Texas Life and Health State Exam Simulator Part Two
questions with verified answers
_____ of continuing education MUST be completed in the classroom or classroom
equivalent Ans✓✓✓ 50%
A "reimbursement policy" pays what amount of covered Long-Term Care
expenses? Ans✓✓✓ Actual covered expenses up to the daily maximum
A 55 year old recently received a $30,000 distribution from a previous employer's
401k plan, minus $6,000 withholding. Which federal taxes apply if none of the
funds were rolled over? Ans✓✓✓ Income taxes plus a 10% penalty tax on
$30,000
A characteristic of Preferred Provider Organizations (PPOS) would be Ans✓✓✓
Discounted fees for the patient
A domestic insurance company in Texas is considered a company that Ans✓✓✓ is
incorporated and formed in Texas
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as Ans✓✓✓ Risk retention group
A license may be denied, suspended, or revoked if the licensee Ans✓✓✓ is found
guilty of misrepresentation in obtaining the license
A life insurance policy would be considered a wagering contract WITHOUT
Ans✓✓✓ insurable interest
,A Medicare Supplement policy may be cancelled for which of the following
reasons? Ans✓✓✓ The premium has not been paid by the insured
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: Ans✓✓✓ A fraternal benefit society
A plan through the Marketplace may be purchased by Ans✓✓✓ any legal
resident (except those imprisoned)
A prepaid application for individual Disability Income insurance was recently
submitted to an insurer. When the insurer received the Medical Information
Bureau (MIB) report, the report showed that the applicant had suffered a stroke
18 months ago, something that was not disclosed on the application. Which of the
following actions would the insurance company NOT take? Ans✓✓✓ Send a
notice to the MIB that the applicant was declined
A temporary agent's license issued by the commissioner of Insurance is valid for
up to ___ days. Ans✓✓✓ 90
All of the following statements are true regarding a policy's Grace period, EXCEPT:
Ans✓✓✓ Past due premiums are waived
All of these are characteristics of an Adjustable Life policy EXCEPT Ans✓✓✓ face
amount can be adjusted using policy dividends
All of these are considered sources of underwriting information about an
applicant EXCEPT Ans✓✓✓ Rating Services
, All of these statements about the Commissioner of Insurance are true EXCEPT
Ans✓✓✓ The Commissioner must be elected
All students attending a large university could be covered by Ans✓✓✓ a blanket
policy
An accident policy will most likely pay a benefit for a(n) Ans✓✓✓ off-the-job
accident
An applicant MUST receive an Outline of Coverage when an application is taken
for an Ans✓✓✓ Medicare Supplement policy
An employee is covered under a company group life plan with a $50,000 death
benefit. What is the MAXIMUM amount a spouse may be insured for under this
Ans✓✓✓ $25,000
An employee of 20 years recently retired at age 59 1/2. This employee's group life
contract can be Ans✓✓✓ converted to an individual permanent policy at an
individual rate
An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the Ans✓✓✓ Commissioner
An example of an unfair claims settlement practice is Ans✓✓✓ turning down a
claim without providing the basis of denial
questions with verified answers
_____ of continuing education MUST be completed in the classroom or classroom
equivalent Ans✓✓✓ 50%
A "reimbursement policy" pays what amount of covered Long-Term Care
expenses? Ans✓✓✓ Actual covered expenses up to the daily maximum
A 55 year old recently received a $30,000 distribution from a previous employer's
401k plan, minus $6,000 withholding. Which federal taxes apply if none of the
funds were rolled over? Ans✓✓✓ Income taxes plus a 10% penalty tax on
$30,000
A characteristic of Preferred Provider Organizations (PPOS) would be Ans✓✓✓
Discounted fees for the patient
A domestic insurance company in Texas is considered a company that Ans✓✓✓ is
incorporated and formed in Texas
A group-owned insurance company that is formed to assume and spread the
liability risks of its members is known as Ans✓✓✓ Risk retention group
A license may be denied, suspended, or revoked if the licensee Ans✓✓✓ is found
guilty of misrepresentation in obtaining the license
A life insurance policy would be considered a wagering contract WITHOUT
Ans✓✓✓ insurable interest
,A Medicare Supplement policy may be cancelled for which of the following
reasons? Ans✓✓✓ The premium has not been paid by the insured
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: Ans✓✓✓ A fraternal benefit society
A plan through the Marketplace may be purchased by Ans✓✓✓ any legal
resident (except those imprisoned)
A prepaid application for individual Disability Income insurance was recently
submitted to an insurer. When the insurer received the Medical Information
Bureau (MIB) report, the report showed that the applicant had suffered a stroke
18 months ago, something that was not disclosed on the application. Which of the
following actions would the insurance company NOT take? Ans✓✓✓ Send a
notice to the MIB that the applicant was declined
A temporary agent's license issued by the commissioner of Insurance is valid for
up to ___ days. Ans✓✓✓ 90
All of the following statements are true regarding a policy's Grace period, EXCEPT:
Ans✓✓✓ Past due premiums are waived
All of these are characteristics of an Adjustable Life policy EXCEPT Ans✓✓✓ face
amount can be adjusted using policy dividends
All of these are considered sources of underwriting information about an
applicant EXCEPT Ans✓✓✓ Rating Services
, All of these statements about the Commissioner of Insurance are true EXCEPT
Ans✓✓✓ The Commissioner must be elected
All students attending a large university could be covered by Ans✓✓✓ a blanket
policy
An accident policy will most likely pay a benefit for a(n) Ans✓✓✓ off-the-job
accident
An applicant MUST receive an Outline of Coverage when an application is taken
for an Ans✓✓✓ Medicare Supplement policy
An employee is covered under a company group life plan with a $50,000 death
benefit. What is the MAXIMUM amount a spouse may be insured for under this
Ans✓✓✓ $25,000
An employee of 20 years recently retired at age 59 1/2. This employee's group life
contract can be Ans✓✓✓ converted to an individual permanent policy at an
individual rate
An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the Ans✓✓✓ Commissioner
An example of an unfair claims settlement practice is Ans✓✓✓ turning down a
claim without providing the basis of denial
