Texas Life and Health Final Exam
Questions and Answers
purchased a Disability Income Policy that ONLY J can terminate and on which the rates
will never increase above those illustrated in the policy. Which of the following types of
policies did J purchase? - ANSWER-Noncancelable
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's
death? - ANSWER-Face amount plus the policy's cash value
How long can a cash surrender value payment be deferred by the insurance company
under the nonforfeiture law - ANSWER-6 months
An underwriter determines that an applicant's risk should be recategorized due to a
health issue. This policy may be issued with a(n) - ANSWER-exclusion for the medical
condition
An insured may assign up to __ of policy ownership under an individual life insurance
policy - ANSWER-100%
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - ANSWER-Accidental Death and Dismemberment
rider (AD&D)
Which of the following statements BEST defines usual, customary, and reasonable
(UCR) charges? - ANSWER-The maximum amiunt considered eligible for
reimbursement by an insurance company under a health plan
Which of the following services is NOT covered under a hospitalization expense policy?
- ANSWER-surgeon's fees
What is the purpose of the Time of Payment of Claims provision? - ANSWER-Prevents
delayed claim payments made by the insurer
When determining the monthly benefit amount of a Disability Income Policy, the factor
that limits the amount of prospective insured may purchase is: - ANSWER-income
Which of the following actions is NOT possible with a Universal Life policy? - ANSWER-
Premiums may be applied as a credit against income tax
With a Basic Medical Expense policy, what does the hospitalization expense cover? -
ANSWER-hospital room and board
Questions and Answers
purchased a Disability Income Policy that ONLY J can terminate and on which the rates
will never increase above those illustrated in the policy. Which of the following types of
policies did J purchase? - ANSWER-Noncancelable
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's
death? - ANSWER-Face amount plus the policy's cash value
How long can a cash surrender value payment be deferred by the insurance company
under the nonforfeiture law - ANSWER-6 months
An underwriter determines that an applicant's risk should be recategorized due to a
health issue. This policy may be issued with a(n) - ANSWER-exclusion for the medical
condition
An insured may assign up to __ of policy ownership under an individual life insurance
policy - ANSWER-100%
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - ANSWER-Accidental Death and Dismemberment
rider (AD&D)
Which of the following statements BEST defines usual, customary, and reasonable
(UCR) charges? - ANSWER-The maximum amiunt considered eligible for
reimbursement by an insurance company under a health plan
Which of the following services is NOT covered under a hospitalization expense policy?
- ANSWER-surgeon's fees
What is the purpose of the Time of Payment of Claims provision? - ANSWER-Prevents
delayed claim payments made by the insurer
When determining the monthly benefit amount of a Disability Income Policy, the factor
that limits the amount of prospective insured may purchase is: - ANSWER-income
Which of the following actions is NOT possible with a Universal Life policy? - ANSWER-
Premiums may be applied as a credit against income tax
With a Basic Medical Expense policy, what does the hospitalization expense cover? -
ANSWER-hospital room and board
