Texas Life and Health Insurance

In a life insurance contract, what ordinarily represents the applicant's consideration?

An insurer drafts a standard policy that the applicant generally accepts as written. Which contract characteristic does this illustrate?

A simplified life needs analysis lists $180,000 of debt and $420,000 of income-replacement needs. Available assets and existing insurance total $250,000. What additional coverage fills the stated gap?

A company owns life insurance on a crucial engineer, pays the premiums, and is the beneficiary. What is the primary purpose of this key person arrangement?

Two partners use life insurance to fund a written buy-sell agreement. What event is the funding primarily intended to address?

An employee loses employer group life coverage and has a contractual conversion right. What is generally the essential feature of that right when exercised on time?

Which statement best distinguishes a tax-qualified retirement plan from an ordinary nonqualified savings arrangement?

A beneficiary receives a death benefit from an ordinary personal life policy and also receives separately paid interest. No transfer-for-value or other exception applies. What is the general federal income tax treatment?

An individual funds a nonqualified deferred annuity with after-tax money. Before distributions, how are earnings generally treated for federal income tax purposes?

An owner takes a withdrawal from a modified endowment contract that has a gain. What general federal income tax feature distinguishes it from a non-MEC life policy's usual withdrawal ordering?

A surgeon cannot perform surgery after an injury but can teach full time. Which disability definition most directly focuses on the inability to perform the material duties of the surgeon's own occupation?

A disability policy changes after two years from an own-occupation standard to an any-occupation standard. What does the later standard generally evaluate?

A dentist becomes disabled and wants help paying the practice's rent and staff salaries while the office remains open. Which policy most directly covers those eligible expenses?

Business partners want funds to purchase a partner's ownership interest after a qualifying long-term disability. Which coverage is designed for that purpose?

An insured loses a hand in a covered accident and meets an AD&D policy's stated loss definition. What determines the dismemberment benefit?

A consumer wants coordinated routine care through a primary care provider and a contracted network. Which health plan structure most commonly fits that arrangement?

A patient wants a plan that commonly allows covered care from either preferred or nonpreferred providers, with higher patient costs outside the network. Which structure best matches that description?

How does a point-of-service health plan commonly combine HMO and PPO features?

An eligible individual contributes to a health savings account while covered by an HSA-qualified high-deductible health plan. Who owns the HSA and retains its unused balance after changing jobs?

Which feature generally distinguishes a health reimbursement arrangement from an employee-funded health FSA?