Texas State Exam Simulator - Life and Health
Insurance/ 200+ Q&A/ 2024-2025.
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty - 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
hospital charges
physician fees
experimental and investigative services
nursing services - Answer: experimental and investigative services
Page 1 of 58
,If a retiree on Medicare required five hospital stays in one year, which policy would provide the
best insurance for excess hospital expenses?
Long-term care
Indemnity
Medicare Supplement
Medicaid - 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?
No benefits are payable under the Master contract
Full benefits are payable under the Master contract
Full benefits are payable under the converted policy
Benefits less required premium are payable under the converted policy - Answer: Full benefits
are payable under the Master contract
All of the following are limited benefit plans EXCEPT
cancer policies
life insurance policies
dental policies
critical illness policies - 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?
Page 2 of 58
,Extended Term rider
Cost of Living Adjustment rider
Guaranteed Insurability Option rider
Waiver of Premium rider - Answer: Guaranteed Insurability Option rider
An agent whose license has been revoked is required to
wait at least five years before applying for a new license
submit all previously written policies to the Commissioner of Insurance's office for servicing of
the accounts
cancel all policies currently in effect and advise the insureds to place them elsewhere
continue to service the existing accounts but not solicit new business - Answer: wait at least
five years before applying for a new license
The benefits under a Disability Buy-Out policy are
normally paid in installments
taxable to the beneficiary
payable to the company or another shareholder
normally paid after a short elimination period - Answer: payable to the company or another
shareholder
he Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for
insolvency
health information
financial information
overinsurance - Answer: health information
Page 3 of 58
, How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted from the death benefit
Deducted when the policy is discontinued
Deducted from policy's cash value
Deducted when assigned to another policyowner - Answer: Deducted when the policy is
discontinued
What MUST an insurance company use in its advertising?
Its trade name
Its true corporate name
Its service mark
Its corporate logo - Answer: Its true corporate name
An accident policy will most likely pay a benefit for a(n)
self-inflicted injury
critical illness
on-the-job accident
off-the-job accident - Answer: off-the-job accident
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT
policy is delivered
free-look period has expired
insurance company issues policy
initial premium is collected - Answer: free-look period has expired
Page 4 of 58
Insurance/ 200+ Q&A/ 2024-2025.
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty - 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
hospital charges
physician fees
experimental and investigative services
nursing services - Answer: experimental and investigative services
Page 1 of 58
,If a retiree on Medicare required five hospital stays in one year, which policy would provide the
best insurance for excess hospital expenses?
Long-term care
Indemnity
Medicare Supplement
Medicaid - 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?
No benefits are payable under the Master contract
Full benefits are payable under the Master contract
Full benefits are payable under the converted policy
Benefits less required premium are payable under the converted policy - Answer: Full benefits
are payable under the Master contract
All of the following are limited benefit plans EXCEPT
cancer policies
life insurance policies
dental policies
critical illness policies - 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?
Page 2 of 58
,Extended Term rider
Cost of Living Adjustment rider
Guaranteed Insurability Option rider
Waiver of Premium rider - Answer: Guaranteed Insurability Option rider
An agent whose license has been revoked is required to
wait at least five years before applying for a new license
submit all previously written policies to the Commissioner of Insurance's office for servicing of
the accounts
cancel all policies currently in effect and advise the insureds to place them elsewhere
continue to service the existing accounts but not solicit new business - Answer: wait at least
five years before applying for a new license
The benefits under a Disability Buy-Out policy are
normally paid in installments
taxable to the beneficiary
payable to the company or another shareholder
normally paid after a short elimination period - Answer: payable to the company or another
shareholder
he Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for
insolvency
health information
financial information
overinsurance - Answer: health information
Page 3 of 58
, How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted from the death benefit
Deducted when the policy is discontinued
Deducted from policy's cash value
Deducted when assigned to another policyowner - Answer: Deducted when the policy is
discontinued
What MUST an insurance company use in its advertising?
Its trade name
Its true corporate name
Its service mark
Its corporate logo - Answer: Its true corporate name
An accident policy will most likely pay a benefit for a(n)
self-inflicted injury
critical illness
on-the-job accident
off-the-job accident - Answer: off-the-job accident
M completes an application for life insurance but does not pay the initial premium. All of these
actions must occur before M's policy goes into effect EXCEPT
policy is delivered
free-look period has expired
insurance company issues policy
initial premium is collected - Answer: free-look period has expired
Page 4 of 58
