FINAL EXAM REVIEW - Texas life and
health 150 complete accurate solutions.
FINAL EXAM REVIEW - Texas life and
health 150 complete accurate solutions.
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 - 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: - 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: - ANSWER P
only
Which of these statements accurately describes the Waiver of Premium provision in an Accident and
Health policy? - 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 - 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? - ANSWER olicy was returned within the free-
look period, premium will be fully refunded
Who can purchase a plan through the Marketplace? - ANSWER Any legal resident except those
incarcerated
,FINAL EXAM REVIEW - Texas life and
health 150 complete accurate solutions.
A major medical policy typically: - 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? - ANSWER Nonrenewable
A Whole Life Insurance Policy endows when the - ANSWER Cash value equals the death benefit
The insuring clause - 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. -
ANSWER 15
A Family Income Policy is a combination of Whole Life and - 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? - ANSWER $0
Which of these statements describe a Modified Endowment Contract (MEC)? - 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? - ANSWER conversion
An insurance company may be judged guilty of false advertising if it - ANSWER exaggerates its dividends
in a newspaper advertisement
, FINAL EXAM REVIEW - Texas life and
health 150 complete accurate solutions.
A policy of adhesion can only be modified by whom? - ANSWER the insurance company
Variable Whole Life Insurance can be described as: - ANSWER both an insurance and securities product
Which type of contract liquidates an estate through recurrent payments? - 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: - ANSWER business overhead expense
What is the elimination period of an individual disability policy? - ANSWER time period a disabled person
must wait before benefits are paid
In Texas, a domestic insurance company is defined as a company that - ANSWER is incorporated and
formed in Texas
Under a Renewable Term policy, - 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 - ANSWER right to loan proceeds
The Commissioner of Insurance may issue a temporary agent's license for a maximum of how many
days? - ANSWER 90
All of the following statements about health coverage for newborns are correct EXCEPT - 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? - ANSWER
20
health 150 complete accurate solutions.
FINAL EXAM REVIEW - Texas life and
health 150 complete accurate solutions.
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 - 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: - 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: - ANSWER P
only
Which of these statements accurately describes the Waiver of Premium provision in an Accident and
Health policy? - 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 - 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? - ANSWER olicy was returned within the free-
look period, premium will be fully refunded
Who can purchase a plan through the Marketplace? - ANSWER Any legal resident except those
incarcerated
,FINAL EXAM REVIEW - Texas life and
health 150 complete accurate solutions.
A major medical policy typically: - 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? - ANSWER Nonrenewable
A Whole Life Insurance Policy endows when the - ANSWER Cash value equals the death benefit
The insuring clause - 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. -
ANSWER 15
A Family Income Policy is a combination of Whole Life and - 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? - ANSWER $0
Which of these statements describe a Modified Endowment Contract (MEC)? - 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? - ANSWER conversion
An insurance company may be judged guilty of false advertising if it - ANSWER exaggerates its dividends
in a newspaper advertisement
, FINAL EXAM REVIEW - Texas life and
health 150 complete accurate solutions.
A policy of adhesion can only be modified by whom? - ANSWER the insurance company
Variable Whole Life Insurance can be described as: - ANSWER both an insurance and securities product
Which type of contract liquidates an estate through recurrent payments? - 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: - ANSWER business overhead expense
What is the elimination period of an individual disability policy? - ANSWER time period a disabled person
must wait before benefits are paid
In Texas, a domestic insurance company is defined as a company that - ANSWER is incorporated and
formed in Texas
Under a Renewable Term policy, - 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 - ANSWER right to loan proceeds
The Commissioner of Insurance may issue a temporary agent's license for a maximum of how many
days? - ANSWER 90
All of the following statements about health coverage for newborns are correct EXCEPT - 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? - ANSWER
20
