TEXAS STATE EXAM SIMULATOR UPDATED
ACTUAL QUESTIONS AND 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?
Answer: Increase her policy's coverage amount
◉ What action can a policyowner take if an application for a bank
loan requires collateral?
Answer: Assign policy ownership to the bank
◉ What is Medicare?
Answer: is a hospital and medical expense insurance program
◉ All of these statements about the Commissioner of Insurance
are true EXCEPT
Answer: The Commissioner must be elected
◉ C was injured while deep sea diving and requires a hospital
stay. C has a Major Medical policy with a 80/20 coinsurance clause
,and a $400 deductible. What is the MAXIMUM C will pay if the
covered medical expenses are $2000?
Answer: $720
◉ An insured pays premiums on an annual basis for an individual
health insurance policy. What is the MINIMUM number of days for
the Grace Period provision?
Answer: 31
◉ Who is normally considered to be the owner of a 403(b) tax-
sheltered annuity?
Answer: The employee
◉ Which of the following actions does the Commissioner of
Insurance NOT have power to conduct?
Answer: Activate Insurance Companies' Financial Reserves
◉ Major Medical policies typically
Answer: contain a deductible and coinsurance
◉ Which of the following statements is CORRECT about
accelerated death benefits?
Answer: Must have a terminal illness to qualify
, ◉ Which of the following health insurance coverages is BEST
suited for meeting the expenses of catastrophic illness?
Answer: Major Medical
◉ In a Disability Income policy, which of these clauses acts as a
deductible?
Answer: Elimination Period
◉ All of these are characteristics of an Adjustable Life policy
EXCEPT
Answer: face amount can be adjusted using policy dividends
◉ P is the insured on a participating life policy. Which statement
is true if P's premiums are waived due to a disability?
Answer: P will still receive declared dividends
◉ Which Unfair Trade Practice involves an agent telling a
prospective client that a policy's dividends are guaranteed?
Answer: Misrepresentation
◉ What kind of insurance policy supplies an income stream over a
set period of time that starts when the insured dies?
Answer: Family Maintenance Policy
ACTUAL QUESTIONS AND 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?
Answer: Increase her policy's coverage amount
◉ What action can a policyowner take if an application for a bank
loan requires collateral?
Answer: Assign policy ownership to the bank
◉ What is Medicare?
Answer: is a hospital and medical expense insurance program
◉ All of these statements about the Commissioner of Insurance
are true EXCEPT
Answer: The Commissioner must be elected
◉ C was injured while deep sea diving and requires a hospital
stay. C has a Major Medical policy with a 80/20 coinsurance clause
,and a $400 deductible. What is the MAXIMUM C will pay if the
covered medical expenses are $2000?
Answer: $720
◉ An insured pays premiums on an annual basis for an individual
health insurance policy. What is the MINIMUM number of days for
the Grace Period provision?
Answer: 31
◉ Who is normally considered to be the owner of a 403(b) tax-
sheltered annuity?
Answer: The employee
◉ Which of the following actions does the Commissioner of
Insurance NOT have power to conduct?
Answer: Activate Insurance Companies' Financial Reserves
◉ Major Medical policies typically
Answer: contain a deductible and coinsurance
◉ Which of the following statements is CORRECT about
accelerated death benefits?
Answer: Must have a terminal illness to qualify
, ◉ Which of the following health insurance coverages is BEST
suited for meeting the expenses of catastrophic illness?
Answer: Major Medical
◉ In a Disability Income policy, which of these clauses acts as a
deductible?
Answer: Elimination Period
◉ All of these are characteristics of an Adjustable Life policy
EXCEPT
Answer: face amount can be adjusted using policy dividends
◉ P is the insured on a participating life policy. Which statement
is true if P's premiums are waived due to a disability?
Answer: P will still receive declared dividends
◉ Which Unfair Trade Practice involves an agent telling a
prospective client that a policy's dividends are guaranteed?
Answer: Misrepresentation
◉ What kind of insurance policy supplies an income stream over a
set period of time that starts when the insured dies?
Answer: Family Maintenance Policy
