Texas Life and Health Insurance Exam Bundle

Who is obligated to make sure all questions are answered and all necessary signatures are collected on the application? The Agent An underwriter is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the appl...

risk - chance of loss speculative risk - -involves the chance of gain or loss and is NOT insurable -ex: gambling pure risk - involves only the chance of loss and is insurable exposure - being subject to the possibility of loss because of an activity, location, or characteristic...

The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the - Cost of insurance The investment gains from a Universal Life Policy usually go toward - the cash value What is the MINIMUM benefit period that...

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 - ...

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...

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...

Insurance - Contractual coverage binding the insurer (insurance company) to indemnify (compensate for loss) the insured (people or businesses) against a specified loss in return for money (premiums). Law of Large Numbers - What insurance is based on. The bigger the observed sample, the more...

Health insurance coverage under COBRA, HIPAA guarantees that the person will - Have Acces to a guaranteed-issue individual health policy, regardless of health All the following statements about ordinary (or straight) whole life insurance are correct - The cash value remains level throughout...

T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T? - Conditional receipt Which of the following...

Health Insurance - provides protection to consumers for certain losses due to covered sickness and/or accidents. Sickness - an illness or disease that occurs after the policy is issued Accidental Bodily Injury - a spontaneous, unforeseen, and unintended event resulting in injury po...

What law protects consumers from the circulation of inaccurate or obsolete information? - The Fair Credit Reporting Act What do individuals use to transfer their risk of loss to a larger group? - Insurance What term describes the fee a person pays an insurance company to start coverage? ...

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 ...

Viatical Settlements - A terminally ill policyowner sells his or her life insurance policy at a discount for cash to a third party. STOLI plans (Stranger originated life insurance) - a third party is involved who has no relation with the policy owner and initiates the purchase of the policy...

reserves - the accounting measurement of an insurer's future obligations to its policy holders stock companies - owned by stockholder, who get paid a share of the company's profit through dividends. NON_PAR mutual companies - no stockholders, policy holders own the company. get paid...

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 ow...

Insurable Interest - An underwriting test for an application of insurance that demonstrates the person purchasing a policy has a legal interest in the continued longevity of the insured -In life insurance, the owner must have an insurable interest at the time of application (ex. spouse, parent...

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 policy B- $50,000 Level Term policy ...