TEXAS LIFE & HEALTH INSURANCE
ACTUAL EXAM 2024 QUESTIONS AND
DETAILED CORRECT ANSWERS| 200
QUESTIONS WITH VERIFIED
ANSWERS
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 Correct Answer An installment Refund
annuity
One becomes eligible for Social Security disability benefits after
having been disabled for
3 months
5 months
6 months
12 months Correct Answer 5 months
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 Correct Answer 20-Pay Life accumulates cash value
faster than Straight Life
Who makes the legally enforceable promises in a unilateral
insurance policy?
Beneficiary
Insurance company
Insured
Applicant Correct Answer Insurance company
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 Correct Answer the initial
premium
Which parts of a life insurance policy are guaranteed to be
true?
Rating
Representation
Statement
Warranty Correct 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 Correct Answer experimental and
investigative services
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 Correct 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 Correct 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 Correct 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?
, Extended Term rider
Cost of Living Adjustment rider
Guaranteed Insurability Option rider
Waiver of Premium rider Correct 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 Correct 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 Correct 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 Correct Answer health information
How are surrender charges deducted in a life policy with a rear-
end loaded provision?
ACTUAL EXAM 2024 QUESTIONS AND
DETAILED CORRECT ANSWERS| 200
QUESTIONS WITH VERIFIED
ANSWERS
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 Correct Answer An installment Refund
annuity
One becomes eligible for Social Security disability benefits after
having been disabled for
3 months
5 months
6 months
12 months Correct Answer 5 months
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 Correct Answer 20-Pay Life accumulates cash value
faster than Straight Life
Who makes the legally enforceable promises in a unilateral
insurance policy?
Beneficiary
Insurance company
Insured
Applicant Correct Answer Insurance company
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 Correct Answer the initial
premium
Which parts of a life insurance policy are guaranteed to be
true?
Rating
Representation
Statement
Warranty Correct 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 Correct Answer experimental and
investigative services
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 Correct 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 Correct 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 Correct 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?
, Extended Term rider
Cost of Living Adjustment rider
Guaranteed Insurability Option rider
Waiver of Premium rider Correct 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 Correct 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 Correct 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 Correct Answer health information
How are surrender charges deducted in a life policy with a rear-
end loaded provision?
