TEXAS LIFE AND HEALTH
INSURANCE EXAM PRACTICE
QUESTIONS WITH COMPLETE &
ACCURATE SOLUTIONS.
An annuity promises that, if the annuitant dies before receiving
payments equal to the correct value, the payments will be continued to
a beneficiary until an amount equal to the contract value has been
paid. This type of annuity is called
A) An installment Refund annuity
B) A Straight Life annuity
C) A Cash Refund annuity
D) A Joint Life annuity -- Correct Answer ✔✔ An installment Refund
annuity
One becomes eligible for Social Security disability benefits after having
been disabled for
A) 3 months
B) 5 months
C) 6 months
D) 12 months -- Correct Answer ✔✔ 5 months
A potential client, age 40, would like to purchase a Whole Life policy
that will accumulate cash value at a faster rate in the early years of
the policy. Which of these statements made by the producer would be
correct?
A) Straight life accumulates faster than Limited-pay Life
, B) 20-Pay Life accumulates cash value faster than Straight Life
C) Cash value accumulation of both 20-Pay Life and Straight Life
depend on the insurer's financial rating
D) 20-Pay Life and Straight Life accumulate cash value at the same
rate -- Correct Answer ✔✔ 20-Pay Life accumulates cash value
faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance
policy?
A) Beneficiary
B) Insurance company
C) Insured
D) Applicant -- Correct Answer ✔✔ Insurance company
The Consideration clause in a life insurance policy indicates that a
policyowner's consideration consists of a completed application and
A) The initial premium
B) Agreeing to a physical examination
C) Delivery of policy
D) Disclosure of any medical conditions -- Correct Answer ✔✔ the
initial premium
Which parts of a life insurance policy are guaranteed to be true?
A) Rating
B) Representation
C) Statement
D) Warranty -- Correct Answer ✔✔ Warranty
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
, A) Hospital charges
B) Physician fees
C) Experimental and investigative services
D) Nursing services -- Correct Answer ✔✔ experimental and
investigative services
If a retiree on Medicare required five hospital stays in one year, which
policy would provide the best insurance for excess hospital expenses?
A) Long-term care
B) Indemnity
C) Medicare Supplement
D) Medicaid -- Correct Answer ✔✔ Medicare Supplement
S, while in the process of converting her group life insurance to an
individual policy, dies. What happens to the claim her beneficiary
submits?
A) No benefits are payable under the Master contract
B) Full benefits are payable under the Master contract
C) Full benefits are payable under the converted policy
D) Benefits less required premium are payable under the converted
policy -- Correct Answer ✔✔ Full benefits are payable under the
Master contract
All of the following are limited benefit plans EXCEPT
A) Cancer policies
B) Life insurance policies
C) Dental policies
D) Critical illness policies -- Correct Answer ✔✔ life insurance policies
A physician opens up a new practice and qualifies for a $7,000/month
Disability Income policy. What rider would the physician add if he
wants the ability to increase his policy benefit as his practice and
income grow?
, A) Extended Term rider
B) Cost of Living Adjustment rider
C) Guaranteed Insurability Option rider
D) Waiver of Premium rider -- Correct Answer ✔✔ Guaranteed
Insurability Option rider
An agent whose license has been revoked is required to
A) Wait at least five years before applying for a new license
B) Submit all previously written policies to the Commissioner of
Insurance's office for servicing of the accounts
C) Cancel all policies currently in effect and advise the insureds to
place them elsewhere
D) Continue to service the existing accounts but not solicit new
business -- Correct Answer ✔✔ wait at least five years before
applying for a new license
The benefits under a Disability Buy-Out policy are
A) Normally paid in installments
B) Taxable to the beneficiary
C) Payable to the company or another shareholder
D) Normally paid after a short elimination period -- Correct Answer
✔✔ payable to the company or another shareholder
He Health Insurance Portability and Accountability Act (HIPAA) gives
privacy protection for
A) Insolvency
B) Health information
C) Financial information
D) Over insurance -- Correct Answer ✔✔ health information
How are surrender charges deducted in a life policy with a rear-end
loaded provision?
A) Deducted from the death benefit
INSURANCE EXAM PRACTICE
QUESTIONS WITH COMPLETE &
ACCURATE SOLUTIONS.
An annuity promises that, if the annuitant dies before receiving
payments equal to the correct value, the payments will be continued to
a beneficiary until an amount equal to the contract value has been
paid. This type of annuity is called
A) An installment Refund annuity
B) A Straight Life annuity
C) A Cash Refund annuity
D) A Joint Life annuity -- Correct Answer ✔✔ An installment Refund
annuity
One becomes eligible for Social Security disability benefits after having
been disabled for
A) 3 months
B) 5 months
C) 6 months
D) 12 months -- Correct Answer ✔✔ 5 months
A potential client, age 40, would like to purchase a Whole Life policy
that will accumulate cash value at a faster rate in the early years of
the policy. Which of these statements made by the producer would be
correct?
A) Straight life accumulates faster than Limited-pay Life
, B) 20-Pay Life accumulates cash value faster than Straight Life
C) Cash value accumulation of both 20-Pay Life and Straight Life
depend on the insurer's financial rating
D) 20-Pay Life and Straight Life accumulate cash value at the same
rate -- Correct Answer ✔✔ 20-Pay Life accumulates cash value
faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance
policy?
A) Beneficiary
B) Insurance company
C) Insured
D) Applicant -- Correct Answer ✔✔ Insurance company
The Consideration clause in a life insurance policy indicates that a
policyowner's consideration consists of a completed application and
A) The initial premium
B) Agreeing to a physical examination
C) Delivery of policy
D) Disclosure of any medical conditions -- Correct Answer ✔✔ the
initial premium
Which parts of a life insurance policy are guaranteed to be true?
A) Rating
B) Representation
C) Statement
D) Warranty -- Correct Answer ✔✔ Warranty
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
, A) Hospital charges
B) Physician fees
C) Experimental and investigative services
D) Nursing services -- Correct Answer ✔✔ experimental and
investigative services
If a retiree on Medicare required five hospital stays in one year, which
policy would provide the best insurance for excess hospital expenses?
A) Long-term care
B) Indemnity
C) Medicare Supplement
D) Medicaid -- Correct Answer ✔✔ Medicare Supplement
S, while in the process of converting her group life insurance to an
individual policy, dies. What happens to the claim her beneficiary
submits?
A) No benefits are payable under the Master contract
B) Full benefits are payable under the Master contract
C) Full benefits are payable under the converted policy
D) Benefits less required premium are payable under the converted
policy -- Correct Answer ✔✔ Full benefits are payable under the
Master contract
All of the following are limited benefit plans EXCEPT
A) Cancer policies
B) Life insurance policies
C) Dental policies
D) Critical illness policies -- Correct Answer ✔✔ life insurance policies
A physician opens up a new practice and qualifies for a $7,000/month
Disability Income policy. What rider would the physician add if he
wants the ability to increase his policy benefit as his practice and
income grow?
, A) Extended Term rider
B) Cost of Living Adjustment rider
C) Guaranteed Insurability Option rider
D) Waiver of Premium rider -- Correct Answer ✔✔ Guaranteed
Insurability Option rider
An agent whose license has been revoked is required to
A) Wait at least five years before applying for a new license
B) Submit all previously written policies to the Commissioner of
Insurance's office for servicing of the accounts
C) Cancel all policies currently in effect and advise the insureds to
place them elsewhere
D) Continue to service the existing accounts but not solicit new
business -- Correct Answer ✔✔ wait at least five years before
applying for a new license
The benefits under a Disability Buy-Out policy are
A) Normally paid in installments
B) Taxable to the beneficiary
C) Payable to the company or another shareholder
D) Normally paid after a short elimination period -- Correct Answer
✔✔ payable to the company or another shareholder
He Health Insurance Portability and Accountability Act (HIPAA) gives
privacy protection for
A) Insolvency
B) Health information
C) Financial information
D) Over insurance -- Correct Answer ✔✔ health information
How are surrender charges deducted in a life policy with a rear-end
loaded provision?
A) Deducted from the death benefit
