Texas Life and Health Insurance Practice Test Questions with Correct Answers

T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? Correct Answer Increase her policy's coverage amount When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) Correct Answer Exclusion An agent who tells claimants that their rights may be impaired if they fail to complete a release form within a given period of time could be guilty of..? Correct Answer Coercion What does the insuring agreement in a Life insurance contract establish? Correct Answer An insurer's basic promise The first portion of a covered Major Medical insurance expense that the insured is required to pay is called the..? Correct Answer Initial deductible A "reimbursement policy" pays what amount of covered Long-Term Care expenses? Correct Answer Actual covered expenses up to the daily maximum The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n) Correct Answer Insuring agreement W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) Correct Answer Immediate annuity Which of these are NOT an example of a Nonforfeiture option? Correct Answer Life Income S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning..? Correct Answer November 1 An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons? Correct Answer Failure to pay for coverage An agent who tells a client that dividends are guaranteed may be guilty of..? Correct Answer misrepresentation