2024 TEXAS STATE EXAM SIMULATOR LIFE AND
HEALTH INSURANCE COMPLETE 200 APPROVED
PRACTICE QUESTIONS AND CORRECT VERIFIED
ANSWERS (FULL REVISED EXAM) A NEW UPDATED
VERSION |ALREADY GRADED A+ (BRAND NEW!!)
The Universal Life Policy is called an unbundled Life Policy because the policyholder
can see the expense charges, the interest earned, and the - ANSWER: Cost of
insurance
The investment gains from a Universal Life Policy usually go toward - ANSWER: the
cash value
What is the MINIMUM benefit period that must be offered by a Long-Term Care
policy? - ANSWER: 12 months
What type of life insurance gives the greatest amount of coverage for a limited
period of time? - ANSWER: Term life
An Evidence of Coverage form may be issued by a Health Maintenance Organization
(HMO) after being approved by the - ANSWER: Commissioner
The reason for a business having a Business Overhead Expense Disability Plan is to
cover - ANSWER: fixed business expenses
B the insurance agent tells his clients that their rights may be impaired if they fail to
complete a release form within a given period of time. B may be found guilty of -
ANSWER: coercion
Which requirement must be met for an association to be eligible for a group life
plan? - ANSWER: Group was formed for a purpose other than acquiring insurance
T owns an Accident & Health policy and notifies her insurance company that she has
chosen a less hazardous occupation. Under the Change of Occupation provision,
which of the following actions may her insurance company take? - ANSWER: Increase
her policy's coverage amount
P is the insured on a participating life policy. Which statement is true if P's premiums
are waived due to a disability? - ANSWER: P will still receive declared dividends
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? - ANSWER: 20-Pay LIfe
accumulates cash value faster than Straight Life
, M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the - ANSWER:
policy proceeds
A new agent must complete at LEAST___hours of continuing education within 24
months of initial licensure - ANSWER: 24
Which of the following services is NOT covered under hospitalization expense policy?
- ANSWER: surgeon's fees
A person who is insured within a group contract will be given a - ANSWER: certificate
In Texas, which of these statements regarding the Suicide clause is TRUE? - ANSWER:
An insurer may not use suicide as a defense against payment after the second year
An insured's inability to perform two or more activities of daily living may trigger
which type of policy rider? - ANSWER: Long term care
F needs life insurance that provides coverage for only a limited amount of time with
a death benefit that changes regularly according to a schedule. What kind of policy is
needed? - ANSWER: Decreasing term policy
An example of an unfair claims settlement practice is - ANSWER: turning down a
claim without providing the basis of denial
When must insurable interest be present in order for a life insurance policy to be
valid? - ANSWER: When the application is made
Which Long Term Care insurance statement is true? - ANSWER: Pre-existing
conditions must be covered after the coverage has been in force for six months
J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ANSWER:
Reinstatement provision
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called - ANSWER: Whole life
With a Basic Medical Expense policy, what does the hospitalization expense cover? -
ANSWER: hospital room and board
What is the purpose of a Policy Summary? - ANSWER: It highlights the critical parts
of the policy issued
T was treated for an ailment 2 months prior to applying for a health insurance policy.
This condition was noted on the application and the policy was issued shortly
HEALTH INSURANCE COMPLETE 200 APPROVED
PRACTICE QUESTIONS AND CORRECT VERIFIED
ANSWERS (FULL REVISED EXAM) A NEW UPDATED
VERSION |ALREADY GRADED A+ (BRAND NEW!!)
The Universal Life Policy is called an unbundled Life Policy because the policyholder
can see the expense charges, the interest earned, and the - ANSWER: Cost of
insurance
The investment gains from a Universal Life Policy usually go toward - ANSWER: the
cash value
What is the MINIMUM benefit period that must be offered by a Long-Term Care
policy? - ANSWER: 12 months
What type of life insurance gives the greatest amount of coverage for a limited
period of time? - ANSWER: Term life
An Evidence of Coverage form may be issued by a Health Maintenance Organization
(HMO) after being approved by the - ANSWER: Commissioner
The reason for a business having a Business Overhead Expense Disability Plan is to
cover - ANSWER: fixed business expenses
B the insurance agent tells his clients that their rights may be impaired if they fail to
complete a release form within a given period of time. B may be found guilty of -
ANSWER: coercion
Which requirement must be met for an association to be eligible for a group life
plan? - ANSWER: Group was formed for a purpose other than acquiring insurance
T owns an Accident & Health policy and notifies her insurance company that she has
chosen a less hazardous occupation. Under the Change of Occupation provision,
which of the following actions may her insurance company take? - ANSWER: Increase
her policy's coverage amount
P is the insured on a participating life policy. Which statement is true if P's premiums
are waived due to a disability? - ANSWER: P will still receive declared dividends
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? - ANSWER: 20-Pay LIfe
accumulates cash value faster than Straight Life
, M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the - ANSWER:
policy proceeds
A new agent must complete at LEAST___hours of continuing education within 24
months of initial licensure - ANSWER: 24
Which of the following services is NOT covered under hospitalization expense policy?
- ANSWER: surgeon's fees
A person who is insured within a group contract will be given a - ANSWER: certificate
In Texas, which of these statements regarding the Suicide clause is TRUE? - ANSWER:
An insurer may not use suicide as a defense against payment after the second year
An insured's inability to perform two or more activities of daily living may trigger
which type of policy rider? - ANSWER: Long term care
F needs life insurance that provides coverage for only a limited amount of time with
a death benefit that changes regularly according to a schedule. What kind of policy is
needed? - ANSWER: Decreasing term policy
An example of an unfair claims settlement practice is - ANSWER: turning down a
claim without providing the basis of denial
When must insurable interest be present in order for a life insurance policy to be
valid? - ANSWER: When the application is made
Which Long Term Care insurance statement is true? - ANSWER: Pre-existing
conditions must be covered after the coverage has been in force for six months
J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? - ANSWER:
Reinstatement provision
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called - ANSWER: Whole life
With a Basic Medical Expense policy, what does the hospitalization expense cover? -
ANSWER: hospital room and board
What is the purpose of a Policy Summary? - ANSWER: It highlights the critical parts
of the policy issued
T was treated for an ailment 2 months prior to applying for a health insurance policy.
This condition was noted on the application and the policy was issued shortly
