Texas Life and Health Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Life%
Texas Life and Health Exam
Questions & Answers
1. Which of the following statements about Equity Indexed Life Insurance is
INCORRECT?
Answer If the actual investment differs from what was expected, the premiums
will be either lowered or raised
2. All of the following groups of people are eligible for Medicare EXCEPT
Answer -
full-time college students
3. 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
4. A beneficiary who must consent to a change in the beneficiary designation in
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a life insurance policy is referred to as
Answer an irrevocable beneficiary
5. The Old Age and Survivors Disability Health Insurance (OASDHI) system is
COMMONLY referred to as
Answer Social Security
6. 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
7. Which of the following provisions states to whom claims will be paid?
Answer Pay- ment of Claims
8. Which of the following clauses of an insurance contract states that a spec-
ified amount of money will be paid to a designated person on the death of an
insured?
Answer Insuring Agreement
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9. 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-plan- ning situations
10. A policy that is overfunded, according to IRS tables, is classified as which of
the following types of policies?
Answer Modified Endowment Contract
11. Which of the following 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
12. In a life insurance policy, the Consideration clause states that the policy-
owner's consideration consists of completing the application and
Answer paying the initial premium
13. The Time Payment of Claims provision requires that an insurance company
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pay Disability Income benefits no less frequently than
Answer monthly
14. 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
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Texas Life and Health Exam
Questions & Answers
1. Which of the following statements about Equity Indexed Life Insurance is
INCORRECT?
Answer If the actual investment differs from what was expected, the premiums
will be either lowered or raised
2. All of the following groups of people are eligible for Medicare EXCEPT
Answer -
full-time college students
3. 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
4. A beneficiary who must consent to a change in the beneficiary designation in
1 of 34 12/11/2024, 12:32
,Texas Life and Health Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Life%
a life insurance policy is referred to as
Answer an irrevocable beneficiary
5. The Old Age and Survivors Disability Health Insurance (OASDHI) system is
COMMONLY referred to as
Answer Social Security
6. 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
7. Which of the following provisions states to whom claims will be paid?
Answer Pay- ment of Claims
8. Which of the following clauses of an insurance contract states that a spec-
ified amount of money will be paid to a designated person on the death of an
insured?
Answer Insuring Agreement
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,Texas Life and Health Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Life%
9. 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-plan- ning situations
10. A policy that is overfunded, according to IRS tables, is classified as which of
the following types of policies?
Answer Modified Endowment Contract
11. Which of the following 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
12. In a life insurance policy, the Consideration clause states that the policy-
owner's consideration consists of completing the application and
Answer paying the initial premium
13. The Time Payment of Claims provision requires that an insurance company
3 of 34 12/11/2024, 12:32
,Texas Life and Health Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Life%
pay Disability Income benefits no less frequently than
Answer monthly
14. 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
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