Texas Life and Health Insurance

An owner has named an irrevocable beneficiary. What restriction should the owner generally expect?

A life policy has a $250,000 death benefit and $18,000 of outstanding policy loan principal and interest at death. With no other adjustments, how much is payable to the beneficiary?

An owner stops paying whole life premiums and chooses reduced paid-up insurance. What is the usual result?

An agent illustrates future dividends on a participating whole life policy. Which disclosure is appropriate?

A whole life policy has an elected automatic premium loan provision and sufficient available loan value. What can happen when a premium is not paid by the end of the grace period?

Which documents ordinarily form the entire life insurance contract when the application is attached to the policy?

A life policy contains a clearly applicable exclusion for a specified aviation activity. Why is explaining that exclusion at delivery important?

A policy's misstatement-of-age clause adjusts benefits to what the paid premium would have purchased at the correct age. The owner paid $600; the correct-age rate would buy $1,000 of coverage for each $6 of premium. What is the adjusted benefit?

A beneficiary wants life insurance proceeds distributed over exactly ten years rather than for a lifetime. Which settlement option most directly addresses that request?

An owner asks to reinstate a lapsed life policy rather than apply for a new one. What should the agent explain?

An applicant leaves a material health question blank. What is the best next action for the producer?

An applicant corrects a medical answer before an application is submitted. How should the producer handle the change?

An insurance application asks for statements true to the applicant's knowledge. How are those statements generally characterized?

A producer accepts an initial premium and issues a conditional receipt requiring insurability on the application date. What should the applicant understand?

A business applies for life insurance on a key executive whose death would cause a financial loss to the business. What supports the required insurable interest at policy inception?

An investor arranges for a stranger to obtain a new life policy solely for transfer to the investor, who lacks an insurable interest. What concern does this arrangement raise?

Two applicants of the same age seek identical life coverage. One has materially higher documented mortality risk. What is a legitimate underwriting response, subject to applicable law?

An insurer takes adverse action based on a consumer report. Which federal law is most directly associated with consumer-report notices and the applicant's related rights?

A producer wants to share a customer's nonpublic financial information for an unrelated marketing arrangement. Which issue should be addressed before disclosure?

A customer proposes a large premium transaction designed to conceal the source of funds and asks the agent to omit identifying information. What should the agent do?