TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE LATEST VERSIONS ACTUAL
EXAM COMPLETE 260 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
E and F are business partners. Each takes out a $500,000 life insurance policy on
the
other, naming himself as primary beneficiary. E and F eventually terminate their
business, and four months later E dies. Although E was married with three
children at the time of death, the primary beneficiary is still F. However, an
insurable interest no longer exists.
Where will the proceeds from E's life insurance policy be directed to?
In this situation, the proceeds from E's life insurance policy will go to F.
Which of the following terms defines the legally enforceable promise in an
insurance contract by the insurer?
Unilateral
When must insurable interest exist for a life insurance contract to be valid?
Inception of the contract
,Insurance contracts are known asbecause certain future conditions or acts must
occur before any claims can be paid.
conditional
Which of these require an offer, acceptance, and consideration?
Contract
Which of these arrangements allows one to bypass insurable interest laws?
Investor-Originated Life Insurance
Investor-originated life insurance (or IOLI), sometimes called stranger-originated
life
insurance (or STOLI) is used to circumvent state insurable interest statutes. This
is done when an investor (or stranger) persuades an individual to take out life
insurance
specifically for the purpose of selling the policy to the investor. The investor
compensates the insured and makes the premiums, then collects the death
benefit when the insured dies.
Which of these is NOT considered to be an element of an insurance
contract? the offer
acceptance
negotiating
consideration
negotiating
An agent is an individual that represents whom?
Insurer
,Insurable interest must exist at what time?
at the time of application
Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling?
Variable Life
Which of the following actions require a policy owner to provide proof of
insurability in an Adjustable Life policy?
increase face amount
When a policy owner exchanges a term policy for a whole life policy without
providing proof of good health, which of these apply?
Conversion provision
What type of life insurance are credit policies issued as?
Term
How long does the coverage normally remain on a limited-pay life policy?
age 100
, All of these statements about Equity Indexed Life Insurance are correct
EXCEPT Cash value has a minimum rate of accumulation
If the gain on the index goes beyond the policy's minimum rate of return, the
cash value will mirror that of the index
The premiums can be lowered or raised, based on investment
performance Tied to an equity index such as the S&P 500
The premiums can be lowered or raised, based on investment performance
Which of these is an element of a Variable Life policy?
A fixed, level premium
What type of life insurance incorporates flexible premiums and an adjustable
death benefit?
Universal Life
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 type of life policy covers 2 lives and pays the face amount after the first one
dies?
Joint Life Policy
Life insurance that covers an insured's whole life with level premiums paid over
a limited time is called
Limited-Pay Life
HEALTH INSURANCE LATEST VERSIONS ACTUAL
EXAM COMPLETE 260 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
E and F are business partners. Each takes out a $500,000 life insurance policy on
the
other, naming himself as primary beneficiary. E and F eventually terminate their
business, and four months later E dies. Although E was married with three
children at the time of death, the primary beneficiary is still F. However, an
insurable interest no longer exists.
Where will the proceeds from E's life insurance policy be directed to?
In this situation, the proceeds from E's life insurance policy will go to F.
Which of the following terms defines the legally enforceable promise in an
insurance contract by the insurer?
Unilateral
When must insurable interest exist for a life insurance contract to be valid?
Inception of the contract
,Insurance contracts are known asbecause certain future conditions or acts must
occur before any claims can be paid.
conditional
Which of these require an offer, acceptance, and consideration?
Contract
Which of these arrangements allows one to bypass insurable interest laws?
Investor-Originated Life Insurance
Investor-originated life insurance (or IOLI), sometimes called stranger-originated
life
insurance (or STOLI) is used to circumvent state insurable interest statutes. This
is done when an investor (or stranger) persuades an individual to take out life
insurance
specifically for the purpose of selling the policy to the investor. The investor
compensates the insured and makes the premiums, then collects the death
benefit when the insured dies.
Which of these is NOT considered to be an element of an insurance
contract? the offer
acceptance
negotiating
consideration
negotiating
An agent is an individual that represents whom?
Insurer
,Insurable interest must exist at what time?
at the time of application
Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling?
Variable Life
Which of the following actions require a policy owner to provide proof of
insurability in an Adjustable Life policy?
increase face amount
When a policy owner exchanges a term policy for a whole life policy without
providing proof of good health, which of these apply?
Conversion provision
What type of life insurance are credit policies issued as?
Term
How long does the coverage normally remain on a limited-pay life policy?
age 100
, All of these statements about Equity Indexed Life Insurance are correct
EXCEPT Cash value has a minimum rate of accumulation
If the gain on the index goes beyond the policy's minimum rate of return, the
cash value will mirror that of the index
The premiums can be lowered or raised, based on investment
performance Tied to an equity index such as the S&P 500
The premiums can be lowered or raised, based on investment performance
Which of these is an element of a Variable Life policy?
A fixed, level premium
What type of life insurance incorporates flexible premiums and an adjustable
death benefit?
Universal Life
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 type of life policy covers 2 lives and pays the face amount after the first one
dies?
Joint Life Policy
Life insurance that covers an insured's whole life with level premiums paid over
a limited time is called
Limited-Pay Life
