Texas State Exam Simulator - Life and Health Insurance (200 Questions
Practice Exam)
Study online at https://quizlet.com/_4t8rfi
1. An annuity promises that, if the annuitant dies before An installment Refund an-
receiving payments equal to the correct value, the nuity
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
2. One becomes eligible for Social Security disability ben- 5 months
efits after having been disabled for
3 months
5 months
6 months
12 months
3. A potential client, age 40, would like to purchase a 20-Pay Life accumulates
Whole Life policy that will accumulate cash value at cash value faster than
a faster rate in the early years of the policy. Which Straight Life
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
, Texas State Exam Simulator - Life and Health Insurance (200 Questions
Practice Exam)
Study online at https://quizlet.com/_4t8rfi
4. Who makes the legally enforceable promises in a uni- Insurance company
lateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant
5. The Consideration clause in a life insurance policy in- the initial premium
dicates 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
6. Which parts of a life insurance policy are guaranteed Warranty
to be true?
Rating
Representation
Statement
Warranty
7. A comprehensive major medical health insurance pol- experimental and inves-
icy contains an Eligible Expenses provision which iden- tigative services
tifies the types of health care services that are cov-
ered. All of the following health care services are typi-
cally covered EXCEPT for
, Texas State Exam Simulator - Life and Health Insurance (200 Questions
Practice Exam)
Study online at https://quizlet.com/_4t8rfi
hospital charges
physician fees
experimental and investigative services
nursing services
8. If a retiree on Medicare required five hospital stays in Medicare Supplement
one year, which policy would provide the best insur-
ance for excess hospital expenses?
Long-term care
Indemnity
Medicare Supplement
Medicaid
9. S, while in the process of converting her group life Full benefits are payable
insurance to an individual policy, dies. What happens under the Master contract
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
10. All of the following are limited benefit plans EXCEPT life insurance policies
cancer policies
life insurance policies
dental policies
critical illness policies
11.
, Texas State Exam Simulator - Life and Health Insurance (200 Questions
Practice Exam)
Study online at https://quizlet.com/_4t8rfi
A physician opens up a new practice and qualifies for Guaranteed Insurability
a $7,000/month Disability Income policy. What rider Option 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
12. An agent whose license has been revoked is required wait at least five years be-
to fore applying for a new li-
cense
wait at least five years before applying for a new
license
submit all previously written policies to the Commis-
sioner of Insurance's office for servicing of the ac-
counts
cancel all policies currently in effect and advise the
insureds to place them elsewhere
continue to service the existing accounts but not so-
licit new business
13. The benefits under a Disability Buy-Out policy are payable to the company or
another shareholder
normally paid in installments
taxable to the beneficiary
payable to the company or another shareholder
normally paid after a short elimination period
14. health information
Practice Exam)
Study online at https://quizlet.com/_4t8rfi
1. An annuity promises that, if the annuitant dies before An installment Refund an-
receiving payments equal to the correct value, the nuity
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
2. One becomes eligible for Social Security disability ben- 5 months
efits after having been disabled for
3 months
5 months
6 months
12 months
3. A potential client, age 40, would like to purchase a 20-Pay Life accumulates
Whole Life policy that will accumulate cash value at cash value faster than
a faster rate in the early years of the policy. Which Straight Life
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
, Texas State Exam Simulator - Life and Health Insurance (200 Questions
Practice Exam)
Study online at https://quizlet.com/_4t8rfi
4. Who makes the legally enforceable promises in a uni- Insurance company
lateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant
5. The Consideration clause in a life insurance policy in- the initial premium
dicates 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
6. Which parts of a life insurance policy are guaranteed Warranty
to be true?
Rating
Representation
Statement
Warranty
7. A comprehensive major medical health insurance pol- experimental and inves-
icy contains an Eligible Expenses provision which iden- tigative services
tifies the types of health care services that are cov-
ered. All of the following health care services are typi-
cally covered EXCEPT for
, Texas State Exam Simulator - Life and Health Insurance (200 Questions
Practice Exam)
Study online at https://quizlet.com/_4t8rfi
hospital charges
physician fees
experimental and investigative services
nursing services
8. If a retiree on Medicare required five hospital stays in Medicare Supplement
one year, which policy would provide the best insur-
ance for excess hospital expenses?
Long-term care
Indemnity
Medicare Supplement
Medicaid
9. S, while in the process of converting her group life Full benefits are payable
insurance to an individual policy, dies. What happens under the Master contract
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
10. All of the following are limited benefit plans EXCEPT life insurance policies
cancer policies
life insurance policies
dental policies
critical illness policies
11.
, Texas State Exam Simulator - Life and Health Insurance (200 Questions
Practice Exam)
Study online at https://quizlet.com/_4t8rfi
A physician opens up a new practice and qualifies for Guaranteed Insurability
a $7,000/month Disability Income policy. What rider Option 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
12. An agent whose license has been revoked is required wait at least five years be-
to fore applying for a new li-
cense
wait at least five years before applying for a new
license
submit all previously written policies to the Commis-
sioner of Insurance's office for servicing of the ac-
counts
cancel all policies currently in effect and advise the
insureds to place them elsewhere
continue to service the existing accounts but not so-
licit new business
13. The benefits under a Disability Buy-Out policy are payable to the company or
another shareholder
normally paid in installments
taxable to the beneficiary
payable to the company or another shareholder
normally paid after a short elimination period
14. health information
