TX General Lines Life, Accident and Health Exam Prep 151
Questions with Verified Answers
Health insurance coverage under COBRA, HIPAA guarantees that the person will -
CORRECT ANSWER Have Access to a guaranteed-issue individual health policy,
regardless of health
All the following statements about ordinary (or straight) whole life insurance are
correct - CORRECT ANSWER The cash value remains level throughout the life of
the policy
Which activity in NOT an error or omission that makes an agent or producer
legally to both the insurance and the insure - CORRECT ANSWER Placing insurance
with an approved surplus line insurer
All the following statements about the taxation of annuities are correct EXEPT: -
CORRECT ANSWER Qualified annuities are taxes no different than no qualified
annuities
Which of the following statements about utmost good faith in insurance is correct
- CORRECT ANSWER Both the insurance and the insurer must act in utmost good
faith
Which annuity settlement option pays income for the annuitant's life, but no less
than for a specified number of year - CORRECT ANSWER Life income with period
certain
Tim has paid only four premium totally $1000 on his health insurance policy when
he was diagnosed with cancer. The insurance company paid more than $100.000
to cover the medical bills for his treatments which of the following characteristics
of insurance contracts - CORRECT ANSWER They are aleatory
,Jack, an insurance agent, offers free season football tickets to anyone who buys a
life insurance policy from him. This sales practice is called - CORRECT ANSWER
rebating
After Todd was injured in a car crash, he received occupational theyto help him
return to work. His disability income policy paid for this therapy because it had -
CORRECT ANSWER A rehabilitation provision
If a small employer insurance decides to terminate all small employer health
benefits plans it issues in TEXAS, it must notify the TEXAS commissioner and all
affected employer of its intent to do so at least - CORRECT ANSWER At least 180
days before it ends coverage
Contract characteristics is unique to insurance contracts but NOT all contracts -
CORRECT ANSWER Unilateral
When first meeting prospective insurance applicants, a producer must give them
a document that explains the general features, benefits, and condition of type of
insurance being considered. Which is called a - CORRECT ANSWER Buyer's Guide
Abby, who life in New York she is a licensed life insurance agent , wants to apply
fo a nonresident license in Texas. To do so, she must submit which of the
following to TDI - CORRECT ANSWER An aplicación, few and letter of certification
from her home state
Amanda used a basic illustration to help Mark. a potencial cliente, de understand
how the cash value of his life insurance policy would grow. Mark then agreed to
buy the policy. Which of the following best describes Amanda's duties which
respect to delivering a copy of the illustration used - CORRECT ANSWER Amanda
must deliver a signed copy ilustración to both Mark and the insurer
With respect to the transfer-for-value rule, which of the following situations
would result in the new owner being subject to tax on the policy's gain upon the
insured's death - CORRECT ANSWER Policy is sold by the insured to neighborhood
in exchange for cash
, Which of the following describes the options available with a universal life
insurance policy the owner no longer wishes to maintain - CORRECT ANSWER
Surrender the policy for its cash value or let the policy continue without premium
until the cash value can no longer cover monthly deductions
A section 125 cafeteria plan may cover which of these expenses - CORRECT
ANSWER Health insurance premiums
An insurance producer tells a life insurance applicant that he has the authority to
waive the medical exam that is normally required by the insurer with every
application. The insurer may be required to accept the application without a
medical exam due to the producers: - CORRECT ANSWER Apparent authority
A long-term care rider on a life insurance policy will pay benefits if the insured is
diagnosed as chronically ill due to which of the following? - CORRECT ANSWER
Either a medical or cognitive (mental health) reason
Which federal law group health plans and protects their enrollees - CORRECT
ANSWER A
What type of state regulation gives a person in poor health or with a pre-existing
condition the opportunity to buy health insurance - CORRECT ANSWER
Guaranteed issue
With certain limitations a policyowner may change all of the following in a life
insurance policy, EXCEPT: - CORRECT ANSWER The incontestability provision
With certain limitations, a policyowner may change all of the following in a life
insurance policy, EXCEPT: - CORRECT ANSWER A
Where can a person set up a health care savings account (HSA) - CORRECT
ANSWER Financial institution
Which statement about converting coverage under a children's term rider is
correct - CORRECT ANSWER Conversion is possible even if the child is uninsurable,
and the converted policy coverage amount may be greater than amount provided
under the rider
Questions with Verified Answers
Health insurance coverage under COBRA, HIPAA guarantees that the person will -
CORRECT ANSWER Have Access to a guaranteed-issue individual health policy,
regardless of health
All the following statements about ordinary (or straight) whole life insurance are
correct - CORRECT ANSWER The cash value remains level throughout the life of
the policy
Which activity in NOT an error or omission that makes an agent or producer
legally to both the insurance and the insure - CORRECT ANSWER Placing insurance
with an approved surplus line insurer
All the following statements about the taxation of annuities are correct EXEPT: -
CORRECT ANSWER Qualified annuities are taxes no different than no qualified
annuities
Which of the following statements about utmost good faith in insurance is correct
- CORRECT ANSWER Both the insurance and the insurer must act in utmost good
faith
Which annuity settlement option pays income for the annuitant's life, but no less
than for a specified number of year - CORRECT ANSWER Life income with period
certain
Tim has paid only four premium totally $1000 on his health insurance policy when
he was diagnosed with cancer. The insurance company paid more than $100.000
to cover the medical bills for his treatments which of the following characteristics
of insurance contracts - CORRECT ANSWER They are aleatory
,Jack, an insurance agent, offers free season football tickets to anyone who buys a
life insurance policy from him. This sales practice is called - CORRECT ANSWER
rebating
After Todd was injured in a car crash, he received occupational theyto help him
return to work. His disability income policy paid for this therapy because it had -
CORRECT ANSWER A rehabilitation provision
If a small employer insurance decides to terminate all small employer health
benefits plans it issues in TEXAS, it must notify the TEXAS commissioner and all
affected employer of its intent to do so at least - CORRECT ANSWER At least 180
days before it ends coverage
Contract characteristics is unique to insurance contracts but NOT all contracts -
CORRECT ANSWER Unilateral
When first meeting prospective insurance applicants, a producer must give them
a document that explains the general features, benefits, and condition of type of
insurance being considered. Which is called a - CORRECT ANSWER Buyer's Guide
Abby, who life in New York she is a licensed life insurance agent , wants to apply
fo a nonresident license in Texas. To do so, she must submit which of the
following to TDI - CORRECT ANSWER An aplicación, few and letter of certification
from her home state
Amanda used a basic illustration to help Mark. a potencial cliente, de understand
how the cash value of his life insurance policy would grow. Mark then agreed to
buy the policy. Which of the following best describes Amanda's duties which
respect to delivering a copy of the illustration used - CORRECT ANSWER Amanda
must deliver a signed copy ilustración to both Mark and the insurer
With respect to the transfer-for-value rule, which of the following situations
would result in the new owner being subject to tax on the policy's gain upon the
insured's death - CORRECT ANSWER Policy is sold by the insured to neighborhood
in exchange for cash
, Which of the following describes the options available with a universal life
insurance policy the owner no longer wishes to maintain - CORRECT ANSWER
Surrender the policy for its cash value or let the policy continue without premium
until the cash value can no longer cover monthly deductions
A section 125 cafeteria plan may cover which of these expenses - CORRECT
ANSWER Health insurance premiums
An insurance producer tells a life insurance applicant that he has the authority to
waive the medical exam that is normally required by the insurer with every
application. The insurer may be required to accept the application without a
medical exam due to the producers: - CORRECT ANSWER Apparent authority
A long-term care rider on a life insurance policy will pay benefits if the insured is
diagnosed as chronically ill due to which of the following? - CORRECT ANSWER
Either a medical or cognitive (mental health) reason
Which federal law group health plans and protects their enrollees - CORRECT
ANSWER A
What type of state regulation gives a person in poor health or with a pre-existing
condition the opportunity to buy health insurance - CORRECT ANSWER
Guaranteed issue
With certain limitations a policyowner may change all of the following in a life
insurance policy, EXCEPT: - CORRECT ANSWER The incontestability provision
With certain limitations, a policyowner may change all of the following in a life
insurance policy, EXCEPT: - CORRECT ANSWER A
Where can a person set up a health care savings account (HSA) - CORRECT
ANSWER Financial institution
Which statement about converting coverage under a children's term rider is
correct - CORRECT ANSWER Conversion is possible even if the child is uninsurable,
and the converted policy coverage amount may be greater than amount provided
under the rider
