be included in life insurance policies
t t t t t t t t t t t t t t
EXCEPT
6) Q applied for life insurance and submitted the initial premium on January 1. The policy
t t t t t t t t t t t t t t t
was issued February 1, but it was not delivered by the agent until February 7. Q is
t t t t t t t t t t t t t t t t t
dissatisfied and returns the policy February 13. How will the insurer handle this
t t t t t t t t t t t t t
, situation? -- Answer ✔✔ policy was returned within the free-look period, premium will
t t t t t t t t t t t t
be fully refunded
t t t
7) Who can purchase a plan through the Marketplace? -- Answer ✔✔ Any legal resident
t t t t t t t t t t t t t t
except those incarcerated t t
8) A major medical policy typically: -- Answer ✔✔ provides benefits for reasonable and
t t t t t t t t t t t t t
necessary medical expenses, subject to policy limits t t t t t t
9) Which of the following BEST describes a short-term medical expense policy? --
t t t t t t t t t t t t
Answer ✔✔ Nonrenewable t t
10) A Whole Life Insurance Policy endows when the -- Answer ✔✔ Cash value equals the
t t t t t t t t t t t t t t t
death benefit t
11) The insuring clause -- Answer ✔✔ States the scope and limits of the coverage
t t t t t t t t t t t t t
12) An insurer must provide an insured with claim forms within __ days after receiving
t t t t t t t t t t t t t t
notice of a loss. -- Answer ✔✔ 15
t t t t t t t
13) A Family Income Policy is a combination of Whole Life and -- Answer ✔✔ Decreasing
t t t t t t t t t t t t t t t
term insurance t
14) T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
t t t t t t t t t t t t t
Dismemberment policy insuring their father. Their mother was named contingent t t t t t t t t t t
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
t t t t t t t t t t t t t t t t t
accident shortly afterwards. How much of the death benefit will the mother receive? --
t t t t t t t t t t t t t t
Answer ✔✔ $0 t t
15) Which of these statements describe a Modified Endowment Contract (MEC)? --
t t t t t t t t t t t
Answer ✔✔ Exceeds the maximum amount of premium that can be paid into a policy
t t t t t t t t t t t t t t t
and still have it recognized as a life insurance contract
t t t t t t t t t
, 16) What group term life feature permits an individual to depart from the group and
t t t t t t t t t t t t t t
continue to be covered without providing evidence of insurability? -- Answer ✔✔
t t t t t t t t t t t t
conversion
17) An insurance company may be judged guilty of false advertising if it -- Answer ✔✔
t t t t t t t t t t t t t t t
exaggerates its dividends in a newspaper advertisement t t t t t t
18) A policy of adhesion can only be modified by whom? -- Answer ✔✔ the insurance
t t t t t t t t t t t t t t t
company
19) Variable Whole Life Insurance can be described as: -- Answer ✔✔ both an insurance
t t t t t t t t t t t t t t
and securities product
t t
20) Which type of contract liquidates an estate through recurrent payments? -- Answer
t t t t t t t t t t t t
✔✔ annuity t
21) Many small business owners worry how their business would survive financially if the
t t t t t t t t t t t t t
owner becomes disabled. The policy which BEST addresses this concern is: -- Answer
t t t t t t t t t t t t t
✔✔ business overhead expense
t t t
22) What is the elimination period of an individual disability policy? -- Answer ✔✔ time
t t t t t t t t t t t t t t
period a disabled person must wait before benefits are paid
t t t t t t t t t
23) In Texas, a domestic insurance company is defined as a company that -- Answer ✔✔ is
t t t t t t t t t t t t t t t t
incorporated and formed in Texas t t t t
24) Under a Renewable Term policy, -- Answer ✔✔ the renewal premium is calculated on
t t t t t t t t t t t t t t
the basis of the insured's attained age.
t t t t t t
25) Group life policies MUST include all of the following provisions EXCEPT -- Answer
t t t t t t t t t t t t t
✔✔ right to loan proceeds
t t t t
26) The Commissioner of Insurance may issue a temporary agent's license for a maximum
t t t t t t t t t t t t t
of how many days? -- Answer ✔✔ 90
t t t t t t t
