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Texas Life and Health Insurance Exam Bundle
Texas Life and Health Insurance Exam Bundle
[Show more]Texas Life and Health Insurance Exam Bundle
[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 12 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...
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 22 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...
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 14 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 23 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...
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 12 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...
individual - 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 
 
insurance - transfer of risk 
 
agent - producer or field underwriter 
 
insurer - ...
Preview 3 out of 16 pages
Add to cartindividual - 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 
 
insurance - transfer of risk 
 
agent - producer or field underwriter 
 
insurer - ...
Insurance - transfer of risk 
 
Speculative risk - has a possibility of both loss and gain 
 
Pure risk - only has a possibility of loss (no gain) 
 
Exposure - risks for which an insurance company would be liable 
 
expressed in units 
 
Peril - cause of a loss 
 
Hazard - an incr...
Preview 4 out of 40 pages
Add to cartInsurance - transfer of risk 
 
Speculative risk - has a possibility of both loss and gain 
 
Pure risk - only has a possibility of loss (no gain) 
 
Exposure - risks for which an insurance company would be liable 
 
expressed in units 
 
Peril - cause of a loss 
 
Hazard - an incr...
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 prev...
Preview 4 out of 31 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 prev...
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 ...
Preview 4 out of 43 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 ...
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 26 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...
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 
 
 
The ...
Preview 4 out of 40 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 
 
 
The ...
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...
Traditional Whole Life - -Ordinary (Straight) Life 
-Limited-Pay & Single-Premium Whole Life 
-Adjustable Whole Life 
 
Ordinary (Straight) Life - -Until 100 or Death, whichever comes first 
-Permanent Protection 
-Rates & benefits based on law of large numbers (Mortality Rate) 
-Guaranteed, ...
Preview 3 out of 17 pages
Add to cartTraditional Whole Life - -Ordinary (Straight) Life 
-Limited-Pay & Single-Premium Whole Life 
-Adjustable Whole Life 
 
Ordinary (Straight) Life - -Until 100 or Death, whichever comes first 
-Permanent Protection 
-Rates & benefits based on law of large numbers (Mortality Rate) 
-Guaranteed, ...
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 4 out of 156 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...
At what point must a life insurance applicant be informed of their rights that fall under the Fair credit act? - Upon completion of the application 
 
What is the name of the law that requires insurers to disclose information gathering practices where the information was obtained? - Fair Credi...
Preview 2 out of 5 pages
Add to cartAt what point must a life insurance applicant be informed of their rights that fall under the Fair credit act? - Upon completion of the application 
 
What is the name of the law that requires insurers to disclose information gathering practices where the information was obtained? - Fair Credi...
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...
Preview 4 out of 35 pages
Add to cartWho 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...
Preview 4 out of 70 pages
Add to cartrisk - 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...
Preview 2 out of 13 pages
Add to cartThe 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 - ...
Preview 3 out of 26 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 - ...
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 2 out of 15 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...
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 14 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...
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...
Preview 2 out of 7 pages
Add to cartInsurance - 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...
Preview 3 out of 18 pages
Add to cartHealth 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...
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Add to cartT 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...
Preview 2 out of 8 pages
Add to cartHealth 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? ...
Preview 3 out of 27 pages
Add to cartWhat 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 ...
Preview 4 out of 65 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 ...
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...
Preview 2 out of 8 pages
Add to cartViatical 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...
Preview 2 out of 7 pages
Add to cartreserves - 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...
Preview 2 out of 12 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 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...
Preview 4 out of 32 pages
Add to cartInsurable 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 ...
Preview 4 out of 60 pages
Add to cart1) 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 ...
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