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Texas Life Insurance Final Exam
With Correct Answers
D is an architect receiving Disability Income benefits who is not able to return
to work full time, but can work on a part-time basis. Which of these features
would allow D to continue receiving benefits?
*Residual Benefit clause
*Waiver Benefit clause
*Concurrent Benefit clause
*Guaranteed Benefit clause
ANSWER: Residual Benefit clause
The individual who provides general medical care for a patient as well as the
referral for specialized care is known as a:
*Physician's assistant
*Primary Care Physician
*Secondary Care Physician
*Third Party Administrator
ANSWER: Primary Care Physician
If an insured sustains a loss on a policy sold by an agent through an insurance
company that is not authorized to do business in Texas, which of the following
would be liable?
* The agent only
* The company only
,2
* The agent and the company
* The Life, Accident, Health and Hospital Insurance Guaranty Association
ANSWER: The agent and the company
Who can purchase a plan through the Marketplace?
*Anyone
*Any legal resident except those incarcerated
*Only those who do not have access to employer-sponsored coverage
*Only those who might be eligible for tax credits
ANSWER: Any legal resident except those incarcerated
Boycott, coercion, and intimidation that result in the unreasonable restraint of
trade are prohibited under the Texas Insurance Code covering
*rebating
*false advertising
*discrimination
*unfair methods of competition
ANSWER: unfair methods of competition
An insurance agent does NOT have fiduciary responsibilities to
*insurance companies
*insureds
*applicants
*other agents
,3
ANSWER: other agents
Under federal tax laws, what is the tax treatment for an employer providing
$50,000 of a contributory group Term Life plan to all its eligible employees?
*Portion of the premiums paid for by the employer may be a tax deduction
*Portion of the premiums paid for by the employee may be a tax deduction
*Portion of the death proceeds are taxable to the beneficiary
*Portion of the death proceeds are taxable to the estate
ANSWER: Portion of the premiums paid for by the employer may be a tax
deduction
When applied to Whole Life insurance, the word "straight" denotes:
The absence of dividends
Options to reduce or withhold premium payments
The mode premium payments
The duration of premium payments
ANSWER: The duration of premium payments
If an individual has an Accidental Death and Dismemberment policy and dies,
an autopsy can be performed in all these situations, EXCEPT:
When the cause of death is unknown
When the state prohibits this by law
When consent for the autopsy is not obtained
When foul play was a contributing factor
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ANSWER: When the state prohibits this by law
J would like to maintain the right to change beneficiaries. Which beneficiary
designation should be used?
Irrevocable
Contingent
Primary
Revocable
ANSWER: Revocable
What percent of personal life insurance premiums is usually deductible for
federal income tax purposes?
100%
75%
50%
0%
ANSWER: 0%
F needs life insurance that provides coverage for only a limited amount of
time with a death benefit that changes regularly according to a schedule.
What kind of policy is needed?
Level term policy
Whole life policy
Limited-pay policy
Texas Life Insurance Final Exam
With Correct Answers
D is an architect receiving Disability Income benefits who is not able to return
to work full time, but can work on a part-time basis. Which of these features
would allow D to continue receiving benefits?
*Residual Benefit clause
*Waiver Benefit clause
*Concurrent Benefit clause
*Guaranteed Benefit clause
ANSWER: Residual Benefit clause
The individual who provides general medical care for a patient as well as the
referral for specialized care is known as a:
*Physician's assistant
*Primary Care Physician
*Secondary Care Physician
*Third Party Administrator
ANSWER: Primary Care Physician
If an insured sustains a loss on a policy sold by an agent through an insurance
company that is not authorized to do business in Texas, which of the following
would be liable?
* The agent only
* The company only
,2
* The agent and the company
* The Life, Accident, Health and Hospital Insurance Guaranty Association
ANSWER: The agent and the company
Who can purchase a plan through the Marketplace?
*Anyone
*Any legal resident except those incarcerated
*Only those who do not have access to employer-sponsored coverage
*Only those who might be eligible for tax credits
ANSWER: Any legal resident except those incarcerated
Boycott, coercion, and intimidation that result in the unreasonable restraint of
trade are prohibited under the Texas Insurance Code covering
*rebating
*false advertising
*discrimination
*unfair methods of competition
ANSWER: unfair methods of competition
An insurance agent does NOT have fiduciary responsibilities to
*insurance companies
*insureds
*applicants
*other agents
,3
ANSWER: other agents
Under federal tax laws, what is the tax treatment for an employer providing
$50,000 of a contributory group Term Life plan to all its eligible employees?
*Portion of the premiums paid for by the employer may be a tax deduction
*Portion of the premiums paid for by the employee may be a tax deduction
*Portion of the death proceeds are taxable to the beneficiary
*Portion of the death proceeds are taxable to the estate
ANSWER: Portion of the premiums paid for by the employer may be a tax
deduction
When applied to Whole Life insurance, the word "straight" denotes:
The absence of dividends
Options to reduce or withhold premium payments
The mode premium payments
The duration of premium payments
ANSWER: The duration of premium payments
If an individual has an Accidental Death and Dismemberment policy and dies,
an autopsy can be performed in all these situations, EXCEPT:
When the cause of death is unknown
When the state prohibits this by law
When consent for the autopsy is not obtained
When foul play was a contributing factor
, 4
ANSWER: When the state prohibits this by law
J would like to maintain the right to change beneficiaries. Which beneficiary
designation should be used?
Irrevocable
Contingent
Primary
Revocable
ANSWER: Revocable
What percent of personal life insurance premiums is usually deductible for
federal income tax purposes?
100%
75%
50%
0%
ANSWER: 0%
F needs life insurance that provides coverage for only a limited amount of
time with a death benefit that changes regularly according to a schedule.
What kind of policy is needed?
Level term policy
Whole life policy
Limited-pay policy
