Texas General Lines - Life, accident and health insurance PRACTICE EXAM Latest Update 2024 -
2025 Actual Exam 350 Questions and 100% Verified Correct Answers Guaranteed A+ 1) "Twisting" is a commonly -used term describing: A- The making of misleading representations as to the financial condition of any insurer B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insurance C- Unfair avoidance of payment of policy benefits to which a claimant is entitled D- Giving, or promising to give, tangible or intangible items of value or service in order to induce a prospect to buy a policy of insurance - CORRECT ANSWER: B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insurance 1) A person appointed by an insurer to solicit or sell insurance on their behalf in this state is known as a(n): A- Adjuster B- Agent C- Broker D- Solicitor - CORRECT ANSWER: B- Agent 1) A plan under which the surviving partners of a partnership agree to buy the interest of a deceased partner is known as a: A- Surviving Shareholder plan B- Buy and Sell Agreement C- Key Employee Life policy D- Deferred Compensation plan - CORRECT ANSWER: B- Buy and Sell Agreement 1) All of the following are true about eligibility for Disability Income benefits under Social Security EXCEPT: A- There is a 5 month waiting period B- They are available only to those who have attained fully insured status C- They are available only to those who are at least age 65 D- Claimants must prove that their disability prevents them from performing any gainful work and will last at least 1 year - CORRECT ANSWER: C- They are available only to those who are at least age 65 1) An insured's premium for Life insurance is based mainly upon their: A- Risk classification B- Gender C- Occupation D- Age - CORRECT ANSWER: A- Risk classification 1) For cancellation of an HMO contract due to fraud or intentional misrepresentation of a material fact, how many days' advance written notice is required? - CORRECT ANSWER: A- 15 B- 30 C- 20 D- 10 1) If a dentist was off work for 4 months due to disability, his dental assistant's salary would be covered by: A- Partnership Disability insurance B- Key Employee Disability C- Business Overhead insurance D- Disability Income insurance - CORRECT ANSWER: C- Business Overhead insurance 1) If the insured is not entirely satisfied with the policy issued, she may return it to the insurance company for voiding and receive a refund of premium at which of the following times? A- Within a specified period from the date the insurance company issues the policy B- Within a specified period from the date the insured receives the contract C- Within a specified period from the date the producer receives the contract D- Within a specified period after the first renewal premium falls due - CORRECT ANSWER: B- Within a specified period from the date the insured receives the contract 1) In order to qualify for the advanced premium tax credit, a person must have an income below a pre -determined level and: - CORRECT ANSWER: A- Purchase a grandfathered health benefit plan B- Purchase an individual policy C- Purchase a qualified health plan through the Exchange D- Purchase a group policy 1) Policy delivery refers to the delivery of the: A- Insurance policy cost disclosure materials to the applicant B- Premium and receipt for the insurance policy to the agency office C- Completed application for the insurance policy to the agency office D- Completed insurance policy to the applicant - CORRECT ANSWER: D- Completed insurance policy to the applicant 1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20 -year-amortized $50,000 business -improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? A- $50,000 Whole Life policy B- $50,000 Level Term policy for 20 years C- $50,000 20 Pay Life policy D- $50,000 Decreasing Term policy for 20 years - CORRECT ANSWER: D—A $50,000 Decreasing Term policy for 20 years Explanation: The key here is "minimum premium". Term is the most inexpensive type of coverage. Since Sandra's $50,000 loan will be paid off over 20 years and the loan balance will decrease each year, Decreasing Term makes sense. Decreasing Term is not rene wable. 1) Under the Health Insurance Portability and Accountability Act (HIPAA), group medical expense coverage is 'portable' from one group to another group without any new probationary period as long as there is no gap in coverage more than ____ days: - CORRECT ANSWER: A- 10 B- 31 C- 63 D- 20 1) Which of the following statements about the Reinstatement provision is true? A- It provides for reinstatement of a policy regardless of the insured's health B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated C- It permits reinstatement within 10 years after a policy has lapsed D- It guarantees the reinstatement of a policy that has been surrendered for cash - CORRECT ANSWER: B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated 1) Which of the following statements is true about Residual Disability benefits? A- They are reduced when an insured is not under a doctor's care B- An insured is entitled to a Principal Sum benefit for the partial loss of a limb C- Payment may be based on loss of time, income, or function D- Payment may be based on termination of employment - CORRECT ANSWER: C- Payment may be based on loss of time, income, or function 10) A Life insurance policy of which the cash value is over -funded according to IRS rules is known as: - CORRECT ANSWER: A- A Universal Life Contract B- A Variable Life Contract C- A Modified Endowment Contract D- A Variable/Universal Life Contract 10) All of the following are true about Group Life insurance EXCEPT: - CORRECT ANSWER: A- The employer is the beneficiary B- The employee is the insured C- It is usually written as annual renewable term insurance D- There must be a minimum of 2 employees 10) All of the following are true about large employer Group Medical Expense plans EXCEPT: - CORRECT ANSWER: A- The limiting age of an unmarried child of an enrollee is age 21 B- Unmarried grandchildren of the insured under age 26 may be covered, if dependent C- They may not limit or exclude initial coverage of a newborn or adopted child in any way D- They must provide coverage for drug and alcohol treatment in the same manner as they cover any other illness 10) As an enrollee in an HMO, you must choose a ________, which is the person you must go to for your initial and primary care. - CORRECT ANSWER: A- Specialist B- Primary Care Physician C- D.O. D- Orthodontist 10) If the insured dies 5 years after he bought a Life insurance policy and the insurer determines that there was material misrepresentation on his application, they will: - CORRECT ANSWER: A- Pay the claim B- Pay only a portion of the claim C- Deny the claim D- Deny the claim but refund the premium 10) No licensee whose license has been denied, refused or revoked can file another licensing application with the Commissioner for at least ____ years: - CORRECT ANSWER: A- 5 B- 4 C- 2 D- 3 10) On May 8th a prospect filled out an application for a life insurance policy but paid no premium. The insurance company approved the application on May 14th and issued the policy on May 15th. The producer delivered the policy on May 26th and collected the first premium. The coverage became ef fective on: - CORRECT ANSWER: A- May 26th B- May 8th C- May 15th D- May 14th 10) Under the PPACA, all of the following are essential health benefits EXCEPT: - CORRECT ANSWER: A- Mental health and substance abuse disorder services B- Prescription drugs C- Chiropractic care D- Preventive and wellness services
2025 Actual Exam 350 Questions and 100% Verified Correct Answers Guaranteed A+ 1) "Twisting" is a commonly -used term describing: A- The making of misleading representations as to the financial condition of any insurer B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insurance C- Unfair avoidance of payment of policy benefits to which a claimant is entitled D- Giving, or promising to give, tangible or intangible items of value or service in order to induce a prospect to buy a policy of insurance - CORRECT ANSWER: B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insurance 1) A person appointed by an insurer to solicit or sell insurance on their behalf in this state is known as a(n): A- Adjuster B- Agent C- Broker D- Solicitor - CORRECT ANSWER: B- Agent 1) A plan under which the surviving partners of a partnership agree to buy the interest of a deceased partner is known as a: A- Surviving Shareholder plan B- Buy and Sell Agreement C- Key Employee Life policy D- Deferred Compensation plan - CORRECT ANSWER: B- Buy and Sell Agreement 1) All of the following are true about eligibility for Disability Income benefits under Social Security EXCEPT: A- There is a 5 month waiting period B- They are available only to those who have attained fully insured status C- They are available only to those who are at least age 65 D- Claimants must prove that their disability prevents them from performing any gainful work and will last at least 1 year - CORRECT ANSWER: C- They are available only to those who are at least age 65 1) An insured's premium for Life insurance is based mainly upon their: A- Risk classification B- Gender C- Occupation D- Age - CORRECT ANSWER: A- Risk classification 1) For cancellation of an HMO contract due to fraud or intentional misrepresentation of a material fact, how many days' advance written notice is required? - CORRECT ANSWER: A- 15 B- 30 C- 20 D- 10 1) If a dentist was off work for 4 months due to disability, his dental assistant's salary would be covered by: A- Partnership Disability insurance B- Key Employee Disability C- Business Overhead insurance D- Disability Income insurance - CORRECT ANSWER: C- Business Overhead insurance 1) If the insured is not entirely satisfied with the policy issued, she may return it to the insurance company for voiding and receive a refund of premium at which of the following times? A- Within a specified period from the date the insurance company issues the policy B- Within a specified period from the date the insured receives the contract C- Within a specified period from the date the producer receives the contract D- Within a specified period after the first renewal premium falls due - CORRECT ANSWER: B- Within a specified period from the date the insured receives the contract 1) In order to qualify for the advanced premium tax credit, a person must have an income below a pre -determined level and: - CORRECT ANSWER: A- Purchase a grandfathered health benefit plan B- Purchase an individual policy C- Purchase a qualified health plan through the Exchange D- Purchase a group policy 1) Policy delivery refers to the delivery of the: A- Insurance policy cost disclosure materials to the applicant B- Premium and receipt for the insurance policy to the agency office C- Completed application for the insurance policy to the agency office D- Completed insurance policy to the applicant - CORRECT ANSWER: D- Completed insurance policy to the applicant 1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20 -year-amortized $50,000 business -improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? A- $50,000 Whole Life policy B- $50,000 Level Term policy for 20 years C- $50,000 20 Pay Life policy D- $50,000 Decreasing Term policy for 20 years - CORRECT ANSWER: D—A $50,000 Decreasing Term policy for 20 years Explanation: The key here is "minimum premium". Term is the most inexpensive type of coverage. Since Sandra's $50,000 loan will be paid off over 20 years and the loan balance will decrease each year, Decreasing Term makes sense. Decreasing Term is not rene wable. 1) Under the Health Insurance Portability and Accountability Act (HIPAA), group medical expense coverage is 'portable' from one group to another group without any new probationary period as long as there is no gap in coverage more than ____ days: - CORRECT ANSWER: A- 10 B- 31 C- 63 D- 20 1) Which of the following statements about the Reinstatement provision is true? A- It provides for reinstatement of a policy regardless of the insured's health B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated C- It permits reinstatement within 10 years after a policy has lapsed D- It guarantees the reinstatement of a policy that has been surrendered for cash - CORRECT ANSWER: B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated 1) Which of the following statements is true about Residual Disability benefits? A- They are reduced when an insured is not under a doctor's care B- An insured is entitled to a Principal Sum benefit for the partial loss of a limb C- Payment may be based on loss of time, income, or function D- Payment may be based on termination of employment - CORRECT ANSWER: C- Payment may be based on loss of time, income, or function 10) A Life insurance policy of which the cash value is over -funded according to IRS rules is known as: - CORRECT ANSWER: A- A Universal Life Contract B- A Variable Life Contract C- A Modified Endowment Contract D- A Variable/Universal Life Contract 10) All of the following are true about Group Life insurance EXCEPT: - CORRECT ANSWER: A- The employer is the beneficiary B- The employee is the insured C- It is usually written as annual renewable term insurance D- There must be a minimum of 2 employees 10) All of the following are true about large employer Group Medical Expense plans EXCEPT: - CORRECT ANSWER: A- The limiting age of an unmarried child of an enrollee is age 21 B- Unmarried grandchildren of the insured under age 26 may be covered, if dependent C- They may not limit or exclude initial coverage of a newborn or adopted child in any way D- They must provide coverage for drug and alcohol treatment in the same manner as they cover any other illness 10) As an enrollee in an HMO, you must choose a ________, which is the person you must go to for your initial and primary care. - CORRECT ANSWER: A- Specialist B- Primary Care Physician C- D.O. D- Orthodontist 10) If the insured dies 5 years after he bought a Life insurance policy and the insurer determines that there was material misrepresentation on his application, they will: - CORRECT ANSWER: A- Pay the claim B- Pay only a portion of the claim C- Deny the claim D- Deny the claim but refund the premium 10) No licensee whose license has been denied, refused or revoked can file another licensing application with the Commissioner for at least ____ years: - CORRECT ANSWER: A- 5 B- 4 C- 2 D- 3 10) On May 8th a prospect filled out an application for a life insurance policy but paid no premium. The insurance company approved the application on May 14th and issued the policy on May 15th. The producer delivered the policy on May 26th and collected the first premium. The coverage became ef fective on: - CORRECT ANSWER: A- May 26th B- May 8th C- May 15th D- May 14th 10) Under the PPACA, all of the following are essential health benefits EXCEPT: - CORRECT ANSWER: A- Mental health and substance abuse disorder services B- Prescription drugs C- Chiropractic care D- Preventive and wellness services
