Texas Life and Health Insurance
Exam Questions and Answers
100% PASS
Which of these characteristics is consistent with a Straight Life Policy? -
CORRECT ANSWER-Premiums are payable for as long as there is insurance
coverage in force
Which of the following are Equity Indexed annuities typically invested in? -
CORRECT ANSWER-S&P 500
Which of the following does Social Security NOT provide benefits for? -
CORRECT ANSWER-Dismemberment
An example of false advertising would be - CORRECT ANSWER-An insurer
exaggerating its dividends in a magazine advertisement
A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased
an annuity that will pay her $1500 per month beginning at age 60. Which of these
annuities did this woman purchase? - CORRECT ANSWER-Deferred Fixed
Annuity
,Which of the following types of organizations are prepaid group health plans,
where members pay in advance for the services of participating physicians and
hospitals that have agreements? - CORRECT ANSWER-HMO
Which action will a life insurance company most likely take if an insured dies and it
is discovered that the insured's age was misstated on the application? - CORRECT
ANSWER-Pay an amount the premiums would have purchased at the insured's
actual age
Q is looking to buy a life insurance policy that will provide the greatest amount of
protection for a temporary time period. Which of these policies should Q
purchase? - CORRECT ANSWER-Term Life
An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age? - CORRECT ANSWER-59 1/2
An applicant MUST receive an Outline of Coverage when an application is taken
for a(n) - CORRECT ANSWER-Medicare Supplement policy
Life insurance that covers an insured's whole life with level premiums paid over a
limited time is called: - CORRECT ANSWER-Limited Pay Life
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay is a total of
$15,000 in covered medical expenses are incurred? - CORRECT ANSWER-$7000
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, $5,000 + 20% = $7,000
How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law? - CORRECT ANSWER-6 months
An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the - CORRECT ANSWER-
Commissioner
What is an organization that solicits insurance only to its members? - CORRECT
ANSWER-Fraternal benefit society
Which of the following is NOT a reason for a business to buy key person life
insurance? - CORRECT ANSWER-A pension deficiency is the key employee dies
When an insurance company sends a policy to the insured with an attached
application, the element that makes the application part of the contract between
the insured and the insurer is called the: - CORRECT ANSWER-Entire Contract
Provision
One becomes eligible for Social Security disability benefits after having been
disabled for - CORRECT ANSWER-5 Months
An insured owns an individual Disability Income policy with a 30-day Elimination
Period for sickness and accidents and a monthly indemnity benefit of $500. If the
Exam Questions and Answers
100% PASS
Which of these characteristics is consistent with a Straight Life Policy? -
CORRECT ANSWER-Premiums are payable for as long as there is insurance
coverage in force
Which of the following are Equity Indexed annuities typically invested in? -
CORRECT ANSWER-S&P 500
Which of the following does Social Security NOT provide benefits for? -
CORRECT ANSWER-Dismemberment
An example of false advertising would be - CORRECT ANSWER-An insurer
exaggerating its dividends in a magazine advertisement
A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased
an annuity that will pay her $1500 per month beginning at age 60. Which of these
annuities did this woman purchase? - CORRECT ANSWER-Deferred Fixed
Annuity
,Which of the following types of organizations are prepaid group health plans,
where members pay in advance for the services of participating physicians and
hospitals that have agreements? - CORRECT ANSWER-HMO
Which action will a life insurance company most likely take if an insured dies and it
is discovered that the insured's age was misstated on the application? - CORRECT
ANSWER-Pay an amount the premiums would have purchased at the insured's
actual age
Q is looking to buy a life insurance policy that will provide the greatest amount of
protection for a temporary time period. Which of these policies should Q
purchase? - CORRECT ANSWER-Term Life
An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age? - CORRECT ANSWER-59 1/2
An applicant MUST receive an Outline of Coverage when an application is taken
for a(n) - CORRECT ANSWER-Medicare Supplement policy
Life insurance that covers an insured's whole life with level premiums paid over a
limited time is called: - CORRECT ANSWER-Limited Pay Life
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay is a total of
$15,000 in covered medical expenses are incurred? - CORRECT ANSWER-$7000
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, $5,000 + 20% = $7,000
How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law? - CORRECT ANSWER-6 months
An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the - CORRECT ANSWER-
Commissioner
What is an organization that solicits insurance only to its members? - CORRECT
ANSWER-Fraternal benefit society
Which of the following is NOT a reason for a business to buy key person life
insurance? - CORRECT ANSWER-A pension deficiency is the key employee dies
When an insurance company sends a policy to the insured with an attached
application, the element that makes the application part of the contract between
the insured and the insurer is called the: - CORRECT ANSWER-Entire Contract
Provision
One becomes eligible for Social Security disability benefits after having been
disabled for - CORRECT ANSWER-5 Months
An insured owns an individual Disability Income policy with a 30-day Elimination
Period for sickness and accidents and a monthly indemnity benefit of $500. If the
