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

These questions are part of the practice quiz. Start practicing

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