Texas Life and Health State Exam
Simulator Questions and Answers
The Universal Life Policy is called an unbundled Life Policy because the policyholder
can see the expense charges, the interest earned, and the - ANSWER-Cost of
insurance
The investment gains from a Universal Life Policy usually go toward - ANSWER-the
cash value
What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?
- ANSWER-12 months
What type of life insurance gives the greatest amount of coverage for a limited period of
time? - ANSWER-Term life
An Evidence of Coverage form may be issued by a Health Maintenance Organization
(HMO) after being approved by the - ANSWER-Commissioner
The reason for a business having a Business Overhead Expense Disability Plan is to
cover - ANSWER-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 -
ANSWER-coercion
Which requirement must be met for an association to be eligible for a group life plan? -
ANSWER-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? - ANSWER-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? - ANSWER-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? - ANSWER-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 - ANSWER-policy
proceeds
A new agent must complete at LEAST___hours of continuing education within 24
months of initial licensure - ANSWER-24
Which of the following services is NOT covered under hospitalization expense policy? -
ANSWER-surgeon's fees
A person who is insured within a group contract will be given a - ANSWER-certificate
In Texas, which of these statements regarding the Suicide clause is TRUE? -
ANSWER-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? - ANSWER-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? - ANSWER-Decreasing term policy
An example of an unfair claims settlement practice is - ANSWER-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? -
ANSWER-When the application is made
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
J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ANSWER-
Reinstatement provision
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called - ANSWER-Whole life
With a Basic Medical Expense policy, what does the hospitalization expense cover? -
ANSWER-hospital room and board
What is the purpose of a Policy Summary? - ANSWER-It highlights the critical parts of
the policy issued
Simulator Questions and Answers
The Universal Life Policy is called an unbundled Life Policy because the policyholder
can see the expense charges, the interest earned, and the - ANSWER-Cost of
insurance
The investment gains from a Universal Life Policy usually go toward - ANSWER-the
cash value
What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?
- ANSWER-12 months
What type of life insurance gives the greatest amount of coverage for a limited period of
time? - ANSWER-Term life
An Evidence of Coverage form may be issued by a Health Maintenance Organization
(HMO) after being approved by the - ANSWER-Commissioner
The reason for a business having a Business Overhead Expense Disability Plan is to
cover - ANSWER-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 -
ANSWER-coercion
Which requirement must be met for an association to be eligible for a group life plan? -
ANSWER-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? - ANSWER-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? - ANSWER-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? - ANSWER-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 - ANSWER-policy
proceeds
A new agent must complete at LEAST___hours of continuing education within 24
months of initial licensure - ANSWER-24
Which of the following services is NOT covered under hospitalization expense policy? -
ANSWER-surgeon's fees
A person who is insured within a group contract will be given a - ANSWER-certificate
In Texas, which of these statements regarding the Suicide clause is TRUE? -
ANSWER-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? - ANSWER-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? - ANSWER-Decreasing term policy
An example of an unfair claims settlement practice is - ANSWER-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? -
ANSWER-When the application is made
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
J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ANSWER-
Reinstatement provision
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called - ANSWER-Whole life
With a Basic Medical Expense policy, what does the hospitalization expense cover? -
ANSWER-hospital room and board
What is the purpose of a Policy Summary? - ANSWER-It highlights the critical parts of
the policy issued
