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TEXAS LIFE AND HEALTH INSURANCE EXAM
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The policy has a 20 year rider period. If Avery were to die at age 50, how long would Averys family receive an income? nonrenewable - Correct Answer-what BEST describes a short term medical expense policy? insuring clause - Correct Answer-The clause in an accident and health policy which defines the benefit amounts the insurer will pay is called the... Premiums are payable throughout life until you death - Correct Answer-Which statement is correct regarding the premium payment schedule for whole life policies? upon the insured's death during the term of the policy - Correct Answer-A term life insurance policy matures... 50% - Correct Answer-what percentage of continuing education MUST be completed in the classroom or classroom equivalent?
other agents - Correct Answer-An insurance agent has a fiduciary responsibility to all of the following EXCEPT... unfair methods of competition - Correct Answer-An insurance company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. the insurance company is committing a prohibited act under Texas Insurance Laws covering... overuse of medical services - Correct Answer-Deductibles are used in health policies to lower... Forward the application to the insurer without the initial premium - Correct Answer-What action should a producer take if the initial premium is NOT submitted with the application? misrepresentation - Correct Answer-Which unfair trade practice involves an agent telling a prospective client that a policy's dividends are guaranteed? the child that is the contingent beneficiary - Correct Answer-If a parent has an Accidental Death & Dismemberment (AD&D) insurance policy & both parents were killed.. where would the death proceeds go to?
Medicare supplement policy - Correct Answer-An applicant MUST receive an Outline of Coverage when the application is taken for a... Universal Life - Correct Answer-What type of life insurance incorporates flexible premiums and adjustable death benefit? wait at least 5 years before applying for a new license - Correct Answer-What is required for an agent whose license has been revoked? policy loan - Correct Answer-the underwriting process involves all of these, EXCEPT... 100% - Correct Answer-A company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is... beneficiary - Correct Answer-Avery is the policyowner of a life insurance policy with an irrevocable beneficiary designation. If Avery wishes to change the beneficiary, Avery must obtain permission from the... excluded by the insurer in the contract provision - Correct Answer- Health insurance benefits NOT covered due to an act of war are...
surgical fees - Correct Answer-Which service is NOT covered under hospitalization expense coverage? the scope and limits of the coverage. - Correct Answer-The insuring clause states... gender - Correct Answer-A life insurance application CANNOT be rejected by which factor... the insured has become totally disabled and defined in the policy - Correct Answer-in health insurance policies, a waiver of premium provision keeps the coverage in forced without premium payments if... both an insurance and securities product. - Correct Answer-Variable Whole Life Insurance can be described as.. legal reserve agents - Correct Answer-Which agents CANNOT charge fees for insurance advise? Subrogation - Correct Answer-Which of the following is the reimbursement of benefits to the treatment of a beneficiary's injuries caused by a third party?
$10,000 - Correct Answer-under the USA Patriot Act, insurers are required to report receipt of cash payments in excess of... Reimbursement Policy - Correct Answer-Which type of policy pays benefits to a policyowner covered under a Hospital Expense policy? HMO - Correct Answer-Which type of provider is known for stressing preventative medical care and routine physical examinations? entire cash surrender value is taxable - Correct Answer-Which of these statements in INCORRECT regarding the federal income tax treatment of life insurance? is incorporated and formed in Texas - Correct Answer-A domestic insurance company in Texas is considered a company that... 6 months - Correct Answer-how long can a cash surrender value payment be deferred by the insurance company under the Nonforfeiture Law? 2 years - Correct Answer-In Texas, how long must a policy be in forced before an insurance company must pay death benefits for suicide?
probability of making timely premium payments - Correct Answer- Consumer reports requested by an underwriter during the application process of a life insurance policy can be used to determine... another agent in the same line of work - Correct Answer-With whom may an agent legally share information about commissions? Immediate annuity - Correct Answer-W is a 39 year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a... when the insured dies or at the policy's maturity date. whichever happens first. - Correct Answer-when is the face amount of a whole life policy is paid? lower than the actual expenses incurred - Correct Answer-basic hospital and surgical policy benefits are... set up a meeting with the applicant to answer the remaining questions. - Correct Answer-Avery is a producer who notices un- answered questions on the application. Avery should do what? A 31 days - Correct Answer-in Texas, an individual life insurance policy is REQURIED to have a grace period of how long?
Guaranteed Insurability Option rider - Correct Answer-A doctor opens up a new practice and qualifies for a disability income policy. What rider would the doctor add if he wants to increase his policy as his practice and income grow? 100% - Correct Answer-an insured may assign up to __________ of policy ownership under an individual life insurance policy. turning down a claim without providing the basis of denial - Correct Answer-an example of an unfair claims settlement practice is... transportation to and from a treatment facility - Correct Answer-what is NOT a required benefit under a group health plan for drug and alcohol treatment? Limited Pay life - Correct Answer-life insurance that covers an insureds whole life with level premiums over a limited time is called... collecting premiums - Correct Answer-the phrases "transacting business" includes... returning a portion of a premium as inducement to purchase insurance - Correct Answer-an example of rebating would be...
Waiver of Premium - Correct Answer-the provision in a health insurance policy that suspends premiums being paid to the insurer while the insured is disabled is called the.. Part A covers hospitalization Part B covers doctors services - Correct Answer-what does Medicare parts A & B cover? irrevocable - Correct Answer-A policyowner wants to change the beneficiary on his AD&D insurance policy and would like to make the change permanent. Which type of designation would fulfill this need? managed care - Correct Answer-Pre-hospitalization authorization is an example of... home health care - Correct Answer-which of the following will a long term care plan typically provide benefits for? 5 months - Correct Answer-how many months must a person be disabled before being able to file for social security disability benefits? lower during the policy's early years - Correct Answer-under a graded premium policy, the premiums are...
Noncancellable - Correct Answer-a disability income policy that only the policyowner can terminate and which the rates will never go up is considered to be... carryover provision - Correct Answer-which policy features allows an insured to defer current health charges to the following years deductible? Whole life and Increasing term - Correct Answer-a Return of Premium life insurance policy is... company's mortality table - Correct Answer-what is NOT included in a life insurance illustration? 60 - Correct Answer-every 12 months after initial enrollment period, an HMO must hold an open enrollment period of how many days? the insurance company - Correct Answer-a policy of adhesion can only be modified by whom? wages - Correct Answer-a primary factor that determines the benefits paid under a disability income policy?
the commissioner is elected. (he is not elected.. the gov't assigns) - Correct Answer-all of these statements about the commissioner of insurance are true EXCEPT... Time Limit on Certain Defenses - Correct Answer-which accident and health policy provisions addresses pre-existing conditions? right to loan - Correct Answer-which is NOT a required provision in group life policies? acupuncture - Correct Answer-which types of care is not covered in a long term care policy? ten-year endowment - Correct Answer-Avery would like to be assured $1000 is available in 10 years. What kind of $10,000 policy should Avery buy? policyowner - Correct Answer-who has the right to change a revocable beneficiary? The beneficiary is named by the key employee - Correct Answer-which statement regarding a Key Employee Life policy is NOT true? When one party makes an offer and the other accepts - Correct Answer-At what point does an informal contract become binding?
unliateral - Correct Answer-In an insurance contract, the insurer is the only party who makes legally enforceable promise. What kind of contract is this? bilateral - Correct Answer-NOT a typical characteristic of the nature of an insurance contract... Promise to pay a death benefit to a named beneficiary - Correct Answer-what is the consideration given by an insurer in the Consideration clause of life policy? contract - Correct Answer-which of these require an offer, acceptance, and consideration? Aleatory Contract - Correct Answer-Q purchases a $500,000 life insurance policy and premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features? Insurable Interest - Correct Answer-A life insurance policy would be considered a wagering contract WITHOUT: Contracts of Adhesion - Correct Answer-Insurance policies are offered on a "take it or leave it" basis, which makes them...
Must have a terminal illness to qualify - Correct Answer-Which of the following statements are CORRECT about accelerated death benefits? Accidental death and dismemberment rider (AD&D) - Correct Answer- The option that provides an additional death benefit for a limited amount of time at the lowest possible cost is called... Long term care - Correct Answer-an insured's inability to preform two or more activities of daily living may trigger which type of life policy rider? settlement - Correct Answer-an option that is a method of distributing a life insurance policy's death benefit OTHER than a lump sum payment. Accidental death or dismemberment clause - Correct Answer-P is blinded in an industrial accident. which provision of his life insurance policy will pay a stated benefit amount? Assign policy ownership to the bank - Correct Answer-What action can a policyowner take if an application for a bank loan requires collateral?
policy that will accumulate cash value at a faster rate in the early years of the policy. which statement made by the producer is correct? Ex-wife - Correct Answer-if Avery got divorced and wanted to move his policy over to his new wife.. if avery dies without making any changes...who does the policy proceeds to be paid? Full face amount - Correct Answer-D was serving in the marines and he was killed.. his whole life policy contained a war exclusion clause. how much will D beneficiary's receive? is blinded in an accident - Correct Answer-The accidental death and dismemberment (AD&D) provision in a life insurance policy would pay additional benefits if the insured... extended term - Correct Answer-Which of the following Nonforfeiture options offers the highest death benefit? Only the beneficiary may select - Correct Answer-Which is NOT a concerning settlement option? Full face amount minus any past due premiums - Correct Answer-An insured is past due on his life insurance premium, but is still within the grace period.. what will the beneficiary receive if the insured dies during this grace period?
automatically add the amount of interest due to the loan balance - Correct Answer-What action will an insurer take if an interest payment on a policy loan is not made on time? Has lower benefit limits than major medical insurance - Correct Answer-Basic medical expense insurance: $25,000 individual whole life policy - Correct Answer-an employee with $25,000 group term life coverage was recently fired. this employee's group coverage may be converted to a... When the conditions of the receipt are met - Correct Answer-An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. when will the policy become effective? Pay face amount minus the past due premium - Correct Answer-M had an annual life insurance premium payment due January 1. she died January 10th without making the payment. what action will the insurer take? Commissioner - Correct Answer-An evidence of coverage form may be issued by Health Maintenance Organization (HMO) after being approved by the...
