Texas Life And Health Insurance Exam Questions With Correct Answers | Latest 2023/2024 (Graded A+)

Texas Life And Health Insurance Exam Questions With Correct Answers | Latest 2023/2024 (Graded A+). Which of the following actions is NOT possible with a Universal Life policy? - Correct Answer-Premiums may be applied as a credit against income tax Which of the following will a Long Term Care plan typically provide benefits for? - Correct Answer-home health care Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract? - Correct AnswerEntire Contract D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to? - Correct Answer-Ex-wife Which of the following actions does the Commissioner of Insurance NOT have the power to conduct? - Correct Answer-activate insurance companies' financial reserves An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the: - Correct Answer-applicant's physician The Common Disaster clause provides that if both the insured and the sole named beneficiary were to die in a common accident, which of the following is true? - Correct Answer-This clause provides the payment of proceeds to the insured's estate The USA Patriot Act was enacted in: - Correct Answer-2001 N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take? - Correct AnswerClaim will be denied Which of the following costs would a Basic Hospital/Surgical policy likely cover? - Correct Answer-Surgically removing a facial birthmark The provision that defines to whom the insurer will pay benefits to is called: - Correct Answer-Payment of Claims Why would the Insurance Commissioner examine the records of an insurance company - Correct Answer-determine the solvency of the company Credit Life insurance is - Correct Answer-insurance issued on a debtor to cover outstanding loan balances S wants to open a tax-exempt Health Savings Account. To qualify for this type of account, Federal law dictates that S must be enrolled in a: - Correct Answer-High Deductible Health Plan Which type of policy would pay an employee's salary if the employer was injured in a bicycle accident and out of work for six weeks? - Correct Answer-Business Overhead Expense Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures? - Correct Answer-Commercial insurer Health insurance benefits NOT covered due to an act of war are: - Correct Answerexcluded by the insurer in the contract provisions A term life insurance policy matures: - Correct Answer-upon the insured's death during the term of the policy Which of these statements concerning an Individual Straight Life annuity is accurate? - Correct Answer-Payments are made to an annuitant for life Under an individual Health Insurance policy, the Time Limit of Certain Defenses provision states the nonfraudulent misstatements first become incontestable two years - Correct Answerfrom the date that the policy was issued T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary? - Correct Answer-Request of the change will be refused Which of these is considered a statement that is assured to be true in every respect? - Correct Answer-Warranty Group/voluntary long-term care policy premiums are typically deducted from the employee's income and, - Correct Answer-are less costly as compared to individual long term care coverage When does a Guaranteed Insurability Rider allow the insured to buy additional coverage? - Correct Answer-at future dates specified in the contract with no evidence of insurability required 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? - Correct Answer- $1,250 3.5 months - 1 month elimination period = 2.5 months. 2.5 months X $500 monthly indemnity = $1,250. A non-contributory plan requires participation of all eligible employees. - Correct Answer-100% Which of these statements accurately describes the Waiver of Premium provision in an Accident and Health policy? - Correct Answer-Premiums are waived after the insured has been totally disabled for a specified time period Which of these actions should a producer take when submitting an insurance application to an insurer? - Correct Answer-Inform insurer of relevant information not included on the application What type of policy would only provide coverage for specific types of illnesses (cancer, stroke, etc)? - Correct Answer-Dread disease insurance If an individual is covered under an Accidental Death Policy and dies, an autopsy can be performed in all these situations, EXCEPT: - Correct Answer-When the state prohibits this by law Which statement regarding a Key Employee Life policy is NOT true? - Correct AnswerThe beneficiary is named by the key employee Which of the following reimburses its insureds for covered medical expenses? - Correct Answer-Commercial insurers B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of - Correct Answer-additional Whole Life coverage at specified times Information obtained from a phone conversation to the proposed insured can be found in which of these reports? - Correct Answer-Inspection report If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses? - Correct Answer-Medicare Supplement Comprehensive Major Medical policies usually combine: - Correct Answer-Major Medical with Basic Hospital/Surgical coverage Which of the following claims are typically excluded from Medical expense policies? - Correct Answer-Intentionally self-inflicted injuries T is covered by two health insurance plans: a group plan through his employer and his spouse's plan as a dependent. Under the Model Group Coordination of Benefits provision, when T files a claim, his employer's plan is considered the: - Correct Answer-Primary carrier 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? - Correct Answer-31 days A Return of Premium life insurance policy is: - Correct Answer-Whole life and Increasing term C was injured while deep sea diving and requires a hospital stay. C has a Major Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the covered medical expenses are $2000? - Correct Answer-$720 When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits? - Correct Answer-Recurrent Disability A Medicare Supplement policy may be cancelled for which of the following reasons? - Correct Answer-The premium has not been paid by the insured Which of these is NOT considered to be an element of an insurance contract? - Correct Answer-negotiating All students attending a large university could be covered by: - Correct Answer-a blanket policy When must insurable interest be present in order for a life insurance policy to be valid? - Correct Answer-When the application is made T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable? - Correct Answer-Benefits are taxable to T Taking receipt of premiums and holding them for the insurance company is an example of: - Correct Answer-Fiduciary responsibility How are policyowner dividends treated in regards to income tax? - Correct AnswerInterest on accumulations is taxed T applied for a Disability Income policy and has a history of back injuries. The insurer issued the policy with a statement that excludes coverage for back injuries. This statement is called a(n) - Correct Answer-Impairment Rider M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force? - Correct Answer-45 days Which of the following Nonforfeiture options offers the highest death benefit? - Correct Answer-Extended term All of the following statements about traditional individual retirement accounts are false EXCEPT - Correct Answer-10% penalty is applied to withdrawals before age 59 1/2 In Major Medical Expense policies, what is the objective of a Stop Loss provision? - Correct Answer-Limits an insured's out-of-pocket medical expenses T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive? - Correct Answer-$0 because T is still alive Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern - Correct Answer-Business Overhead Expense