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Texas Life and Health Insurance Exam 2024/2025 with 100% correct Answers, Exams of Personal Health

Tarrant County CollegePersonal Health

1. A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would be considered primary? - ✔✔Her group health plan 2. A Business Overhead Expense policy - ✔✔reimburses the company for any reduction in sales due to the owner's disability 3. A certificate of authority does which of the following? - ✔✔Permits an insurance company to transact business in Texas 4. A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of - ✔✔coercion 5. A Disability Income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application.

Typology: Exams

2024/2025

Available from 09/29/2024

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Texas Life and Health Insurance Exam
2024/2025
1. A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she injures
herself while walking in the park, what coverage would be
considered primary? - ✔✔Her group health plan
2. A Business Overhead Expense policy - ✔✔reimburses the
company for any reduction in sales due to the owner's disability
3. A certificate of authority does which of the following? -
✔✔Permits an insurance company to transact business in Texas
4. A creditor who requires a debtor to obtain insurance from a
particular company or agent as a condition for a loan is guilty of -
✔✔coercion
5. A Disability Income policyowner recently submitted a claim for a
chronic neck problem that has now resulted in total disability. The
original neck injury occurred before the application was taken 5
years prior. The neck injury was never disclosed to the insurer at
the time of application. How will the insurer handle this claim? -
✔✔Claim will be paid and coverage will remain in force
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Download Texas Life and Health Insurance Exam 2024/2025 with 100% correct Answers and more Exams Personal Health in PDF only on Docsity!

Texas Life and Health Insurance Exam

  1. A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would be considered primary? - ✔✔Her group health plan
  2. A Business Overhead Expense policy - ✔✔reimburses the company for any reduction in sales due to the owner's disability
  3. A certificate of authority does which of the following? - ✔✔Permits an insurance company to transact business in Texas
  4. A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of - ✔✔coercion
  5. A Disability Income policyowner recently submitted a claim for a chronic neck problem that has now resulted in total disability. The original neck injury occurred before the application was taken 5 years prior. The neck injury was never disclosed to the insurer at the time of application. How will the insurer handle this claim? - ✔✔Claim will be paid and coverage will remain in force
  1. A foreign insurance company is one that is incorporated - ✔✔under the laws of another state
  2. A group life insurance policy may NOT insure groups consisting exclusively of persons who are - ✔✔related by marriage, blood or legal adoption
  3. A Health Maintenance Organization (HMO) may issue an Evidence of Coverage form after it has been approved by the - ✔✔Commissioner of Insurance
  4. A Hospital/Surgical Expense policy was purchased for a family of four in March of 2013. The policy was issued with a $ deductible and a limit of four deductibles per calendar year. Two claims were paid in September 2013, each incurring medical expenses in excess of the deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as well. What would be this family's out-of-pocket medical expenses for 2013? - ✔✔1,
  5. A Key Employee policy is taken out by Company X on its vice president. Ten years later, this employee leaves Company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed? - ✔✔Company X
  1. A provision in a life insurance policy that pays the policyowner an amount that does not surpass the guaranteed cash value is called the - ✔✔Policy Loan provision
  2. A stock insurance company is owned by it's - ✔✔stockholders
  3. A young, married teacher has two children and owns a Whole Life policy. If the teacher wants an increasing Death Benefit to protect against inflation, the teacher should select which of the following Dividend Options? - ✔✔Paid-Up Additional Insurance
  4. 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? - ✔✔31 days
  5. After the initial enrollment period, an HMO must hold an open enrollment period of how many days at LEAST once in every 12 - month period? - ✔✔ 31
  6. All of the following are defined as doing insurance business EXCEPT - ✔✔selling mutual funds
  7. All of the following are limited benefit plans EXCEPT
  1. cancer policies
  2. life insurance policies
  3. dental policies
  4. critical illness policies - ✔✔life insurance policies
  5. All of the following may charge fees for insurance advice EXCEPT - ✔✔Legal reserve agents
  6. All of the following provisions must be included in life insurance policies EXCEPT - ✔✔Extended Term
  7. All of the following statements about health coverage for newborns are correct EXCEPT - ✔✔coverage during the first year is limited to congenital defects
  8. All of the following statements about Major Medical benefits are true EXCEPT - ✔✔Benefits have no maximum limit
  9. All of these are considered to be a benefit under Social Security EXCEPT for - ✔✔unemployment
  10. All of these statements about Equity Indexed Life Insurance are correct EXCEPT
  11. Cash value has a minimum rate of accumulation
  1. An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to - ✔✔determine if the applicant is an acceptable risk by completing standard underwriting procedures
  2. An agent who tells a client that dividends are guaranteed may be guilty of - ✔✔misrepresentation
  3. 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 - ✔✔coercion
  4. An agent whose license has been revoked is required to - ✔✔wait at least five years before applying for a new license
  5. An applicant for an agent's license must meet which of the following requirements? - ✔✔Be honest, trustworthy, and reliable
  6. An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons? - ✔✔Failure to pay for coverage
  1. An incomplete life insurance application submitted to an insurer will result in which of these actions? - ✔✔Application will be returned to the writing agent
  2. An individual has a Major Medical policy with a $5, deductible and an 80/20 Coinsurance clause. How much will the INSURED have to pay if a total of $15,000 in covered medical expenses are incurred? - ✔✔$7,000". In this situation, $5,000 + 20% of the remaining bill = $7,
  3. An individual life insurance policy issued in Texas MUST have a grace period for premium payment of how many days? - ✔✔ 31
  4. An insurance agent does NOT have fiduciary responsibilities to - ✔✔other agents
  5. An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - ✔✔Fair Credit Reporting Act
  6. An insurance company may be judged guilty of false advertising if it - ✔✔An insurance company may be judged guilty of false advertising if it
  1. An insured owns an individual Disability Income policy with a 30 - day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim? - ✔✔$1,
  2. 3.5 months - 1 month elimination period = 2.5 months. 2. months X $500 monthly indemnity = $1,250.
  3. An insurer must provide an insured with claim forms within __ days after receiving notice of a loss. - ✔✔ 15
  4. An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? - ✔✔59 1/
  5. An organization that solicits insurance only among its members is known as a - ✔✔fraternal benefit society
  6. An underwriter determines that an applicant's risk should be recategorized due to a health issue. This policy may be issued with a(n) - ✔✔exclusion for the medical condition
  7. Any changes made on an insurance application requires the initials of whom? - ✔✔Applicant
  1. At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - ✔✔Upon completion of the application
  2. At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid? - ✔✔At the time of application
  3. Before a life insurance policy is issued, which of these components of the contract is required? - ✔✔Applicant's signature on application
  4. Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner MUST give how many days notice? - ✔✔30 days
  5. Benefits for drug and alcohol treatment under a group health policy must include all of the following services EXCEPT - ✔✔transportation to and from an outpatient facility
  6. Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Texas Insurance Code covering - ✔✔unfair methods of competition
  1. 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? - ✔✔Decreasing term policy
  2. G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income? - ✔✔10 years
  3. Group life policies MUST include all of the following provisions EXCEPT - ✔✔Right to Loan Proceeds
  4. Health insurance benefits NOT covered due to an act of war are - ✔✔excluded by the insurer in the contract provisions
  5. How long does the coverage normally remain on a limited- pay life policy? - ✔✔age 100
  6. How long is the typical free look period for Long Term care insurance policies? - ✔✔30 days
  7. If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses? - ✔✔Medicare Supplement
  1. If an insurance company is organized under the laws of New Jersey and licensed to do business here, it is considered which of the following in Texas? - ✔✔a foreign company
  2. If an insured sustains a loss on a policy sold by an agent through an insurance company that is not authorized to do business in Texas, which of the following would be liable? - ✔✔The agent and the company
  3. If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? - ✔✔Contributory
  4. 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 - ✔✔pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age
  5. In general, what percent of personal health insurance premiums is deductible for federal income tax purposes? - ✔✔100%
  6. In health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments -
  1. Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid. - ✔✔conditional
  2. J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct?
  3. The gross premium is higher on a monthly payment mode as compared to being paid annually
  4. The gross premium is lower on a monthly payment mode as compared to being paid annually
  5. The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis
  6. The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis - ✔✔The gross premium is higher on a monthly payment mode as compared to being paid annually
  7. J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions? - ✔✔Reinstatement provision
  8. J's Major Medical policy has a $2,000 deductible and an 80/20 Coinsurance clause. If J is hospitalized and receives a bill for $10,000, J would pay - ✔✔In this situation, ($2,000) + 20% of $8,000 the remaining bill ($1,600) = $3,600.
  1. K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income?
- ✔✔Disability Income
  1. K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? - ✔✔Modified Whole Life
  2. K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - ✔✔daughter
  3. K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? - ✔✔Proceeds will be paid to P's estate
  4. Life insurance that covers an insured's whole life with level premiums paid over a limited time is called - ✔✔Limited-Pay Life
  5. M becomes disabled and is unable to work for six months. M dies soon after from complications arising from this disability. M has a Disability Income policy that pays $2,000 a month. Which of
  1. P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy? - ✔✔An immediate annuity
  2. P is looking to purchase a life insurance policy that will pay a stated monthly income to his beneficiaries for 20 years after he dies and a lump sum of $20,000 at the end of that 20 year period. What type of policy should P purchase? - ✔✔Family Maintenance policy
  3. P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2, a month for the next 10 months. How much of this income is subject to federal income tax? - ✔✔$
  4. P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase? - ✔✔Deferred
  5. Pre-hospitalization authorization is considered an example of - ✔✔managed care
  1. Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? - ✔✔ 5
  2. S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT - ✔✔beneficiary's age
  3. Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called - ✔✔representations
  4. T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this? - ✔✔Renewable
  5. T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? - ✔✔Life Annuity with Period Certain
  6. 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? - ✔✔50,