TEXAS STATE EXAM SIMULATOR
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ One becomes eligible for Social Security disability benefits after
having been disabled for
3 months
5 months
6 months
12 months
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
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
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
Answer: the initial premium
◉ Which parts of a life insurance policy are guaranteed to be true?
,Rating
Representation
Statement
Warranty
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
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
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
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
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
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ One becomes eligible for Social Security disability benefits after
having been disabled for
3 months
5 months
6 months
12 months
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
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
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
Answer: the initial premium
◉ Which parts of a life insurance policy are guaranteed to be true?
,Rating
Representation
Statement
Warranty
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
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
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
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
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
