Texas General Lines – Life, Accident, and Health Insurance (LAH05) Practice Test

These questions are part of the practice quiz. Start practicing

• Which of the following is a legally permissible way to share commissions?
• If an agent claims dividends are guaranteed, this would be an example of what?
• Which statement best describes universal life insurance?
• Which statement best reflects the regulator's overarching goal for the insurance market?
• The insuring agreement states?
• Limited-Pay Life coverage normally lasts until what age?
• Which policy pays out after the death of the last insured?
• The Commissioner may examine the records of an insurance company to determine the company's what?
• Which statement describes term life insurance?
• If a policy loan is outstanding at death, how is the death benefit typically affected?
• What does Credit Life Insurance typically cover?
• The two-year period to contest information provided on an accident and health application begins on the date the insurer dates the policy.
• The insuring agreement is defined as the insurer's basic promise.
• Which statement describes a copayment?
• An agent who tells claimants that their rights may be impaired if they fail to complete a release form could be guilty of what?
• Which of the following best describes the beneficiary feature of a Life Annuity with Period Certain?
• Which term describes ownership of a life insurance policy by someone other than the insured, used in estate planning and business?
• Which designation allows the owner to change the beneficiary without consent?
• Which statement best describes the Commissioner's role?
• Which statement best describes a term policy's expiration?
• Why is a grace period included in health policies?
• Which option correctly describes how partial disabilities are handled in some policies?
• Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner MUST give ___ days' notice.
• In a noncontributory group term life plan, which party pays the premiums?
• Dividends described in a participating policy are represented as what?
• When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, ______ _______ applies.
• How are annuity earnings taxed?
• How is eligibility for group plans typically determined?
• ______ ____ is an element of single premium annuity.
• What is an out-of-pocket maximum?
• What is the effect of a waiver of premium rider?
• Which statement describes an Immediate Annuity?
• What is an annuity?
• An insurer must provide claim forms within ___ days after receiving notice of a loss.
• Reinstatement in health insurance is the process to restore coverage after a lapse by meeting what steps?
• In a Variable annuity, benefits are based on...
• What is the primary purpose of coordination of benefits when a person has multiple health plans?
• Which statement describes a contributory group life plan?
• What is coordination of benefits (COB) designed to do?
• Which type of policy provides a minimum guaranteed death benefit?
• If a misstatement of age is discovered after a payout, what typically happens?
• A dividend in life insurance is best described as what?
• In a monthly premium payment mode, which statement is true about the gross premium?
• To whom must an insurance company send a notice of termination?
• In Investor-Originated Life Insurance (IOLI), who benefits financially in this arrangement?
• In Investor-Originated Life Insurance (IOLI), who typically pays the premiums to obtain the life policy?
• A Variable Life policy includes which premium structure?
• In group life insurance plans, who contributes to the premium?
• Which annuity payout option provides lifetime income with a guaranteed period optional?
• Which organization is associated with regulatory oversight for selling variable life policies?
• Which statement best describes a revocable beneficiary designation?
• An ______ ____ _____ requires a policy owner to provide proof of insurability in an adjustable life policy.
• _______ ______ ____ is NOT defined as doing Insurance Business.
• In a collateral assignment, who typically retains ownership of the policy?
• Under Investor-Originated Life Insurance (IOLI), the investor pays the premiums to take out a large life policy for the person. The investor pays what in exchange?
• Which life insurance policy covers two lives and pays the face amount after the first death?
• Deferred annuity features...
• Which statement best describes guaranteed renewable versus noncancelable policies?
• Under Texas code, the MAXIMUM for which a spouse may be insured in a company group life program with a $50,000 death benefit is $ ______.
• In a Limited-Pay Life policy, premiums are paid for a specified period, but coverage lasts for the insured's lifetime. Which statement best describes this arrangement?
• The premiums paid by an employer for group life insurance are usually considered to be...
• How does assignment affect policy ownership rights?
• Solvency refers to a company's ability to
• All the following provisions must be included in life insurance policies, EXCEPT
• An agent whose license has been revoked is required to wait at least how many years before applying for a new license?
• What is coinsurance?
• A Straight Life Annuity is characterized by which feature?
• Misstatement of age in health policies generally leads to what outcome?
• Which provision in a life insurance policy pays an amount not surpassing the guaranteed cash value?
• Under a trustee group life policy, which group would receive a certificate of coverage?
• Which type of life policy incorporates flexible premiums and an adjustable death benefit?
• Which policy expires at the end of the policy period?
• How does a term rider relate to permanent policies?
• An applicant for an insurance agent license must be what?
• What replacement rules govern the sale of life and health insurance?
• In Texas terminology, what term is used for an insurer formed outside the state but authorized to do business in Texas?
• What is the benefit period?
• Which continuation option is commonly used to extend group coverage after employment ends (state rules apply)?
• What is the minimum number of continuing education hours a newly licensed General Lines agent must complete?
• How is disability defined in many disability income policies?
• Which statement accurately describes licensing to sell LAH05 in Texas?
• In a contributory group plan, who pays the premiums?
• What is true about Immediate Annuity payments?
• What is the purpose of the incontestability clause in a life insurance policy?
• Which policy is designed to cover two lives and pay only after the second death?
• Under Texas Insurance Law, the term 'transacting business' includes...
• What happens to group coverage when employment ends?
• The Commissioner may issue a temporary agent license for a maximum of how many days?
• What does guaranteed renewal imply about renewal of the policy?
• The policy loan provision allows the policyowner to borrow against the policy's cash value.
• The amount of coverage on a group credit life policy is limited to the insured's total loan value.
• What is a medical information bureau (MIB) report used for in underwriting?
• Which is not a requirement in a group life policy?
• When is a change of beneficiary prohibited without consent?
• How is a misstatement of age or sex resolved after a claim has been paid?
• What does the entire contract provision in a life insurance policy state?
• Credit policies are issued as...
• Which term describes persuading claimants to sign a release form by threatening action?
• Insurance company agent appointments remain in force...
• What are living benefits in a life policy?
• The Commissioner does NOT have the power to activate the insurance company's ________.
• Which type of life policy has a death benefit that can fluctuate according to the performance of its underlying investment portfolio?
• Modified Whole Life is not considered interest sensitive. Which statement is true?
• How long is a typical grace period after the due date?
• A typical trigger for an accelerated death benefit rider is what?
• Insurable interest must exist at the inception of a life insurance contract. If a premium is past due but the policy remains within the grace period, the death benefit payable to the beneficiary is equal to the...
• Which component is included in Adjustable Life Policies?
• In group life plans, premiums are paid by the employer; are they usually tax-deductible?
• For a life insurance policy, insurable interest must exist at what point?
• The part of a life insurance policy guaranteed to be true is called a...
• Extended Term is not required to be included in life insurance policies.
• What is the purpose of the grace period in life insurance?
• If an insurance company is organized under the laws of New Jersey and licensed to do business here, it is considered a _____ in Texas.
• Which statement best describes when an agent's appointment terminates?
• In a variable life policy, who bears investment risk?
• Which item is not guaranteed during a sales presentation for a participating life insurance policy?
• An agent who tells a client that dividends are guaranteed may be guilty of what?
• Straight Life Annuity is best described as...
• A group life policy may NOT insure groups consisting exclusively of persons who are related by marriage, blood, or legal adoption. Which option reflects this rule when identifying such a group?
• Term policies are issued for a given period, such as 10, 20, or 30 years. If you die during the term, your designated beneficiaries will receive the death benefit. If you don't die during the term, the policy will expire when the term ends, and no benefits will be paid.
• Who pays the premium in a noncontributory group policy?
• Which statement accurately describes the beneficiary provision in a Life Annuity with Period Certain?
• The regulator overseeing insurance in Texas is the
• Group life policies MUST include all the following provisions EXCEPT
• Which statement about fixed annuities is true?
• In cash-value life policies, how does a policy loan typically affect the policy?
• The applicant's signature on a life insurance application attests that the statements on the application are accurate to the best knowledge.
• An agent may legally share commissions only with whom?
• A Single Premium Annuity is characterized by first payments timing as?
• Which advertising rule must insurers in Texas follow regarding naming in advertising?
• Which statement best describes how preexisting conditions are treated in health coverage?
• Under the Fair Credit Reporting Act, when must an applicant be informed of their rights?
• Under the Texas Insurance code, an insurance company must pay death benefits for suicide if the policy has been in force for...
• Dividends paid on participating policies are described as:
• Insurance agent licenses normally must be renewed every how many years?
• Equity Indexed Life Insurance is tied to an equity index with a minimum rate of accumulation. If the index gains exceed the minimum return, what happens to the cash value?
• In disability income policies, what does the term 'any occupation' typically refer to?
• Which term describes an insurer organized and formed in Texas?
• What is a copayment?
• Conformity with state law in policy provisions requires what?
• What is the difference between contributory and noncontributory group coverage?
• Under Texas law, after the second year, suicide may not be a defense against payment.
• How do underwriters classify risk as standard versus substandard?
• Conversion Provision allows a policyholder to change a term policy into whole or universal policy without going through the health qualification process again.
• Which of the following describes an immediate annuity?
• In a variable universal life policy, who controls where the investment will go and the amount of the premium payment?
• To reinstate a lapse life insurance policy, which of the following is typically required?
• In universal life insurance, how does cash value grow?
• What is the most important factor when deciding whether to convert term insurance at attained age or original age?
• Which statement best describes Credit Life Insurance issued to a debtor?
• Which statement about dividends in a participating policy is true?
• How do fixed and variable annuities differ?
• An insurance company MUST use in its advertising.
• Survivorship covers two people and pays upon the death of the last insured.
• Annuities serve to liquidate an estate through recurrent payments.
• Who typically issues the certificate of coverage to employees under a group life policy?
• In a group life policy, which document evidences an individual's coverage?
• If misrepresentation is found, which action may the Commissioner take regarding a license?
• Which of the following may be required to reinstate a lapsed health policy?
• In a variable life policy, which statement is true?
• Which characteristic is required of an applicant for an insurance agent license?
• Living benefits allow access to the death benefit for what purpose?
• Group credit insurance offers coverage to the lender, usually a bank or finance company, where the payout is the outstanding principal amount.
• Which option correctly lists the duration of a temporary agent license?
• Which statement about MIB reports is true?
• In a group life plan where employees share in the cost of premiums, the arrangement is described as what type?
• Adjustable Life Policy is a hybrid of term life and whole life that allows policyholders the option to adjust policy features, including the period of protection, face amount, premiums, and length of the premium payment period. Adjustable life policies also incorporate an interest-bearing savings component, known as a cash value account. Which option best describes this policy?
• What is the elimination period?
• A variable life policy salesperson must register with which organization before selling?
• Which type of assignment is commonly used as security for a debt?
• What continuing education requirements apply to Texas LAH05 licensees?
• Why are illustrations and misrepresentation important in life policy marketing?
• ________ _______ of a life insurance policy is used extensively in estate-planning as well as business circumstances
• Common limited-payment periods for Limited-Pay Life policies include
• Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Texas Insurance Code covering.....
• If a beneficiary designation is irrevocable, what is required to change the designation?
• A disability income rider provides what?
• In Equity Indexed Life Insurance, which statement is true?
• What is a deductible in health insurance?
• An applicant's signature on a life insurance application is required to attest that statements on the application are accurate to the best of the applicant's knowledge.
• Which situation demonstrates valid insurable interest at the time of application?
• In a noncontributory group term life plan, who pays the entire cost of the plan?
• What does the accelerated death benefit rider provide?
• Which term policy allows continued coverage after expiration?
• To obtain an increasing death benefit to protect against inflation, which option should be selected?
• In Texas, a domestic insurance company is defined as a company that...
• What is the role of consideration in a life insurance contract?
• The Commissioner may suspend, revoke, or refuse to renew the license of an agent who is..
• Why are illustrations used in life policy marketing?
• A noncontributory group term life plan is characterized by what?
• Which describes a whole life insurance policy?
• What payout options are typically available for annuities?
• What licensing is required to sell LAH05 lines in Texas?
• Which policy types typically have a cash value that can be borrowed against?
• Are dividends guaranteed by insurers?
• Under the _____ _________ code, suicide may not be a defense against payment after the second year.
• What are nonforfeiture options and why do they exist?
• Which entity may administer the worker's compensation system?
• Which statement best describes variable life insurance?
• An Adjustable Life Policy is described as ...
• In a universal life policy, which two features are adjustable by the policyholder?
• What does group credit life insurance primarily provide?
• Which rider covers children under their parent's policy?
• Loan proceeds are defined as the amount the lender disburses to the borrower after paying off closing fees.
• Life Annuity with Period Certain includes which feature?
• What happens to paid-up additions over time?
• Paid-Up Additions are additional whole life coverage that a policyholder purchases using the policy's dividends instead of premiums.
• What distinguishes an absolute assignment from a collateral assignment of a life policy?
• Which policy type is designed for temporary protection and has little to no cash value?