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Texas State Exam Simulator - Life and Health
Insurance Questions with Detailed Verified
Answers
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 Ans: 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 Ans: 5 months
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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
Ans: 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 Ans: 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
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delivery of policy
disclosure of any medical conditions Ans: the initial premium
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty Ans: 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 Ans: 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
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Indemnity
Medicare Supplement
Medicaid Ans: 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
Ans: 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 Ans: 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?
Texas State Exam Simulator - Life and Health
Insurance Questions with Detailed Verified
Answers
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 Ans: 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 Ans: 5 months
, Page | 2
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
Ans: 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 Ans: 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
, Page | 3
delivery of policy
disclosure of any medical conditions Ans: the initial premium
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty Ans: 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 Ans: 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
, Page | 4
Indemnity
Medicare Supplement
Medicaid Ans: 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
Ans: 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 Ans: 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?
