Download Texas State Exam Simulator - Life and Health Insurance and more Exams Nursing in PDF only on Docsity!
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An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called An installment Refund annuity A Straight Life annuity A Cash Refund annuity A Joint Life annuity - Correct Answer ✅An installment Refund annuity One becomes eligible for Social Security disability benefits after having been disabled for 3 months 5 months 6 months 12 months - Correct Answer ✅5 months
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A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? Straight life accumulates faster than Limited-pay Life 20-Pay Life accumulates cash value faster than Straight Life Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial rating 20-Pay Life and Straight Life accumulate cash value at the same rate - Correct Answer ✅20-Pay Life accumulates cash value faster than Straight Life Who makes the legally enforceable promises in a unilateral insurance policy? Beneficiary Insurance company Insured Applicant - Correct Answer ✅Insurance company
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hospital charges physician fees experimental and investigative services nursing services - Correct Answer ✅experimental and investigative services If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses? Long-term care Indemnity Medicare Supplement Medicaid - Correct Answer ✅Medicare Supplement S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? No benefits are payable under the Master contract
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Full benefits are payable under the Master contract Full benefits are payable under the converted policy Benefits less required premium are payable under the converted policy - Correct Answer ✅Full benefits are payable under the Master contract All of the following are limited benefit plans EXCEPT cancer policies life insurance policies dental policies critical illness policies - Correct Answer ✅life insurance policies A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow? Extended Term rider Cost of Living Adjustment rider Guaranteed Insurability Option rider
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normally paid after a short elimination period - Correct Answer ✅payable to the company or another shareholder he Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for insolvency health information financial information overinsurance - Correct Answer ✅health information How are surrender charges deducted in a life policy with a rear-end loaded provision? Deducted from the death benefit Deducted when the policy is discontinued Deducted from policy's cash value Deducted when assigned to another policyowner - Correct Answer ✅Deducted when the policy is discontinued
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What MUST an insurance company use in its advertising? Its trade name Its true corporate name Its service mark Its corporate logo - Correct Answer ✅Its true corporate name An accident policy will most likely pay a benefit for a(n) self-inflicted injury critical illness on-the-job accident off-the-job accident - Correct Answer ✅off-the-job accident M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT
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Policy mailed to agent Policy delivered to the applicant by the agent Policy issued with a rating - Correct Answer ✅Policy issued with a rating What is the MINIMUM number of Activities of Daily Living (ADL) an insured must be unable to perform to qualify for Long Term Care benefits? 1 2 3 4 - Correct Answer ✅ 2 An agent who tells a client that dividends are guaranteed may be guilty of fraud rebating misrepresentation slander - Correct Answer ✅misrepresentation
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Which statement regarding a Key Employee Life policy is NOT true? The application must be signed by the key employee Its purpose is to prevent the financial loss that may ensue if a key employee dies The beneficiary is named by the key employee The company purchases, owns, pays the premiums and is the beneficiary - Correct Answer ✅The beneficiary is named by the key employee A policyowner's rights are limited under which beneficiary designation? Revocable Tertiary Contingent Irrevocable - Correct Answer ✅Irrevocable Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance
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the insurance company assumes the investment risk - Correct Answer ✅both an insurance and securities product 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? Medicaid Long-term care Medicare Her group health plan - Correct Answer ✅Her group health plan Medicare is a disability program is a hospital and medical expense insurance program offers assistance in making health insurance premiums Part D provides payment for surgeon expenses - Correct Answer ✅is a hospital and medical expense insurance program
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T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? Allow her to take a tax deduction on unearned premiums Increase her policy's coverage amount Decrease her policy's coverage amount Nothing - Correct Answer ✅Increase her policy's coverage amount All of the following statements about health coverage for newborns are correct EXCEPT coverage begins and benefits are payable from the moment of birth coverage includes necessary care and treatment of congenital defects coverage during the first year is limited to congenital defects
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$25,000 individual whole life policy - Correct Answer ✅$25,000 individual whole life policy M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is Adjustable Life Indeterminate Premium Life Grader Premium Life Modified Premium Life - Correct Answer ✅Modified Premium Life 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 type of life insurance
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S's attained age dividend amount used toward purchase beneficiary's age - Correct Answer ✅beneficiary's age Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? Have the customer sign a blank application, then take the application back to his office to complete prior to sending it off to the insurance company Complete the application over the phone with the customer, sign the application for the customer, then send the application off to the insurance company Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company Have the customer fill out the application and send it to his office for him to sign, then send it off to the insurance company - Correct Answer ✅Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
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pay the policy proceeds less a penalty not to exceed 12% of those proceeds
- Correct Answer ✅pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age K is an agent who takes an application for individual life insurance and accepts a check from the client. He submits the application and check to the insurance company, however the check was never signed by the applicant. If the application is approved, when will coverage be effective? The date the sales appointment was made The date the application was submitted to the insurance company The date of application The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured - Correct Answer ✅The date the agent delivered the policy, collected the initial premium, and obtained a good health statement from the insured An assignment of benefits of a Health Policy transfers payments to someone other than the policyowner
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is prohibited by state law is allowed only on policies dates after 1992 transfers rights from the company to the policyholder - Correct Answer ✅transfers payments to someone other than the policyowner What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)? MEWA Blanket insurance Dread disease insurance Disability insurance - Correct Answer ✅Dread disease insurance K becomes ill after traveling overseas and is unable to work for 3 months. What kind of policy would cover her loss of income? Indemnity Major Medical Travel
