Texas life and health insurance Already Passed
1). Individual
Ans: premiums paid with after tax dollars, not tax deductible- death benefit tax free,
lump sum- death benefit taxabkle to an estate- dividend tax free, accumulate at interest,
interest taxable
2). Insurance
Ans: transfer of risk
3). Agent
Ans: producer or field underwriter
4). Insurer
Ans: principle
5). Agency contract
Ans: between agent and insurer- spells out each one's duties- contains the express
authority
6). Applicant/proposed insured
Ans: seeks insurance from insurer
7). Death benefit
Ans: face amount- paid to beneficiary
8). Beneficiary
Ans: receives the policy proceeds when insured dies- doesn't have to sign contract
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, 9). Policyowner
Ans: has all rights and privileges in a policy-pays premium, making changes, naming
beneficiary- may or may not be insured
10). 3rd party ownership
Ans: insured and policyowner are different people- parent/child; key person; group
life/health
11). Application
Ans: main source of underwriting
12). Agent report
Ans: part of the application process, but does not become part of contract
13). Entire contract
Ans: application, policy, riders, amendments
14). Representations
Ans: statements made by applicant believed to be true but not guaranteed
15). Misrepresentations
Ans: lies told by applicant
16). Warranty
Ans: absolutely true statement
17). Fraud in life
Ans: after 2 years claim cannot be denied (Period of Incontestability)
18). Fraud in health
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, Ans: claim can be denied as long as policy in force (material)
19). Conditional receipt
Ans: given to insureds who pay premium with application
20). Life policy replacement
Ans: stop paying on one policy and start paying on a new one
21). Health policy replacement
Ans: don't cancel old policy till new one is issued
22). Disclosure authorization notice
Ans: states the insurers practice regarding the collection of personal information
23). Hiv testing
Ans: results only known to: insured, their doctor, insurer, dept of health and human
services
24). Policy summary
Ans: summarizes features and elements of policy being issued
25). Buyers guide
Ans: explain how buyer should go about choosing type and amount of insurance-
given at time of application
26). Usa patriot act
Ans: anti-money laundering- 9/11- must file suspicious activity report within 30 days
of initial discovery
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1). Individual
Ans: premiums paid with after tax dollars, not tax deductible- death benefit tax free,
lump sum- death benefit taxabkle to an estate- dividend tax free, accumulate at interest,
interest taxable
2). Insurance
Ans: transfer of risk
3). Agent
Ans: producer or field underwriter
4). Insurer
Ans: principle
5). Agency contract
Ans: between agent and insurer- spells out each one's duties- contains the express
authority
6). Applicant/proposed insured
Ans: seeks insurance from insurer
7). Death benefit
Ans: face amount- paid to beneficiary
8). Beneficiary
Ans: receives the policy proceeds when insured dies- doesn't have to sign contract
PaperStoc.com Page 1 of 25
, 9). Policyowner
Ans: has all rights and privileges in a policy-pays premium, making changes, naming
beneficiary- may or may not be insured
10). 3rd party ownership
Ans: insured and policyowner are different people- parent/child; key person; group
life/health
11). Application
Ans: main source of underwriting
12). Agent report
Ans: part of the application process, but does not become part of contract
13). Entire contract
Ans: application, policy, riders, amendments
14). Representations
Ans: statements made by applicant believed to be true but not guaranteed
15). Misrepresentations
Ans: lies told by applicant
16). Warranty
Ans: absolutely true statement
17). Fraud in life
Ans: after 2 years claim cannot be denied (Period of Incontestability)
18). Fraud in health
PaperStoc.com Page 2 of 25
, Ans: claim can be denied as long as policy in force (material)
19). Conditional receipt
Ans: given to insureds who pay premium with application
20). Life policy replacement
Ans: stop paying on one policy and start paying on a new one
21). Health policy replacement
Ans: don't cancel old policy till new one is issued
22). Disclosure authorization notice
Ans: states the insurers practice regarding the collection of personal information
23). Hiv testing
Ans: results only known to: insured, their doctor, insurer, dept of health and human
services
24). Policy summary
Ans: summarizes features and elements of policy being issued
25). Buyers guide
Ans: explain how buyer should go about choosing type and amount of insurance-
given at time of application
26). Usa patriot act
Ans: anti-money laundering- 9/11- must file suspicious activity report within 30 days
of initial discovery
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