TEXAS INSURANCE LICENSE EXAM 2024 ACTUAL
EXAM 2 VERSIONS (VERSION A AND B) COMPLETE
400 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
VERSION A
All of the following are considered to be typical characteristics describing the nature of
an insurance contract, EXCEPT - ANSWERBilateral
A domestic insurance company in Texas is considered a company that? - ANSWERis
incorporated and formed in Texas
A certificate of
permits an insurance company to transact business in Texas. - ANSWERauthority
Which of the following BEST describes how a Preferred Provider Organization (PPO) is
less restrictive than a Health Maintenance Organization (HMO)? - ANSWERMore
physicians to choose from
What type of annuity has a cash value that is based upon the performance of it's
underlying investment funds? - ANSWERvariable
When an insured changes to a more hazardous occupation, which disability policy
provision allows an insurer to adjust policy benefits and rates? - ANSWERChange of
occupation provision
A plan through the Marketplace may be purchased by - ANSWERAny legal resident
(except those imprisoned)
A license may be denied, suspended, or revoked if the licensee? - ANSWERis found
guilty of misrepresentation in obtaining the license
A Business Overhead Expense policy - ANSWERcovers business expenses such as
rent and utilities
,The policy provision that entitles the insurer to establish conditions the insured must
meet while a claim is pending is - ANSWERTime Limit on Certain Defenses
T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary
designation, If T wishes to change the beneficiary, T must obtain permission from the -
ANSWERbeneficiary
The individual Health Insurance policy that offers the broadest protection is a(n)
policy - ANSWERmajor medical
When an insurance application is taken by a producer, which of these statements is
true? - ANSWERAny changes made on the application require the applicant's initials
Term Life Policies that have the ability to be converted to permanent coverage may do
so during a specific time period. This conversion period - ANSWERvaries according to
the contract
A Disability Income policy that only the policyowner can terminate and which the rates
will never go up is considered to be - ANSWERnoncancellable
An example of false advertising would be - ANSWERAn insurer exaggerating its
dividends in a magazine advertisement
B has a $100,000 Accidental Death and Dismemberment policy that pays triple
indemnity for common carrier death. If B is killed from an accident on a commercial
flight, what will the policy pay B's beneficiary? - ANSWER$300,000
Which of the following is an example of a nonforfeiture option? - ANSWERreduced paid-
up option
An applicant MUST receive an Outline of Coverage when an application is taken for
a(n) - ANSWERMedicare Supplement policy
Which mode of payment is NOT used by health insurance policies? - ANSWERSingle
Premium
What type of life policy covers two people and pays upon the death of the last insured? -
ANSWERsurvivorship
During a sales presentation for a participating life insurance policy, an agent MUST -
ANSWERmake a prospect understand that dividends are NOT guaranteed
What is the elimination period of an individual disability policy? - ANSWERTime period a
disabled person must wait before benefits are paid
, When is the face amount of a Whole Life policy paid? - ANSWERWhen the insured dies
or at the policy's maturity date, whichever happens first
Which of the following statements BEST describes what the Legal Actions provision of
an Accident and
Health policy requires? - ANSWERAn insured must wait at least 60 days after Proof of
Loss has been submitted before a lawsuit can be filed
Medicare is intended for all of the following groups, EXCEPT: - ANSWERThose enrolled
as a full-time student
When a person returns to work after a period of total disability but cannot earn as much
as he or she did before the disability, this situation is called which of the following? -
ANSWERResidual disability
At what point does an informal agreement become a binding contract? - ANSWERWhen
consideration is provided by one of the parties to the contract
An employee of 20 years recently retired at age 59 1/2. This employee's group life
contract can be: - ANSWERconverted to an individual permanent policy at an individual
rate
How long can a cash surrender value payment be deferred by the insurance company
under the Nonforfeiture Law? - ANSWER6 months
The provision in a health insurance policy that suspends premiums being paid to the
insurer while the insured is disabled is called the: - ANSWERWaiver of Premium
Additional coverage can be added to a Whole Life policy by adding a(n): -
ANSWERdecreasing term rider
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident.
How much will the insurance company pay the beneficiary? - ANSWER$20,000 death
benefit
In regards to representations or warranties, which of these statements is TRUE? -
ANSWERIf material to the risk, false representations will void a policy
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained
from participating in a carjacking. How will the insurer most likely handle this claim? -
ANSWERClaim will be denied
All are true statements regarding the underwriting process, EXCEPT - ANSWERAIDS
and HIV virus exams can be conducted in a discriminatory fashion
EXAM 2 VERSIONS (VERSION A AND B) COMPLETE
400 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) /ALREADY
GRADED A+
VERSION A
All of the following are considered to be typical characteristics describing the nature of
an insurance contract, EXCEPT - ANSWERBilateral
A domestic insurance company in Texas is considered a company that? - ANSWERis
incorporated and formed in Texas
A certificate of
permits an insurance company to transact business in Texas. - ANSWERauthority
Which of the following BEST describes how a Preferred Provider Organization (PPO) is
less restrictive than a Health Maintenance Organization (HMO)? - ANSWERMore
physicians to choose from
What type of annuity has a cash value that is based upon the performance of it's
underlying investment funds? - ANSWERvariable
When an insured changes to a more hazardous occupation, which disability policy
provision allows an insurer to adjust policy benefits and rates? - ANSWERChange of
occupation provision
A plan through the Marketplace may be purchased by - ANSWERAny legal resident
(except those imprisoned)
A license may be denied, suspended, or revoked if the licensee? - ANSWERis found
guilty of misrepresentation in obtaining the license
A Business Overhead Expense policy - ANSWERcovers business expenses such as
rent and utilities
,The policy provision that entitles the insurer to establish conditions the insured must
meet while a claim is pending is - ANSWERTime Limit on Certain Defenses
T is the policyowner for a Life Insurance policy with an Irrevocable beneficiary
designation, If T wishes to change the beneficiary, T must obtain permission from the -
ANSWERbeneficiary
The individual Health Insurance policy that offers the broadest protection is a(n)
policy - ANSWERmajor medical
When an insurance application is taken by a producer, which of these statements is
true? - ANSWERAny changes made on the application require the applicant's initials
Term Life Policies that have the ability to be converted to permanent coverage may do
so during a specific time period. This conversion period - ANSWERvaries according to
the contract
A Disability Income policy that only the policyowner can terminate and which the rates
will never go up is considered to be - ANSWERnoncancellable
An example of false advertising would be - ANSWERAn insurer exaggerating its
dividends in a magazine advertisement
B has a $100,000 Accidental Death and Dismemberment policy that pays triple
indemnity for common carrier death. If B is killed from an accident on a commercial
flight, what will the policy pay B's beneficiary? - ANSWER$300,000
Which of the following is an example of a nonforfeiture option? - ANSWERreduced paid-
up option
An applicant MUST receive an Outline of Coverage when an application is taken for
a(n) - ANSWERMedicare Supplement policy
Which mode of payment is NOT used by health insurance policies? - ANSWERSingle
Premium
What type of life policy covers two people and pays upon the death of the last insured? -
ANSWERsurvivorship
During a sales presentation for a participating life insurance policy, an agent MUST -
ANSWERmake a prospect understand that dividends are NOT guaranteed
What is the elimination period of an individual disability policy? - ANSWERTime period a
disabled person must wait before benefits are paid
, When is the face amount of a Whole Life policy paid? - ANSWERWhen the insured dies
or at the policy's maturity date, whichever happens first
Which of the following statements BEST describes what the Legal Actions provision of
an Accident and
Health policy requires? - ANSWERAn insured must wait at least 60 days after Proof of
Loss has been submitted before a lawsuit can be filed
Medicare is intended for all of the following groups, EXCEPT: - ANSWERThose enrolled
as a full-time student
When a person returns to work after a period of total disability but cannot earn as much
as he or she did before the disability, this situation is called which of the following? -
ANSWERResidual disability
At what point does an informal agreement become a binding contract? - ANSWERWhen
consideration is provided by one of the parties to the contract
An employee of 20 years recently retired at age 59 1/2. This employee's group life
contract can be: - ANSWERconverted to an individual permanent policy at an individual
rate
How long can a cash surrender value payment be deferred by the insurance company
under the Nonforfeiture Law? - ANSWER6 months
The provision in a health insurance policy that suspends premiums being paid to the
insurer while the insured is disabled is called the: - ANSWERWaiver of Premium
Additional coverage can be added to a Whole Life policy by adding a(n): -
ANSWERdecreasing term rider
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an
automobile accident.
How much will the insurance company pay the beneficiary? - ANSWER$20,000 death
benefit
In regards to representations or warranties, which of these statements is TRUE? -
ANSWERIf material to the risk, false representations will void a policy
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained
from participating in a carjacking. How will the insurer most likely handle this claim? -
ANSWERClaim will be denied
All are true statements regarding the underwriting process, EXCEPT - ANSWERAIDS
and HIV virus exams can be conducted in a discriminatory fashion
