Download Texas Life and Health Insurance Exam Review Questions and more Exams Insurance Economics in PDF only on Docsity!
Texas Life and Health Insurance latest 2025
Exam Review Questions with 100% Correct
Answers(GRADED A+) 100% PASS
If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely - 7 pa 7 y the policy proceeds in the amount the premiums would have purchased at the insured's actual age The provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the: - 7 Wa 7 iver of Premium P and Q are married and have three children. P is the primary beneficiary on Q's Accidental Death and Dismemberment (AD&D) policy and Q's sister R is the contingent beneficiary. P, Q, and R are involved in a car accident and Q and R are killed instantly. The Accidental Death benefits will be paid to: - 7 P o 7 nly Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy? - 7 *P 7 remiums are waived after the insured has been totally disabled for a specified time period (The Waiver of Premium provision waives the payment of premiums after the insured has been totally disabled for a specified period of time.) All of the following provisions must be included in life insurance policies EXCEPT - 7 All 7 of the following provisions must be included in life insurance policies EXCEPT Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? - 7 oli 7 cy was returned within the free-look period, premium will be fully refunded
Which of the following types of health coverage frequently uses a deductible? - 7 ma 7 jor medical policy Which of the following policy features allows an insured to defer current health charges to the following year's deductible instead of the current year's deductible? - 7 ca 7 rryover provision A policyowner's rights are limited under which beneficiary designation? - 7 irr 7 evocable Quarterly premium payments increase the annual cost of insurance because - 7 Int 7 erest to the insurer is decreased while the administrative costs are increased An agent whose license has been revoked is required to - 7 wa 7 it at least five years before applying for a new license The individual who provides general medical care for a patient as well as the referral for specialized care is known as a: - 7 pri 7 mary care physician The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n): - 7 ins 7 uring agreement A Business Disability Buyout plan policy is designed - 7 To 7 pay benefits to the corporation or other shareholders Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - 7 ins 7 pection report
The first portion of a covered Major Medical insurance expense that the insured is required to pay is called the: - 7 ini 7 tial deductible According to the Mandatory Uniform Policy Provisions, what is the maximum amount of time after the premium due date during which the policy remains in force even though the premium has not been paid? - 7 317 days Which of the following BEST describes a Hospital Indemnity policy? - 7 co 7 verage that pays a stated amount per day of a covered hospitalization Which of these is NOT relevant when determining the amount of personal life insurance needed? - 7 loc 7 al unemployment rate Under which of the following circumstances will the benefits under COBRA continuation coverage end? - 7 all 7 group health plans are terminated by the employer What is the consideration given by an insurer in the Consideration clause of a life policy? - 7 pro 7 mise to pay a death benefit to a named beneficiary Nursing home benefits must be provided for at least 12 consecutive months in which of the following types of policies? - 7 lon 7 g term care Which of the following services is NOT covered under a hospitalization expense policy? - 7 su 7 rgeons fees
Which of these life insurance riders allows the applicant to have excess coverage? - 7 ter 7 m rider A CEO's personal assistant suffered injuries at home and as a result, was unable to work for four months. Which type of policy will pay a monthly benefit to the personal assistant? - 7 dis 7 ability income The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs? - 7 so 7 cial security disability income What benefit does the Payor clause on a Juvenile Life policy provide? - 7 pr 7 emiums are waived if the payor becomes diabled Z owns a Disability Income policy with a 30 - day Elimination period. Z contracts pneumonia that leaves him unable to work from January 1 until January 15. Z then becomes disabled from an accident on February 1 and the disability lasts until July 1 the same year. Z will become eligible to receive benefits starting on: - 7 ma 7 rch 1 A Long-Term Care policy must offer a MINIMUM benefit period of how many months? - 7 127 A Limited-Pay Life policy has: - 7 pre 7 mium payments limited to a specific number of years. Group/voluntary long-term care policy premiums are typically deducted from the employee's income and, - 7 ar e 7 less costly as compared to individual long term care coverage Which premium schedule results in the lowest cost to the policyowner? - 7 An 7 nual
Under what system do a group of doctors and hospitals in a designated area contract with an insurer to provide services at a prearranged cost to the insured? - 7 PP 7 O When does a Probationary Period provision become effective in a health insurance contract? - 7 at 7 the policies inception An individual life insurance policy issued in Texas MUST have a grace period for premium payment of how many days? - 7 317 T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay? - 7 $5 7 0, Why is an applicant's signature required on a life insurance application? - 7 to 7 attest that the statements on the application are accurate to the best of the applicants knowledge Which of the following types of care is typically not covered in a Long-Term Care policy? - 7 ac 7 upuncture A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following? - 7 av 7 iation exclusion With Optionally Renewable Health policies, the insurer may: - 7 rev 7 iew the policy annually and determine whether or not to renew it After the initial enrollment period, an HMO must hold an open enrollment period of how many days at LEAST once in every 1 2 - month period? - 7 317
To be eligible for Social Security disability benefits, an employee must be unable to perform: - 7 an 7 y occupation Insurance company agent appointments remain in force for which of the following maximum periods of time, if any? - 7 un 7 til terminated or withdrawn In a qualified retirement plan, the yearly contributions to an employee's account: - 7 as 7 restricted to maximum levels set by the IRS J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age as stated on the application five years ago was found to be understated by ten years. Which of the following actions will the insurance company take? - 7 t h e 7 insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age Which of these circumstances is a Business Disability Buy-Sell policy designed to help in the sale of a business? - 7 bu 7 siness owner becoming disabled Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? - 7 en 7 tire contract A certificate of authority does which of the following? - 7 pe 7 rmits an insurance company to transact business in Texas What is being delivered during a policy delivery? - 7 ins 7 urance contract to the proposed insured
In regards to representations or warranties, which of these statements is TRUE? - 7 If m 7 aterial to the risk, false representations will void a policy The Commissioner of Insurance has the power and duty to take all of the following actions EXCEPT - 7 ac 7 tive insurance companies financial reserves A life insurance application must be signed by all of these, EXCEPT: - 7 be 7 neficiary A life insurance illustration is NOT required to include the - 7 Co 7 mpanies mortality table Health insurance benefits NOT covered due to an act of war are: - 7 ex 7 cluded by the insurer in the contract provisions F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed? - 7 De 7 creasing term policy Which of the following best describes a contingent beneficiary? - 7 Pe 7 rson designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured Which of the following statements BEST describes what the Legal Actions provision of an Accident and Health policy requires? - 7 An 7 insured must wait at least 60 days after proof of loss has been submitted before a lawsuit can be filed An agent who tells claimants that their rights may be impaired if they fail to complete a release form within a given period of time could be guilty of - 7 co 7 ercion
In health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments: - 7 aft 7 er an insured has become totally disabled as defined in the policy A newly licensed General Lines agent must complete a MINIMUM of how many hours of continuing education within 24 months after initial license? - 7 247 Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - 7 ins 7 pection report A stock insurance company is owned by it's - 7 sto 7 ckholders Insurance contracts are known as because certain future conditions or acts must occur before any claims can be paid. - 7 co 7 nditional An agent may legally share commissions only with - 7 an 7 other agent who is licensed in the same line of insurance From what authority derives the requirement that an insurance application contains a disclosure stating that an investigative consumer report may be obtained on an applicant? - 7 Fa 7 ir credit reporting act Which of the following health insurance policy provisions specifies the health care services a policy will provide? - 7 Ins 7 uring clause
M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? - 7 Re 7 vocable Which of these is NOT a type of agent authority? - 7 Pri 7 ncipal Life insurance that covers an insured's whole life with level premiums paid over a limited time is called: - 7 Lim 7 ited pay life An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors? - 7 Ge 7 nder The type of annuity that can be purchased with one monetary deposit is called a(n): - 7 im 7 mediate annuity Benefits for drug and alcohol treatment under a group health policy must include all of the following services EXCEPT - 7 tra 7 nsportation to and from an outpatient facility Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Texas Insurance Code covering - 7 un 7 fair methods of competition Which type of policy is considered to be overfunded, as stated by IRS guidelines? - 7 mo 7 dified endowment contract What is the underlying concept regarding level premiums? - 7 t he 7 early years are charged more than what is needed
An agent MUST do which of the following during a sales presentation for a participating life insurance policy? - 7 inc 7 ludes a statement that dividends are not guaranteed Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant? - 7 ris 7 k classification C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most? - 7 t h e 7 cost Which health policy clause specifies the amount of benefits to be paid? - 7 ins 7 uring A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take? - 7 sen 7 d a notice to the MIB that the application was declined E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to? - 7 F 7 Which of the following reimburses its insureds for covered medical expenses? - 7 co 7 mmercial insurers
Which of the following will a Long Term Care plan typically provide benefits for? - 7 ho 7 me health care
