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Texas Health and Life Insurance bundled Exams 2023 with 100% correct answers
Texas Health and Life Insurance Exam 2023 with 100% correct answers
[Show more]Texas Health and Life Insurance Exam 2023 with 100% correct answers
[Show more]What type of reinsurance contract involves two companies automatically sharing their risk exposure? 
Treaty 
 
 
 
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called 
reserves 
 
 
 
When third-party own...
Preview 2 out of 13 pages
Add to cartWhat type of reinsurance contract involves two companies automatically sharing their risk exposure? 
Treaty 
 
 
 
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called 
reserves 
 
 
 
When third-party own...
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 
pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age 
 
 
 
The provision...
Preview 2 out of 15 pages
Add to cartIf, 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 
pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age 
 
 
 
The provision...
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? 
Upon completion of the application 
 
 
 
Who elects the governing body of a mutual insurance company? 
policyholders 
 
 
 
An insurance applicant MUST be informed of an investi...
Preview 3 out of 24 pages
Add to cartAt what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? 
Upon completion of the application 
 
 
 
Who elects the governing body of a mutual insurance company? 
policyholders 
 
 
 
An insurance applicant MUST be informed of an investi...
Why does an insurer have a 2-year suicide clause? 
a) because the commissioner of insurance requires it. 
b) suicide is never paid for in life insurance. 
c)to prevent payment of an immediate claim for a person contemplating suicide. 
d) to help an insurer be more profitable. 
Answer: C 
To prevent ...
Preview 4 out of 40 pages
Add to cartWhy does an insurer have a 2-year suicide clause? 
a) because the commissioner of insurance requires it. 
b) suicide is never paid for in life insurance. 
c)to prevent payment of an immediate claim for a person contemplating suicide. 
d) to help an insurer be more profitable. 
Answer: C 
To prevent ...
Which of these characteristics is consistent with a Straight Life Policy? 
Premiums are payable for as long as there is insurance coverage in force 
 
 
 
Which of the following are Equity Indexed annuities typically invested in? 
S&P 500 
 
 
 
Which of the following does Social Security NOT provid...
Preview 2 out of 15 pages
Add to cartWhich of these characteristics is consistent with a Straight Life Policy? 
Premiums are payable for as long as there is insurance coverage in force 
 
 
 
Which of the following are Equity Indexed annuities typically invested in? 
S&P 500 
 
 
 
Which of the following does Social Security NOT provid...
A certificate of _____ permits an insurance company to transact business in Texas. 
Authority 
 
 
 
Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT? 
If the employee paid for qualified medical expenses, the reimbursements may be tax-free 
 
 
 
The individ...
Preview 3 out of 16 pages
Add to cartA certificate of _____ permits an insurance company to transact business in Texas. 
Authority 
 
 
 
Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT? 
If the employee paid for qualified medical expenses, the reimbursements may be tax-free 
 
 
 
The individ...
An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called 
 
An installment Refund annuity 
A Straight Life annuity 
A...
Preview 4 out of 54 pages
Add to cartAn annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called 
 
An installment Refund annuity 
A Straight Life annuity 
A...
When one party makes an offer and the other accepts 
At what point does an informal contract become binding? 
 
 
 
when the application is made 
when must insurable interest be present in order for a life insurance policy to be valid? 
 
 
 
Statement guaranteed to be true 
Which is the following B...
Preview 2 out of 15 pages
Add to cartWhen one party makes an offer and the other accepts 
At what point does an informal contract become binding? 
 
 
 
when the application is made 
when must insurable interest be present in order for a life insurance policy to be valid? 
 
 
 
Statement guaranteed to be true 
Which is the following B...
The accounting measurement of an insurer's future obligations to its policy holders 
Reserves 
 
 
 
Who elects the governing body of a mutual insurance company? 
Policyholders 
 
 
 
A group owned insurance company that is formed to assume and spread liability risks of its members is known as 
Ris...
Preview 3 out of 28 pages
Add to cartThe accounting measurement of an insurer's future obligations to its policy holders 
Reserves 
 
 
 
Who elects the governing body of a mutual insurance company? 
Policyholders 
 
 
 
A group owned insurance company that is formed to assume and spread liability risks of its members is known as 
Ris...
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. Whic...
Preview 3 out of 27 pages
Add to cartIn 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. Whic...
A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy 
Required a premium increase each renewal. 
 
Annually Renewable Term policies' premiums are adjusted each year to the insured...
Preview 2 out of 9 pages
Add to cartA man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy 
Required a premium increase each renewal. 
 
Annually Renewable Term policies' premiums are adjusted each year to the insured...
A Variable insurance policy: 
 
-guarantees a minimum rate of return 
-does not allow the policyowner to assume the investment risk 
-does not guarantee a return on its investment accounts 
-does not guarantee an assignment provision 
-does not guarantee a return on its investment accounts 
 
 
 
Th...
Preview 4 out of 41 pages
Add to cartA Variable insurance policy: 
 
-guarantees a minimum rate of return 
-does not allow the policyowner to assume the investment risk 
-does not guarantee a return on its investment accounts 
-does not guarantee an assignment provision 
-does not guarantee a return on its investment accounts 
 
 
 
Th...
D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits? 
 
*Residual Benefit clause 
*Waiver Benefit clause 
*Concurrent Benefit clause 
*Guaranteed Be...
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Add to cartD is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits? 
 
*Residual Benefit clause 
*Waiver Benefit clause 
*Concurrent Benefit clause 
*Guaranteed Be...
Who is considered a field underwriter? 
An agent 
 
 
 
When must insurable interest exist in life insurance? 
Application or issue date 
 
 
 
If no receipt is issued at the time of application, a statement of good health is usually required at the time of? 
Policy delivery 
 
 
 
The Medical Infor...
Preview 2 out of 12 pages
Add to cartWho is considered a field underwriter? 
An agent 
 
 
 
When must insurable interest exist in life insurance? 
Application or issue date 
 
 
 
If no receipt is issued at the time of application, a statement of good health is usually required at the time of? 
Policy delivery 
 
 
 
The Medical Infor...
claimant 
a person who submits a claim for payment of benefits 
 
 
 
dividend 
a payment made by a policy (distribution of profits or returned of unused funds) 
 
 
 
lapse 
policy termination due to a non payment of premium 
 
 
 
Nonforfeiture Values 
benefits in a life insurance policy that the ...
Preview 2 out of 12 pages
Add to cartclaimant 
a person who submits a claim for payment of benefits 
 
 
 
dividend 
a payment made by a policy (distribution of profits or returned of unused funds) 
 
 
 
lapse 
policy termination due to a non payment of premium 
 
 
 
Nonforfeiture Values 
benefits in a life insurance policy that the ...
Insurance 
(General concept) 
- transfers the risk of loss from an individual to an insurer 
- based on the principle of indemnity 
- based on the principle of risk (risk pooling) 
 
 
 
insurable interest 
(General Concept) 
- must exist at the time of the application 
- insuring one's own life, f...
Preview 2 out of 14 pages
Add to cartInsurance 
(General concept) 
- transfers the risk of loss from an individual to an insurer 
- based on the principle of indemnity 
- based on the principle of risk (risk pooling) 
 
 
 
insurable interest 
(General Concept) 
- must exist at the time of the application 
- insuring one's own life, f...
P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when 
P receives the policy and pays the premium 
 
 
 
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at ...
Preview 2 out of 13 pages
Add to cartP completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when 
P receives the policy and pays the premium 
 
 
 
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at ...
#1. 
In a survivorship life policy, when does the insurer pay the death benefit? 
a) 
If the insured survives to age 100 
b) 
Upon the last death 
c) 
Upon the first death 
d) 
Half at the first death, and half at the second death 
b) 
Upon the last death 
 
 
 
#3. 
A father owns a life insurance p...
Preview 3 out of 23 pages
Add to cart#1. 
In a survivorship life policy, when does the insurer pay the death benefit? 
a) 
If the insured survives to age 100 
b) 
Upon the last death 
c) 
Upon the first death 
d) 
Half at the first death, and half at the second death 
b) 
Upon the last death 
 
 
 
#3. 
A father owns a life insurance p...
Question 1 
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? 
Life income 
 
 
 
Question 2 
A new agent must complete at least _____ hours of continuing education within 24 months of initial license? 
24 hours 
 
 
 
Question 3 
L takes out a lif...
Preview 2 out of 13 pages
Add to cartQuestion 1 
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? 
Life income 
 
 
 
Question 2 
A new agent must complete at least _____ hours of continuing education within 24 months of initial license? 
24 hours 
 
 
 
Question 3 
L takes out a lif...
Convertible Term Life Insurance 
This optional form of term life insurance lets the policyowner convert the policy to a whole life policy without having to prove insurability. 
 
 
 
Ordinary Life Insurance 
This class of individual life insurance has many flexible options and features policies with...
Preview 2 out of 12 pages
Add to cartConvertible Term Life Insurance 
This optional form of term life insurance lets the policyowner convert the policy to a whole life policy without having to prove insurability. 
 
 
 
Ordinary Life Insurance 
This class of individual life insurance has many flexible options and features policies with...
LIFE SECTION 1 
LIFE SECTION 1 
 
 
 
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? 
 
A- $50,000 Whole Life...
Preview 4 out of 73 pages
Add to cartLIFE SECTION 1 
LIFE SECTION 1 
 
 
 
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? 
 
A- $50,000 Whole Life...
What is the purpose of the buyer's guide? 
A.To Allow the consumer to compare the costs of different policies 
B. To provide the name and address of the agent. 
C. to list all policy riders. 
D. To provide information about the policy. 
A.To Allow the consumer to compare the costs of different poli...
Preview 4 out of 79 pages
Add to cartWhat is the purpose of the buyer's guide? 
A.To Allow the consumer to compare the costs of different policies 
B. To provide the name and address of the agent. 
C. to list all policy riders. 
D. To provide information about the policy. 
A.To Allow the consumer to compare the costs of different poli...
T owns 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 her policy's coverage amount 
 
 
 
When an insurer issues a poli...
Preview 3 out of 28 pages
Add to cartT owns 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 her policy's coverage amount 
 
 
 
When an insurer issues a poli...
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