Texas Health and Life Insurance Exam
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1. Why does an insurer have a 2-year suicide clause?
a) because the commissioner of insurance requires it.
b) suicide is never paid for in life insurance.
c)to prevent payment of an immediate claim for a person contemplating sui-
cide.
d) to help an insurer be more profitable.: Answer: C
To prevent payment of an immediate claim for a person contemplating suicide.
2. Which of these could the owner of a life insurance policy do when there is
a collateral assignment?
a) determine how the dividends are used.
b) cash surrender the policy.
c) obtain another loan.
d) cancel the policy.: Answer: A
Determine how the dividends are used.
3. When only the insurer is allowed to alter an insurance contract, the clause
that provides this is called?
a) ownership
b) entire contract
c) consideration
d) incontestable: Answer: B
Entire contract
4. Which of these is required to reinstate a lapsed policy?
a) obtain a loan
b) fill out a new application
c) pay a late fee
d) provide evidence of insurability: Answer: D
Provide evidence of insurability
5. The insuring clause in an adjustable life policy has all the following EX-
CEPT?
a) insured
b) insurer
c) amount of premium
d) amount of death benefit: Answer: C
Amount of premium
6. Which of the following cannot request or make a change to alter a life
insurance policy?
a) the agent who wrote the policy
b) the policy owner
c) an executive officer of the insurer
, Texas Health and Life Insurance Exam
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d) a person who has absolute assignment: Answer: A
The agent who wrote the policy
7. Which of these cannot sign or request a change in an insurance contract?
a) policy owner
b) insured
c) executive officer of insurer
d) producer of insurer: Answer: D
Producer of insurer
8. When the policy owner pays a premium in exchange for the insurer's
promise to pay, what provision is this?
a) consideration
b) entire contract
c) insuring clause
d) changes: Answer: A
Consideration
9. When the insurer cannot contest a claim after 2 years, that is called?
a) suicide clause
b) incontestability clause
c) entire contract
d) consideration clause: Answer: B
Incontestability clause
10. Misstatement of age or gender on the application will result in?
a) the policy being considered void or cancelled
b) return of premiums
c) death benefit paid adjusted to fit true age and gender
d) full death benefit regardless: Answer: C
Death benefit paid adjusted to fit true age and gender.
11. What happens if a person returns a policy during the free look period?
a) the insured may apply for another policy without a medical exam
b) the policy is immediately terminated; the insurer retains the premium for
the underwriting costs
c) a refund of premiums minus the number of days the policy was in effect
d) a full refund of all premiums paid is returned: Answer: D
A full refund of all premiums paid is returned.
12. An applicant did not disclose a medial condition on a life insurance appli-
cation 5 years later that person died due to the non disclosed condition. The
insurer will?
a) keep all premiums and void the policy
b) refund all premiums and void the policy
, Texas Health and Life Insurance Exam
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c) pay the whole amount of the policy to the beneficiary
d) pay half of the policy to the beneficiary: Answer: C
Pay the whole amount of the policy to the beneficiary
13. An applicant lied about their age for a universal life policy. The insurer
found out the truth at the time of death. The insurer will?
a) request the beneficiary to pay back the premiums for the correct age before
paying the death benefit
b) refund all premiums and void the policy
c) pay the policy death benefit to reflect the correct age
d) pay the policy as it was issued: Answer: C
Pay the policy death benefit to reflect the correct age
14. A policy owner/insured takes a loan of 1/2 the cash value. The owner
doesn't pay any interest that accumulates on the loan. which of these would
be true?
a) dividends are withheld until the loan is paid back
b) interest is added to the loan annually
c) interest is deducted from the loan annually
d) dividends and interest are both withheld until the loan is paid back: Answer:
B
Interest is added to the loan annually
15. Which of the following is NOT a non forfeiture option?
a) reduced paid up
b) extended term
c) cash surrender
d) life income: Answer: D
Life income
16. When an insured die with an outstanding loan on the policy which of the
following applies?
a) nothing is payable the loan voids the policy's death benefits
b) the death benefit is payable minus any outstanding loans plus interest on
the loan
c) all of the death benefit is paid without reductions
d) the loan must be repaid before any death benefits are paid: Answer: B
The death benefit is payable minus any outstanding loans plus interest on the loan
17. G has a life policy with his wife listen as primary beneficiary. They both die
in a car accident. They don't know who died first. According to the Uniform
Simultaneous Death Act where will the policy proceeds be paid?
a) wife's estate
b) g's estate
Study online at https://quizlet.com/_8lnhca
1. Why does an insurer have a 2-year suicide clause?
a) because the commissioner of insurance requires it.
b) suicide is never paid for in life insurance.
c)to prevent payment of an immediate claim for a person contemplating sui-
cide.
d) to help an insurer be more profitable.: Answer: C
To prevent payment of an immediate claim for a person contemplating suicide.
2. Which of these could the owner of a life insurance policy do when there is
a collateral assignment?
a) determine how the dividends are used.
b) cash surrender the policy.
c) obtain another loan.
d) cancel the policy.: Answer: A
Determine how the dividends are used.
3. When only the insurer is allowed to alter an insurance contract, the clause
that provides this is called?
a) ownership
b) entire contract
c) consideration
d) incontestable: Answer: B
Entire contract
4. Which of these is required to reinstate a lapsed policy?
a) obtain a loan
b) fill out a new application
c) pay a late fee
d) provide evidence of insurability: Answer: D
Provide evidence of insurability
5. The insuring clause in an adjustable life policy has all the following EX-
CEPT?
a) insured
b) insurer
c) amount of premium
d) amount of death benefit: Answer: C
Amount of premium
6. Which of the following cannot request or make a change to alter a life
insurance policy?
a) the agent who wrote the policy
b) the policy owner
c) an executive officer of the insurer
, Texas Health and Life Insurance Exam
Study online at https://quizlet.com/_8lnhca
d) a person who has absolute assignment: Answer: A
The agent who wrote the policy
7. Which of these cannot sign or request a change in an insurance contract?
a) policy owner
b) insured
c) executive officer of insurer
d) producer of insurer: Answer: D
Producer of insurer
8. When the policy owner pays a premium in exchange for the insurer's
promise to pay, what provision is this?
a) consideration
b) entire contract
c) insuring clause
d) changes: Answer: A
Consideration
9. When the insurer cannot contest a claim after 2 years, that is called?
a) suicide clause
b) incontestability clause
c) entire contract
d) consideration clause: Answer: B
Incontestability clause
10. Misstatement of age or gender on the application will result in?
a) the policy being considered void or cancelled
b) return of premiums
c) death benefit paid adjusted to fit true age and gender
d) full death benefit regardless: Answer: C
Death benefit paid adjusted to fit true age and gender.
11. What happens if a person returns a policy during the free look period?
a) the insured may apply for another policy without a medical exam
b) the policy is immediately terminated; the insurer retains the premium for
the underwriting costs
c) a refund of premiums minus the number of days the policy was in effect
d) a full refund of all premiums paid is returned: Answer: D
A full refund of all premiums paid is returned.
12. An applicant did not disclose a medial condition on a life insurance appli-
cation 5 years later that person died due to the non disclosed condition. The
insurer will?
a) keep all premiums and void the policy
b) refund all premiums and void the policy
, Texas Health and Life Insurance Exam
Study online at https://quizlet.com/_8lnhca
c) pay the whole amount of the policy to the beneficiary
d) pay half of the policy to the beneficiary: Answer: C
Pay the whole amount of the policy to the beneficiary
13. An applicant lied about their age for a universal life policy. The insurer
found out the truth at the time of death. The insurer will?
a) request the beneficiary to pay back the premiums for the correct age before
paying the death benefit
b) refund all premiums and void the policy
c) pay the policy death benefit to reflect the correct age
d) pay the policy as it was issued: Answer: C
Pay the policy death benefit to reflect the correct age
14. A policy owner/insured takes a loan of 1/2 the cash value. The owner
doesn't pay any interest that accumulates on the loan. which of these would
be true?
a) dividends are withheld until the loan is paid back
b) interest is added to the loan annually
c) interest is deducted from the loan annually
d) dividends and interest are both withheld until the loan is paid back: Answer:
B
Interest is added to the loan annually
15. Which of the following is NOT a non forfeiture option?
a) reduced paid up
b) extended term
c) cash surrender
d) life income: Answer: D
Life income
16. When an insured die with an outstanding loan on the policy which of the
following applies?
a) nothing is payable the loan voids the policy's death benefits
b) the death benefit is payable minus any outstanding loans plus interest on
the loan
c) all of the death benefit is paid without reductions
d) the loan must be repaid before any death benefits are paid: Answer: B
The death benefit is payable minus any outstanding loans plus interest on the loan
17. G has a life policy with his wife listen as primary beneficiary. They both die
in a car accident. They don't know who died first. According to the Uniform
Simultaneous Death Act where will the policy proceeds be paid?
a) wife's estate
b) g's estate
