TEXAS STATE EXAM SIMULATOR FINAL
PAPER QUESTIONS AND SOLUTIONS
◉ Which of the following statements is CORRECT about the
period in which a Term Policy can be converted?
It is the same in all contracts
It is set by state regulation
It can be changed by the insured
It varies according to the contracts
Answer: It varies according to the contracts
◉ 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
deny the claim for policy proceeds on the basis of fraud
collect the correct premiums and pay the claim
pay the policy proceeds in the amount the premiums would have
purchased at the insured's actual age
pay the policy proceeds less a penalty not to exceed 12% of those
proceeds
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
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
is prohibited by state law
is allowed only on policies dates after 1992
transfers rights from the company to the policyholder
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
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
Disability Income
Answer: Disability Income
◉ M purchased an Accidental Death and Dismemberment (AD&D)
policy and named his son as beneficiary. M has the right to change
the beneficiary designation at anytime. What type of beneficiary is
his son?
Tertiary
Irrevocable
, Revocable
Contingent
Answer: Revocable
◉ The Accidental Death and Dismemberment (AD&D) provision
in a life insurance policy would pay additional benefits if the
insured
dies of natural causes
becomes critically ill
becomes chronically ill
is blinded in an accident
Answer: is blinded in an accident
◉ Which of the following policy features allows an insured to
defer current health charges to the following year's deductible
instead of the current year's deducitble?
Deferral provision
Carryover provision
Stop Loss provision
Corridor provision
Answer: Carryover provision
PAPER QUESTIONS AND SOLUTIONS
◉ Which of the following statements is CORRECT about the
period in which a Term Policy can be converted?
It is the same in all contracts
It is set by state regulation
It can be changed by the insured
It varies according to the contracts
Answer: It varies according to the contracts
◉ 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
deny the claim for policy proceeds on the basis of fraud
collect the correct premiums and pay the claim
pay the policy proceeds in the amount the premiums would have
purchased at the insured's actual age
pay the policy proceeds less a penalty not to exceed 12% of those
proceeds
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
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
is prohibited by state law
is allowed only on policies dates after 1992
transfers rights from the company to the policyholder
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
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
Disability Income
Answer: Disability Income
◉ M purchased an Accidental Death and Dismemberment (AD&D)
policy and named his son as beneficiary. M has the right to change
the beneficiary designation at anytime. What type of beneficiary is
his son?
Tertiary
Irrevocable
, Revocable
Contingent
Answer: Revocable
◉ The Accidental Death and Dismemberment (AD&D) provision
in a life insurance policy would pay additional benefits if the
insured
dies of natural causes
becomes critically ill
becomes chronically ill
is blinded in an accident
Answer: is blinded in an accident
◉ Which of the following policy features allows an insured to
defer current health charges to the following year's deductible
instead of the current year's deducitble?
Deferral provision
Carryover provision
Stop Loss provision
Corridor provision
Answer: Carryover provision
