TX GENERAL LINES LIFE, ACCIDENT AND HEALTH EXAM PREP | COMPLETE QUESTIONS AND
ANSWERS | 2025/2026 LATEST UPDATE | ALREADY GRADED A+
When must insurable interest exist for a life insurance contract to be valid? It is only
necessary for insurable interest to exist at the time applicant applies for a life insurance contract
Under standard exclusion, must insurers would deny coverage of which of the following
Someone serving as an aircraft member
A policyowner can access the cash value of many life insurance policies trough withdrawals,
loans, or policy surrender. Which of the following describes the ability to easy convert life
insurance into cash liquidity
All of the following statements regarding a variable annuity's assumes interest rate(AIR) are
correct EXCEPT if the actual return is greater than the AIR, payments will decrease
All the Following uses for life insurance in a business represent a valid insurance interest,
EXCEPT Life insurance purchased on an important customer to make up for the financial
losses that might occur when that customer dies!
In the purchase of a life insurance contract, the applicant's considerations consist of the
signed application and the first premium
Because the consideration policyowner give insurers includes the application with the
representations it contains and the first premium
Which insurance company functions calculates company mortality and morbidity rates as well
as the dividends on participating life insurance policies actuarial division
,If a permanent life insurance policy lapses and the owner does NOT select a non forfeitures
option insurance will automatically apply the extended term insurance option
An insurance's record of complaints must include all of the following information EXCEPT
The commissions paid on policies for which companies were received
Tax law considers any limited payment life insurance policy that is paid-up in seven years or less
to be which of the following a modified endowed contract
Because Life insurance policies that are paid-up in seven years or less are modified endowment
contracts (MECs), which means that they lose some of the tax advantages usually enjoyed by life
insurance policies
Which health insurance policy provides income when disability keeps the insured from working
disability income policy
An agent commissions on Medicare supplement policies in ten first year CANNOT exceed what
percent of commissions in the second year 200 percent
Under a policy's of payment provision, what is the first thing an insurer tries to do with the
death benefits if there is no valid beneficiary available The insurer looks for a blood relative
or someone with a valid claims as the new beneficiary
Because in these cases, the insurer name blood relative or someone with a valid claim as the
new beneficiary
A deferred annuities rider that lets the annuity owner commit only part of the annuity's funds
providing guaranteed lifetime income, leaving the remainder available for withdrawal at the
owner's discretion, is called a: Guaranteed income rider
, When does a waiver of premium rider excuse the insured from paying the policy's premium?
When the insured is totally disable
Because, a waiver of premium rider excuses the insured form paying the policy's premium
during periods of total disability. The insured must pay the premium during the elimination
period. If, after the period, the insured remains disabled, the waver will be effective back to the
first day of disability.
All the following statements regarding withdrawals from q universal life policy are correct
EXCEPT Policy loans are not permitted with universal life insurance policies
Because. Policy loans are permitted with universal life policies as well as traditional permanent
life policies. Universal life insurance policies almost permit partial surrenders.
The death benefits of a fixed deferred annuity equals The contract's accumulated value
when dead occurs
From an insurance perspective, all the following statements regarding risk and loss are correct
EXCEPT Only speculative risk is insurable
All the following statements regarding perils are hazards are correct EXCEPT Smoking
cigarettes is an example of peril
Because a peril is the event that insurance protects against. Smoking is a moral hazard that
increases the chance of encountering the peril of death and illness
Lucy is applying for an individual health insurance policy and disclosed that she is diabetic,
which is considered which of the following A physical hazard
ANSWERS | 2025/2026 LATEST UPDATE | ALREADY GRADED A+
When must insurable interest exist for a life insurance contract to be valid? It is only
necessary for insurable interest to exist at the time applicant applies for a life insurance contract
Under standard exclusion, must insurers would deny coverage of which of the following
Someone serving as an aircraft member
A policyowner can access the cash value of many life insurance policies trough withdrawals,
loans, or policy surrender. Which of the following describes the ability to easy convert life
insurance into cash liquidity
All of the following statements regarding a variable annuity's assumes interest rate(AIR) are
correct EXCEPT if the actual return is greater than the AIR, payments will decrease
All the Following uses for life insurance in a business represent a valid insurance interest,
EXCEPT Life insurance purchased on an important customer to make up for the financial
losses that might occur when that customer dies!
In the purchase of a life insurance contract, the applicant's considerations consist of the
signed application and the first premium
Because the consideration policyowner give insurers includes the application with the
representations it contains and the first premium
Which insurance company functions calculates company mortality and morbidity rates as well
as the dividends on participating life insurance policies actuarial division
,If a permanent life insurance policy lapses and the owner does NOT select a non forfeitures
option insurance will automatically apply the extended term insurance option
An insurance's record of complaints must include all of the following information EXCEPT
The commissions paid on policies for which companies were received
Tax law considers any limited payment life insurance policy that is paid-up in seven years or less
to be which of the following a modified endowed contract
Because Life insurance policies that are paid-up in seven years or less are modified endowment
contracts (MECs), which means that they lose some of the tax advantages usually enjoyed by life
insurance policies
Which health insurance policy provides income when disability keeps the insured from working
disability income policy
An agent commissions on Medicare supplement policies in ten first year CANNOT exceed what
percent of commissions in the second year 200 percent
Under a policy's of payment provision, what is the first thing an insurer tries to do with the
death benefits if there is no valid beneficiary available The insurer looks for a blood relative
or someone with a valid claims as the new beneficiary
Because in these cases, the insurer name blood relative or someone with a valid claim as the
new beneficiary
A deferred annuities rider that lets the annuity owner commit only part of the annuity's funds
providing guaranteed lifetime income, leaving the remainder available for withdrawal at the
owner's discretion, is called a: Guaranteed income rider
, When does a waiver of premium rider excuse the insured from paying the policy's premium?
When the insured is totally disable
Because, a waiver of premium rider excuses the insured form paying the policy's premium
during periods of total disability. The insured must pay the premium during the elimination
period. If, after the period, the insured remains disabled, the waver will be effective back to the
first day of disability.
All the following statements regarding withdrawals from q universal life policy are correct
EXCEPT Policy loans are not permitted with universal life insurance policies
Because. Policy loans are permitted with universal life policies as well as traditional permanent
life policies. Universal life insurance policies almost permit partial surrenders.
The death benefits of a fixed deferred annuity equals The contract's accumulated value
when dead occurs
From an insurance perspective, all the following statements regarding risk and loss are correct
EXCEPT Only speculative risk is insurable
All the following statements regarding perils are hazards are correct EXCEPT Smoking
cigarettes is an example of peril
Because a peril is the event that insurance protects against. Smoking is a moral hazard that
increases the chance of encountering the peril of death and illness
Lucy is applying for an individual health insurance policy and disclosed that she is diabetic,
which is considered which of the following A physical hazard
