Texas General Lines - Life, accident and health insurance PRACTICE EXAM Actual Exam Latest Update Questions and 100% Verified Correct Answers Guaranteed A+

Texas General Lines - Life, accident and health insurance PRACTICE EXAM Actual Exam Latest Update 2024 -2025 350 Questions and 100% Verified Correct Answers Guaranteed A+ 1) "Twisting" is a commonly -used term describing: A- The making of misleading representations as to the financial condition of any insurer B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insurance C- Unfair avoidance of payment of policy benefits to which a claimant is entitled D- Giving, or promising to give, tangible or intangible items of value or service in order to induce a prospect to buy a policy of insurance - CORRECT ANSWER: B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insurance 1) A person appointed by an insurer to solicit or sell insurance on their behalf in this state is known as a(n): A- Adjuster B- Agent C- Broker D- Solicitor - CORRECT ANSWER: B- Agent 1) A plan under which the surviving partners of a partnership agree to buy the interest of a deceased partner is known as a: A- Surviving Shareholder plan B- Buy and Sell Agreement C- Key Employee Life policy D- Deferred Compensation plan - CORRECT ANSWER: B- Buy and Sell Agreement 1) All of the following are true about eligibility for Disability Income benefits under Social Security EXCEPT: A- There is a 5 month waiting period B- They are available only to those who have attained fully insured status C- They are available only to those who are at least age 65 D- Claimants must prove that their disability prevents them from performing any gainful work and will last at least 1 year - CORRECT ANSWER: C- They are available only to those who are at least age 65 1) An insured's premium for Life insurance is based mainly upon their: A- Risk classification B- Gender C- Occupation D- Age - CORRECT ANSWER: A- Risk classification 1) For cancellation of an HMO contract due to fraud or intentional misrepresentation of a material fact, how many days' advance written notice is required? - CORRECT ANSWER: A- 15 B- 30 C- 20 D- 10 1) If a dentist was off work for 4 months due to disability, his dental assistant's salary would be covered by: A- Partnership Disability insurance B- Key Employee Disability C- Business Overhead insurance D- Disability Income insurance - CORRECT ANSWER: C- Business Overhead insurance 1) If the insured is not entirely satisfied with the policy issued, she may return it to the insurance company for voiding and receive a refund of premium at which of the following times? A- Within a specified period from the date the insurance company issues the policy B- Within a specified period from the date the insured receives the contract C- Within a specified period from the date the producer receives the contract D- Within a specified period after the first renewal premium falls due - CORRECT ANSWER: B- Within a specified period from the date the insured receives the contract 1) In order to qualify for the advanced premium tax credit, a person must have an income below a pre -determined level and: - CORRECT ANSWER: A- Purchase a grandfathered health benefit plan B- Purchase an individual policy C- Purchase a qualified health plan through the Exchange D- Purchase a group policy 1) Policy delivery refers to the delivery of the: A- Insurance policy cost disclosure materials to the applicant B- Premium and receipt for the insurance policy to the agency office C- Completed application for the insurance policy to the agency office D- Completed insurance policy to the applicant - CORRECT ANSWER: D- Completed insurance policy to the applicant 1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20 -year-amortized $50,000 business -improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? A- $50,000 Whole Life policy B- $50,000 Level Term policy for 20 years C- $50,000 20 Pay Life policy D- $50,000 Decreasing Term policy for 20 years - CORRECT ANSWER: D—A $50,000 Decreasing Term policy for 20 years Explanation: The key here is "minimum premium". Term is the most inexpensive type of coverage. Since Sandra's $50,000 loan will be paid off over 20 years and the loan balance will decrease each year, Decreasing Term makes sense. Decreasing Term is not rene wable. 1) Under the Health Insurance Portability and Accountability Act (HIPAA), group medical expense coverage is 'portable' from one group to another group without any new probationary period as long as there is no gap in coverage more than ____ days: - CORRECT ANSWER: A- 10 B- 31 C- 63 D- 20 1) Which of the following statements about the Reinstatement provision is true? A- It provides for reinstatement of a policy regardless of the insured's health B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated C- It permits reinstatement within 10 years after a policy has lapsed D- It guarantees the reinstatement of a policy that has been surrendered for cash - CORRECT ANSWER: B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated 1) Which of the following statements is true about Residual Disability benefits? A- They are reduced when an insured is not under a doctor's care B- An insured is entitled to a Principal Sum benefit for the partial loss of a limb C- Payment may be based on loss of time, income, or function D- Payment may be based on termination of employment - CORRECT ANSWER: C- Payment may be based on loss of time, income, or function 2) A 45 -year old customer who is seeking to supplement his retirement income at age 65 would not buy a: A- Deferred Annuity B- Equity Indexed Annuity C- Variable Annuity D- Immediate Annuity - CORRECT ANSWER: B- Equity Indexed Annuity 2) A business with fewer than ___ full -time equivalent employees will never owe the Employer Shared Responsibility Payment. - CORRECT ANSWER: A- 75 B- 100 C- 50 D- 20 2) A prospect's statements made in the application for insurance constitute a part of which of the following? A- Subrogation Clause B- Incontestability Clause C- Co-insurance Clause D- Consideration Clause - CORRECT ANSWER: D- Consideration Clause 2) Carl Burk, whose wife is his business partner, buys a Life insurance policy on his wife's life. Because of this third -party ownership, the beneficiary should be the: A- Policy owner's children B- Policy owner's estate C- Policy owner D- Policy owner's wife - CORRECT ANSWER: C- Policy owner 2) If, at the time of application, the applicant does not pay any initial premium, what should the producer do when delivering the policy? A- Ask the applicant to fill out a new application B- Ask the applicant to take another physical exam C- Require the client to pay the entire first years premium to start coverage D- Collect the initial premium and ask the client to sign a Statement of Continued Good Health - CORRECT ANSWER: D- Collect the initial premium and ask the client to sign a Statement of Continued Good Health 2) In a Family Health policy, coverage for a newborn child commences: - CORRECT ANSWER: A- When the insurer receives written or oral notice of the birth B- 24 hours after birth C- Three days from the date of birth D- At the instant of birth 2) In the replacement of existing life insurance policies, regulations mandate disclosure of relevant information to all of the following EXCEPT: A- The existing insurer B- The beneficiaries of the existing policy C- The applicant D- The replacing insurer - CORRECT ANSWER: B- The beneficiaries of the existing policy 2) Jesse Vega is involved in a two -car accident in which he is disabled and Mr. Vega's passenger and the other driver are injured. Which of the following would most likely be covered by his Disability Income policy? A- His lost income B- The disability of the other driver