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Pearson Vue Texas State Life + Health Insurance
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Consist of 150 multichoice Questions with Answers
- Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis? A. Residential care B. Assisted living C. Home health care D. Adult day care Answer D. Adult day care
- An insured's long-tern care policy is scheduled to pay fixed amount of coverage of $120 per day. The long-term care facility only charged
2 / $100 per day. How much will the insurance company pay? A. 20% of the total cost B. $120 a day C. $100 a day D. 80% of the total cost Answer B. $120 a day
- In comparison to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide coverage that is A. More limited in duration B. Broader in duration C. Broder in general D. More limited in general Answer C. Broader in general
- An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits? A. The entire living benefits is considered taxable income B. A portion of the benefits up to a limit is tax-free; the rest is taxable
4 / service area, but care is preferred in the service area
- Death benefits payable to a beneficiary under a life insurance policy are generally A. Subject to income taxation by the federal government B. Exempt from income taxation if under $10, C. Exempt from income taxation if over $10, D. Not subject to income taxation by the federal government Answer D. Not subject to income taxation by the federal government
- Which of the following best describes the aleatory nature of an insurance contract? A. Only one of the parties being legally bound by the contract B. Ambiguities are interpreted in favor of the insured C. Policies are submitted to the insurer on a take-it-or-leave-it basis D. Exchange of unequal values Answer D. Exchange of unequal values
- Which of the following is considered a presumptive disability under a disability income policy A. Loss of two limbs
5 / B. Loss of an eye C. Loss of hearing in one ear D. Loss of one hand or foot Answer A. loss of two limbs
- An insured purchased a noncancelable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy? A. The insured reaches the maximum age limit specified in the policy B. Within two years of the application, the insurer discovers a misrepresenta- tion C. The insured is an accident and incurs a large claim D. The insured does not pay the premium Answer C. The insured is an accident and incurs a large claim
- When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount? A. The same as the original policy minus the cash value B. Equal to the original policy for as long as the cash values will purchase
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- Which of the following best describes the "first-dollar coverage" principle in basic medical insurance? A. The insured must first pay a deductible B. The insurer covers the first claim on the policy C. Deductibles and coinsurance are taxed first D. The insured is not required to pay a deductible Answer D. The insured is not required to pay a deductible
- Which of the following determines the cash value of a variable life policy? A. The performance of the policy portfolio B. The company's general account C. The policy's guarantees D. The premium mode Answer D. The premium mode
- An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date? A. The date of the application B. The date of the medical exam
8 / C. The date of policy delivery D. The date of issue Answer B. The date of the medical exam
- An applicant who receives a preferred risk classification qualifies for A. Higher premiums than a person who receives a sub-standard risk B. Higher premiums than a person who receives a standard risk C. Lower premiums than a person who receives a standard risk D. Dividends payable for lack of claims Answer C. Lower premiums than a person who receives a standard risk
- All of the following statements about Medicare Part B are correct EXCEPT A. It is a compulsory program B. It covers services and supplies not covered by Part A C. It is financed by monthly premium D. It is financed by tax revenues Answer A. It is a compulsory program
- With respect to the consideration clause, which of the following
10 / C. Payments can be made in installments and as a single cash refund D. It does not guarantee that the entire principal amount will be paid out Answer D. It does not guarantee that the entire principal amount will be paid out
- An insurer advertises a health policy that is covered by the Life and Health Insurance Guaranty Association. The advertisement includes a short list of benefits and approximate rates. The end of the advertisement includes statement that protection is provided by the Guaranty Association. Which of the following is true? A. Mentioning the Guaranty Association in advertisement is considered to be unfair trade practice B. The advertisement must also include the contact information of the associ- ation C. The advertisement must also include the contact information of the Com- missioner of Insurance D. Mentioning the Guaranty Association is mandatory when advertising in the state of Texas Answer A. Mentioning the Guaranty Association in advertisement is considered to be unfair trade practice
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- The commissioner of Insurance issues a Cease and Desist Order and immediately receives a request for the charges to be reviewed in a hearing. Within how many days must the hearing be held? A. 10 B. C. 30 D. Answer C.
- What is the purpose of the Life Insurance Guaranty Association? A. To help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company B. To encourage life insurance to write substandard business C. To allow agents to continue to solicit insurance, even if the company they represent is financially impaired D. To protect the reputation of the insurance Department if they issue a Certificate of Authority to a company that becomes insolvent Answer A. To help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company
13 / Answer 50%
- Which of the following is a feature of a variable annuity? A. Interest rate is guarantee B. Securities license is not required C. Benefit payment amounts are not guaranteed
14 / D. Payments into the annuity are kept in the company's general account Answer C. Benefit payment amounts are not guaranteed
- Which provision allows the policyholder a period of time, while coverage is in force, to examine a health insurance policy and determine whether or not to keep it? A. Elimination period B. Probationary period C. Free Look period D. Grace period Answer C. Free look period
- Which of the following is true about the requirement regarding HIV exams? A. Prior informed oral consent is required from be used the applicant B. HIV exams may not be used as a basis for underwriting C. The applicant must give prior informed written consent D. Results may be disclosed to the agent and the underwriter Answer C. The applicant must give prior informed written consent
- Another term used to describe "no deductible" is A. Total coverage
16 / income.
- A father purchases a life insurance policy on his teenage daughter and adds the Payor benefits rider. In which of the following scenarios will the rider waive the payment of premium? A. If the father is disabled for at least a year
17 / B. If the daughter is disabled for more than 3 months C. If the daughter is disabled for any length of time D. If the father is disabled for more than 6 months Answer D. If the father is disabled for more than 6 months
- Which of the following is a risk classification used by underwriters for life insurance? A. Normal B. Excellent C. Standard D. Poor Answer C. Standard
- Which of the following explains the policyowner's right to change benefi- ciaries, choose options, and receives proceeds of a policy? A. The entire contract provision B. The consideration clause C. Assignment rights D. owner's right Answer D. owner's right
- A key person insurance policy can pay for which of the following? A. Cost of training a replacement B. Loss of personal income
19 / any time
20 / C. The employer is the owner, payor and beneficiary of the policy D. The key employee is insured Answer the plan is funded by permanent insurance only
- Under a health insurance policy, benefits, other than death benefits, that have not otherwise been assigned , will be paid to A. Beneficiary of the death benefit B. The spouse of the insured C. The insured D. Creditors Answer C. The insured
- When delivering a policy, which of the following is an agent's responsibil- ity? A. Issue the policy if the applicant is present B. Approve or decline C. Collect medical statement from physician D. Collect payment at time of delivery Answer Collect payment at time of delivery
- Ray has an individual major medical policy that requires a coinsurance payment. Ray very rarely visits his physician and would prefer to pay the lowest premium possible. Which coinsurance arrangement would be best for Ray?
