6/28/25, 9:22 AM Texas life and health insurance 2025 UPDATE Verified Questions And Answers | With 100% Correct Answers graded A+ Guarantee…
Texas life and health insurance 2025 UPDATE
Verified Questions And Answers | With 100%
Correct Answers graded A+ Guaranteed Success!!
Save
Terms in this set (200)
premiums paid with after tax dollars, not tax
deductible- death benefit tax free, lump sum- death
individual
benefit taxabkle to an estate- dividend tax free,
accumulate at interest, interest taxable
insurance transfer of risk
agent producer or field underwriter
insurer principle
between agent and insurer- spells out each one's
agency contract
duties- contains the express authority
applicant/proposed seeks insurance from insurer
insured
death benefit face amount- paid to beneficiary
receives the policy proceeds when insured dies-
beneficiary
doesn't have to sign contract
has all rights and privileges in a policy-pays premium,
policyowner making changes, naming beneficiary- may or may not
be insured
insured and policyowner are different people-
3rd party ownership
parent/child; key person; group life/health
https://quizlet.com/1057372860/texas-life-and-health-insurance-2025-update-verified-questions-and-answers-with-100-correct-answers-graded-a-gua… 1/17
,6/28/25, 9:22 AM Texas life and health insurance 2025 UPDATE Verified Questions And Answers | With 100% Correct Answers graded A+ Guarantee…
application main source of underwriting
part of the application process, but does not become
agent report
part of contract
entire contract application, policy, riders, amendments
statements made by applicant believed to be true but
representations
not guaranteed
misrepresentations lies told by applicant
warranty absolutely true statement
after 2 years claim cannot be denied (Period of
fraud in life
Incontestability)
claim can be denied as long as policy in force
fraud in health
(material)
conditional receipt given to insureds who pay premium with application
stop paying on one policy and start paying on a new
life policy replacement
one
health policy replacement don't cancel old policy till new one is issued
disclosure authorization states the insurers practice regarding the collection of
notice personal information
results only known to: insured, their doctor, insurer,
HIV testing
dept of health and human services
summarizes features and elements of policy being
policy summary
issued
explain how buyer should go about choosing type
buyers guide
and amount of insurance- given at time of application
anti-money laundering- 9/11- must file suspicious
USA patriot act
activity report within 30 days of initial discovery
underwriting risk classification process
https://quizlet.com/1057372860/texas-life-and-health-insurance-2025-update-verified-questions-and-answers-with-100-correct-answers-graded-a-gua… 2/17
, 6/28/25, 9:22 AM Texas life and health insurance 2025 UPDATE Verified Questions And Answers | With 100% Correct Answers graded A+ Guarantee…
policyowner must face the possibility of losing money
insurable interest or something of value in the event of loss- exists at
time of application- between owner and insured-
paramedical exam results give current health status
attending physician gives past health information
statement
(MIB) medical information adverse medical info- made up of insurers- non-profit
bureau organization
credit reports, employment records, character,
consumer reports
reputation, habits
interview friends, associates, neighbors- must be
investigative consumer
notified within 3 days report is taking- 5 days to get
report
info to consumer
ensures records are confidential, accurate, relevant,
properly used- allows consumer to contact reporting
fair credit reporting act
agency to get info on why they got declined- cant get
info from insurer- fine for violating is $2,500
representative of majority of people in the same
standard risk
class- covered at a standard rate
high risk because health issues- rated up/ pays more
substandard risk money- must sign statement of good health,
amendment, and pay extra premium
healthier lifestyle- pays lower premium than
preferred risk
substandard
taking out policy on a person with intent of selling it
STOLI/IOLI
to a 3rd party- violates concept of insurable interest
something of value each party promises to each
consideration other- answers on the application, promising to pay in
event of loss
insurable interest, consent, must be of age, not high
legal purpose
or drunk, mentally competent
https://quizlet.com/1057372860/texas-life-and-health-insurance-2025-update-verified-questions-and-answers-with-100-correct-answers-graded-a-gua… 3/17
Texas life and health insurance 2025 UPDATE
Verified Questions And Answers | With 100%
Correct Answers graded A+ Guaranteed Success!!
Save
Terms in this set (200)
premiums paid with after tax dollars, not tax
deductible- death benefit tax free, lump sum- death
individual
benefit taxabkle to an estate- dividend tax free,
accumulate at interest, interest taxable
insurance transfer of risk
agent producer or field underwriter
insurer principle
between agent and insurer- spells out each one's
agency contract
duties- contains the express authority
applicant/proposed seeks insurance from insurer
insured
death benefit face amount- paid to beneficiary
receives the policy proceeds when insured dies-
beneficiary
doesn't have to sign contract
has all rights and privileges in a policy-pays premium,
policyowner making changes, naming beneficiary- may or may not
be insured
insured and policyowner are different people-
3rd party ownership
parent/child; key person; group life/health
https://quizlet.com/1057372860/texas-life-and-health-insurance-2025-update-verified-questions-and-answers-with-100-correct-answers-graded-a-gua… 1/17
,6/28/25, 9:22 AM Texas life and health insurance 2025 UPDATE Verified Questions And Answers | With 100% Correct Answers graded A+ Guarantee…
application main source of underwriting
part of the application process, but does not become
agent report
part of contract
entire contract application, policy, riders, amendments
statements made by applicant believed to be true but
representations
not guaranteed
misrepresentations lies told by applicant
warranty absolutely true statement
after 2 years claim cannot be denied (Period of
fraud in life
Incontestability)
claim can be denied as long as policy in force
fraud in health
(material)
conditional receipt given to insureds who pay premium with application
stop paying on one policy and start paying on a new
life policy replacement
one
health policy replacement don't cancel old policy till new one is issued
disclosure authorization states the insurers practice regarding the collection of
notice personal information
results only known to: insured, their doctor, insurer,
HIV testing
dept of health and human services
summarizes features and elements of policy being
policy summary
issued
explain how buyer should go about choosing type
buyers guide
and amount of insurance- given at time of application
anti-money laundering- 9/11- must file suspicious
USA patriot act
activity report within 30 days of initial discovery
underwriting risk classification process
https://quizlet.com/1057372860/texas-life-and-health-insurance-2025-update-verified-questions-and-answers-with-100-correct-answers-graded-a-gua… 2/17
, 6/28/25, 9:22 AM Texas life and health insurance 2025 UPDATE Verified Questions And Answers | With 100% Correct Answers graded A+ Guarantee…
policyowner must face the possibility of losing money
insurable interest or something of value in the event of loss- exists at
time of application- between owner and insured-
paramedical exam results give current health status
attending physician gives past health information
statement
(MIB) medical information adverse medical info- made up of insurers- non-profit
bureau organization
credit reports, employment records, character,
consumer reports
reputation, habits
interview friends, associates, neighbors- must be
investigative consumer
notified within 3 days report is taking- 5 days to get
report
info to consumer
ensures records are confidential, accurate, relevant,
properly used- allows consumer to contact reporting
fair credit reporting act
agency to get info on why they got declined- cant get
info from insurer- fine for violating is $2,500
representative of majority of people in the same
standard risk
class- covered at a standard rate
high risk because health issues- rated up/ pays more
substandard risk money- must sign statement of good health,
amendment, and pay extra premium
healthier lifestyle- pays lower premium than
preferred risk
substandard
taking out policy on a person with intent of selling it
STOLI/IOLI
to a 3rd party- violates concept of insurable interest
something of value each party promises to each
consideration other- answers on the application, promising to pay in
event of loss
insurable interest, consent, must be of age, not high
legal purpose
or drunk, mentally competent
https://quizlet.com/1057372860/texas-life-and-health-insurance-2025-update-verified-questions-and-answers-with-100-correct-answers-graded-a-gua… 3/17
