Texas Life and Health Insurance Exam
Questions and Answers
Which product would best serve a retired individual looking to invest a lump-sum of
money through an insurance company? - Answer-Annuity
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? - Answer-59 1/2
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? - Answer-Company X
All students attending a large university could be covered by - Answer-a blanket policy
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy
protection for - Answer-health information
Which type of provider is known for stressing preventative medical care? - Answer-
Health Maintenance Organizations (HMO's)
The individual who provides general medical care for a patient as well as the referral for
specialized care is known as a - Answer-Primary Care Physician
The health insurance program which is administered by each state and funded by both
the federal and state governments is called - Answer-Medicaid
Which of the following organizations would make reimbursement payments directly to
the insured individual for covered medical expenditures? - Answer-Commercial insurer
What does Medicare Parts A and B cover? - Answer-Part A covers hospitalization; Part
B covers doctor's services
Medicare - Answer-is a hospital and medical expense insurance program
Medicaid was designed to assist individuals who are - Answer-below a specific income
limit
Which of the following does Social Security NOT provide benefits for?
-Survivorship
, -Dismemberment
-Disability
-Retirement - Answer-Dismemberment
What type of reinsurance contract involves two companies automatically sharing their
risk exposure? - Answer-Treaty
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called - Answer-reserves
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have - Answer-insurable interest
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called - Answer-representations
The part of a life insurance policy guaranteed to be true is called a(n) - Answer-warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - Answer-Principal
The Consideration clause of an insurance contract includes - Answer-the schedule and
amount of premium payments
E and F are business partners. Each takes out a $500,000 life insurance policy on the
other, naming himself as primary beneficiary. E and F eventually terminate their
business, and four months later E dies. Although E was married with three children at
the time of death, the primary beneficiary is still F. However, an insurable interest no
longer exists. Where will the proceeds from E's life insurance policy be directed to? -
Answer-In this situation, the proceeds from E's life insurance policy will go to F.
Which term defines the legally enforceable promise in an insurance contract by the
insurer? - Answer-Unilateral
Insurance contracts are known as ____ because certain future conditions or acts must
occur before any claims can be paid. - Answer-conditional
Which of these require an offer, acceptance, and consideration? - Answer-Contract
Which of these is NOT considered to be an element of an insurance contract?
the offer
acceptance
Questions and Answers
Which product would best serve a retired individual looking to invest a lump-sum of
money through an insurance company? - Answer-Annuity
An IRA owner can start making withdrawals and NOT be subjected to a tax penalty
beginning at what age? - Answer-59 1/2
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? - Answer-Company X
All students attending a large university could be covered by - Answer-a blanket policy
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy
protection for - Answer-health information
Which type of provider is known for stressing preventative medical care? - Answer-
Health Maintenance Organizations (HMO's)
The individual who provides general medical care for a patient as well as the referral for
specialized care is known as a - Answer-Primary Care Physician
The health insurance program which is administered by each state and funded by both
the federal and state governments is called - Answer-Medicaid
Which of the following organizations would make reimbursement payments directly to
the insured individual for covered medical expenditures? - Answer-Commercial insurer
What does Medicare Parts A and B cover? - Answer-Part A covers hospitalization; Part
B covers doctor's services
Medicare - Answer-is a hospital and medical expense insurance program
Medicaid was designed to assist individuals who are - Answer-below a specific income
limit
Which of the following does Social Security NOT provide benefits for?
-Survivorship
, -Dismemberment
-Disability
-Retirement - Answer-Dismemberment
What type of reinsurance contract involves two companies automatically sharing their
risk exposure? - Answer-Treaty
The stated amount or percent of liquid assets that an insurer must have on hand that
will satisfy future obligations to its policyholders is called - Answer-reserves
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have - Answer-insurable interest
Statements made on an insurance application that are believed to be true to the best of
the applicant's knowledge are called - Answer-representations
The part of a life insurance policy guaranteed to be true is called a(n) - Answer-warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - Answer-Principal
The Consideration clause of an insurance contract includes - Answer-the schedule and
amount of premium payments
E and F are business partners. Each takes out a $500,000 life insurance policy on the
other, naming himself as primary beneficiary. E and F eventually terminate their
business, and four months later E dies. Although E was married with three children at
the time of death, the primary beneficiary is still F. However, an insurable interest no
longer exists. Where will the proceeds from E's life insurance policy be directed to? -
Answer-In this situation, the proceeds from E's life insurance policy will go to F.
Which term defines the legally enforceable promise in an insurance contract by the
insurer? - Answer-Unilateral
Insurance contracts are known as ____ because certain future conditions or acts must
occur before any claims can be paid. - Answer-conditional
Which of these require an offer, acceptance, and consideration? - Answer-Contract
Which of these is NOT considered to be an element of an insurance contract?
the offer
acceptance
