TEXAS LIFE AND HEALTH INSURANCE
EXAM QUESTIONS WITH VERIFIED
ANSWERS
Which of these characteristics is consistent with a Straight Life Policy? - Answer-
Premiums are payable for as long as there is insurance coverage in force
Which of the following are Equity Indexed annuities typically invested in? - Answer-S&P
500
Which of the following does Social Security NOT provide benefits for? - Answer-
Dismemberment
An example of false advertising would be - Answer-An insurer exaggerating its
dividends in a magazine advertisement
A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased an
annuity that will pay her $1500 per month beginning at age 60. Which of these annuities
did this woman purchase? - Answer-Deferred Fixed Annuity
Which of the following types of organizations are prepaid group health plans, where
members pay in advance for the services of participating physicians and hospitals that
have agreements? - Answer-HMO
Which action will a life insurance company most likely take if an insured dies and it is
discovered that the insured's age was misstated on the application? - Answer-Pay an
amount the premiums would have purchased at the insured's actual age
Q is looking to buy a life insurance policy that will provide the greatest amount of
protection for a temporary time period. Which of these policies should Q purchase? -
Answer-Term Life
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? - Answer-59 1/2
An applicant MUST receive an Outline of Coverage when an application is taken for
a(n) - Answer-Medicare Supplement policy
Life insurance that covers an insured's whole life with level premiums paid over a limited
time is called: - Answer-Limited Pay Life
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay is a total of $15,000 in
covered medical expenses are incurred? - Answer-$7000
, $5,000 + 20% = $7,000
How long can a cash surrender value payment be deferred by the insurance company
under the Nonforfeiture Law? - Answer-6 months
An Evidence of Coverage form may be issued by a Health Maintenance Organization
(HMO) after being approved by the - Answer-Commissioner
What is an organization that solicits insurance only to its members? - Answer-Fraternal
benefit society
Which of the following is NOT a reason for a business to buy key person life insurance?
- Answer-A pension deficiency is the key employee dies
When an insurance company sends a policy to the insured with an attached application,
the element that makes the application part of the contract between the insured and the
insurer is called the: - Answer-Entire Contract Provision
One becomes eligible for Social Security disability benefits after having been disabled
for - Answer-5 Months
An insured owns an individual Disability Income policy with a 30-day Elimination Period
for sickness and accidents and a monthly indemnity benefit of $500. If the insured is
disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an
approved claim? - Answer-$1,250
A license may be denied, suspended, or revoked if the licensee - Answer-is found guilty
of misrepresentation in obtaining the license
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's
dividends are guaranteed? - Answer-Misrepresentation
K's whole life insurance policy lapsed two months ago due to nonpayment. She would
now like to reinstate the policy. All of these statements are correct about the policy's
reinstatement EXCEPT - Answer-K will forfeit the right to use the automatic loan
provision upon reinstatement
When a policy pays dividends to its policyholders, it is said to be - Answer-participating
What is the basic function of an annuity? - Answer-The systematic liquidation of
accumulated funds
Which of the following statements about health coverage for newborns is NOT true? -
Answer-Coverage is limited to only congenital defects
EXAM QUESTIONS WITH VERIFIED
ANSWERS
Which of these characteristics is consistent with a Straight Life Policy? - Answer-
Premiums are payable for as long as there is insurance coverage in force
Which of the following are Equity Indexed annuities typically invested in? - Answer-S&P
500
Which of the following does Social Security NOT provide benefits for? - Answer-
Dismemberment
An example of false advertising would be - Answer-An insurer exaggerating its
dividends in a magazine advertisement
A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased an
annuity that will pay her $1500 per month beginning at age 60. Which of these annuities
did this woman purchase? - Answer-Deferred Fixed Annuity
Which of the following types of organizations are prepaid group health plans, where
members pay in advance for the services of participating physicians and hospitals that
have agreements? - Answer-HMO
Which action will a life insurance company most likely take if an insured dies and it is
discovered that the insured's age was misstated on the application? - Answer-Pay an
amount the premiums would have purchased at the insured's actual age
Q is looking to buy a life insurance policy that will provide the greatest amount of
protection for a temporary time period. Which of these policies should Q purchase? -
Answer-Term Life
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? - Answer-59 1/2
An applicant MUST receive an Outline of Coverage when an application is taken for
a(n) - Answer-Medicare Supplement policy
Life insurance that covers an insured's whole life with level premiums paid over a limited
time is called: - Answer-Limited Pay Life
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay is a total of $15,000 in
covered medical expenses are incurred? - Answer-$7000
, $5,000 + 20% = $7,000
How long can a cash surrender value payment be deferred by the insurance company
under the Nonforfeiture Law? - Answer-6 months
An Evidence of Coverage form may be issued by a Health Maintenance Organization
(HMO) after being approved by the - Answer-Commissioner
What is an organization that solicits insurance only to its members? - Answer-Fraternal
benefit society
Which of the following is NOT a reason for a business to buy key person life insurance?
- Answer-A pension deficiency is the key employee dies
When an insurance company sends a policy to the insured with an attached application,
the element that makes the application part of the contract between the insured and the
insurer is called the: - Answer-Entire Contract Provision
One becomes eligible for Social Security disability benefits after having been disabled
for - Answer-5 Months
An insured owns an individual Disability Income policy with a 30-day Elimination Period
for sickness and accidents and a monthly indemnity benefit of $500. If the insured is
disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an
approved claim? - Answer-$1,250
A license may be denied, suspended, or revoked if the licensee - Answer-is found guilty
of misrepresentation in obtaining the license
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's
dividends are guaranteed? - Answer-Misrepresentation
K's whole life insurance policy lapsed two months ago due to nonpayment. She would
now like to reinstate the policy. All of these statements are correct about the policy's
reinstatement EXCEPT - Answer-K will forfeit the right to use the automatic loan
provision upon reinstatement
When a policy pays dividends to its policyholders, it is said to be - Answer-participating
What is the basic function of an annuity? - Answer-The systematic liquidation of
accumulated funds
Which of the following statements about health coverage for newborns is NOT true? -
Answer-Coverage is limited to only congenital defects
