Texas Health and Life Insurance Actual Final Exam Newest / Texas Health and
Life Insurance Exam Preparation
TEXAS HEALTH AND LIFE INSURANCE ACTUAL FINAL EXAM NEWEST /
TEXAS HEALTH AND LIFE INSURANCE EXAM PREPARATION / TEXAS
HEALTH AND LIFE INSURANCE PRACTICE EXAM WITH COMPLETE 150
QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED
A+(NEWEST VERSION!)
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 - Correct Answer-Answer: A
Consideration
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 - Correct Answer-Answer: B
Incontestability clause
Misstatement of age or gender on the application will result in?
a) the policy being considered void or cancelled
1|Page
, Texas Health and Life Insurance Actual Final Exam Newest / Texas Health and
Life Insurance Exam Preparation
b) return of premiums
c) death benefit paid adjusted to fit true age and gender
d) full death benefit regardless - Correct Answer-Answer: C
Death benefit paid adjusted to fit true age and gender.
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 - Correct Answer-Answer: D
A full refund of all premiums paid is returned.
An applicant did not disclose a medial condition on a life insurance application 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
c) pay the whole amount of the policy to the beneficiary
d) pay half of the policy to the beneficiary - Correct Answer-Answer: C
Pay the whole amount of the policy to the beneficiary
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?
2|Page
, Texas Health and Life Insurance Actual Final Exam Newest / Texas Health and
Life Insurance Exam Preparation
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 - Correct Answer-Answer: C
Pay the policy death benefit to reflect the correct age
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 - Correct
Answer-Answer: B
Interest is added to the loan annually
Which of the following is NOT a non forfeiture option?
a) reduced paid up
b) extended term
c) cash surrender
d) life income - Correct Answer-Answer: D
Life income
3|Page
, Texas Health and Life Insurance Actual Final Exam Newest / Texas Health and
Life Insurance Exam Preparation
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 - Correct Answer-
Answer: B
The death benefit is payable minus any outstanding loans plus interest on the loan
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
c) g's next of kin
d) wife's next of kin - Correct Answer-Answer: B
G's estate
G has a life policy with his new wife listed as primary beneficiary and his son listed
as contingent beneficiary. The whole family dies in the same accident. According
to the Common Disaster Clause where will the policy proceeds be paid?
a) wife's estate
b) g's estate
4|Page
Life Insurance Exam Preparation
TEXAS HEALTH AND LIFE INSURANCE ACTUAL FINAL EXAM NEWEST /
TEXAS HEALTH AND LIFE INSURANCE EXAM PREPARATION / TEXAS
HEALTH AND LIFE INSURANCE PRACTICE EXAM WITH COMPLETE 150
QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED
A+(NEWEST VERSION!)
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 - Correct Answer-Answer: A
Consideration
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 - Correct Answer-Answer: B
Incontestability clause
Misstatement of age or gender on the application will result in?
a) the policy being considered void or cancelled
1|Page
, Texas Health and Life Insurance Actual Final Exam Newest / Texas Health and
Life Insurance Exam Preparation
b) return of premiums
c) death benefit paid adjusted to fit true age and gender
d) full death benefit regardless - Correct Answer-Answer: C
Death benefit paid adjusted to fit true age and gender.
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 - Correct Answer-Answer: D
A full refund of all premiums paid is returned.
An applicant did not disclose a medial condition on a life insurance application 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
c) pay the whole amount of the policy to the beneficiary
d) pay half of the policy to the beneficiary - Correct Answer-Answer: C
Pay the whole amount of the policy to the beneficiary
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?
2|Page
, Texas Health and Life Insurance Actual Final Exam Newest / Texas Health and
Life Insurance Exam Preparation
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 - Correct Answer-Answer: C
Pay the policy death benefit to reflect the correct age
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 - Correct
Answer-Answer: B
Interest is added to the loan annually
Which of the following is NOT a non forfeiture option?
a) reduced paid up
b) extended term
c) cash surrender
d) life income - Correct Answer-Answer: D
Life income
3|Page
, Texas Health and Life Insurance Actual Final Exam Newest / Texas Health and
Life Insurance Exam Preparation
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 - Correct Answer-
Answer: B
The death benefit is payable minus any outstanding loans plus interest on the loan
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
c) g's next of kin
d) wife's next of kin - Correct Answer-Answer: B
G's estate
G has a life policy with his new wife listed as primary beneficiary and his son listed
as contingent beneficiary. The whole family dies in the same accident. According
to the Common Disaster Clause where will the policy proceeds be paid?
a) wife's estate
b) g's estate
4|Page
