TEXAS INSURANCE LICENSE EXAM
QUESTIONS AND CORRECT ANSWERS |
ALREADY GRADED A+ | LATEST VERSION |
VERIFIED ANSWERS
An applicant MUST receive an Outline of Coverage when an application is
taken for a(n) ------CORRECT ANSWER---------------Medicare Supplement
policy
Which mode of payment is NOT used by health insurance policies? ------
CORRECT ANSWER---------------Single Premium
What type of life policy covers two people and pays upon the death of the
last insured? ------CORRECT ANSWER---------------survivorship
During a sales presentation for a participating life insurance policy, an
agent MUST ------CORRECT ANSWER---------------make a prospect
understand that dividends are NOT guaranteed
What is the elimination period of an individual disability policy? ------
CORRECT ANSWER---------------Time period a disabled person must wait
before benefits are paid
When is the face amount of a Whole Life policy paid? ------CORRECT
ANSWER---------------When the insured dies or at the policy's maturity date,
whichever happens first
,Which of the following statements BEST describes what the Legal Actions
provision of an Accident and
Health policy requires? ------CORRECT ANSWER---------------An insured
must wait at least 60 days after Proof of Loss has been submitted before a
lawsuit can be filed
Medicare is intended for all of the following groups, EXCEPT: ------
CORRECT ANSWER---------------Those enrolled as a full-time student
When a person returns to work after a period of total disability but cannot
earn as much as he or she did before the disability, this situation is called
which of the following? ------CORRECT ANSWER---------------Residual
disability
At what point does an informal agreement become a binding contract? ------
CORRECT ANSWER---------------When consideration is provided by one of
the parties to the contract
An employee of 20 years recently retired at age 59 1/2. This employee's
group life contract can be: ------CORRECT ANSWER---------------converted
to an individual permanent policy at an individual rate
How long can a cash surrender value payment be deferred by the
insurance company under the Nonforfeiture Law? ------CORRECT
ANSWER---------------6 months
,The provision in a health insurance policy that suspends premiums being
paid to the insurer while the insured is disabled is called the: ------
CORRECT ANSWER---------------Waiver of Premium
Additional coverage can be added to a Whole Life policy by adding a(n): ---
---CORRECT ANSWER---------------decreasing term rider
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? ------
CORRECT ANSWER---------------$20,000 death benefit
In regards to representations or warranties, which of these statements is
TRUE? ------CORRECT ANSWER---------------If material to the risk, false
representations will void a policy
"A producer does not have the authority to change a policy or waive any of
its provisions". The health provision that best describes this statement is
called the ------CORRECT ANSWER---------------Entire Contract
Under what system do a group of doctors and hospitals in a designated
area contract with an insurer to provide services at a prearranged cost to
the insured? ------CORRECT ANSWER---------------PPO
What advantage does the renewability feature give to a term policy? ------
CORRECT ANSWER---------------The insured may extend the coverage
period
, An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the ------CORRECT
ANSWER---------------commissioner
An insurance company organized under New York laws and licensed to do
business in Texas is considered a(n) ------CORRECT ANSWER---------------
foreign company
If an insurance company issues a Disability income policy that it cannot
cancel or for which it cannot increase premiums, the type of renewability
that best desribes this policy is called ------CORRECT ANSWER---------------
noncancellable
Which of the following statements BEST defines usual, customary, and
reasonable (UCR) charges? ------CORRECT ANSWER---------------The
maximum amount considered eligible for reimbursement by an insurance
company under a health plan
Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements? ------CORRECT
ANSWER---------------Legal Purpose (Insurable Interest)
in a qualified retirement plan, the yearly contributions to an employee's
account: ------CORRECT ANSWER---------------are restricted to maximum
levels set by the IRS
QUESTIONS AND CORRECT ANSWERS |
ALREADY GRADED A+ | LATEST VERSION |
VERIFIED ANSWERS
An applicant MUST receive an Outline of Coverage when an application is
taken for a(n) ------CORRECT ANSWER---------------Medicare Supplement
policy
Which mode of payment is NOT used by health insurance policies? ------
CORRECT ANSWER---------------Single Premium
What type of life policy covers two people and pays upon the death of the
last insured? ------CORRECT ANSWER---------------survivorship
During a sales presentation for a participating life insurance policy, an
agent MUST ------CORRECT ANSWER---------------make a prospect
understand that dividends are NOT guaranteed
What is the elimination period of an individual disability policy? ------
CORRECT ANSWER---------------Time period a disabled person must wait
before benefits are paid
When is the face amount of a Whole Life policy paid? ------CORRECT
ANSWER---------------When the insured dies or at the policy's maturity date,
whichever happens first
,Which of the following statements BEST describes what the Legal Actions
provision of an Accident and
Health policy requires? ------CORRECT ANSWER---------------An insured
must wait at least 60 days after Proof of Loss has been submitted before a
lawsuit can be filed
Medicare is intended for all of the following groups, EXCEPT: ------
CORRECT ANSWER---------------Those enrolled as a full-time student
When a person returns to work after a period of total disability but cannot
earn as much as he or she did before the disability, this situation is called
which of the following? ------CORRECT ANSWER---------------Residual
disability
At what point does an informal agreement become a binding contract? ------
CORRECT ANSWER---------------When consideration is provided by one of
the parties to the contract
An employee of 20 years recently retired at age 59 1/2. This employee's
group life contract can be: ------CORRECT ANSWER---------------converted
to an individual permanent policy at an individual rate
How long can a cash surrender value payment be deferred by the
insurance company under the Nonforfeiture Law? ------CORRECT
ANSWER---------------6 months
,The provision in a health insurance policy that suspends premiums being
paid to the insurer while the insured is disabled is called the: ------
CORRECT ANSWER---------------Waiver of Premium
Additional coverage can be added to a Whole Life policy by adding a(n): ---
---CORRECT ANSWER---------------decreasing term rider
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? ------
CORRECT ANSWER---------------$20,000 death benefit
In regards to representations or warranties, which of these statements is
TRUE? ------CORRECT ANSWER---------------If material to the risk, false
representations will void a policy
"A producer does not have the authority to change a policy or waive any of
its provisions". The health provision that best describes this statement is
called the ------CORRECT ANSWER---------------Entire Contract
Under what system do a group of doctors and hospitals in a designated
area contract with an insurer to provide services at a prearranged cost to
the insured? ------CORRECT ANSWER---------------PPO
What advantage does the renewability feature give to a term policy? ------
CORRECT ANSWER---------------The insured may extend the coverage
period
, An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the ------CORRECT
ANSWER---------------commissioner
An insurance company organized under New York laws and licensed to do
business in Texas is considered a(n) ------CORRECT ANSWER---------------
foreign company
If an insurance company issues a Disability income policy that it cannot
cancel or for which it cannot increase premiums, the type of renewability
that best desribes this policy is called ------CORRECT ANSWER---------------
noncancellable
Which of the following statements BEST defines usual, customary, and
reasonable (UCR) charges? ------CORRECT ANSWER---------------The
maximum amount considered eligible for reimbursement by an insurance
company under a health plan
Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements? ------CORRECT
ANSWER---------------Legal Purpose (Insurable Interest)
in a qualified retirement plan, the yearly contributions to an employee's
account: ------CORRECT ANSWER---------------are restricted to maximum
levels set by the IRS
