Texas Life and Health Insurance Exam questions
with solved solutions
Which of these characteristics is consistent with a Straight Life Policy? -
ANSWER>>Premiums are payable for as long as there is insurance coverage in
force
Which of the following are Equity Indexed annuities typically invested in? -
ANSWER>>S&P 500
Which of the following does Social Security NOT provide benefits for? -
ANSWER>>Dismemberment
An example of false advertising would be - ANSWER>>An insurer exaggerating its
dividends in a magazine advertisement
A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased
an annuity that will pay her $1500 per month beginning at age 60. Which of these
annuities did this woman purchase? - ANSWER>>Deferred Fixed Annuity
Which of the following types of organizations are prepaid group health plans,
where members pay in advance for the services of participating physicians and
hospitals that have agreements? - ANSWER>>HMO
Which action will a life insurance company most likely take if an insured dies and
it is discovered that the insured's age was misstated on the application? -
ANSWER>>Pay an amount the premiums would have purchased at the insured's
actual age
,Q is looking to buy a life insurance policy that will provide the greatest amount of
protection for a temporary time period. Which of these policies should Q
purchase? - ANSWER>>Term Life
An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age? - ANSWER>>59 1/2
An applicant MUST receive an Outline of Coverage when an application is taken
for a(n) - ANSWER>>Medicare Supplement policy
Life insurance that covers an insured's whole life with level premiums paid over a
limited time is called: - ANSWER>>Limited Pay Life
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay is a total of $15,000
in covered medical expenses are incurred? - ANSWER>>$7000
$5,000 + 20% = $7,000
How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law? - ANSWER>>6 months
An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the - ANSWER>>Commissioner
What is an organization that solicits insurance only to its members? -
ANSWER>>Fraternal benefit society
Which of the following is NOT a reason for a business to buy key person life
insurance? - ANSWER>>A pension deficiency is the key employee dies
, When an insurance company sends a policy to the insured with an attached
application, the element that makes the application part of the contract between
the insured and the insurer is called the: - ANSWER>>Entire Contract Provision
One becomes eligible for Social Security disability benefits after having been
disabled for - ANSWER>>5 Months
An insured owns an individual Disability Income policy with a 30-day Elimination
Period for sickness and accidents and a monthly indemnity benefit of $500. If the
insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would
receive for an approved claim? - ANSWER>>$1,250
A license may be denied, suspended, or revoked if the licensee - ANSWER>>is
found guilty of misrepresentation in obtaining the license
Which Unfair Trade Practice involves an agent telling a prospective client that a
policy's dividends are guaranteed? - ANSWER>>Misrepresentation
K's whole life insurance policy lapsed two months ago due to nonpayment. She
would now like to reinstate the policy. All of these statements are correct about
the policy's reinstatement EXCEPT - ANSWER>>K will forfeit the right to use the
automatic loan provision upon reinstatement
When a policy pays dividends to its policyholders, it is said to be -
ANSWER>>participating
What is the basic function of an annuity? - ANSWER>>The systematic liquidation
of accumulated funds
Which of the following statements about health coverage for newborns is NOT
true? - ANSWER>>Coverage is limited to only congenital defects
with solved solutions
Which of these characteristics is consistent with a Straight Life Policy? -
ANSWER>>Premiums are payable for as long as there is insurance coverage in
force
Which of the following are Equity Indexed annuities typically invested in? -
ANSWER>>S&P 500
Which of the following does Social Security NOT provide benefits for? -
ANSWER>>Dismemberment
An example of false advertising would be - ANSWER>>An insurer exaggerating its
dividends in a magazine advertisement
A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased
an annuity that will pay her $1500 per month beginning at age 60. Which of these
annuities did this woman purchase? - ANSWER>>Deferred Fixed Annuity
Which of the following types of organizations are prepaid group health plans,
where members pay in advance for the services of participating physicians and
hospitals that have agreements? - ANSWER>>HMO
Which action will a life insurance company most likely take if an insured dies and
it is discovered that the insured's age was misstated on the application? -
ANSWER>>Pay an amount the premiums would have purchased at the insured's
actual age
,Q is looking to buy a life insurance policy that will provide the greatest amount of
protection for a temporary time period. Which of these policies should Q
purchase? - ANSWER>>Term Life
An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age? - ANSWER>>59 1/2
An applicant MUST receive an Outline of Coverage when an application is taken
for a(n) - ANSWER>>Medicare Supplement policy
Life insurance that covers an insured's whole life with level premiums paid over a
limited time is called: - ANSWER>>Limited Pay Life
An individual has a Major Medical policy with a $5,000 deductible and an 80/20
Coinsurance clause. How much will the INSURED have to pay is a total of $15,000
in covered medical expenses are incurred? - ANSWER>>$7000
$5,000 + 20% = $7,000
How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law? - ANSWER>>6 months
An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the - ANSWER>>Commissioner
What is an organization that solicits insurance only to its members? -
ANSWER>>Fraternal benefit society
Which of the following is NOT a reason for a business to buy key person life
insurance? - ANSWER>>A pension deficiency is the key employee dies
, When an insurance company sends a policy to the insured with an attached
application, the element that makes the application part of the contract between
the insured and the insurer is called the: - ANSWER>>Entire Contract Provision
One becomes eligible for Social Security disability benefits after having been
disabled for - ANSWER>>5 Months
An insured owns an individual Disability Income policy with a 30-day Elimination
Period for sickness and accidents and a monthly indemnity benefit of $500. If the
insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would
receive for an approved claim? - ANSWER>>$1,250
A license may be denied, suspended, or revoked if the licensee - ANSWER>>is
found guilty of misrepresentation in obtaining the license
Which Unfair Trade Practice involves an agent telling a prospective client that a
policy's dividends are guaranteed? - ANSWER>>Misrepresentation
K's whole life insurance policy lapsed two months ago due to nonpayment. She
would now like to reinstate the policy. All of these statements are correct about
the policy's reinstatement EXCEPT - ANSWER>>K will forfeit the right to use the
automatic loan provision upon reinstatement
When a policy pays dividends to its policyholders, it is said to be -
ANSWER>>participating
What is the basic function of an annuity? - ANSWER>>The systematic liquidation
of accumulated funds
Which of the following statements about health coverage for newborns is NOT
true? - ANSWER>>Coverage is limited to only congenital defects
