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