Texas State Exam Simulator - Life and Health Insurance
questions with verified answers
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
questions with verified answers
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
