Texas State Exam Simulator - Life and
Health Insurance Questions and Correct
Answers
Question 1
A newly licensed General Lines agent must complete a MINIMUM of how many hours
of continuing education within 24 months after initial license?
10
15
20
24
Correct Answer
24
Question 2
When can a policyowner change a revocable beneficiary?
Anytime
After the consent of the current beneficiary
Never
Only if primary beneficiary dies
Correct Answer
Anytime
Page 1 of 68
,Question 3
Group life policies MUST include all of the following provisions EXCEPT
Ownership
Beneficiary Designation
Conversion Privilege
Right to Loan Proceeds
Correct Answer
Right to Loan Proceeds
Question 4
T was treated for an ailment 2 months prior to applying for a health insurance policy.
This condition was noted on the application and the policy was issued shortly
afterwards.How will the insurer likely consider this condition?
Insurer will require a higher deductible for any claims resulting from this condition
Insurer is required to initially cover this pre-existing condition
Insurer will permanently exclude the condition from the policy
Insurer will likely treat as a pre-existing condition which may not be covered for one
year
Correct Answer
Insurer will likely treat as a pre-existing condition which may not be covered for one
year
Question 5
Which of these is considered a mandatory provision?
Payment of Claims
Insurance with Other Insurers
Misstatement of Age
Change of Occupation
Correct Answer
Payment of Claims
Page 2 of 68
,Question 6
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself?
Policy Exclusion
Incontestable
Entire Contract Provision
Assignment
Correct Answer
Entire Contract Provision
Question 7
A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following?
Guaranteed Insurability rider
Aviation exclusion
Impairment rider
Accidental Death Benefit rider
Correct Answer
Aviation exclusion
Question 8
What percentage of continuing education instruction MUST be completed in the
classroom or classroom equivalent?
25%
50%
75%
100%
Correct Answer
50%
Page 3 of 68
, Question 9
An applicant's medical information received from the Medical Information Bureau
(MIB) may be furnished to the
agent
applicant's spouse
National Association of Insurance Commissioners (NAIC)
applicant's physician
Correct Answer
applicant's physician
Question 10
The Commissioner of insurance may suspend, revoke, or refuse to renew the license
of an agent who
is convicted of a misdemeanor
is found guilty of misrepresentation or fraud in obtaining the license
files for bankruptcy
fails to write any business for six consecutive months
Correct Answer
Question 11
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
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
Page 4 of 68
Health Insurance Questions and Correct
Answers
Question 1
A newly licensed General Lines agent must complete a MINIMUM of how many hours
of continuing education within 24 months after initial license?
10
15
20
24
Correct Answer
24
Question 2
When can a policyowner change a revocable beneficiary?
Anytime
After the consent of the current beneficiary
Never
Only if primary beneficiary dies
Correct Answer
Anytime
Page 1 of 68
,Question 3
Group life policies MUST include all of the following provisions EXCEPT
Ownership
Beneficiary Designation
Conversion Privilege
Right to Loan Proceeds
Correct Answer
Right to Loan Proceeds
Question 4
T was treated for an ailment 2 months prior to applying for a health insurance policy.
This condition was noted on the application and the policy was issued shortly
afterwards.How will the insurer likely consider this condition?
Insurer will require a higher deductible for any claims resulting from this condition
Insurer is required to initially cover this pre-existing condition
Insurer will permanently exclude the condition from the policy
Insurer will likely treat as a pre-existing condition which may not be covered for one
year
Correct Answer
Insurer will likely treat as a pre-existing condition which may not be covered for one
year
Question 5
Which of these is considered a mandatory provision?
Payment of Claims
Insurance with Other Insurers
Misstatement of Age
Change of Occupation
Correct Answer
Payment of Claims
Page 2 of 68
,Question 6
Which provision prevents an insurer from changing the terms of the contract with the
policyowner by referring to documents not found within the policy itself?
Policy Exclusion
Incontestable
Entire Contract Provision
Assignment
Correct Answer
Entire Contract Provision
Question 7
A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following?
Guaranteed Insurability rider
Aviation exclusion
Impairment rider
Accidental Death Benefit rider
Correct Answer
Aviation exclusion
Question 8
What percentage of continuing education instruction MUST be completed in the
classroom or classroom equivalent?
25%
50%
75%
100%
Correct Answer
50%
Page 3 of 68
, Question 9
An applicant's medical information received from the Medical Information Bureau
(MIB) may be furnished to the
agent
applicant's spouse
National Association of Insurance Commissioners (NAIC)
applicant's physician
Correct Answer
applicant's physician
Question 10
The Commissioner of insurance may suspend, revoke, or refuse to renew the license
of an agent who
is convicted of a misdemeanor
is found guilty of misrepresentation or fraud in obtaining the license
files for bankruptcy
fails to write any business for six consecutive months
Correct Answer
Question 11
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
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
Page 4 of 68
