Texas State Exam Simulator - Life and Health Insurance (200 Questions Practice Exam)

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Texas State Exam Simulator - Life and Health
Insurance (200 Questions Practice Exam)


Question 1: 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:

• A) An installment Refund annuity

• B) A Straight Life annuity

• C) A Cash Refund annuity

• D) A Joint Life annuity

Correct Answer: A) An installment Refund annuity

Question 2: One becomes eligible for Social Security disability benefits after having been
disabled for:

• A) 3 months

• B) 5 months

• C) 6 months

• D) 12 months

Correct Answer: B) 5 months




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Question 3: 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?

• A) Straight life accumulates faster than Limited-pay Life

• B) 20-Pay Life accumulates cash value faster than Straight Life

• C) Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's
financial rating

• D) 20-Pay Life and Straight Life accumulate cash value at the same rate

Correct Answer: B) 20-Pay Life accumulates cash value faster than Straight Life

Question 4: Who makes the legally enforceable promises in a unilateral insurance policy?

• A) Beneficiary

• B) Insurance company

• C) Insured

• D) Applicant

Correct Answer: B) Insurance company

Question 5: The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and:

• A) the initial premium

• B) agreeing to a physical examination

• C) delivery of policy

• D) disclosure of any medical conditions



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Correct Answer: A) the initial premium

Question 6: Which parts of a life insurance policy are guaranteed to be true?

• A) Rating

• B) Representation

• C) Statement

• D) Warranty

Correct Answer: D) Warranty

Question 7: 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:

• A) hospital charges

• B) physician fees

• C) experimental and investigative services

• D) nursing services

Correct Answer: C) experimental and investigative services

Question 8: If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses?

• A) Long-term care

• B) Indemnity

• C) Medicare Supplement

• D) Medicaid


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Correct Answer: C) Medicare Supplement

Question 9: S, while in the process of converting her group life insurance to an individual policy,
dies. What happens to the claim her beneficiary submits?

• A) No benefits are payable under the Master contract

• B) Full benefits are payable under the Master contract

• C) Full benefits are payable under the converted policy

• D) Benefits less required premium are payable under the converted policy

Correct Answer: B) Full benefits are payable under the Master contract

Question 10: All of the following are limited benefit plans EXCEPT:

• A) cancer policies

• B) life insurance policies

• C) dental policies

• D) critical illness policies

Correct Answer: B) life insurance policies

Question 11: 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?

• A) Extended Term rider

• B) Cost of Living Adjustment rider

• C) Guaranteed Insurability Option rider

• D) Waiver of Premium rider


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