TEXAS LIFE HEALTH INSURANCE EXAM 2024 -2025
LATEST VERSION WITH 300 QUESTIONS AND
CORRECT ANSWERS / TEXAS LIFE AND HEALTH
INSURANCE EXAM (LIFE AGENT LICENSE EXAM)
REAL EXAM QUESTIONS (BRAND NEW!!)
In an HMO, a Primary Care Physician is called a - ANSWER-Gatekeeper
Which of the following must an insurer obtain in order to transact insurance within a given state? - ANSWER-Certificate of authority
E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to? - ANSWER-In this situation, the proceeds from E's life insurance policy will go to F.
The Commissioner of Insurance may issue a temporary agent's license for a maximum of how many days? - ANSWER-90
An insured's premium increases as a result of her age. Which type of policy does she have? - ANSWER-Attained Age
An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy? - ANSWER-The capital amount in a lump sum
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Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death? - ANSWER-A minor son of the insured
Following an injury, a policyowner covered under Medicare Parts A & B was treated by her physician on an outpatient basis. How much of her doctor's bill will she be required to pay out-of-pocket? - ANSWER-20% of covered charges above the deductible
Insurance company agent appointments remain in force for which of the following maximum periods of time, if any? - ANSWER-Until terminated or withdrawn
The Commissioner of insurance may suspend, revoke, or refuse to renew the license of an agent who - ANSWER-is found guilty of misrepresentation or fraud in obtaining the license
The Misstatement of Age provision requires that if the age of the insured is misstated, then any amount payable is - ANSWER-an amount that the premiums paid would have purchased at the current age or ages
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - ANSWER-Upon completion of the application
Who elects the governing body of a mutual insurance company? - ANSWER- policyholders
An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - ANSWER-Fair Credit Reporting Act
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What type of reinsurance contract involves two companies automatically sharing their risk exposure? - ANSWER-Treaty
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called - ANSWER-reserves
Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated - ANSWER-1970 - Fair Credit Reporting Act
What is the consideration given by an insurer in the Consideration clause of a life policy? - ANSWER-Promise to pay a death benefit
When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - ANSWER-insurable interest in the proposed insured
Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called - ANSWER-representations
The part of a life insurance policy guaranteed to be true is called a(n) - ANSWER- warranty
Which of these is NOT a type of agent authority?Express Implied Principal Apparent - ANSWER-Principal
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The Consideration clause of an insurance contract includes - ANSWER-the schedule and amount of premium payments
Which of the following terms defines the legally enforceable promise in an insurance contract by the insurer? - ANSWER-Unilateral
When must insurable interest exist for a life insurance contract to be valid? - ANSWER-Inception of the contract
Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid. - ANSWER-conditional
Which of these require an offer, acceptance, and consideration? - ANSWER- Contract
Which of these arrangements allows one to bypass insurable interest laws? - ANSWER-Investor-Originated Life Insurance
Investor-originated life insurance (or IOLI), sometimes called stranger-originated life insurance (or STOLI) is used to circumvent state insurable interest statutes.This is done when an investor (or stranger) persuades an individual to take out life insurance specifically for the purpose of selling the policy to the investor. The investor compensates the insured and makes the premiums, then collects the death benefit when the insured dies.
Which of these is NOT considered to be an element of an insurance contract?the offer acceptance negotiating
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