Texas Life and Health Insurance Exam
Questions with 100% Correct Answers
Every 12-months after the initial enrollment period, an HMO must hold an
open enrollment period of - ✔ ✔ 31 days
The underwriting process involves all of these, EXCEPT for: - ✔ ✔ Policy loan
P is an employee who quits her job and wants to convert her group
health coverage to an individu
policy. After the expiration of COBRA benefits, which of the following
statements is TRUE? - ✔ ✔ She DOES need to provide evidence of insurability
Medicaid was designed to assist individuals who are: - ✔ ✔ below a specific
income limit
What action should a producer take if the initial premium is NOT submitted with
the application? - ✔ ✔ Forward the application to the insurer without the initial
premium
Deductibles are used in health policies to lower: - ✔ ✔ overuse of medical services
What does the ownership clause in a life insurance policy state? - ✔ ✔ Who
the policyowner is and what rights the policyowner is entitled to
,When must insurable interest be present in order for a life insurance policy to be
valid? - ✔ ✔ When the application is made
A life insurance policy would be considered a wagering contract WITHOUT: -
✔ ✔ insurable interest
A policy of adhesion can only be modified by whom? - ✔ ✔ The insurance company
Which of these is NOT a type of agent authority? - ✔ ✔ Principal
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the
first six months. Q
dies suddenly and the beneficiary is paid $500,000. This exchange of
unequal values reflects which of
the following insurance contract features? - ✔ ✔ Aleatory
All of the following are considered to be typical characteristics describing
the nature of an insurance
contract, EXCEPT: - ✔ ✔ Bilateral
What is the consideration given by an insurer in the Consideration clause of a
life policy? - ✔ ✔ Promise to pay a death benefit to a named beneficiary
The Consideration clause of an insurance contract includes: - ✔ ✔ the schedule
and amount of premium payments
,When third-party ownership is involved, applicants who also happen to be
the stated primary
beneficiary are required to have: - ✔ ✔ insurable interest in the proposed insured
Taking receipt of premiums and holding them for the insurance company is
an example of: - ✔ ✔ Fiduciary responsibility
Who makes the legally enforceable promises in a unilateral insurance policy? -
✔ ✔ insurance company
Stranger Originated Life Insurance (STOL) has been found to be in violation
of which of the following
contractual elements? - ✔ ✔ Legal Purpose (Insurable Interest)
Life and health insurance policies are: - ✔ ✔ Unilateral contracts
What kind of life insurance starts out as temporary coverage but can be later
modified to permanent
coverage without evidence of insurability? - ✔ ✔ Convertible Term
A life policy with a death benefit and cash value that can fluctuate according to
the performance of it
underlying investment portfolio is referred to as: - ✔ ✔ Variable Life
What type of life policy covers two lives and pays the face amount after the first
one dies? - ✔ ✔ Joint Life Policy
, A Universal Life policy is sometimes referred to as an unbundled Life Policy
because the owner can
see the interest earned, expense charges, and the - ✔ ✔ cost of insurance
T would like to be assured $10,000 is available in 10 years to replace a roof on
his house. What kind of
$10,000 policy should T purchase? - ✔ ✔ Ten-Year Endowment
What kind of life policy either pays the face value upon the death of the insured
or when the insured
reaches age 100? - ✔ ✔ Whole Life
Credit life insurance is typically issued with which of the following types of
coverage? - ✔ ✔ Decreasing term
Under an Interest Sensitive Whole Life policy - ✔ ✔ cash values are determined
by interest rates
Which statement is correct regarding the premium payment schedule for
whole life policies? - ✔ ✔ Premiums are payable throughout the insured's
lifetime/ coverage lasts until death of the insured
Additional coverage can be added to a Whole Life policy by adding a(n):
- ✔ ✔ decreasing term rider
Questions with 100% Correct Answers
Every 12-months after the initial enrollment period, an HMO must hold an
open enrollment period of - ✔ ✔ 31 days
The underwriting process involves all of these, EXCEPT for: - ✔ ✔ Policy loan
P is an employee who quits her job and wants to convert her group
health coverage to an individu
policy. After the expiration of COBRA benefits, which of the following
statements is TRUE? - ✔ ✔ She DOES need to provide evidence of insurability
Medicaid was designed to assist individuals who are: - ✔ ✔ below a specific
income limit
What action should a producer take if the initial premium is NOT submitted with
the application? - ✔ ✔ Forward the application to the insurer without the initial
premium
Deductibles are used in health policies to lower: - ✔ ✔ overuse of medical services
What does the ownership clause in a life insurance policy state? - ✔ ✔ Who
the policyowner is and what rights the policyowner is entitled to
,When must insurable interest be present in order for a life insurance policy to be
valid? - ✔ ✔ When the application is made
A life insurance policy would be considered a wagering contract WITHOUT: -
✔ ✔ insurable interest
A policy of adhesion can only be modified by whom? - ✔ ✔ The insurance company
Which of these is NOT a type of agent authority? - ✔ ✔ Principal
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the
first six months. Q
dies suddenly and the beneficiary is paid $500,000. This exchange of
unequal values reflects which of
the following insurance contract features? - ✔ ✔ Aleatory
All of the following are considered to be typical characteristics describing
the nature of an insurance
contract, EXCEPT: - ✔ ✔ Bilateral
What is the consideration given by an insurer in the Consideration clause of a
life policy? - ✔ ✔ Promise to pay a death benefit to a named beneficiary
The Consideration clause of an insurance contract includes: - ✔ ✔ the schedule
and amount of premium payments
,When third-party ownership is involved, applicants who also happen to be
the stated primary
beneficiary are required to have: - ✔ ✔ insurable interest in the proposed insured
Taking receipt of premiums and holding them for the insurance company is
an example of: - ✔ ✔ Fiduciary responsibility
Who makes the legally enforceable promises in a unilateral insurance policy? -
✔ ✔ insurance company
Stranger Originated Life Insurance (STOL) has been found to be in violation
of which of the following
contractual elements? - ✔ ✔ Legal Purpose (Insurable Interest)
Life and health insurance policies are: - ✔ ✔ Unilateral contracts
What kind of life insurance starts out as temporary coverage but can be later
modified to permanent
coverage without evidence of insurability? - ✔ ✔ Convertible Term
A life policy with a death benefit and cash value that can fluctuate according to
the performance of it
underlying investment portfolio is referred to as: - ✔ ✔ Variable Life
What type of life policy covers two lives and pays the face amount after the first
one dies? - ✔ ✔ Joint Life Policy
, A Universal Life policy is sometimes referred to as an unbundled Life Policy
because the owner can
see the interest earned, expense charges, and the - ✔ ✔ cost of insurance
T would like to be assured $10,000 is available in 10 years to replace a roof on
his house. What kind of
$10,000 policy should T purchase? - ✔ ✔ Ten-Year Endowment
What kind of life policy either pays the face value upon the death of the insured
or when the insured
reaches age 100? - ✔ ✔ Whole Life
Credit life insurance is typically issued with which of the following types of
coverage? - ✔ ✔ Decreasing term
Under an Interest Sensitive Whole Life policy - ✔ ✔ cash values are determined
by interest rates
Which statement is correct regarding the premium payment schedule for
whole life policies? - ✔ ✔ Premiums are payable throughout the insured's
lifetime/ coverage lasts until death of the insured
Additional coverage can be added to a Whole Life policy by adding a(n):
- ✔ ✔ decreasing term rider
