TEXAS STATE LIFE AND HEALTH INSURANCE EXAM SIMULATOR
2025 ACTUAL EXAM WITH 100 QUESTIONS AND CORRECT
DETAILED ANSWERS GUARANTEED PASS | RATED A+
1. If an insurance company issues a Disability Income policy that it cannot cancel or for which it
cannot increase premiums, the type of renewability that best desribes this policy is called
noncancellable
conditionally renewable
cancellable
guaranteed renewable - Answer>>> noncancellable
2. P is an employee who quits her job and wants to convert her group health coverage to an
individual policy. After the expiration of COBRA laws, which of the following statements is
TRUE?
She DOES need to provide evidence of insurability
She does NOT need to provide evidence of insurability
She will have up to 6 months to convert to an individual policy
She will be paying exactly the same premium for the individual plan as she did the group plan -
Answer>>> She does NOT need to provide evidence of insurability
3. 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 - Answer>>> experimental and investigative services
4. An insurer receives proof of loss for an acceptable medical expense claim under an Individual
Health Insurance Policy. Under the Time of Payment of Claims provision, the insurer MUST pay
the benefits
immediately
within a maximum of three months
within a reasonable amount of time
at least monthly - Answer>>> immediately
5. The Notice of Claims provision requires a policyowner to
provide proof of loss to an insurer within a specified time
notify an insurer of a claim within a specified time
wait 60 days after filing a claim to initiate a lawsuit against an insurer
notify their physician of a claim within a specified time - Answer>>> notify an insurer of a claim
within a specified time
6. 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 - Answer>>> Medicare Supplement
,7. 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 - Answer>>> Full
benefits are payable under the Master contract
8. All of the following are limited benefit plans EXCEPT
cancer policies
life insurance policies
dental policies
critical illness policies - Answer>>> life insurance policies
9. 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 - Answer>>> Guaranteed Insurability Option rider
10. 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 - Answer>>> wait at least
five years before applying for a new license
11. 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 - Answer>>> payable to the company or another
shareholder
12. The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection
for
insolvency
health information
financial information
overinsurance - Answer>>> health information
13. 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
2025 ACTUAL EXAM WITH 100 QUESTIONS AND CORRECT
DETAILED ANSWERS GUARANTEED PASS | RATED A+
1. If an insurance company issues a Disability Income policy that it cannot cancel or for which it
cannot increase premiums, the type of renewability that best desribes this policy is called
noncancellable
conditionally renewable
cancellable
guaranteed renewable - Answer>>> noncancellable
2. P is an employee who quits her job and wants to convert her group health coverage to an
individual policy. After the expiration of COBRA laws, which of the following statements is
TRUE?
She DOES need to provide evidence of insurability
She does NOT need to provide evidence of insurability
She will have up to 6 months to convert to an individual policy
She will be paying exactly the same premium for the individual plan as she did the group plan -
Answer>>> She does NOT need to provide evidence of insurability
3. 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 - Answer>>> experimental and investigative services
4. An insurer receives proof of loss for an acceptable medical expense claim under an Individual
Health Insurance Policy. Under the Time of Payment of Claims provision, the insurer MUST pay
the benefits
immediately
within a maximum of three months
within a reasonable amount of time
at least monthly - Answer>>> immediately
5. The Notice of Claims provision requires a policyowner to
provide proof of loss to an insurer within a specified time
notify an insurer of a claim within a specified time
wait 60 days after filing a claim to initiate a lawsuit against an insurer
notify their physician of a claim within a specified time - Answer>>> notify an insurer of a claim
within a specified time
6. 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 - Answer>>> Medicare Supplement
,7. 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 - Answer>>> Full
benefits are payable under the Master contract
8. All of the following are limited benefit plans EXCEPT
cancer policies
life insurance policies
dental policies
critical illness policies - Answer>>> life insurance policies
9. 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 - Answer>>> Guaranteed Insurability Option rider
10. 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 - Answer>>> wait at least
five years before applying for a new license
11. 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 - Answer>>> payable to the company or another
shareholder
12. The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection
for
insolvency
health information
financial information
overinsurance - Answer>>> health information
13. 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
