Texas Life Health Insurance Exam
|Questions with 100% Correct
Answers
Which of the following statements is CORRECT about accumulated interest earned
on dividends from an insurance policy? - ✔ ✔ It is taxed as ordinary income
When can a policyowner change a revocable beneficiary? - ✔ ✔ anytime
K has a life insurance policy where her husband is beneficiary and her daughter
is contingent beneficiary. Under the Common Disaster clause, if K and her
husband are both killed in an automobile accident, where would the death
proceeds be directed? - ✔ ✔ daughter
M purchased an Accidental Death and Dismemberment (AD&D) policy and
named his son as beneficiary. M has the right to change the beneficiary
designation at anytime. What type of beneficiary is his son? - ✔ ✔ revocable
K is the insured and P is the sole beneficiary on a life insurance policy. Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision, which of these statements is true? - ✔ ✔ Proceeds will be paid to
P's estate
,Which statement regarding the Change of Beneficiary provision is true? - ✔ ✔
The policyowner can change the beneficiary
A policyowner's rights are limited under which beneficiary designation? -
✔ ✔ Irrevocable
What is the underlying concept regarding level premiums? - ✔ ✔ The early
years are charged more than what is needed
A level premium indicates - ✔ ✔ the premium is fixed for the entire duration of
the contract
On a life insurance policy, who is qualified to change the beneficiary
designation? - ✔ ✔ Policyowner
J chooses a monthly premium payment mode on his Whole Life insurance policy.
Which of these statements is correct?
The gross premium is higher on a monthly payment mode as compared to
being paid annually
The gross premium is lower on a monthly payment mode as compared to
being paid annually
The cash value from a life policy paid on a monthly basis builds quicker than one
paid on an annual basis
The face amount of a life policy paid on a monthly basis is higher than one paid
on an annual basis - ✔ ✔ The gross premium is higher on a monthly payment
mode as compared to being paid annually
,An incomplete life insurance application submitted to an insurer will result in
which of these actions? - ✔ ✔ Application will be returned to the writing agent
At what time must a policyowner have insurable interest on the insured in order
for the life policy to be valid? - ✔ ✔ At the time of application
Any changes made on an insurance application requires the initials of whom?
- ✔ ✔ Applicant
An underwriter determines that an applicant's risk should be recategorized due to
a health issue. This policy may be issued with a(n) - ✔ ✔ exclusion for the medical
condition
In order for coverage on a non-medical insurance application to take effect
the same day, the producer must collect a signed application and - ✔ ✔ the
initial premium
Why is an applicant's signature required on a life insurance application? - ✔ ✔
To attest that the statements on the application are accurate to the best of the
applicant's knowledge
Which of these factors do NOT play a role in the underwriting of a life insurance
policy?
Avocations
Credit status
Marital status
Occupation - ✔ ✔ marital status
, Before a life insurance policy is issued, which of these components of the
contract is required? - ✔ ✔ Applicant's signature on application
An insurance company may NOT reject a prospective insured's life application on
the basis of which of the following factors?
Height
Weight
Gender
Medical history - ✔ ✔ gender
P completes an application for a $10,000 life policy, but does not give the
producer the initial premium. P's coverage becomes effective when - ✔ ✔
P receives the policy and pays the premium
What type of group plan involves employees sharing the cost? - ✔ ✔
contributory plan
A noncontributory group term life plan is characterized by - ✔ ✔ the entire cost
of the plan is paid for by the employer
Under a trustee group life policy, who would be eligible for a certificate of
coverage? - ✔ ✔ Employee
Which provision is NOT a requirement in a group life policy? - ✔ ✔ Accidental
|Questions with 100% Correct
Answers
Which of the following statements is CORRECT about accumulated interest earned
on dividends from an insurance policy? - ✔ ✔ It is taxed as ordinary income
When can a policyowner change a revocable beneficiary? - ✔ ✔ anytime
K has a life insurance policy where her husband is beneficiary and her daughter
is contingent beneficiary. Under the Common Disaster clause, if K and her
husband are both killed in an automobile accident, where would the death
proceeds be directed? - ✔ ✔ daughter
M purchased an Accidental Death and Dismemberment (AD&D) policy and
named his son as beneficiary. M has the right to change the beneficiary
designation at anytime. What type of beneficiary is his son? - ✔ ✔ revocable
K is the insured and P is the sole beneficiary on a life insurance policy. Both are
involved in a fatal accident where K dies before P. Under the Common Disaster
provision, which of these statements is true? - ✔ ✔ Proceeds will be paid to
P's estate
,Which statement regarding the Change of Beneficiary provision is true? - ✔ ✔
The policyowner can change the beneficiary
A policyowner's rights are limited under which beneficiary designation? -
✔ ✔ Irrevocable
What is the underlying concept regarding level premiums? - ✔ ✔ The early
years are charged more than what is needed
A level premium indicates - ✔ ✔ the premium is fixed for the entire duration of
the contract
On a life insurance policy, who is qualified to change the beneficiary
designation? - ✔ ✔ Policyowner
J chooses a monthly premium payment mode on his Whole Life insurance policy.
Which of these statements is correct?
The gross premium is higher on a monthly payment mode as compared to
being paid annually
The gross premium is lower on a monthly payment mode as compared to
being paid annually
The cash value from a life policy paid on a monthly basis builds quicker than one
paid on an annual basis
The face amount of a life policy paid on a monthly basis is higher than one paid
on an annual basis - ✔ ✔ The gross premium is higher on a monthly payment
mode as compared to being paid annually
,An incomplete life insurance application submitted to an insurer will result in
which of these actions? - ✔ ✔ Application will be returned to the writing agent
At what time must a policyowner have insurable interest on the insured in order
for the life policy to be valid? - ✔ ✔ At the time of application
Any changes made on an insurance application requires the initials of whom?
- ✔ ✔ Applicant
An underwriter determines that an applicant's risk should be recategorized due to
a health issue. This policy may be issued with a(n) - ✔ ✔ exclusion for the medical
condition
In order for coverage on a non-medical insurance application to take effect
the same day, the producer must collect a signed application and - ✔ ✔ the
initial premium
Why is an applicant's signature required on a life insurance application? - ✔ ✔
To attest that the statements on the application are accurate to the best of the
applicant's knowledge
Which of these factors do NOT play a role in the underwriting of a life insurance
policy?
Avocations
Credit status
Marital status
Occupation - ✔ ✔ marital status
, Before a life insurance policy is issued, which of these components of the
contract is required? - ✔ ✔ Applicant's signature on application
An insurance company may NOT reject a prospective insured's life application on
the basis of which of the following factors?
Height
Weight
Gender
Medical history - ✔ ✔ gender
P completes an application for a $10,000 life policy, but does not give the
producer the initial premium. P's coverage becomes effective when - ✔ ✔
P receives the policy and pays the premium
What type of group plan involves employees sharing the cost? - ✔ ✔
contributory plan
A noncontributory group term life plan is characterized by - ✔ ✔ the entire cost
of the plan is paid for by the employer
Under a trustee group life policy, who would be eligible for a certificate of
coverage? - ✔ ✔ Employee
Which provision is NOT a requirement in a group life policy? - ✔ ✔ Accidental
