TEXAS LIFE AND HEALTH INSURANCE
FINAL EXAM QUESTIONS AND
ANSWERS
D is an architect receiving Disability Income benefits who is not able to return to work
full time, but can work on a part-time basis. Which of these features would allow D to
continue receiving benefits?
*Residual Benefit clause
*Waiver Benefit clause
*Concurrent Benefit clause
*Guaranteed Benefit clause - Answer-Residual Benefit clause
The individual who provides general medical care for a patient as well as the referral for
specialized care is known as a:
*Physician's assistant
*Primary Care Physician
*Secondary Care Physician
*Third Party Administrator - Answer-Primary Care Physician
If an insured sustains a loss on a policy sold by an agent through an insurance
company that is not authorized to do business in Texas, which of the following would be
liable?
* The agent only
* The company only
* The agent and the company
* The Life, Accident, Health and Hospital Insurance Guaranty Association - Answer-The
agent and the company
Who can purchase a plan through the Marketplace?
*Anyone
*Any legal resident except those incarcerated
*Only those who do not have access to employer-sponsored coverage
*Only those who might be eligible for tax credits - Answer-Any legal resident except
those incarcerated
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are
prohibited under the Texas Insurance Code covering
,*rebating
*false advertising
*discrimination
*unfair methods of competition - Answer-unfair methods of competition
An insurance agent does NOT have fiduciary responsibilities to
*insurance companies
*insureds
*applicants
*other agents - Answer-other agents
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees?
*Portion of the premiums paid for by the employer may be a tax deduction
*Portion of the premiums paid for by the employee may be a tax deduction
*Portion of the death proceeds are taxable to the beneficiary
*Portion of the death proceeds are taxable to the estate - Answer-Portion of the
premiums paid for by the employer may be a tax deduction
When applied to Whole Life insurance, the word "straight" denotes:
The absence of dividends
Options to reduce or withhold premium payments
The mode premium payments
The duration of premium payments - Answer-The duration of premium payments
If an individual has an Accidental Death and Dismemberment policy and dies, an
autopsy can be performed in all these situations, EXCEPT:
When the cause of death is unknown
When the state prohibits this by law
When consent for the autopsy is not obtained
When foul play was a contributing factor - Answer-When the state prohibits this by law
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used?
Irrevocable
Contingent
Primary
Revocable - Answer-Revocable
What percent of personal life insurance premiums is usually deductible for federal
income tax purposes?
, 100%
75%
50%
0% - Answer-0%
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed?
Level term policy
Whole life policy
Limited-pay policy
Decreasing term policy - Answer-Decreasing term policy
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive?
$1,000,000
$500,000
$250,000
$0 - Answer-$0
Which of these arrangements allows one to bypass insurable interest laws?
Concealment
Indemnity contract
Contract of adhesion
Investor-Originated Life Insurance - Answer-Investor-Originated Life Insurance
Under the Texas insurance code, an insurance company must pay death benefits for
suicide if the policy has been in force for a MINIMUM of
six months
one year
two years
three years - Answer-two years
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?
PPO
HMO
FINAL EXAM QUESTIONS AND
ANSWERS
D is an architect receiving Disability Income benefits who is not able to return to work
full time, but can work on a part-time basis. Which of these features would allow D to
continue receiving benefits?
*Residual Benefit clause
*Waiver Benefit clause
*Concurrent Benefit clause
*Guaranteed Benefit clause - Answer-Residual Benefit clause
The individual who provides general medical care for a patient as well as the referral for
specialized care is known as a:
*Physician's assistant
*Primary Care Physician
*Secondary Care Physician
*Third Party Administrator - Answer-Primary Care Physician
If an insured sustains a loss on a policy sold by an agent through an insurance
company that is not authorized to do business in Texas, which of the following would be
liable?
* The agent only
* The company only
* The agent and the company
* The Life, Accident, Health and Hospital Insurance Guaranty Association - Answer-The
agent and the company
Who can purchase a plan through the Marketplace?
*Anyone
*Any legal resident except those incarcerated
*Only those who do not have access to employer-sponsored coverage
*Only those who might be eligible for tax credits - Answer-Any legal resident except
those incarcerated
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are
prohibited under the Texas Insurance Code covering
,*rebating
*false advertising
*discrimination
*unfair methods of competition - Answer-unfair methods of competition
An insurance agent does NOT have fiduciary responsibilities to
*insurance companies
*insureds
*applicants
*other agents - Answer-other agents
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of a
contributory group Term Life plan to all its eligible employees?
*Portion of the premiums paid for by the employer may be a tax deduction
*Portion of the premiums paid for by the employee may be a tax deduction
*Portion of the death proceeds are taxable to the beneficiary
*Portion of the death proceeds are taxable to the estate - Answer-Portion of the
premiums paid for by the employer may be a tax deduction
When applied to Whole Life insurance, the word "straight" denotes:
The absence of dividends
Options to reduce or withhold premium payments
The mode premium payments
The duration of premium payments - Answer-The duration of premium payments
If an individual has an Accidental Death and Dismemberment policy and dies, an
autopsy can be performed in all these situations, EXCEPT:
When the cause of death is unknown
When the state prohibits this by law
When consent for the autopsy is not obtained
When foul play was a contributing factor - Answer-When the state prohibits this by law
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used?
Irrevocable
Contingent
Primary
Revocable - Answer-Revocable
What percent of personal life insurance premiums is usually deductible for federal
income tax purposes?
, 100%
75%
50%
0% - Answer-0%
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed?
Level term policy
Whole life policy
Limited-pay policy
Decreasing term policy - Answer-Decreasing term policy
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive?
$1,000,000
$500,000
$250,000
$0 - Answer-$0
Which of these arrangements allows one to bypass insurable interest laws?
Concealment
Indemnity contract
Contract of adhesion
Investor-Originated Life Insurance - Answer-Investor-Originated Life Insurance
Under the Texas insurance code, an insurance company must pay death benefits for
suicide if the policy has been in force for a MINIMUM of
six months
one year
two years
three years - Answer-two years
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?
PPO
HMO
