Page 1 of 164
Texas State Exam Simulator - Life and Health
Insurance ALL 500 QUESTIONS AND CORRECT
ANSWERS LATEST UPDATE THIS YEAR
Texas State Exam Simulator - Life and Health Insurance
QUESTION: The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions - ANSWER-the initial premium
QUESTION: Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
1
, Page 2 of 164
Statement
Warranty - ANSWER-Warranty
QUESTION: 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
QUESTION: 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
2
, Page 3 of 164
Medicare Supplement
Medicaid - ANSWER-Medicare Supplement
Q; An annuity promises that, if the annuitant dies before receiving payments equal to the
correct value, the payments will be continued to a beneficiary until an amount equal to the
contract value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - ANSWER-An installment Refund annuity
QUESTION: One becomes eligible for Social Security disability benefits after having been
disabled for
3 months
5 months
3
, Page 4 of 164
6 months
12 months - ANSWER-5 months
QUESTION: A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial
rating
20-Pay Life and Straight Life accumulate cash value at the same rate - ANSWER-20-Pay Life
accumulates cash value faster than Straight Life
QUESTION: Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
4
Texas State Exam Simulator - Life and Health
Insurance ALL 500 QUESTIONS AND CORRECT
ANSWERS LATEST UPDATE THIS YEAR
Texas State Exam Simulator - Life and Health Insurance
QUESTION: The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions - ANSWER-the initial premium
QUESTION: Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
1
, Page 2 of 164
Statement
Warranty - ANSWER-Warranty
QUESTION: 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
QUESTION: 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
2
, Page 3 of 164
Medicare Supplement
Medicaid - ANSWER-Medicare Supplement
Q; An annuity promises that, if the annuitant dies before receiving payments equal to the
correct value, the payments will be continued to a beneficiary until an amount equal to the
contract value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - ANSWER-An installment Refund annuity
QUESTION: One becomes eligible for Social Security disability benefits after having been
disabled for
3 months
5 months
3
, Page 4 of 164
6 months
12 months - ANSWER-5 months
QUESTION: A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of these
statements made by the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial
rating
20-Pay Life and Straight Life accumulate cash value at the same rate - ANSWER-20-Pay Life
accumulates cash value faster than Straight Life
QUESTION: Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
4
