TEXAS LIFE AND HEALTH INSURANCE Exam 2
Questions with 100% Correct Answers Latest Versions
2025 Graded A+
Towns an Accident & Health policy and notifies her
insurance company that she has chosen a less hazardous
occupation. Under the Change of Occupation provision,
which of the following actions may her insurance company
take?
Increase her policy's coverage amount
When an insurer issues a policy that refuses to cover certain
risks, this is referred to as a(n)
Exclusion
An agent who tells claimants that their rights may be
impaired if they fail to complete a release form within a given
period of time could be guilty of..?
Coercion
What does the insuring agreement in a Life insurance
contract establish?
An insurer's basic promise
The first portion of a covered Major Medical insurance
expense that the insured is required to pay is called the..?
Initial deductible
A "reimbursement policy" pays what amount of covered
Long-Term Care expenses?
Actual covered expenses up to the daily maximum
The agreement in a life insurance contract that states a
specific sum of money will be paid to a designated person
upon an insured's death is called a(n)
Insuring agreement
,W is a 39-year old female who just purchased an annuity to
provide income for life starting at age 60. All of these would
be acceptable annuity choices EXCEPT a(n)
Immediate annuity
Which of these are NOT an example of a Nonforfeiture
option?
Life Income
S filed a written Proof of Loss for a Disability Income claim
on September 1. The insurance company did not respond to
the claim. S can take legal action against the insurer
beginning..?
November 1
An enrollee of a Health Maintenance Organization (HMO) may
be cancelled or nonrenewed for which of the following
reasons?
Failure to pay for coverage
An agent who tells a client that dividends are guaranteed
may be guilty of..?
misrepresentation
On delivery of a policy, a signed statement of good health is
typically requested if..?
The application was submitted without the initial premium.
One becomes eligible for Social Security disability benefits
after having been disabled for..?
5 mo.
M is insured under a basic Hospital/Surgical Expense policy.
A physician performs surgery on M. What determines the
claim M is eligible for?
Determined by the terms of the policy
When an insurance application is taken by a producer, which
of these statements is true?
Any changes made on the application require the applicant's
initials
Which of the following statements BEST describes the intent
of a Coinsurance clause in a Major Medical policy?
,Discourages over utilization of the insurance coverage
Health insurance benefits NOT covered due to an act of war
are..?
excluded by the insurer in the contract provisions
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:
25,000 (or 1/2 of the death benefit)
An agent MUST give a prospective insured an Outline of
Coverage when taking an application for a..?
Medicare Supplement policy
If the insured and primary beneficiary are both killed in the
same accident and it cannot be determined who died first,
where are the death proceeds to be directed under the
Uniform Simultaneous Death Act?
Insured's contingent beneficiary (policy proceeds will be paid as if
the insured died last. In other words, the proceeds will be paid to
the secondary or contingent beneficiary)
A policyowner's rights are limited under which beneficiary
designation?
Irrevocable
An agent whose license has been revoked is required to..?
wait at least five years before applying for a new license
An agent may legally share commissions only with
another agent who is licensed in the same line of insurance
Who can purchase a plan through the Marketplace?
Any legal resident except those incarcerated
Which of the following circumstances would cause a
Medicare Supplement policy to be cancelled?
The insured fails to pay the premium
In Texas, a domestic insurance company is defined as a
company that..?
is incorporated and formed in Texas
All of the following provisions must be included in life
insurance policies EXCEPT
, Extended Term
The Insurance Commissioner may examine the records of an
insurance company in order to
determine the solvency of the company
Before holding a hearing regarding an agent's unfair or
deceptive practice, the Insurance Commissioner MUST give
how many days notice?
30
Boycott, coercion, and intimidation that result in the
unreasonable restraint of trade are prohibited under the
Texas Insurance Code covering
unfair methods of competition
Which life insurance rider typically appears on a Juvenile life
insurance policy?
Payor Benefit rider
Which of the following health insurance policy provisions
specifies the health care services a policy will provide?
Insuring Clause
A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she
injures herself while walking in the park, what coverage
would be considered primary?
Her group health plan. If the employer has more than 20
employees, the group health plan generally pays first.
A life insurance policy which ensures that the premium will
be paid if the insured becomes disabled has what kind of
rider attached?
Waiver of Premiums
The option that provides an additional death benefit for a
limited amount of time at the lowest possible cost is called
a(n)
Accidental Death and Dismemberment rider (AD&D)
What is the consideration given by an insurer in the
Consideration clause of a life policy?
Promise to pay a death benefit to a named beneficiary
Questions with 100% Correct Answers Latest Versions
2025 Graded A+
Towns an Accident & Health policy and notifies her
insurance company that she has chosen a less hazardous
occupation. Under the Change of Occupation provision,
which of the following actions may her insurance company
take?
Increase her policy's coverage amount
When an insurer issues a policy that refuses to cover certain
risks, this is referred to as a(n)
Exclusion
An agent who tells claimants that their rights may be
impaired if they fail to complete a release form within a given
period of time could be guilty of..?
Coercion
What does the insuring agreement in a Life insurance
contract establish?
An insurer's basic promise
The first portion of a covered Major Medical insurance
expense that the insured is required to pay is called the..?
Initial deductible
A "reimbursement policy" pays what amount of covered
Long-Term Care expenses?
Actual covered expenses up to the daily maximum
The agreement in a life insurance contract that states a
specific sum of money will be paid to a designated person
upon an insured's death is called a(n)
Insuring agreement
,W is a 39-year old female who just purchased an annuity to
provide income for life starting at age 60. All of these would
be acceptable annuity choices EXCEPT a(n)
Immediate annuity
Which of these are NOT an example of a Nonforfeiture
option?
Life Income
S filed a written Proof of Loss for a Disability Income claim
on September 1. The insurance company did not respond to
the claim. S can take legal action against the insurer
beginning..?
November 1
An enrollee of a Health Maintenance Organization (HMO) may
be cancelled or nonrenewed for which of the following
reasons?
Failure to pay for coverage
An agent who tells a client that dividends are guaranteed
may be guilty of..?
misrepresentation
On delivery of a policy, a signed statement of good health is
typically requested if..?
The application was submitted without the initial premium.
One becomes eligible for Social Security disability benefits
after having been disabled for..?
5 mo.
M is insured under a basic Hospital/Surgical Expense policy.
A physician performs surgery on M. What determines the
claim M is eligible for?
Determined by the terms of the policy
When an insurance application is taken by a producer, which
of these statements is true?
Any changes made on the application require the applicant's
initials
Which of the following statements BEST describes the intent
of a Coinsurance clause in a Major Medical policy?
,Discourages over utilization of the insurance coverage
Health insurance benefits NOT covered due to an act of war
are..?
excluded by the insurer in the contract provisions
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:
25,000 (or 1/2 of the death benefit)
An agent MUST give a prospective insured an Outline of
Coverage when taking an application for a..?
Medicare Supplement policy
If the insured and primary beneficiary are both killed in the
same accident and it cannot be determined who died first,
where are the death proceeds to be directed under the
Uniform Simultaneous Death Act?
Insured's contingent beneficiary (policy proceeds will be paid as if
the insured died last. In other words, the proceeds will be paid to
the secondary or contingent beneficiary)
A policyowner's rights are limited under which beneficiary
designation?
Irrevocable
An agent whose license has been revoked is required to..?
wait at least five years before applying for a new license
An agent may legally share commissions only with
another agent who is licensed in the same line of insurance
Who can purchase a plan through the Marketplace?
Any legal resident except those incarcerated
Which of the following circumstances would cause a
Medicare Supplement policy to be cancelled?
The insured fails to pay the premium
In Texas, a domestic insurance company is defined as a
company that..?
is incorporated and formed in Texas
All of the following provisions must be included in life
insurance policies EXCEPT
, Extended Term
The Insurance Commissioner may examine the records of an
insurance company in order to
determine the solvency of the company
Before holding a hearing regarding an agent's unfair or
deceptive practice, the Insurance Commissioner MUST give
how many days notice?
30
Boycott, coercion, and intimidation that result in the
unreasonable restraint of trade are prohibited under the
Texas Insurance Code covering
unfair methods of competition
Which life insurance rider typically appears on a Juvenile life
insurance policy?
Payor Benefit rider
Which of the following health insurance policy provisions
specifies the health care services a policy will provide?
Insuring Clause
A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she
injures herself while walking in the park, what coverage
would be considered primary?
Her group health plan. If the employer has more than 20
employees, the group health plan generally pays first.
A life insurance policy which ensures that the premium will
be paid if the insured becomes disabled has what kind of
rider attached?
Waiver of Premiums
The option that provides an additional death benefit for a
limited amount of time at the lowest possible cost is called
a(n)
Accidental Death and Dismemberment rider (AD&D)
What is the consideration given by an insurer in the
Consideration clause of a life policy?
Promise to pay a death benefit to a named beneficiary
