Final Exam - Texas Life and Health
Questions and Answers 100% Correct
A certificate of _____ permits an insurance company to transact business in Texas. -
ANSWER- Authority
Which of the following statements about Health Reimbursement Arrangements (HRA) is
CORRECT? -ANSWER- If the employee paid for qualified medical expenses, the
reimbursements may be tax-free
The individual who provides general medical care for a patient as well as the referral for
specialized care is known as: -ANSWER- Primary Care Physician
Medicaid was designed to assist individuals who are -ANSWER- Below a specific
income limit
Which of the following is a valid reason for an enrollee to be cancelled by a Health
Maintenance Organization (HMO) plan? -ANSWER- Nonpayment of Coverage
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees? -ANSWER- Portion of
the premiums paid for by the EMPLOYER may be a tax deduction.
Under a Long Term Care policy, which benefit would be typically excluded or limited? -
ANSWER- Alcohol Rehabilitation
What is considered to be a characteristic of a Conditionally Renewable Health
Insurance policy? -ANSWER- Premiums may increase at time of renewal
Which Long Term Care insurance statement is true? -ANSWER- Pre-existing conditions
must be covered after the coverage has been in force for six months
Group/voluntary long-term care policy premiums are typically deducted from the
employee's income and -ANSWER- Are less costly as compared to individual long term
care coverage
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and
their families) whose employment has been terminated the right to: -ANSWER- continue
Questions and Answers 100% Correct
A certificate of _____ permits an insurance company to transact business in Texas. -
ANSWER- Authority
Which of the following statements about Health Reimbursement Arrangements (HRA) is
CORRECT? -ANSWER- If the employee paid for qualified medical expenses, the
reimbursements may be tax-free
The individual who provides general medical care for a patient as well as the referral for
specialized care is known as: -ANSWER- Primary Care Physician
Medicaid was designed to assist individuals who are -ANSWER- Below a specific
income limit
Which of the following is a valid reason for an enrollee to be cancelled by a Health
Maintenance Organization (HMO) plan? -ANSWER- Nonpayment of Coverage
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees? -ANSWER- Portion of
the premiums paid for by the EMPLOYER may be a tax deduction.
Under a Long Term Care policy, which benefit would be typically excluded or limited? -
ANSWER- Alcohol Rehabilitation
What is considered to be a characteristic of a Conditionally Renewable Health
Insurance policy? -ANSWER- Premiums may increase at time of renewal
Which Long Term Care insurance statement is true? -ANSWER- Pre-existing conditions
must be covered after the coverage has been in force for six months
Group/voluntary long-term care policy premiums are typically deducted from the
employee's income and -ANSWER- Are less costly as compared to individual long term
care coverage
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers (and
their families) whose employment has been terminated the right to: -ANSWER- continue
