FINAL EXAM REVIEW - Texas life and health 2023/2024 100% Correct Answers Verified 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 - Correct Answer pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the: - Correct Answer Waiver of Premium P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly.
The Accidental Death benefits will be paid to: - Correct Answer P only
Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy? - Correct Answer *Premiums are waived after the insured has been totally disabled for a specified time period (The Waiver of Premium provision waives the payment of premiums after the insured has been totally disabled for a specified period of time.) All of the following provisions must be included in life insurance policies EXCEPT - Correct Answer All of the following provisions must be included in life insurance policies
EXCEPT
Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? - Correct Answer olicy was returned within the free-look period, premium will be fully refunded Who can purchase a plan through the Marketplace? - Correct Answer Any legal resident except those incarcerated A major medical policy typically: - Correct Answer provides benefits for reasonable and necessary medical expenses, subject to policy limits Which of the following BEST describes a short-term medical expense policy? - Correct Answer Nonrenewable 1 / 2
A Whole Life Insurance Policy endows when the - Correct Answer Cash value equals the death benefit The insuring clause - Correct Answer States the scope and limits of the coverage An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. - Correct Answer 15 A Family Income Policy is a combination of Whole Life and - Correct Answer Decreasing term insurance T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? - Correct Answer $0 Which of these statements describe a Modified Endowment Contract (MEC)? - Correct Answer Exceeds the maximum amount of premium that can be paid into a policy and still have it recognized as a life insurance contract What group term life feature permits an individual to depart from the group and continue to be covered without providing evidence of insurability? - Correct Answer conversion An insurance company may be judged guilty of false advertising if it - Correct Answer exaggerates its dividends in a newspaper advertisement A policy of adhesion can only be modified by whom? - Correct Answer the insurance company Variable Whole Life Insurance can be described as: - Correct Answer both an insurance and securities product Which type of contract liquidates an estate through recurrent payments? - Correct Answer annuity Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is: - Correct Answer business overhead expense What is the elimination period of an individual disability policy? - Correct Answer time period a disabled person must wait before benefits are paid In Texas, a domestic insurance company is defined as a company that - Correct Answer is incorporated and formed in Texas
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