Texas Life and Health State Exam Simulator Questions with 100% Correct Answers

The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the - Cost of insurance The investment gains from a Universal Life Policy usually go toward - the cash value What is the MINIMUM benefit period that must be offered by a Long-Term Care policy? - 12 months What type of life insurance gives the greatest amount of coverage for a limited period of time? - Term life An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the - Commissioner The reason for a business having a Business Overhead Expense Disability Plan is to cover - fixed business expenses B the insurance agent tells his clients that their rights may be impaired if they fail to complete a release form within a given period of time. B may be found guilty of - coercion Which requirement must be met for an association to be eligible for a group life plan? - Group was formed for a purpose other than acquiring insurance 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? - Increase her policy's coverage amount P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? - P will still receive declared dividends 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? - 20-Pay LIfe accumulates cash value faster than Straight Life M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - policy proceeds A new agent must complete at LEAST___hours of continuing education within 24 months of initial licensure - 24 Which of the following services is NOT covered under hospitalization expense policy? - surgeon's fees A person who is insured within a group contract will be given a - certificate In Texas, which of these statements regarding the Suicide clause is TRUE? - An insurer may not use suicide as a defense against payment after the second year An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? - Long term care F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed? - Decreasing term policy An example of an unfair claims settlement practice is - turning down a claim without providing the basis of denial When must insurable interest be present in order for a life insurance policy to be valid? - When the application is made