TEXAS LIFE & HEALTH INSURANCE
2024 EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS
If, at the time of an insured's death, the insurance company
discovers that the insured's age was misstated on the
application for life insurance, the company will most likely
Correct Answer pay the policy proceeds in the amount the
premiums would have purchased at the insured's actual age
The provision in a health insurance policy that suspends
premiums being paid to the insurer while the insured is disabled
is called the: Correct Answer Waiver of Premium
P and Q are married and have three children. P is the primary
beneficiary on Q's Accidental Death and Dismemberment
(AD&D) policy and Q's sister R is the contingent beneficiary. P,
Q, and R are involved in a car accident and Q and R are killed
instantly. The Accidental Death benefits will be paid to: Correct
Answer P only
Which of these statements accurately describes the Waiver of
Premium provision in an Accident and Health policy? Correct
Answer *Premiums are waived after the insured has been
totally disabled for a specified time period
(The Waiver of Premium provision waives the payment of
premiums after the insured has been totally disabled for a
specified period of time.)
All of the following provisions must be included in life insurance
policies EXCEPT Correct Answer All of the following provisions
must be included in life insurance policies EXCEPT
,Q applied for life insurance and submitted the initial premium
on January 1. The policy was issued February 1, but it was not
delivered by the agent until February 7. Q is dissatisfied and
returns the policy February 13. How will the insurer handle this
situation? Correct Answer olicy was returned within the free-
look period, premium will be fully refunded
Who can purchase a plan through the Marketplace? Correct
Answer Any legal resident except those incarcerated
A major medical policy typically: Correct Answer provides
benefits for reasonable and necessary medical expenses,
subject to policy limits
Which of the following BEST describes a short-term medical
expense policy? Correct Answer Nonrenewable
A Whole Life Insurance Policy endows when the Correct
Answer Cash value equals the death benefit
The insuring clause Correct Answer States the scope and limits
of the coverage
An insurer must provide an insured with claim forms within __
days after receiving notice of a loss. Correct Answer 15
A Family Income Policy is a combination of Whole Life and
Correct Answer Decreasing term insurance
T and S are named co-primary beneficiaries on a $500,000
Accidental Death and Dismemberment policy insuring their
father. Their mother was named contingent beneficiary. Five
years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death
benefit will the mother receive? Correct Answer $0
,Which of these statements describe a Modified Endowment
Contract (MEC)? Correct Answer Exceeds the maximum
amount of premium that can be paid into a policy and still have
it recognized as a life insurance contract
What group term life feature permits an individual to depart
from the group and continue to be covered without providing
evidence of insurability? Correct Answer conversion
An insurance company may be judged guilty of false
advertising if it Correct Answer exaggerates its dividends in a
newspaper advertisement
A policy of adhesion can only be modified by whom? Correct
Answer the insurance company
Variable Whole Life Insurance can be described as: Correct
Answer both an insurance and securities product
Which type of contract liquidates an estate through recurrent
payments? Correct Answer annuity
Many small business owners worry how their business would
survive financially if the owner becomes disabled. The policy
which BEST addresses this concern is: Correct Answer
business overhead expense
What is the elimination period of an individual disability policy?
Correct Answer time period a disabled person must wait before
benefits are paid
In Texas, a domestic insurance company is defined as a
company that Correct Answer is incorporated and formed in
Texas
, Under a Renewable Term policy, Correct Answer the renewal
premium is calculated on the basis of the insured's attained
age.
Group life policies MUST include all of the following provisions
EXCEPT Correct Answer right to loan proceeds
The Commissioner of Insurance may issue a temporary agent's
license for a maximum of how many days? Correct Answer 90
All of the following statements about health coverage for
newborns are correct EXCEPT Correct Answer coverage
during the first year is limited to congenital defects
An insured must notify an insurer of a medical claim within how
many days after an accident? Correct Answer 20
On August 6, D submitted an application for a $50,000 Life
Insurance policy and did not pay the initial premium. On August
18, D went to his doctor complaining of chest pains and some
tests were given by the doctor. The life policy was delivered by
the producer on August 20 and D explains what had recently
taken place with the doctor. What action should the producer
then take? Correct Answer collect initial premium along with a
signed health statement
Which of these terms accurately defines an underwriter's
assessment of information on a life insurance application?
Correct Answer risk classification
What is the purpose of a Policy Summary? Correct Answer
Highlights the critical parts of the policy issued
Under the Texas code, the MAXIMUM for which a spouse may
be insured in a company group life program with a $50,000
death benefit is: Correct Answer $25,000
2024 EXAM QUESTIONS WITH
CORRECT DETAILED ANSWERS
If, at the time of an insured's death, the insurance company
discovers that the insured's age was misstated on the
application for life insurance, the company will most likely
Correct Answer pay the policy proceeds in the amount the
premiums would have purchased at the insured's actual age
The provision in a health insurance policy that suspends
premiums being paid to the insurer while the insured is disabled
is called the: Correct Answer Waiver of Premium
P and Q are married and have three children. P is the primary
beneficiary on Q's Accidental Death and Dismemberment
(AD&D) policy and Q's sister R is the contingent beneficiary. P,
Q, and R are involved in a car accident and Q and R are killed
instantly. The Accidental Death benefits will be paid to: Correct
Answer P only
Which of these statements accurately describes the Waiver of
Premium provision in an Accident and Health policy? Correct
Answer *Premiums are waived after the insured has been
totally disabled for a specified time period
(The Waiver of Premium provision waives the payment of
premiums after the insured has been totally disabled for a
specified period of time.)
All of the following provisions must be included in life insurance
policies EXCEPT Correct Answer All of the following provisions
must be included in life insurance policies EXCEPT
,Q applied for life insurance and submitted the initial premium
on January 1. The policy was issued February 1, but it was not
delivered by the agent until February 7. Q is dissatisfied and
returns the policy February 13. How will the insurer handle this
situation? Correct Answer olicy was returned within the free-
look period, premium will be fully refunded
Who can purchase a plan through the Marketplace? Correct
Answer Any legal resident except those incarcerated
A major medical policy typically: Correct Answer provides
benefits for reasonable and necessary medical expenses,
subject to policy limits
Which of the following BEST describes a short-term medical
expense policy? Correct Answer Nonrenewable
A Whole Life Insurance Policy endows when the Correct
Answer Cash value equals the death benefit
The insuring clause Correct Answer States the scope and limits
of the coverage
An insurer must provide an insured with claim forms within __
days after receiving notice of a loss. Correct Answer 15
A Family Income Policy is a combination of Whole Life and
Correct Answer Decreasing term insurance
T and S are named co-primary beneficiaries on a $500,000
Accidental Death and Dismemberment policy insuring their
father. Their mother was named contingent beneficiary. Five
years later, S dies of natural causes and the father is killed in a
scuba accident shortly afterwards. How much of the death
benefit will the mother receive? Correct Answer $0
,Which of these statements describe a Modified Endowment
Contract (MEC)? Correct Answer Exceeds the maximum
amount of premium that can be paid into a policy and still have
it recognized as a life insurance contract
What group term life feature permits an individual to depart
from the group and continue to be covered without providing
evidence of insurability? Correct Answer conversion
An insurance company may be judged guilty of false
advertising if it Correct Answer exaggerates its dividends in a
newspaper advertisement
A policy of adhesion can only be modified by whom? Correct
Answer the insurance company
Variable Whole Life Insurance can be described as: Correct
Answer both an insurance and securities product
Which type of contract liquidates an estate through recurrent
payments? Correct Answer annuity
Many small business owners worry how their business would
survive financially if the owner becomes disabled. The policy
which BEST addresses this concern is: Correct Answer
business overhead expense
What is the elimination period of an individual disability policy?
Correct Answer time period a disabled person must wait before
benefits are paid
In Texas, a domestic insurance company is defined as a
company that Correct Answer is incorporated and formed in
Texas
, Under a Renewable Term policy, Correct Answer the renewal
premium is calculated on the basis of the insured's attained
age.
Group life policies MUST include all of the following provisions
EXCEPT Correct Answer right to loan proceeds
The Commissioner of Insurance may issue a temporary agent's
license for a maximum of how many days? Correct Answer 90
All of the following statements about health coverage for
newborns are correct EXCEPT Correct Answer coverage
during the first year is limited to congenital defects
An insured must notify an insurer of a medical claim within how
many days after an accident? Correct Answer 20
On August 6, D submitted an application for a $50,000 Life
Insurance policy and did not pay the initial premium. On August
18, D went to his doctor complaining of chest pains and some
tests were given by the doctor. The life policy was delivered by
the producer on August 20 and D explains what had recently
taken place with the doctor. What action should the producer
then take? Correct Answer collect initial premium along with a
signed health statement
Which of these terms accurately defines an underwriter's
assessment of information on a life insurance application?
Correct Answer risk classification
What is the purpose of a Policy Summary? Correct Answer
Highlights the critical parts of the policy issued
Under the Texas code, the MAXIMUM for which a spouse may
be insured in a company group life program with a $50,000
death benefit is: Correct Answer $25,000
