Texas State Exam Simulator - Life and Health
Insurance (200 Questions Practice Exam)
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 - -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 - -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 - -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 - -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 - -the initial premium
- Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty - -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 - -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 - -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 - -
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 - -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 - -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 - -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 - -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 - -health information
- How are surrender charges deducted in a life policy with a rear-end loaded
provision?
Deducted from the death benefit
Deducted when the policy is discontinued
Deducted from policy's cash value
Deducted when assigned to another policyowner - -Deducted when the
policy is discontinued
- What MUST an insurance company use in its advertising?
, Its trade name
Its true corporate name
Its service mark
Its corporate logo - -Its true corporate name
- An accident policy will most likely pay a benefit for a(n)
self-inflicted injury
critical illness
on-the-job accident
off-the-job accident - -off-the-job accident
- M completes an application for life insurance but does not pay the initial
premium. All of these actions must occur before M's policy goes into effect
EXCEPT
policy is delivered
free-look period has expired
insurance company issues policy
initial premium is collected - -free-look period has expired
- When a policyowner cash surrenders a Universal Life insurance policy in
it's early years, this may be considered a red flag for a(n)
Federal Fair Credit Act Violation
Title 18 Fraud violation
Anti-Money Laundering violation
Unfair Trade Practice violation - -Anti-Money Laundering violation
- Which of these do NOT constitute policy delivery?
Policy mailed to applicant
Policy mailed to agent
Policy delivered to the applicant by the agent
Policy issued with a rating - -Policy issued with a rating
- What is the MINIMUM number of Activities of Daily Living (ADL) an insured
must be unable to perform to qualify for Long Term Care benefits?
1
2
3
4 - -2
- An agent who tells a client that dividends are guaranteed may be guilty of
Insurance (200 Questions Practice Exam)
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 - -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 - -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 - -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 - -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 - -the initial premium
- Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty - -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 - -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 - -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 - -
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 - -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 - -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 - -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 - -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 - -health information
- How are surrender charges deducted in a life policy with a rear-end loaded
provision?
Deducted from the death benefit
Deducted when the policy is discontinued
Deducted from policy's cash value
Deducted when assigned to another policyowner - -Deducted when the
policy is discontinued
- What MUST an insurance company use in its advertising?
, Its trade name
Its true corporate name
Its service mark
Its corporate logo - -Its true corporate name
- An accident policy will most likely pay a benefit for a(n)
self-inflicted injury
critical illness
on-the-job accident
off-the-job accident - -off-the-job accident
- M completes an application for life insurance but does not pay the initial
premium. All of these actions must occur before M's policy goes into effect
EXCEPT
policy is delivered
free-look period has expired
insurance company issues policy
initial premium is collected - -free-look period has expired
- When a policyowner cash surrenders a Universal Life insurance policy in
it's early years, this may be considered a red flag for a(n)
Federal Fair Credit Act Violation
Title 18 Fraud violation
Anti-Money Laundering violation
Unfair Trade Practice violation - -Anti-Money Laundering violation
- Which of these do NOT constitute policy delivery?
Policy mailed to applicant
Policy mailed to agent
Policy delivered to the applicant by the agent
Policy issued with a rating - -Policy issued with a rating
- What is the MINIMUM number of Activities of Daily Living (ADL) an insured
must be unable to perform to qualify for Long Term Care benefits?
1
2
3
4 - -2
- An agent who tells a client that dividends are guaranteed may be guilty of
