TEXAS HEALTH AND LIFE INSURANCE EXAMFX

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TEXAS HEALTH AND LIFE INSURANCE EXAMFX

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: An individual purchased a $100,000 Joint Life policy on himself and his wife.Eight years later, he died in an automobile accident. How much will his wife receive from the policy?ANothing

B$50,000

C$100,000

D$200,000

Answer:

C. $100000

Question 2: Which of the following products will protect an individual from outliving his or her money?AAnnuity BJoint and survivor policy CAdjustable life policy DPermanent life insurance

Answer:

A An Annuity Question 3: Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be ADetermined by the health of the insured.BBased on the issue age of the insured.CDiscounted.

DAdjusted to the insured's age at the time of renewal.

Answer:

• Adjusted to the insured's age at the time of renewal.

Question 4: The policyowner of a Universal Life policy may skip paying the premium and the policy will not lapse as long as AThe next month's premium is sufficient to cover both the current premium amount and the skipped amount.BThe policy contains sufficient cash value to cover the cost of insurance.CThe previous premium payments were high enough to create an excess of premium.DThe policyowner cannot skip premiums without the policy lapsing.

Answer:

• The policy contains sufficient cash value to cover the cost of insurance.

Question 5: Whose responsibility is it to determine if all of the questions on an application have been answered?AThe applicant BThe beneficiary CThe agent DThe insurer

Answer:

• The agent

Question 6: Which of the following policy components contains the company's promise to pay?AEntire contract provision BInsuring clause CPremium mode DConsideration clause

Answer:

• Insuring Clause

Question 7: Which of the following is TRUE regarding the annuity period?

ADuring this period of time the annuity payments grow interest tax deferred.BIt is also referred to as the accumulation period.CIt is the period of time during which the annuitant makes premium payments into the annuity.DIt may last for the lifetime of the annuitant.

Answer:

DIt may last for the lifetime of the annuitant.

Question 8: Which of the following is NOT the consideration in a policy?

AThe promise to pay covered losses BThe application given to a prospective insured CSomething of value exchanged between parties DThe premium amount paid at the time of application

Answer:

• The application given to a prospective insured.

Question 9: What percentage of a company's employees must take part in a noncontributory group life plan?A0% B25% C75% D100%

Answer:

D 100%

Question 10: What is the main purpose of the Seven-pay Test?

AIt ensures that the policy benefits are paid out in 7 years.BIt guarantees interest minimum.CIt determines if the insurance policy is an MEC.DIt requires level premium payments for 7 years.

Answer:

• It determines if the insurance policy is an MEC.

Question 11: Which of the following includes information regarding a person's credit, character, reputation, and habits?AConsumer history BInsurability report CAgent's report DConsumer report

Answer:

• Consumer Report

Question 12: Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?AAdhesion BSubrogation CWarranty DAleatory

Answer:

• Aleatory

Question 13: Which type of life insurance policy generates immediate cash value?AContinuous Premium BSingle Premium CLevel Term DDecreasing Term

Answer:

• Single Premium

Question 14: An agent is ready to deliver a policy to an applicant but has not yet received payment. Upon delivery, the agent collects the applicant's premium check, answers any questions the applicant may have, and then leaves. What did he forget to do?AAsk the applicant to sign a statement that acknowledges that the policy had been delivered BCollect a late payment fee CAsk her to sign a statement of good health DOffer her a secondary policy

Answer:

• Ask her to sign a statement of good health

Question 15: 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?AThe insured may renew the policy for another 10 years at the same premium rate.BThe insured may renew the policy for another 10 years, but at a higher premium rate.CThe insured must provide evidence of insurability to renew the policy.DThe insured may only convert the policy to another term policy.

Answer:

BThe insured may renew the policy for another 10 years, but at a higher premium rate.Question 16: Which of the following is true about the mandatory free look in a Life Insurance policy?AIt commences when the policy is delivered.BIt commences when the application is signed.CIt applies only to term life insurance policies.DIt is optional on all life insurance policies.

Answer:

A It commences when the policy is delivered.