Completing the Application, Underwriting, Delivering Policies, Contract Law
A legal-age Texas applicant buys insurance on her own life and names a charitable corporation as beneficiary in writing on the application. Which statement is accurate?
Answer and explanation
Answer: C. When an adult applies for a policy on the adult's own life, Texas law allows written designation in the application of an individual or legal entity, including a corporation, as beneficiary or owner.Source: Texas Legislature — Texas Insurance Code Chapter 1103 — § 1103.054(1)–(2)
More completing the application, underwriting, delivering policies, contract law questions
- A producer tells an applicant, 'I can change the receipt so coverage starts today even though its stated conditions are unmet.' Which response is accurate?
- A statement in a life insurance application is treated as a representation rather than a warranty. What must an insurer show to contest the policy on that basis?
- A suspicious transaction involving a covered insurance product is identified from facts supplied by an agent. Who bears the direct federal obligation to report the suspicious transaction?
- A Texas life insurer asks an applicant to take an HIV-related test for underwriting. What must occur before the test?
- After signing an application but before policy delivery, the proposed insured begins taking a newly prescribed heart medication. What should the proposed insured do?
- An adult applies for a policy on his own life and names his sister as beneficiary. Whose signatures does the application ordinarily require?
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