TEXAS STATE EXAM SIMULATOR - LIFE AND HEALTH
INSURANCE (200 QUESTIONS EXAM) VERIFIED FOR 2025
An annuity promises that, if the annuitant dies before receiving payments equal to the correct
value, the payments will be continued to a beneficiary until an amount equal to the contract
value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - CORRECT ANSWER✔✔An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been disabled for
3 months
5 months
6 months
12 months - CORRECT ANSWER✔✔5 months
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash
value at a faster rate in the early years of the policy. Which of these statements made by the
producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
, Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial
rating
20-Pay Life and Straight Life accumulate cash value at the same rate - CORRECT ANSWER✔✔20-
Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant - CORRECT ANSWER✔✔Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's consideration
consists of a completed application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions - CORRECT ANSWER✔✔the initial premium
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty - CORRECT ANSWER✔✔Warranty
,A comprehensive major medical health insurance policy contains an Eligible Expenses provision
which identifies the types of health care services that are covered. All of the following health
care services are typically covered EXCEPT for
hospital charges
physician fees
experimental and investigative services
nursing services - CORRECT ANSWER✔✔experimental and investigative services
If a retiree on Medicare required five hospital stays in one year, which policy would provide the
best insurance for excess hospital expenses?
Long-term care
Indemnity
Medicare Supplement
Medicaid - CORRECT ANSWER✔✔Medicare Supplement
S, while in the process of converting her group life insurance to an individual policy, dies. What
happens to the claim her beneficiary submits?
No benefits are payable under the Master contract
Full benefits are payable under the Master contract
Full benefits are payable under the converted policy
Benefits less required premium are payable under the converted policy - CORRECT
ANSWER✔✔Full benefits are payable under the Master contract
All of the following are limited benefit plans EXCEPT
, cancer policies
life insurance policies
dental policies
critical illness policies - CORRECT ANSWER✔✔life insurance policies
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy.
What rider would the physician add if he wants the ability to increase his policy benefit as his
practice and income grow?
Extended Term rider
Cost of Living Adjustment rider
Guaranteed Insurability Option rider
Waiver of Premium rider - CORRECT ANSWER✔✔Guaranteed Insurability Option rider
An agent whose license has been revoked is required to
wait at least five years before applying for a new license
submit all previously written policies to the Commissioner of Insurance's office for servicing of
the accounts
cancel all policies currently in effect and advise the insureds to place them elsewhere
continue to service the existing accounts but not solicit new business - CORRECT
ANSWER✔✔wait at least five years before applying for a new license
The benefits under a Disability Buy-Out policy are
normally paid in installments
INSURANCE (200 QUESTIONS EXAM) VERIFIED FOR 2025
An annuity promises that, if the annuitant dies before receiving payments equal to the correct
value, the payments will be continued to a beneficiary until an amount equal to the contract
value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - CORRECT ANSWER✔✔An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been disabled for
3 months
5 months
6 months
12 months - CORRECT ANSWER✔✔5 months
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash
value at a faster rate in the early years of the policy. Which of these statements made by the
producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
, Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial
rating
20-Pay Life and Straight Life accumulate cash value at the same rate - CORRECT ANSWER✔✔20-
Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant - CORRECT ANSWER✔✔Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's consideration
consists of a completed application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions - CORRECT ANSWER✔✔the initial premium
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty - CORRECT ANSWER✔✔Warranty
,A comprehensive major medical health insurance policy contains an Eligible Expenses provision
which identifies the types of health care services that are covered. All of the following health
care services are typically covered EXCEPT for
hospital charges
physician fees
experimental and investigative services
nursing services - CORRECT ANSWER✔✔experimental and investigative services
If a retiree on Medicare required five hospital stays in one year, which policy would provide the
best insurance for excess hospital expenses?
Long-term care
Indemnity
Medicare Supplement
Medicaid - CORRECT ANSWER✔✔Medicare Supplement
S, while in the process of converting her group life insurance to an individual policy, dies. What
happens to the claim her beneficiary submits?
No benefits are payable under the Master contract
Full benefits are payable under the Master contract
Full benefits are payable under the converted policy
Benefits less required premium are payable under the converted policy - CORRECT
ANSWER✔✔Full benefits are payable under the Master contract
All of the following are limited benefit plans EXCEPT
, cancer policies
life insurance policies
dental policies
critical illness policies - CORRECT ANSWER✔✔life insurance policies
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy.
What rider would the physician add if he wants the ability to increase his policy benefit as his
practice and income grow?
Extended Term rider
Cost of Living Adjustment rider
Guaranteed Insurability Option rider
Waiver of Premium rider - CORRECT ANSWER✔✔Guaranteed Insurability Option rider
An agent whose license has been revoked is required to
wait at least five years before applying for a new license
submit all previously written policies to the Commissioner of Insurance's office for servicing of
the accounts
cancel all policies currently in effect and advise the insureds to place them elsewhere
continue to service the existing accounts but not solicit new business - CORRECT
ANSWER✔✔wait at least five years before applying for a new license
The benefits under a Disability Buy-Out policy are
normally paid in installments
