2023 TEXAS LIFE AND HEALTH INSURANCE EXAM LATEST 2023-2024 ACTUAL EXAM 230 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) | AGRADE

2023 TEXAS LIFE AND HEALTH INSURANCE EXAM LATEST

2023-2024 ACTUAL EXAM 230 QUESTIONS AND CORRECT

DETAILED ANSWERS WITH RATIONALES (VERIFIED

ANSWERS) | AGRADE

A father owns a life insurance policy on his 15-year-old daughter. The policy

contains the optional Payor Benefit rider. If the father becomes disabled, what will

happen to the life insurance premiums?

A The insured will have to pay premiums for 6 months. If at the end of this period

the father is still disabled, the insured will be refunded the premiums.

B The insured's premiums will be waived until she is 21.

C The premiums will become tax deductible until the insured's 18th birthday.

D Since it is the policyowner, and not the insured, who has become disabled, the

life insurance policy will not be affected. - ANSWER- B. The insured's premiums

will be waived until she is 21.

Which of the following policy components contains the company's promise to pay?

A Entire contract provision

B Insuring clause

C Premium mode

D Consideration clause - ANSWER- B. Insuring Clause

Which nonforfeiture option provides coverage for the longest period of time?

A Extended term

B Paid-up option

C Accumulated at interest

D Reduced paid-up - ANSWER- D. Reduced Paid-Up

The validity of coverage under a life insurance policy may not be contested, except

for nonpayment of premium, after the policy has been in force for at least how

many years?

A 1 year

B 2 years

C 5 years

D 7 years - ANSWER- B. 2 years

Which of the following is TRUE about nonforfeiture values?

A A table showing nonforfeiture values for the next 10 years must be included in

the policy.

B Policyowners do not have the authority to decide how to exercise nonforfeiture

values.

C They are required by state law to be included in the policy.

D They are optional provisions. - ANSWER- C. They are required by state law to

be included in the policy.

What is the term for how frequently a policyowner is required to pay the policy

premium?

A Consideration

B Mode

C Schedule

D Grace period - ANSWER- B Mode

An insured will be allowed to reactivate her lapsed life insurance policy if action is

taken within a certain period of time, and proof of insurability is provided. Which

policy provision allows this?

A Waiver of premium provision

B Incontestable clause

C Grace period

D Reinstatement provision - ANSWER- D. Reinstatement Provision

Which rider, when attached to a permanent life insurance policy, provides an

amount of insurance on every family member?

AChildren's rider

BAdditional insured rider

CFamily term rider

DSpouse rider - ANSWER- C. Family Term Rider

Which of the following best describes fixed-period settlement option?

AThe death benefit must be paid out in a lump sum within a certain time period.

BIncome is guaranteed for the life of the beneficiary.

CBoth the principal and interest will be liquidated over a selected period of time.

DOnly the principal amount will be paid out within a specified period of time. -

ANSWER- C. Both the principal and interest will be liquidated over a selected

period of time

The life insurance policy clause that prevents an insurance company from denying

payment of a death claim after a specified period of time is known as the

AInsuring clause.

BMisstatement of Age clause.

CIncontestability clause.

DReinstatement clause. - ANSWER- C Incontestability Clause

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.

Which of the following information will be stated in the consideration clause of a

life insurance policy?

AThe parties to the contract

BThe time period allowed for the payment of premium

CThe conditions for insurability

DThe amount of premium payment - ANSWER- D The amount of premium

payment

Which of the following is true about the premium on the children's rider in a life

insurance policy?

AIt decreases when the oldest child reaches the age of 21.

BIt increases when a newborn baby is added to the policy.

CIt decreases when an adopted child is added to the policy.

DIt remains the same no matter how many children are added to the policy. -

ANSWER- DIt remains the same no matter how many children are added to the

policy.

An insured pays an annual premium to his insurer. In return, the insurer promises

to pay benefits in accordance with the terms of the contract. This is called

AConditions.