Texas Life and Health Insurance | Updated Exam
• In Texas, which of these statements regarding the Suicide clause is True? -✓✓An
Insurer may not use suicide as a defense against payment after the second year
• S owns a life insurance policy with cash values that fluctuate according to the
underlying investment performance of common stocks. Which of these policies
does S own? -✓✓Variable Whole Life
• The percentage of an individual's Primary Insurance Amount (PIA) determines
the benefits paid
which of the following programs? -✓✓Social Security Disability Income
• What type of life insurance incorporates flexible premiums and an adjustable
death benefit? -✓✓Universal Life
• Which of the following policy provisions prohibits an insurance company from
incorporating external
documents into an insurance policy? -✓✓Entire Contract
• Which of the following actions may NOT be taken by an insurance company to
insure a substandard
applicant for disability income coverage? -✓✓Lengthen the contestability period
• The provision in a Group Health policy that allows the insurer to postpone
coverage for a critical
illness 30 days after the policy's effective date is referred to as the: -✓✓Waiting
Period
• K is shopping for a permanent life insurance policy that will offer her the MOST
protection per dollar of
annual premium. Which of these policies best fits her needs? -✓✓Straight life
• All of these statements about the Commissioner of Insurance are true EXCEPT -
✓✓The Commissioner must be elected
• The _________ policy clause identifies which losses resulting from an accident
or sickness are insured by which policy? -✓✓Insuring
,• What group term life feature permits an individual to depart from the group and
continue to be covered
without providing evidence of insurability? -✓✓Conversion
• Which of the following characteristics is associated with a large group disability
income policy? -✓✓No medical underwriting
• What is the initial requirement for an insured to become eligible for benefits
under the Waiver of
Premium provision? -✓✓Insured must be under a physician's care
• 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? -✓✓Policy was
returned within the free-look period, premium will be fully refunded
• T was insured under an individual Disability Income policy and was severely
burned in a fire. As a
result, T became totally disabled. The insurer began making monthly benefit
payments, but later
discovered that the fire was set by T in what was described as arson. What actions
will the insurer
take? -✓✓The insurer will rescind the policy, deny the claim, and recover all
payments made
• Variable annuities may invest premiums in each of the following, EXCEPT: -
✓✓Insurer's corporate business account
• Which of the following is TRUE about a qualified retirement that is "top heavy"?
-✓✓More than 60% of plan assets are in key employee accounts
• A level premium indicates: -✓✓The premium is fixed for the entire duration of
the contract
, • P died five years after purchasing a life policy. While investigating the policy
material misrepresentations made by P during the application. What process
insurer take? -✓✓Beneficiary will be paid the Death Benefit
• In Texas, how long must a policy be in force before an insurance company must
pay death benefits for
suicide? -✓✓2 years
• D owns a Whole Life policy that was purchased 10 years ago. If the premium
payments suddenly stop
and D takes no additional action, which Nonforfeiture Option will the insurer
likely proceed with? -✓✓Extended term
• Which type of renewability best describes a Disability Income policy that covers
an individual until the
age of 65, but the insurer has the right to change the premium rate for the overall
risk class? -✓✓Guaranteed renewable
• An applicant MUST receive an Outline of Coverage when an application is taken
for a(n) -✓✓Medicare Supplement policy
• The cash value in a(n)
Life policy may fluctuate to reflect changing assumptions
regarding mortality cost, interest, and expense factors. -✓✓Universal
• The Notice of Claims provision requires a policyowner to: -✓✓notify an insurer
of a claim within a specified time
• Towns an Accident & Health policy and notifies her insurance company that she
has chosen a less
hazardous occupation. Under the Change of Occupation provision, which of the
following actions may her insurance company take? -✓✓Increase he policy's
coverage amount
• In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What
kind of contract is this? -✓✓Unilateral
• In Texas, which of these statements regarding the Suicide clause is True? -✓✓An
Insurer may not use suicide as a defense against payment after the second year
• S owns a life insurance policy with cash values that fluctuate according to the
underlying investment performance of common stocks. Which of these policies
does S own? -✓✓Variable Whole Life
• The percentage of an individual's Primary Insurance Amount (PIA) determines
the benefits paid
which of the following programs? -✓✓Social Security Disability Income
• What type of life insurance incorporates flexible premiums and an adjustable
death benefit? -✓✓Universal Life
• Which of the following policy provisions prohibits an insurance company from
incorporating external
documents into an insurance policy? -✓✓Entire Contract
• Which of the following actions may NOT be taken by an insurance company to
insure a substandard
applicant for disability income coverage? -✓✓Lengthen the contestability period
• The provision in a Group Health policy that allows the insurer to postpone
coverage for a critical
illness 30 days after the policy's effective date is referred to as the: -✓✓Waiting
Period
• K is shopping for a permanent life insurance policy that will offer her the MOST
protection per dollar of
annual premium. Which of these policies best fits her needs? -✓✓Straight life
• All of these statements about the Commissioner of Insurance are true EXCEPT -
✓✓The Commissioner must be elected
• The _________ policy clause identifies which losses resulting from an accident
or sickness are insured by which policy? -✓✓Insuring
,• What group term life feature permits an individual to depart from the group and
continue to be covered
without providing evidence of insurability? -✓✓Conversion
• Which of the following characteristics is associated with a large group disability
income policy? -✓✓No medical underwriting
• What is the initial requirement for an insured to become eligible for benefits
under the Waiver of
Premium provision? -✓✓Insured must be under a physician's care
• 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? -✓✓Policy was
returned within the free-look period, premium will be fully refunded
• T was insured under an individual Disability Income policy and was severely
burned in a fire. As a
result, T became totally disabled. The insurer began making monthly benefit
payments, but later
discovered that the fire was set by T in what was described as arson. What actions
will the insurer
take? -✓✓The insurer will rescind the policy, deny the claim, and recover all
payments made
• Variable annuities may invest premiums in each of the following, EXCEPT: -
✓✓Insurer's corporate business account
• Which of the following is TRUE about a qualified retirement that is "top heavy"?
-✓✓More than 60% of plan assets are in key employee accounts
• A level premium indicates: -✓✓The premium is fixed for the entire duration of
the contract
, • P died five years after purchasing a life policy. While investigating the policy
material misrepresentations made by P during the application. What process
insurer take? -✓✓Beneficiary will be paid the Death Benefit
• In Texas, how long must a policy be in force before an insurance company must
pay death benefits for
suicide? -✓✓2 years
• D owns a Whole Life policy that was purchased 10 years ago. If the premium
payments suddenly stop
and D takes no additional action, which Nonforfeiture Option will the insurer
likely proceed with? -✓✓Extended term
• Which type of renewability best describes a Disability Income policy that covers
an individual until the
age of 65, but the insurer has the right to change the premium rate for the overall
risk class? -✓✓Guaranteed renewable
• An applicant MUST receive an Outline of Coverage when an application is taken
for a(n) -✓✓Medicare Supplement policy
• The cash value in a(n)
Life policy may fluctuate to reflect changing assumptions
regarding mortality cost, interest, and expense factors. -✓✓Universal
• The Notice of Claims provision requires a policyowner to: -✓✓notify an insurer
of a claim within a specified time
• Towns an Accident & Health policy and notifies her insurance company that she
has chosen a less
hazardous occupation. Under the Change of Occupation provision, which of the
following actions may her insurance company take? -✓✓Increase he policy's
coverage amount
• In an insurance contract, the insurer is the only party who makes a legally
enforceable promise. What
kind of contract is this? -✓✓Unilateral
