Texas Life and Health Insurance Questions and Answers with complete solutions
3 views 0 purchase
Course
Texas Life and Health Insurance
Institution
Texas Life And Health Insurance
The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? -ANSWER- As of the application date
When an insured makes truthful statements on the application for insurance and pays ...
Texas Life and Health Insurance
Questions and Answers with complete
solutions
An applicant who receives a preferred risk classification qualifies for -ANSWER- Lower
premiums than a person who receives a standard risk
The full premium was submitted with the application for life insurance, and the policy
was issued two weeks later as requested. When does the policy coverage become
effective? -ANSWER- As of the application date
When an insured makes truthful statements on the application for insurance and pays
the required premium, it is known as which of the following? -ANSWER- Consideration
If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be
delivered to the applicant -ANSWER- With the policy
Which of the following is NOT the consideration in a policy? -ANSWER- The application
given to a prospective insured
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 -
ANSWER- Required a premium increase each renewal
Which of the following is NOT true regarding the annuitant? -ANSWER- The annuitant
cannot be the same person as the annuity owner
An insured purchased a 10-year level term life policy that is guaranteed renewable and
convertible. What happens at the end of the 10-year term? -ANSWER- The insured may
renew the policy for another 10 years, but at a higher premium rate
Which option for Universal life allows the beneficiary to collect both the death benefit
and cash value upon the death of the insured? -ANSWER- Option B
The president of a company is starting an annuity and decides that his corporation will
be the annuitant. Which of the following statements is true? -ANSWER- The annuitant
must be a natural person
Who bears all of the investment risk in a fixed annuity? -ANSWER- The insurance
company
All other factors being equal what would the premium be like in a survivorship life
pouchy as compared to the premium in a joint life policy? -ANSWER- Lower
, An insured as a life insurance policy that requires him to only pay premiums for a
specified number of years until the policy is paid up. What kind of policy is it? -
ANSWER- Limited-pay Life
Which f the following products provides income for a specified period of years or for life,
and protects a person against outliving his or her money? -ANSWER- An annuity
Which life insurance settlement option guarantees payments for the lifetime of the
recipient, but also specifies a guaranteed period, during which, if the original recipient
dies, the payments will continue to a designated beneficiary? -ANSWER- Life income
with period certain
A policy owner who is also the insured wants to name her husband as the beneficiary of
her life policy. She also wishes to retain all of the rights of ownership. The policy owner
should have her husband named as the -ANSWER- Contingent beneficiary
Which the following best describes fixed-period settlement option? -ANSWER- Both the
principal and inters will be liquidated over a selected period of time
Under which nonforfeiture option does the company pay the surrender value and have
no further obligations to the policy owner? -ANSWER- Cash surrender
A policy owner fails to pay the premium due on his whole life policy after the grace
period passes, but the policy remains in force. This is due to what provision? -
ANSWER- Automatic premium loan
When beneficiary receives payments consisting of both principal and interest portions,
which parts are taxable as income? -ANSWER- Interest only
Which of the following is true regarding taxation of dividends in participating policies? -
ANSWER- Dividends are not taxable
Which of the following terms means a result of calculation based on the average
number of months the insured is projected to live due to medical history and mortality
factors? -ANSWER- Life expectancy
What does liquidity refer to in a a life insurance policy? -ANSWER- Cash values can be
borrowed at any time.
In a life settlement contract, whom does the life settlement broker represent? -
ANSWER- The owner
Who is a third-party owner? -ANSWER- A policyowner who is not the insured
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller IMORA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.19. You're not tied to anything after your purchase.
