Texas Life and Health Insurance Study Guide 2023
A+ Rated Guide | Questions and Answers (Solved)
- Individual
Answer: premiums paid with after tax dollars, not tax deductible-
death ben efit tax free, lump sum- death benefit taxable to an estate- dividend tax free, accumulate at interest, interest taxable
- Insurance
Answer: transfer of risk
- Agent
Answer: producer or field underwriter
- Insurer
Answer: principle
- agency contract
Answer: between agent and insurer- spells out each one's duties-
contains the express authority
- applicant/proposed insured
Answer: seeks insurance from insurer
- death benefit
Answer: face amount- paid to beneficiary
- beneficiary
Answer: receives the policy proceeds when insured dies- doesn't
have to sign contract
- policyowner
Answer: has all rights and privileges in a policy-pays premium,
making changes, naming beneficiary- may or may not be insured
- 3rd party ownership
Answer: insured and policyowner are different people- 1 / 3
parent/child; key person; group life/health
- Application
Answer: main source of underwriting
- agent report
Answer: part of the application process, but does not become part
of contract
- entire contract
Answer: application, policy, riders, amendments
- representations
Answer: statements made by applicant believed to be true but not
guaranteed
- misrepresentations
Answer: lies told by applicant
- warranty
Answer: absolutely true statement
- fraud in life
Answer: after 2 years claim cannot be denied (Period of
Incontestability)
- fraud in health
Answer: claim can be denied as long as policy in force (material)
- conditional receipt
Answer: given to insureds who pay premium with application
- life policy replacement
Answer: stop paying on one policy and start paying on a new one
- health policy replacement
Answer: don't cancel old policy till new one is issued
- disclosure authorization notice
Answer: states the insurers practice regarding the collection of 2 / 3
personal information
- HIV testing
- policy summary
Answer: results only known to: insured, their doctor, insurer, dept of health and human services
Answer: summarizes features and elements of policy being issued
- buyers guide
Answer: explain how buyer should go about choosing type and
amount of insurance- given at time of application
- USA patriot act
Answer: anti-money laundering- 9/11- must file suspicious activity
report within 30 days of initial discovery
- Underwriting
Answer: risk classification process
- insurable interest
Answer: policyowner must face the possibility of losing money or
something of value in the event of loss- exists at time of application- between owner and insured-
- paramedical exam
Answer: results give current health status
- attending physician statement
Answer: gives past health information
- (MIB) medical information bureau
Answer: adverse medical info- made up of insurers- non-profit
organization
- consumer reports
Answer: credit reports, employment records, character, reputation,
habits
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