Texas Life and Health Insurance Exam
$1,000 - ANS-A Hospital/Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar
year. Two claims were paid in September 2013, each incurring medical expenses in excess of
the deductible. Two additional claims were filed in 2014, each in excess of the deductible
amount as well. What would be this family's out-of-pocket medical expenses for 2013?
$1,250 - ANS-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?
$20,000 death benefit - ANS-K pays on a $20,000 20-Year Endowment policy for 10 years and
dies from an automobile accident. How much will the insurance company pay the beneficiary?
$50,000 - ANS-S buys a $50,000 whole life policy with a $50,000 Accidental Death and
Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the
beneficiary?
$7000
$5,000 + 20% = $7,000 - ANS-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?
10% penalty is applied to withdrawals before age 59 1/2 - ANS-All of the following statements
about traditional individual retirement accounts are false EXCEPT
12 months - ANS-What is the MINIMUM benefit period that must be offered by a Long-Term
Care policy?
2 years - ANS-In Texas, how long must a policy be enforce before an insurance company must
pay death benefits for suicide?
30 Pay Life - ANS-N is a 40-year old applicant who would like to retire at age 70. He is looking
to buy a life insurance policy with level premiums, permanent protection, and be paid-up at
retirement. Which of these should N purchase?
31 days - ANS-Every 12-months after the initial enrollment period, an HMO must hold an open
enrollment period of
, 31 days - ANS-In Texas, an individual life insurance policy is REQUIRED to have a grace period
of
5 Months - ANS-One becomes eligible for Social Security disability benefits after having been
disabled for
59 1/2 - ANS-An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age?
6 - ANS-Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement is
funded with individual life insurance. How many total life policies are needed for this
agreement?
6 months - ANS-An insurer may normally delay the payment of cash value loan or surrender
value for up to
6 months - ANS-How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law?
A pension deficiency is the key employee dies - ANS-Which of the following is NOT a reason for
a business to buy key person life insurance?
A signed application by the prospect - ANS-Before a life policy is issued, which of these contract
elements is necessary?
A term rider - ANS-What kind of life insurance product covers children under their parent's
policy?
Activate insurance companies' financial reserves - ANS-Which of the following actions does the
Commissioner of Insurance NOT have the power to conduct?
Acupuncture - ANS-Which of the following types of care is typically not covered in a Long-Term
Care policy?
Alcohol Rehabilitation - ANS-Under a Long Term Care policy, which benefit would be typically
excluded or limited?
An insurer exaggerating its dividends in a magazine advertisement - ANS-An example of false
advertising would be
An insurer may not use suicide as a defense agent payment after the second year - ANS-In
Texas, which of these statements regarding the Suicide clause is TRUE?
$1,000 - ANS-A Hospital/Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar
year. Two claims were paid in September 2013, each incurring medical expenses in excess of
the deductible. Two additional claims were filed in 2014, each in excess of the deductible
amount as well. What would be this family's out-of-pocket medical expenses for 2013?
$1,250 - ANS-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?
$20,000 death benefit - ANS-K pays on a $20,000 20-Year Endowment policy for 10 years and
dies from an automobile accident. How much will the insurance company pay the beneficiary?
$50,000 - ANS-S buys a $50,000 whole life policy with a $50,000 Accidental Death and
Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the
beneficiary?
$7000
$5,000 + 20% = $7,000 - ANS-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?
10% penalty is applied to withdrawals before age 59 1/2 - ANS-All of the following statements
about traditional individual retirement accounts are false EXCEPT
12 months - ANS-What is the MINIMUM benefit period that must be offered by a Long-Term
Care policy?
2 years - ANS-In Texas, how long must a policy be enforce before an insurance company must
pay death benefits for suicide?
30 Pay Life - ANS-N is a 40-year old applicant who would like to retire at age 70. He is looking
to buy a life insurance policy with level premiums, permanent protection, and be paid-up at
retirement. Which of these should N purchase?
31 days - ANS-Every 12-months after the initial enrollment period, an HMO must hold an open
enrollment period of
, 31 days - ANS-In Texas, an individual life insurance policy is REQUIRED to have a grace period
of
5 Months - ANS-One becomes eligible for Social Security disability benefits after having been
disabled for
59 1/2 - ANS-An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age?
6 - ANS-Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement is
funded with individual life insurance. How many total life policies are needed for this
agreement?
6 months - ANS-An insurer may normally delay the payment of cash value loan or surrender
value for up to
6 months - ANS-How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law?
A pension deficiency is the key employee dies - ANS-Which of the following is NOT a reason for
a business to buy key person life insurance?
A signed application by the prospect - ANS-Before a life policy is issued, which of these contract
elements is necessary?
A term rider - ANS-What kind of life insurance product covers children under their parent's
policy?
Activate insurance companies' financial reserves - ANS-Which of the following actions does the
Commissioner of Insurance NOT have the power to conduct?
Acupuncture - ANS-Which of the following types of care is typically not covered in a Long-Term
Care policy?
Alcohol Rehabilitation - ANS-Under a Long Term Care policy, which benefit would be typically
excluded or limited?
An insurer exaggerating its dividends in a magazine advertisement - ANS-An example of false
advertising would be
An insurer may not use suicide as a defense agent payment after the second year - ANS-In
Texas, which of these statements regarding the Suicide clause is TRUE?
