Texas State Exam Simulator - Life and Health Insurance (200 Questions Practice
Exam)
A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to
coverage as his/her needs change. Which of the following policies will best meet this need?
Endowment at Age 75
Universal Life
Graded Benefit Whole Life
Modified Whole Life - ANS-Universal Life
A 66-year-old is covered under a group health plan while employed with a business that has 40
employees. If she injures herself while walking in the park, what coverage would be considered primary?
Medicaid
Long-term care
Medicare
Her group health plan - ANS-Her group health plan
A Business Disability Buyout plan policy is designed
as an incurred expense plan
with a very short Elimination period
to pay benefits to the Corporation or other shareholders
to pay benefits to the insured's spouse - ANS-to pay benefits to the Corporation or other shareholders
A certificate of authority does which of the following?
Gives an agent authority to represent a specific insurance company
,Permits an agent to solicit insurance in Texas
Permits a decreased agent's relative to act as an agent for a limited period of time
Permits an insurance company to transact business in Texas - ANS-Permits an insurance company to
transact business in Texas
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 - ANS-experimental and investigative services
A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition
for a loan is
guilty of
coercion
fraud
rebating
boycotting - ANS-coercion
A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have
the policy premiums waived under which provision?
Payor provision
Accelerated Benefits provision
Assignment provision
Waiver of Premium provision - ANS-Payor provision
,A foreign insurance company is one that is incorporated
under Texas law
under the laws of another state
is a territory of the United States
outside the United States - ANS-under the laws of another state
A group life insurance policy may NOT insure groups consisting exclusively of persons who are
salaried, clerical, or administrative employees
hourly paid laborers or their supervisors
administrative, managerial, or sales personnel
related by marriage, blood or legal adoption - ANS-related by marriage, blood or legal adoption
A group-owned insurance company that is formed to assume and spread the liability risks of its members
is known as a
treaty insurer
risk retention group
risk assumption group
captive insurer - ANS-risk retention group
A Health Reimbursement Arrangement MUST be established
with employee funding
with other employer-sponsored benefit plans
by the employer
only during specific open enrollment periods - ANS-by the employer
, A life insurance illustration is NOT required to include the
name of the insurer
underwriting or rating classification upon which the illustration is based
initial death benefit
company's mortality table - ANS-company's mortality table
A Long-Term Care policy must offer a MINIMUM benefit period of how many months?
12
18
24
30 - ANS-12
A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the
following?
Critical illness
Terminal illness
Inability of the insured to perform more than 2 Activities of Daily Living (ADL's)
Inability of the insured to maintain insurance premiums due to unemployment - ANS-Inability of the
insured to perform more than 2 Activities of Daily Living (ADL's)
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life insurance,
would require how many policies?
3
6
9
Exam)
A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to
coverage as his/her needs change. Which of the following policies will best meet this need?
Endowment at Age 75
Universal Life
Graded Benefit Whole Life
Modified Whole Life - ANS-Universal Life
A 66-year-old is covered under a group health plan while employed with a business that has 40
employees. If she injures herself while walking in the park, what coverage would be considered primary?
Medicaid
Long-term care
Medicare
Her group health plan - ANS-Her group health plan
A Business Disability Buyout plan policy is designed
as an incurred expense plan
with a very short Elimination period
to pay benefits to the Corporation or other shareholders
to pay benefits to the insured's spouse - ANS-to pay benefits to the Corporation or other shareholders
A certificate of authority does which of the following?
Gives an agent authority to represent a specific insurance company
,Permits an agent to solicit insurance in Texas
Permits a decreased agent's relative to act as an agent for a limited period of time
Permits an insurance company to transact business in Texas - ANS-Permits an insurance company to
transact business in Texas
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 - ANS-experimental and investigative services
A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition
for a loan is
guilty of
coercion
fraud
rebating
boycotting - ANS-coercion
A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have
the policy premiums waived under which provision?
Payor provision
Accelerated Benefits provision
Assignment provision
Waiver of Premium provision - ANS-Payor provision
,A foreign insurance company is one that is incorporated
under Texas law
under the laws of another state
is a territory of the United States
outside the United States - ANS-under the laws of another state
A group life insurance policy may NOT insure groups consisting exclusively of persons who are
salaried, clerical, or administrative employees
hourly paid laborers or their supervisors
administrative, managerial, or sales personnel
related by marriage, blood or legal adoption - ANS-related by marriage, blood or legal adoption
A group-owned insurance company that is formed to assume and spread the liability risks of its members
is known as a
treaty insurer
risk retention group
risk assumption group
captive insurer - ANS-risk retention group
A Health Reimbursement Arrangement MUST be established
with employee funding
with other employer-sponsored benefit plans
by the employer
only during specific open enrollment periods - ANS-by the employer
, A life insurance illustration is NOT required to include the
name of the insurer
underwriting or rating classification upon which the illustration is based
initial death benefit
company's mortality table - ANS-company's mortality table
A Long-Term Care policy must offer a MINIMUM benefit period of how many months?
12
18
24
30 - ANS-12
A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the
following?
Critical illness
Terminal illness
Inability of the insured to perform more than 2 Activities of Daily Living (ADL's)
Inability of the insured to maintain insurance premiums due to unemployment - ANS-Inability of the
insured to perform more than 2 Activities of Daily Living (ADL's)
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life insurance,
would require how many policies?
3
6
9
