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TEXAS LIFE AND HEALTH INSURANCE
EXAM BRAND NEW OFFICIAL QUESTIONS
WITH ANSWERS.
1. In Texas, a domestic insurance company is defined as a
company that - correct answer -is incorporated and formed in
Texas
2. Under the Texas code, the MAXIMUM for which a spouse may
be insured in a company group life program with a $50,000
death benefit is: - correct answer -25,000
3. Under the Nonforfeiture Law, a cash surrender value payment
may be deferred by the insurance company for NO LONGER
than how many months? - correct answer -6
4. Under the Texas insurance code, an insurance company must
pay death benefits for suicide if the policy has been in force for
a MINIMUM of - correct answer -2 years
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5. All of the following are defined as doing insurance business
EXCEPT - correct answer -selling mutual funds
6. All of the following provisions must be included in life insurance
policies EXCEPT - correct answer -Extended Term
7. A certificate of authority does which of the following? - correct
answer -Permits an insurance company to transact business in
Texas
8. An agent MUST do which of the following during a sales
presentation for a participating life insurance policy? - correct
answer -Include a statement that dividends are not guaranteed
9. If, at the time of an insured's death, the insurance company
discovers that the insured's age was misstated on the
application for life insurance, the company will most likely -
correct answer -pay the policy proceeds in the amount the
premiums would have purchased at the insured's actual age
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10. Which of the following circumstances would cause a
Medicare Supplement policy to be cancelled? - correct answer
-The insured fails to pay the premium
11. An applicant for an agent's license must meet which of the
following requirements? - correct answer -Be honest,
trustworthy, and reliable
12. After the initial enrollment period, an HMO must hold an
open enrollment period of how many days at LEAST once in
every 12-month period? - correct answer -31
13. A Health Maintenance Organization (HMO) may issue an
Evidence of Coverage form after it has been approved by the -
correct answer -Commissioner of Insurance
14. A Long-Term Care policy must offer a MINIMUM benefit
period of how many months? - correct answer -12
15. A foreign insurance company is one that is incorporated -
correct answer -under the laws of another state
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16. Under an individual life insurance policy, an insured may
assign a MAXIMUM of what percentage of policy ownership? -
correct answer -100%
17. The Commissioner of Insurance has the power and duty to
take all of the following actions EXCEPT - correct answer -
activate insurance companies' financial reserves
18. Who can purchase a plan through the Marketplace? - correct
answer -Any legal resident except those incarcerated
19. Boycott, coercion, and intimidation that result in the
unreasonable restraint of trade are prohibited under the Texas
Insurance Code covering - correct answer -unfair methods of
competition
20. An enrollee of a Health Maintenance Organization (HMO)
may be cancelled or nonrenewed for which of the following
reasons? - correct answer -Failure to pay for coverage
TEXAS LIFE AND HEALTH INSURANCE
EXAM BRAND NEW OFFICIAL QUESTIONS
WITH ANSWERS.
1. In Texas, a domestic insurance company is defined as a
company that - correct answer -is incorporated and formed in
Texas
2. Under the Texas code, the MAXIMUM for which a spouse may
be insured in a company group life program with a $50,000
death benefit is: - correct answer -25,000
3. Under the Nonforfeiture Law, a cash surrender value payment
may be deferred by the insurance company for NO LONGER
than how many months? - correct answer -6
4. Under the Texas insurance code, an insurance company must
pay death benefits for suicide if the policy has been in force for
a MINIMUM of - correct answer -2 years
, Page | 2
5. All of the following are defined as doing insurance business
EXCEPT - correct answer -selling mutual funds
6. All of the following provisions must be included in life insurance
policies EXCEPT - correct answer -Extended Term
7. A certificate of authority does which of the following? - correct
answer -Permits an insurance company to transact business in
Texas
8. An agent MUST do which of the following during a sales
presentation for a participating life insurance policy? - correct
answer -Include a statement that dividends are not guaranteed
9. If, at the time of an insured's death, the insurance company
discovers that the insured's age was misstated on the
application for life insurance, the company will most likely -
correct answer -pay the policy proceeds in the amount the
premiums would have purchased at the insured's actual age
, Page | 3
10. Which of the following circumstances would cause a
Medicare Supplement policy to be cancelled? - correct answer
-The insured fails to pay the premium
11. An applicant for an agent's license must meet which of the
following requirements? - correct answer -Be honest,
trustworthy, and reliable
12. After the initial enrollment period, an HMO must hold an
open enrollment period of how many days at LEAST once in
every 12-month period? - correct answer -31
13. A Health Maintenance Organization (HMO) may issue an
Evidence of Coverage form after it has been approved by the -
correct answer -Commissioner of Insurance
14. A Long-Term Care policy must offer a MINIMUM benefit
period of how many months? - correct answer -12
15. A foreign insurance company is one that is incorporated -
correct answer -under the laws of another state
, Page | 4
16. Under an individual life insurance policy, an insured may
assign a MAXIMUM of what percentage of policy ownership? -
correct answer -100%
17. The Commissioner of Insurance has the power and duty to
take all of the following actions EXCEPT - correct answer -
activate insurance companies' financial reserves
18. Who can purchase a plan through the Marketplace? - correct
answer -Any legal resident except those incarcerated
19. Boycott, coercion, and intimidation that result in the
unreasonable restraint of trade are prohibited under the Texas
Insurance Code covering - correct answer -unfair methods of
competition
20. An enrollee of a Health Maintenance Organization (HMO)
may be cancelled or nonrenewed for which of the following
reasons? - correct answer -Failure to pay for coverage
