Texas Health and Life Insurance Exam 1 Latest 2023-2024

Texas Health and Life Insurance Exam 1 (Latest 2023-2024)

A++ Exam with All New Qs & As - Guaranteed Pass!

• Why does an insurer have a 2-year suicide clause?
• because the commissioner of insurance requires it.
• suicide is never paid for in life insurance.

c)to prevent payment of an immediate claim for a person contemplating suicide.

• to help an insurer be more profitable.: Answer: C

To prevent payment of an immediate claim for a person contemplating suicide.

• Which of these could the owner of a life insurance policy do

when there is a collateral assignment?

• determine how the dividends are used.
• cash surrender the policy.
• obtain another loan.
• cancel the policy.: Answer: A Determine how the dividends are

used.

• When only the insurer is allowed to alter an insurance contract,

the clause that provides this is called?

• ownership
• entire contract
• consideration
• incontestable: Answer: B Entire contract

• Which of these is required to reinstate a lapsed policy?
• obtain a loan
• fill out a new application
• pay a late fee
• provide evidence of insurability: Answer: D Provide evidence of

insurability

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• The insuring clause in an adjustable life policy has all the

following EX- CEPT?

• insured
• insurer
• amount of premium
• amount of death benefit: Answer: C Amount of premium

• Which of the following cannot request or make a change to alter

a life insurance policy?

• the agent who wrote the policy
• the policy owner
• an executive officer of the insurer
• a person who has absolute assignment: Answer: A The agent

who wrote the policy

• Which of these cannot sign or request a change in an insurance

contract?

• policy owner
• insured
• executive officer of insurer
• producer of insurer: Answer: D Producer of insurer

• When the policy owner pays a premium in exchange for the

insurer's promise to pay, what provision is this?

• consideration
• entire contract
• insuring clause
• changes: Answer: A Consideration

• When the insurer cannot contest a claim after 2 years, that is

called?

• suicide clause
• incontestability clause
• entire contract
• consideration clause: Answer: B Incontestability clause
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• Misstatement of age or gender on the application will result in?
• the policy being considered void or cancelled
• return of premiums
• death benefit paid adjusted to fit true age and gender
• full death benefit regardless: Answer: C

Death benefit paid adjusted to fit true age and gender.

• What happens if a person returns a policy during the free look

period?

• the insured may apply for another policy without a medical exam
• the policy is immediately terminated; the insurer retains the

premium for the underwriting costs

• a refund of premiums minus the number of days the policy was

in effect

• a full refund of all premiums paid is returned: Answer: D A full

refund of all premiums paid is returned.

• An applicant did not disclose a medial condition on a life

insurance application 5 years later that person died due to the non disclosed condition. The insurer will?

• keep all premiums and void the policy
• refund all premiums and void the policy
• pay the whole amount of the policy to the beneficiary
• pay half of the policy to the beneficiary: Answer: C Pay the

whole amount of the policy to the beneficiary

• An applicant lied about their age for a universal life policy. The

insurer found out the truth at the time of death. The insurer will?

• request the beneficiary to pay back the premiums for the correct

age before paying the death benefit

• refund all premiums and void the policy
• pay the policy death benefit to reflect the correct age
• pay the policy as it was issued: Answer: C

Pay the policy death benefit to reflect the correct age

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• A policy owner/insured takes a loan of 1/2 the cash value. The

owner doesn't pay any interest that accumulates on the loan. which of these would be true?

• dividends are withheld until the loan is paid back
• interest is added to the loan annually
• interest is deducted from the loan annually
• dividends and interest are both withheld until the loan is paid

back: Answer: B Interest is added to the loan annually

• Which of the following is NOT a non forfeiture option?
• reduced paid up
• extended term
• cash surrender
• life income: Answer: D Life income

• When an insured die with an outstanding loan on the policy

which of the following applies?

• nothing is payable the loan voids the policy's death benefits
• the death benefit is payable minus any outstanding loans plus

interest on the loan

• all of the death benefit is paid without reductions

d) the loan must be repaid before any death benefits are paid:

Answer: B The death benefit is payable minus any outstanding

loans plus interest on the loan

• G has a life policy with his wife listen as primary beneficiary.

They both die in a car accident. They don't know who died first.According to the Uniform Simultaneous Death Act where will the policy proceeds be paid?

• wife's estate
• g's estate
• g's next of kin
• wife's next of kin: Answer: B G's estate

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