TEXAS STATE EXAM SIMULATOR - LIFE
AND HEALTH INSURANCE (200
QUESTIONS PRACTICE EXAM) WITH
ACTUAL SOLUTIONS
An yyannuity yypromises yythat, yyif yythe yyannuitant yydies yybefore yyreceiving yypayments
yyequal yyto yythe yycorrect yyvalue, yythe yypayments yywill yybe yycontinued yyto yya
yybeneficiary yyuntil yyan yyamount yyequal yyto yythe yycontract yyvalue yyhas yybeen yypaid.
yyThis yytype yyof yyannuity yyis yycalled
yyAn yyinstallment yyRefund yyannuity
yyA yyStraight yyLife yyannuity
yyA yyCash yyRefund yyannuity
yyA yyJoint yyLife yyannuity yy- yyANS-An yyinstallment yyRefund yyannuity
One yybecomes yyeligible yyfor yySocial yySecurity yydisability yybenefits yyafter yyhaving
yybeen yydisabled yyfor
yy3 yymonths
yy5 yymonths
yy6 yymonths
yy12 yymonths yy- yyANS-5 yymonths
A yypotential yyclient, yyage yy40, yywould yylike yyto yypurchase yya yyWhole yyLife yypolicy
yythat yywill yyaccumulate yycash yyvalue yyat yya yyfaster yyrate yyin yythe yyearly yyyears yyof
yythe yypolicy. yyWhich yyof yythese yystatements yymade yyby yythe yyproducer yywould yybe
yycorrect?
yyStraight yylife yyaccumulates yyfaster yythan yyLimited-pay yyLife
yy20-Pay yyLife yyaccumulates yycash yyvalue yyfaster yythan yyStraight yyLife
yyCash yyvalue yyaccumulation yyof yyboth yy20-Pay yyLife yyand yyStraight yyLife yydepend
yyon yythe yyinsurer's yyfinancial yyrating
,yy20-Pay yyLife yyand yyStraight yyLife yyaccumulate yycash yyvalue yyat yythe yysame yyrate yy-
yyANS-20-Pay yyLife yyaccumulates yycash yyvalue yyfaster yythan yyStraight yyLife
Who yymakes yythe yylegally yyenforceable yypromises yyin yya yyunilateral yyinsurance
yypolicy?
yyBeneficiary
yyInsurance yycompany
yyInsured
yyApplicant yy- yyANS-Insurance yycompany
The yyConsideration yyclause yyin yya yylife yyinsurance yypolicy yyindicates yythat yya
yypolicyowner's yyconsideration yyconsists yyof yya yycompleted yyapplication yyand
yythe yyinitial yypremium
yyagreeing yyto yya yyphysical yyexamination
yydelivery yyof yypolicy
yydisclosure yyof yyany yymedical yyconditions yy- yyANS-the yyinitial yypremium
Which yyparts yyof yya yylife yyinsurance yypolicy yyare yyguaranteed yyto yybe yytrue?
yyRating
yyRepresentation
yyStatement
yyWarranty yy- yyANS-Warranty
A yycomprehensive yymajor yymedical yyhealth yyinsurance yypolicy yycontains yyan yyEligible
yyExpenses yyprovision yywhich yyidentifies yythe yytypes yyof yyhealth yycare yyservices yythat
yyare yycovered. yyAll yyof yythe yyfollowing yyhealth yycare yyservices yyare yytypically
yycovered yyEXCEPT yyfor
yyhospital yycharges
yyphysician yyfees
yyexperimental yyand yyinvestigative yyservices
yynursing yyservices yy- yyANS-experimental yyand yyinvestigative yyservices
If yya yyretiree yyon yyMedicare yyrequired yyfive yyhospital yystays yyin yyone yyyear, yywhich
yypolicy yywould yyprovide yythe yybest yyinsurance yyfor yyexcess yyhospital yyexpenses?
yyLong-term yycare
yyIndemnity
yyMedicare yySupplement
yyMedicaid yy- yyANS-Medicare yySupplement
,S, yywhile yyin yythe yyprocess yyof yyconverting yyher yygroup yylife yyinsurance yyto yyan
yyindividual yypolicy, yydies. yyWhat yyhappens yyto yythe yyclaim yyher yybeneficiary
yysubmits?
yyNo yybenefits yyare yypayable yyunder yythe yyMaster yycontract
yyFull yybenefits yyare yypayable yyunder yythe yyMaster yycontract
yyFull yybenefits yyare yypayable yyunder yythe yyconverted yypolicy
yyBenefits yyless yyrequired yypremium yyare yypayable yyunder yythe yyconverted yypolicy yy-
yyANS-Full yybenefits yyare yypayable yyunder yythe yyMaster yycontract
All yyof yythe yyfollowing yyare yylimited yybenefit yyplans yyEXCEPT yy
yycancer yypolicies
yylife yyinsurance yypolicies
yydental yypolicies
yycritical yyillness yypolicies yy- yyANS-life yyinsurance yypolicies
A yyphysician yyopens yyup yya yynew yypractice yyand yyqualifies yyfor yya yy$7,000/month
yyDisability yyIncome yypolicy. yyWhat yyrider yywould yythe yyphysician yyadd yyif yyhe yywants
yythe yyability yyto yyincrease yyhis yypolicy yybenefit yyas yyhis yypractice yyand yyincome
yygrow?
yyExtended yyTerm yyrider
yyCost yyof yyLiving yyAdjustment yyrider
yyGuaranteed yyInsurability yyOption yyrider
yyWaiver yyof yyPremium yyrider yy- yyANS-Guaranteed yyInsurability yyOption yyrider
An yyagent yywhose yylicense yyhas yybeen yyrevoked yyis yyrequired yyto
yywait yyat yyleast yyfive yyyears yybefore yyapplying yyfor yya yynew yylicense
yysubmit yyall yypreviously yywritten yypolicies yyto yythe yyCommissioner yyof yyInsurance's
yyoffice yyfor yyservicing yyof yythe yyaccounts
yycancel yyall yypolicies yycurrently yyin yyeffect yyand yyadvise yythe yyinsureds yyto yyplace
yythem yyelsewhere
yycontinue yyto yyservice yythe yyexisting yyaccounts yybut yynot yysolicit yynew yybusiness yy-
yyANS-wait yyat yyleast yyfive yyyears yybefore yyapplying yyfor yya yynew yylicense
The yybenefits yyunder yya yyDisability yyBuy-Out yypolicy yyare
yynormally yypaid yyin yyinstallments
yytaxable yyto yythe yybeneficiary
yypayable yyto yythe yycompany yyor yyanother yyshareholder
yynormally yypaid yyafter yya yyshort yyelimination yyperiod yy- yyANS-payable yyto yythe
yycompany yyor yyanother yyshareholder
, he yyHealth yyInsurance yyPortability yyand yyAccountability yyAct yy(HIPAA) yygives yyprivacy
yyprotection yyfor
yyinsolvency
yyhealth yyinformation
yyfinancial yyinformation
yyoverinsurance yy- yyANS-health yyinformation
How yyare yysurrender yycharges yydeducted yyin yya yylife yypolicy yywith yya yyrear-end
yyloaded yyprovision?
yyDeducted yyfrom yythe yydeath yybenefit
yyDeducted yywhen yythe yypolicy yyis yydiscontinued
yyDeducted yyfrom yypolicy's yycash yyvalue
yyDeducted yywhen yyassigned yyto yyanother yypolicyowner yy- yyANS-Deducted yywhen
yythe yypolicy yyis yydiscontinued
What yyMUST yyan yyinsurance yycompany yyuse yyin yyits yyadvertising?
yyIts yytrade yyname
yyIts yytrue yycorporate yyname
yyIts yyservice yymark
yyIts yycorporate yylogo yy- yyANS-Its yytrue yycorporate yyname
An yyaccident yypolicy yywill yymost yylikely yypay yya yybenefit yyfor yya(n)
yyself-inflicted yyinjury
yycritical yyillness
yyon-the-job yyaccident
yyoff-the-job yyaccident yy- yyANS-off-the-job yyaccident
M yycompletes yyan yyapplication yyfor yylife yyinsurance yybut yydoes yynot yypay yythe yyinitial
yypremium. yyAll yyof yythese yyactions yymust yyoccur yybefore yyM's yypolicy yygoes yyinto
yyeffect yyEXCEPT
yypolicy yyis yydelivered
yyfree-look yyperiod yyhas yyexpired
yyinsurance yycompany yyissues yypolicy
yyinitial yypremium yyis yycollected yy- yyANS-free-look yyperiod yyhas yyexpired
When yya yypolicyowner yycash yysurrenders yya yyUniversal yyLife yyinsurance yypolicy yyin
yyit's yyearly yyyears, yythis yymay yybe yyconsidered yya yyred yyflag yyfor yya(n)
yyFederal yyFair yyCredit yyAct yyViolation
yyTitle yy18 yyFraud yyviolation
yyAnti-Money yyLaundering yyviolation
AND HEALTH INSURANCE (200
QUESTIONS PRACTICE EXAM) WITH
ACTUAL SOLUTIONS
An yyannuity yypromises yythat, yyif yythe yyannuitant yydies yybefore yyreceiving yypayments
yyequal yyto yythe yycorrect yyvalue, yythe yypayments yywill yybe yycontinued yyto yya
yybeneficiary yyuntil yyan yyamount yyequal yyto yythe yycontract yyvalue yyhas yybeen yypaid.
yyThis yytype yyof yyannuity yyis yycalled
yyAn yyinstallment yyRefund yyannuity
yyA yyStraight yyLife yyannuity
yyA yyCash yyRefund yyannuity
yyA yyJoint yyLife yyannuity yy- yyANS-An yyinstallment yyRefund yyannuity
One yybecomes yyeligible yyfor yySocial yySecurity yydisability yybenefits yyafter yyhaving
yybeen yydisabled yyfor
yy3 yymonths
yy5 yymonths
yy6 yymonths
yy12 yymonths yy- yyANS-5 yymonths
A yypotential yyclient, yyage yy40, yywould yylike yyto yypurchase yya yyWhole yyLife yypolicy
yythat yywill yyaccumulate yycash yyvalue yyat yya yyfaster yyrate yyin yythe yyearly yyyears yyof
yythe yypolicy. yyWhich yyof yythese yystatements yymade yyby yythe yyproducer yywould yybe
yycorrect?
yyStraight yylife yyaccumulates yyfaster yythan yyLimited-pay yyLife
yy20-Pay yyLife yyaccumulates yycash yyvalue yyfaster yythan yyStraight yyLife
yyCash yyvalue yyaccumulation yyof yyboth yy20-Pay yyLife yyand yyStraight yyLife yydepend
yyon yythe yyinsurer's yyfinancial yyrating
,yy20-Pay yyLife yyand yyStraight yyLife yyaccumulate yycash yyvalue yyat yythe yysame yyrate yy-
yyANS-20-Pay yyLife yyaccumulates yycash yyvalue yyfaster yythan yyStraight yyLife
Who yymakes yythe yylegally yyenforceable yypromises yyin yya yyunilateral yyinsurance
yypolicy?
yyBeneficiary
yyInsurance yycompany
yyInsured
yyApplicant yy- yyANS-Insurance yycompany
The yyConsideration yyclause yyin yya yylife yyinsurance yypolicy yyindicates yythat yya
yypolicyowner's yyconsideration yyconsists yyof yya yycompleted yyapplication yyand
yythe yyinitial yypremium
yyagreeing yyto yya yyphysical yyexamination
yydelivery yyof yypolicy
yydisclosure yyof yyany yymedical yyconditions yy- yyANS-the yyinitial yypremium
Which yyparts yyof yya yylife yyinsurance yypolicy yyare yyguaranteed yyto yybe yytrue?
yyRating
yyRepresentation
yyStatement
yyWarranty yy- yyANS-Warranty
A yycomprehensive yymajor yymedical yyhealth yyinsurance yypolicy yycontains yyan yyEligible
yyExpenses yyprovision yywhich yyidentifies yythe yytypes yyof yyhealth yycare yyservices yythat
yyare yycovered. yyAll yyof yythe yyfollowing yyhealth yycare yyservices yyare yytypically
yycovered yyEXCEPT yyfor
yyhospital yycharges
yyphysician yyfees
yyexperimental yyand yyinvestigative yyservices
yynursing yyservices yy- yyANS-experimental yyand yyinvestigative yyservices
If yya yyretiree yyon yyMedicare yyrequired yyfive yyhospital yystays yyin yyone yyyear, yywhich
yypolicy yywould yyprovide yythe yybest yyinsurance yyfor yyexcess yyhospital yyexpenses?
yyLong-term yycare
yyIndemnity
yyMedicare yySupplement
yyMedicaid yy- yyANS-Medicare yySupplement
,S, yywhile yyin yythe yyprocess yyof yyconverting yyher yygroup yylife yyinsurance yyto yyan
yyindividual yypolicy, yydies. yyWhat yyhappens yyto yythe yyclaim yyher yybeneficiary
yysubmits?
yyNo yybenefits yyare yypayable yyunder yythe yyMaster yycontract
yyFull yybenefits yyare yypayable yyunder yythe yyMaster yycontract
yyFull yybenefits yyare yypayable yyunder yythe yyconverted yypolicy
yyBenefits yyless yyrequired yypremium yyare yypayable yyunder yythe yyconverted yypolicy yy-
yyANS-Full yybenefits yyare yypayable yyunder yythe yyMaster yycontract
All yyof yythe yyfollowing yyare yylimited yybenefit yyplans yyEXCEPT yy
yycancer yypolicies
yylife yyinsurance yypolicies
yydental yypolicies
yycritical yyillness yypolicies yy- yyANS-life yyinsurance yypolicies
A yyphysician yyopens yyup yya yynew yypractice yyand yyqualifies yyfor yya yy$7,000/month
yyDisability yyIncome yypolicy. yyWhat yyrider yywould yythe yyphysician yyadd yyif yyhe yywants
yythe yyability yyto yyincrease yyhis yypolicy yybenefit yyas yyhis yypractice yyand yyincome
yygrow?
yyExtended yyTerm yyrider
yyCost yyof yyLiving yyAdjustment yyrider
yyGuaranteed yyInsurability yyOption yyrider
yyWaiver yyof yyPremium yyrider yy- yyANS-Guaranteed yyInsurability yyOption yyrider
An yyagent yywhose yylicense yyhas yybeen yyrevoked yyis yyrequired yyto
yywait yyat yyleast yyfive yyyears yybefore yyapplying yyfor yya yynew yylicense
yysubmit yyall yypreviously yywritten yypolicies yyto yythe yyCommissioner yyof yyInsurance's
yyoffice yyfor yyservicing yyof yythe yyaccounts
yycancel yyall yypolicies yycurrently yyin yyeffect yyand yyadvise yythe yyinsureds yyto yyplace
yythem yyelsewhere
yycontinue yyto yyservice yythe yyexisting yyaccounts yybut yynot yysolicit yynew yybusiness yy-
yyANS-wait yyat yyleast yyfive yyyears yybefore yyapplying yyfor yya yynew yylicense
The yybenefits yyunder yya yyDisability yyBuy-Out yypolicy yyare
yynormally yypaid yyin yyinstallments
yytaxable yyto yythe yybeneficiary
yypayable yyto yythe yycompany yyor yyanother yyshareholder
yynormally yypaid yyafter yya yyshort yyelimination yyperiod yy- yyANS-payable yyto yythe
yycompany yyor yyanother yyshareholder
, he yyHealth yyInsurance yyPortability yyand yyAccountability yyAct yy(HIPAA) yygives yyprivacy
yyprotection yyfor
yyinsolvency
yyhealth yyinformation
yyfinancial yyinformation
yyoverinsurance yy- yyANS-health yyinformation
How yyare yysurrender yycharges yydeducted yyin yya yylife yypolicy yywith yya yyrear-end
yyloaded yyprovision?
yyDeducted yyfrom yythe yydeath yybenefit
yyDeducted yywhen yythe yypolicy yyis yydiscontinued
yyDeducted yyfrom yypolicy's yycash yyvalue
yyDeducted yywhen yyassigned yyto yyanother yypolicyowner yy- yyANS-Deducted yywhen
yythe yypolicy yyis yydiscontinued
What yyMUST yyan yyinsurance yycompany yyuse yyin yyits yyadvertising?
yyIts yytrade yyname
yyIts yytrue yycorporate yyname
yyIts yyservice yymark
yyIts yycorporate yylogo yy- yyANS-Its yytrue yycorporate yyname
An yyaccident yypolicy yywill yymost yylikely yypay yya yybenefit yyfor yya(n)
yyself-inflicted yyinjury
yycritical yyillness
yyon-the-job yyaccident
yyoff-the-job yyaccident yy- yyANS-off-the-job yyaccident
M yycompletes yyan yyapplication yyfor yylife yyinsurance yybut yydoes yynot yypay yythe yyinitial
yypremium. yyAll yyof yythese yyactions yymust yyoccur yybefore yyM's yypolicy yygoes yyinto
yyeffect yyEXCEPT
yypolicy yyis yydelivered
yyfree-look yyperiod yyhas yyexpired
yyinsurance yycompany yyissues yypolicy
yyinitial yypremium yyis yycollected yy- yyANS-free-look yyperiod yyhas yyexpired
When yya yypolicyowner yycash yysurrenders yya yyUniversal yyLife yyinsurance yypolicy yyin
yyit's yyearly yyyears, yythis yymay yybe yyconsidered yya yyred yyflag yyfor yya(n)
yyFederal yyFair yyCredit yyAct yyViolation
yyTitle yy18 yyFraud yyviolation
yyAnti-Money yyLaundering yyviolation
