TEXAS HEALTH INSURANCE PRACTICE
EXAM QUESTIONS AND ANSWERS
1. Which policy pays the face amount at the end of the payment period? - Answer-
Endowment at age 65
2. P wants a life policy with quick cash value accumulation. Which policy should the
producer recommend? - Answer-20 Pay Limited Life
3. Which of the following would be used to pay premiums on a life policy for an insured
should they become disabled? - Answer-Waiver of premium rider
4. The policy which offers the greatest amount of coverage, for the least amount of
initial premium is? - Answer-Term policy
5. Which policy builds cash value the quickest? - Answer-Endowment policy
Which of the following would be true of a child rider on a life insurance policy? - Answer-
The child will be offer a conversion option to convert to a permanent plan without proof
of insurability at a specified age such as 21
7. Which of these would not pay under the accidental death benefit rider of a life
insurance policy? - Answer-Death caused by stroke
8. Which of the following policies would be a limited pay whole life? - Answer-Premiums
payable for a limited time then expire but the policy goes on
9. Which policy is a 2nd or last to die policy? - Answer-Joint survivor life
10. M has a life policy that he changed from temporary to permanent. What allowed
this? - Answer-Convertible
11. All of the following are correct regarding renewable term insurance, EXCEPT? -
Answer-Proof of good health is required to renew the policy
12. Which policy will pay the beneficiary upon the insured's death or pay the endowment
and pay the insured upon reaching age 100? - Answer-Straight Whole Life
13. Which policy can the premiums and death benefit be changed? - Answer-Universal
life
14. Which of the following would be true of a child term rider that is added to an
insured's policy? - Answer-Once added all children beyond 14 days of age are
automatically covered
,15. An insurer paying claims under Usual, Customary and reasonable would be which
of these? - Answer-A way for the insurer to limit what they pay of the medical cost
16. A person who has a reimbursement Long-Term Care policy would see claims paid?
- Answer-The actual cost of care up to a daily maximum
17. Part 1 of an insurance application consists of all of the following information,
EXCEPT? - Answer-Past health
18. G applies for a life insurance policy and pays a semi-annual premium. G received a
conditional receipt and the medical exam was completed the same day. When did the
temporary coverage begin? - Answer-When the application and medical were both
completed
19. An insured has written a premium check payable to the producer. The producer
does not notice until after the insured leaves. What action should the producer take? -
Answer-Call the insured and request a check made out to name of insurance company
20. Once an insurer decides to issue a policy based upon all information received, the
policy is issued and then sent to which of the following? - Answer-The producer for
delivery and explanation of the policy and any riders
The applicant
21. An application is submitted, the policy is issued, what else is needed to contract? -
Answer-Consideration
22. A life insurance, an application was taken without a premium payment. What must
be done at time of delivery? - Answer-Collect premium and get a statement of good
health
The MIB obtains medical information from which of these sources? - Answer-Other
insurers
24. All of these are required to sign an application for life insurance, EXCEPT? -
Answer-Irrevocable beneficiary
25. C goes to work for an employer and wants coverage for his spouse and children. C
must? - Answer-Sign the enrollment card
26. What is the minimum number of employees to be eligible for Cobra coverage? -
Answer-20
27. How long after an employee quits does the employer have to notify the health
insurer? - Answer-30 Days
, 28. An HRA is not which of these? - Answer-100% employee funded
29. When an insured is covered under his group health plan and his spouses group
health plan, his plan would be called? - Answer-Primary
30. A certificate would be given to which of these in a group health plan? - Answer-
Employee
31. G has a health insurance policy with an 80%/20% coinsurance, a $500 deductible.
G goes into the hospital for an overnight stay, the bill coming to $2,000, what will G
pay? - Answer-$800
32. Which of these is not a limited health plan? - Answer-Universal life insurance
33. Which of the following insurance policies may be written in conjunction with a Basic
Medical Expense Coverage and utilizes a Corridor Deductible after the basic plan
benefits have been exhausted? - Answer-Supplementary Major Medical
34. Basic Medical Expense plans pays for benefits how? - Answer-Less than the full
charge
35. What type of healthcare offers protection to subscribers on a prepaid basis? -
Answer-HMO
36. A major-medical policy would best be described as? - Answer-Better than basic
policies
37. Which provider of health care emphasizes preventive doctor visits? - Answer-HMO
38. An HMO conversion must offer which of these? - Answer-30 days notice before the
end of 6 months
39. An insured has $2000 in medical bill on a policy with a $100 deductible and 80/20
coinsurance. The insurer paid? - Answer-$1520
40. When an insurer pays benefits based on the average fee charged in a geographical
area? This is called? - Answer-Usual Customary and Reasonable
41. Providers that are paid on a fee-for-service basis are part of what arrangement? -
Answer-PPO
42. An Accidental Death and Dismemberment will pay which of these? - Answer-A
person dies in a car crash
43. Vision care pays for all of the following, except: - Answer-Cataract removal surgery
EXAM QUESTIONS AND ANSWERS
1. Which policy pays the face amount at the end of the payment period? - Answer-
Endowment at age 65
2. P wants a life policy with quick cash value accumulation. Which policy should the
producer recommend? - Answer-20 Pay Limited Life
3. Which of the following would be used to pay premiums on a life policy for an insured
should they become disabled? - Answer-Waiver of premium rider
4. The policy which offers the greatest amount of coverage, for the least amount of
initial premium is? - Answer-Term policy
5. Which policy builds cash value the quickest? - Answer-Endowment policy
Which of the following would be true of a child rider on a life insurance policy? - Answer-
The child will be offer a conversion option to convert to a permanent plan without proof
of insurability at a specified age such as 21
7. Which of these would not pay under the accidental death benefit rider of a life
insurance policy? - Answer-Death caused by stroke
8. Which of the following policies would be a limited pay whole life? - Answer-Premiums
payable for a limited time then expire but the policy goes on
9. Which policy is a 2nd or last to die policy? - Answer-Joint survivor life
10. M has a life policy that he changed from temporary to permanent. What allowed
this? - Answer-Convertible
11. All of the following are correct regarding renewable term insurance, EXCEPT? -
Answer-Proof of good health is required to renew the policy
12. Which policy will pay the beneficiary upon the insured's death or pay the endowment
and pay the insured upon reaching age 100? - Answer-Straight Whole Life
13. Which policy can the premiums and death benefit be changed? - Answer-Universal
life
14. Which of the following would be true of a child term rider that is added to an
insured's policy? - Answer-Once added all children beyond 14 days of age are
automatically covered
,15. An insurer paying claims under Usual, Customary and reasonable would be which
of these? - Answer-A way for the insurer to limit what they pay of the medical cost
16. A person who has a reimbursement Long-Term Care policy would see claims paid?
- Answer-The actual cost of care up to a daily maximum
17. Part 1 of an insurance application consists of all of the following information,
EXCEPT? - Answer-Past health
18. G applies for a life insurance policy and pays a semi-annual premium. G received a
conditional receipt and the medical exam was completed the same day. When did the
temporary coverage begin? - Answer-When the application and medical were both
completed
19. An insured has written a premium check payable to the producer. The producer
does not notice until after the insured leaves. What action should the producer take? -
Answer-Call the insured and request a check made out to name of insurance company
20. Once an insurer decides to issue a policy based upon all information received, the
policy is issued and then sent to which of the following? - Answer-The producer for
delivery and explanation of the policy and any riders
The applicant
21. An application is submitted, the policy is issued, what else is needed to contract? -
Answer-Consideration
22. A life insurance, an application was taken without a premium payment. What must
be done at time of delivery? - Answer-Collect premium and get a statement of good
health
The MIB obtains medical information from which of these sources? - Answer-Other
insurers
24. All of these are required to sign an application for life insurance, EXCEPT? -
Answer-Irrevocable beneficiary
25. C goes to work for an employer and wants coverage for his spouse and children. C
must? - Answer-Sign the enrollment card
26. What is the minimum number of employees to be eligible for Cobra coverage? -
Answer-20
27. How long after an employee quits does the employer have to notify the health
insurer? - Answer-30 Days
, 28. An HRA is not which of these? - Answer-100% employee funded
29. When an insured is covered under his group health plan and his spouses group
health plan, his plan would be called? - Answer-Primary
30. A certificate would be given to which of these in a group health plan? - Answer-
Employee
31. G has a health insurance policy with an 80%/20% coinsurance, a $500 deductible.
G goes into the hospital for an overnight stay, the bill coming to $2,000, what will G
pay? - Answer-$800
32. Which of these is not a limited health plan? - Answer-Universal life insurance
33. Which of the following insurance policies may be written in conjunction with a Basic
Medical Expense Coverage and utilizes a Corridor Deductible after the basic plan
benefits have been exhausted? - Answer-Supplementary Major Medical
34. Basic Medical Expense plans pays for benefits how? - Answer-Less than the full
charge
35. What type of healthcare offers protection to subscribers on a prepaid basis? -
Answer-HMO
36. A major-medical policy would best be described as? - Answer-Better than basic
policies
37. Which provider of health care emphasizes preventive doctor visits? - Answer-HMO
38. An HMO conversion must offer which of these? - Answer-30 days notice before the
end of 6 months
39. An insured has $2000 in medical bill on a policy with a $100 deductible and 80/20
coinsurance. The insurer paid? - Answer-$1520
40. When an insurer pays benefits based on the average fee charged in a geographical
area? This is called? - Answer-Usual Customary and Reasonable
41. Providers that are paid on a fee-for-service basis are part of what arrangement? -
Answer-PPO
42. An Accidental Death and Dismemberment will pay which of these? - Answer-A
person dies in a car crash
43. Vision care pays for all of the following, except: - Answer-Cataract removal surgery
