FINAL EXAM REVIEW - Texas life and health 2024
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 -CORRECT ANS-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: -CORRECT ANS-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: -CORRECT
ANS-P only
Which of these statements accurately describes the Waiver of Premium provision in an Accident and
Health policy? -CORRECT ANS-*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 -CORRECT ANS-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? -CORRECT ANS-olicy was returned within the
free-look period, premium will be fully refunded
Who can purchase a plan through the Marketplace? -CORRECT ANS-Any legal resident except those
incarcerated
A major medical policy typically: -CORRECT ANS-provides benefits for reasonable and necessary medical
expenses, subject to policy limits
, Which of the following BEST describes a short-term medical expense policy? -CORRECT ANS-
Nonrenewable
A Whole Life Insurance Policy endows when the -CORRECT ANS-Cash value equals the death benefit
The insuring clause -CORRECT ANS-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. -
CORRECT ANS-15
A Family Income Policy is a combination of Whole Life and -CORRECT ANS-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? -CORRECT ANS-$0
Which of these statements describe a Modified Endowment Contract (MEC)? -CORRECT ANS-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? -CORRECT ANS-conversion
An insurance company may be judged guilty of false advertising if it -CORRECT ANS-exaggerates its
dividends in a newspaper advertisement
A policy of adhesion can only be modified by whom? -CORRECT ANS-the insurance company
Variable Whole Life Insurance can be described as: -CORRECT ANS-both an insurance and securities
product
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 -CORRECT ANS-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: -CORRECT ANS-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: -CORRECT
ANS-P only
Which of these statements accurately describes the Waiver of Premium provision in an Accident and
Health policy? -CORRECT ANS-*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 -CORRECT ANS-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? -CORRECT ANS-olicy was returned within the
free-look period, premium will be fully refunded
Who can purchase a plan through the Marketplace? -CORRECT ANS-Any legal resident except those
incarcerated
A major medical policy typically: -CORRECT ANS-provides benefits for reasonable and necessary medical
expenses, subject to policy limits
, Which of the following BEST describes a short-term medical expense policy? -CORRECT ANS-
Nonrenewable
A Whole Life Insurance Policy endows when the -CORRECT ANS-Cash value equals the death benefit
The insuring clause -CORRECT ANS-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. -
CORRECT ANS-15
A Family Income Policy is a combination of Whole Life and -CORRECT ANS-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? -CORRECT ANS-$0
Which of these statements describe a Modified Endowment Contract (MEC)? -CORRECT ANS-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? -CORRECT ANS-conversion
An insurance company may be judged guilty of false advertising if it -CORRECT ANS-exaggerates its
dividends in a newspaper advertisement
A policy of adhesion can only be modified by whom? -CORRECT ANS-the insurance company
Variable Whole Life Insurance can be described as: -CORRECT ANS-both an insurance and securities
product
