TEXAS LIFE AND HEALTH EXAM
QUESTIONS WITH VERIFIED ANSWERS
Under an Accidental Death and Dismemberment policy, the contingent beneficiary will
receive - Answer-the policy proceeds if the primary beneficiary dies before the insured's
death
A beneficiary who must consent to a change in the beneficiary designation in a life
insurance policy is referred to as - Answer-an irrevocable beneficiary
The Old Age and Survivors Disability Health Insurance (OASDHI) system is
COMMONLY referred to as - Answer-Social Security
The policy provision that prevents an insurance company from altering its agreement
with a policyowner by referring to documents or other items not contained in the policy
is called the - Answer-Entire Contract provision
The provisions states to whom claims will be paid? - Answer-Payment of Claims
Which of the following statements is CORRECT about third-party ownership of a life
insurance policy? - Answer-It is widely used in business insurance and estate-planning
situations
A policy that is overfunded, according to IRS tables, is classified as which of the
following types of policies? - Answer-Modified Endowment Contract
Policy provisions gives an insurance company the right to set requirements that an
insured must meet while a claim is pending? - Answer-Time Limit on Certain Defenses
In a life insurance policy, the Consideration clause states that the policyowner's
consideration consists of completing the application and - Answer-paying the initial
premium
The Time Payment of Claims provision requires that an insurance company pay
Disability Income benefits no less frequently than - Answer-monthly
A producer takes an application for individual insurance and accepts a check from the
client. The producer mails the check and application to the insurance company. A
member of the company's underwriting department notices that the application is signed
but the check is not. In this situation, if the applicant is approved by the insurance
company, coverage will be effective as of which of the following dates? - Answer-The
date the producer delivered the policy collected the initial premium and obtained a
statement indicating that there is no change in the insured's health
, Items that may be used to include coverage for children under their parent's insurance
policy? - Answer-A Term rider
An underwriter's evaluation of information on a life insurance application is also known
as - Answer-risk classification
A 64-year old widow recently received a $100,000 death benefit from her husband's life
policy. If she wants to purchase an annuity that will provide her an immediate,
guaranteed income for life, which of the following types of annuity BEST suits her
needs? - Answer-Single Premium
Elements of a contract is necessary before a life policy will be issued? - Answer-A
prospect's signature on an application
A policyowner decides to use dividends from a life insurance policy to purchase paid-up
additions. The policyowner asks a producer to explain how the amount of the paid-up
addition that is purchased each year will be determined. The producer's explanation
includes all of the following facts EXCEPT - Answer-the age of the beneficiary
A prehospitalization authorization program (pre-certification) is a good example of -
Answer-managed care
A policyowner may change a revocable beneficiary at which of the following times? -
Answer-At any time
When submitting an application for an individual policy to an insurance company, a
producer should take which of the following actions? - Answer-Advise the company of
any other relevant information not contained in the application
Which of the following statements about an Incontestable clause is CORRECT -
Answer-It allows an insurer to contest a claim during the Contestable Period
If a business owner becomes disabled, a Business Overhead Expense policy would
cover - Answer-office rent and telephone bills
Under federal law a tax exempt Health Savings Account can only be opened for an
individual who is enrolled in which type of plan? - Answer-High deductible health plan
A retirement plan that may be established by an employee, regardless of any other
retirement plan is called a(n) - Answer-Individual Retirement Account (IRA)
Q and H are co-primary beneficiaries on the $100,000 Accidental Death and
Dismemberment policy insuring their mother. Their father is the contingent beneficiary.
If Q dies of cancer and the mother is killed in an auto accident two months later, the
father will receive a MAXIMUM of - Answer-0$
QUESTIONS WITH VERIFIED ANSWERS
Under an Accidental Death and Dismemberment policy, the contingent beneficiary will
receive - Answer-the policy proceeds if the primary beneficiary dies before the insured's
death
A beneficiary who must consent to a change in the beneficiary designation in a life
insurance policy is referred to as - Answer-an irrevocable beneficiary
The Old Age and Survivors Disability Health Insurance (OASDHI) system is
COMMONLY referred to as - Answer-Social Security
The policy provision that prevents an insurance company from altering its agreement
with a policyowner by referring to documents or other items not contained in the policy
is called the - Answer-Entire Contract provision
The provisions states to whom claims will be paid? - Answer-Payment of Claims
Which of the following statements is CORRECT about third-party ownership of a life
insurance policy? - Answer-It is widely used in business insurance and estate-planning
situations
A policy that is overfunded, according to IRS tables, is classified as which of the
following types of policies? - Answer-Modified Endowment Contract
Policy provisions gives an insurance company the right to set requirements that an
insured must meet while a claim is pending? - Answer-Time Limit on Certain Defenses
In a life insurance policy, the Consideration clause states that the policyowner's
consideration consists of completing the application and - Answer-paying the initial
premium
The Time Payment of Claims provision requires that an insurance company pay
Disability Income benefits no less frequently than - Answer-monthly
A producer takes an application for individual insurance and accepts a check from the
client. The producer mails the check and application to the insurance company. A
member of the company's underwriting department notices that the application is signed
but the check is not. In this situation, if the applicant is approved by the insurance
company, coverage will be effective as of which of the following dates? - Answer-The
date the producer delivered the policy collected the initial premium and obtained a
statement indicating that there is no change in the insured's health
, Items that may be used to include coverage for children under their parent's insurance
policy? - Answer-A Term rider
An underwriter's evaluation of information on a life insurance application is also known
as - Answer-risk classification
A 64-year old widow recently received a $100,000 death benefit from her husband's life
policy. If she wants to purchase an annuity that will provide her an immediate,
guaranteed income for life, which of the following types of annuity BEST suits her
needs? - Answer-Single Premium
Elements of a contract is necessary before a life policy will be issued? - Answer-A
prospect's signature on an application
A policyowner decides to use dividends from a life insurance policy to purchase paid-up
additions. The policyowner asks a producer to explain how the amount of the paid-up
addition that is purchased each year will be determined. The producer's explanation
includes all of the following facts EXCEPT - Answer-the age of the beneficiary
A prehospitalization authorization program (pre-certification) is a good example of -
Answer-managed care
A policyowner may change a revocable beneficiary at which of the following times? -
Answer-At any time
When submitting an application for an individual policy to an insurance company, a
producer should take which of the following actions? - Answer-Advise the company of
any other relevant information not contained in the application
Which of the following statements about an Incontestable clause is CORRECT -
Answer-It allows an insurer to contest a claim during the Contestable Period
If a business owner becomes disabled, a Business Overhead Expense policy would
cover - Answer-office rent and telephone bills
Under federal law a tax exempt Health Savings Account can only be opened for an
individual who is enrolled in which type of plan? - Answer-High deductible health plan
A retirement plan that may be established by an employee, regardless of any other
retirement plan is called a(n) - Answer-Individual Retirement Account (IRA)
Q and H are co-primary beneficiaries on the $100,000 Accidental Death and
Dismemberment policy insuring their mother. Their father is the contingent beneficiary.
If Q dies of cancer and the mother is killed in an auto accident two months later, the
father will receive a MAXIMUM of - Answer-0$
