TEXAS STATE EXAM
SIMULATOR LIFE AND
HEALTH INSURANCE (284
QUESTIONS AND ANSWERS
PRACTICE EXAM)
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,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:
o A. An installment Refund annuity
o B. A Straight Life annuity
o C. A Cash Refund annuity
o D. A Joint Life annuity
o E. An installment Refund annuity
2. One becomes eligible for Social Security disability benefits after having been
disabled for:
o A. 3 months
o B. 5 months
o C. 6 months
o D. 12 months
o E. 5 months
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?
o A. Straight life accumulates faster than Limited-pay Life
o B. 20-Pay Life accumulates cash value faster than Straight Life
o C. Cash value accumulation of both 20-Pay Life and Straight Life depend
on the insurer's financial rating
o D. 20-Pay Life and Straight Life accumulate cash value at the same rate
o E. 20-Pay Life accumulates cash value faster than Straight Life
4. Who makes the legally enforceable promises in a unilateral insurance policy?
o A. Beneficiary
o B. Insurance company
o C. Insured
o D. Applicant
o E. Insurance company
,5. The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and:
o A. the initial premium
o B. agreeing to a physical examination
o C. delivery of policy
o D. disclosure of any medical conditions
o E. the initial premium
6. Which parts of a life insurance policy are guaranteed to be true?
o A. Rating
o B. Representation
o C. Statement
o D. Warranty
o E. Warranty
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:
o A. hospital charges
o B. physician fees
o C. experimental and investigative services
o D. nursing services
o E. experimental and investigative services
8. If a retiree on Medicare required five hospital stays in one year, which policy
would provide the best insurance for excess hospital expenses?
o A. Long-term care
o B. Indemnity
o C. Medicare Supplement
o D. Medicaid
o E. Medicare Supplement
, 9. While in the process of converting her group life insurance to an individual policy,
S dies. What happens to the claim her beneficiary submits?
o A. No benefits are payable under the Master contract
o B. Full benefits are payable under the Master contract
o C. Full benefits are payable under the converted policy
o D. Benefits less required premium are payable under the converted policy
o E. Full benefits are payable under the Master contract
10. All of the following are limited benefit plans EXCEPT:
o A. cancer policies
o B. life insurance policies
o C. dental policies
o D. critical illness policies
o E. life insurance policies
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?
o A. Extended Term rider
o B. Cost of Living Adjustment rider
o C. Guaranteed Insurability Option rider
o D. Waiver of Premium rider
o E. Guaranteed Insurability Option rider
12. An agent whose license has been revoked is required to:
o A. wait at least five years before applying for a new license
o B. submit all previously written policies to the Commissioner of
Insurance's office for servicing of the accounts
o C. cancel all policies currently in effect and advise the insureds to place
them elsewhere
o D. continue to service the existing accounts but not solicit new business
o E. wait at least five years before applying for a new license
SIMULATOR LIFE AND
HEALTH INSURANCE (284
QUESTIONS AND ANSWERS
PRACTICE EXAM)
[Document subtitle]
[DATE]
[COMPANY NAME]
[Company address]
,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:
o A. An installment Refund annuity
o B. A Straight Life annuity
o C. A Cash Refund annuity
o D. A Joint Life annuity
o E. An installment Refund annuity
2. One becomes eligible for Social Security disability benefits after having been
disabled for:
o A. 3 months
o B. 5 months
o C. 6 months
o D. 12 months
o E. 5 months
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?
o A. Straight life accumulates faster than Limited-pay Life
o B. 20-Pay Life accumulates cash value faster than Straight Life
o C. Cash value accumulation of both 20-Pay Life and Straight Life depend
on the insurer's financial rating
o D. 20-Pay Life and Straight Life accumulate cash value at the same rate
o E. 20-Pay Life accumulates cash value faster than Straight Life
4. Who makes the legally enforceable promises in a unilateral insurance policy?
o A. Beneficiary
o B. Insurance company
o C. Insured
o D. Applicant
o E. Insurance company
,5. The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and:
o A. the initial premium
o B. agreeing to a physical examination
o C. delivery of policy
o D. disclosure of any medical conditions
o E. the initial premium
6. Which parts of a life insurance policy are guaranteed to be true?
o A. Rating
o B. Representation
o C. Statement
o D. Warranty
o E. Warranty
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:
o A. hospital charges
o B. physician fees
o C. experimental and investigative services
o D. nursing services
o E. experimental and investigative services
8. If a retiree on Medicare required five hospital stays in one year, which policy
would provide the best insurance for excess hospital expenses?
o A. Long-term care
o B. Indemnity
o C. Medicare Supplement
o D. Medicaid
o E. Medicare Supplement
, 9. While in the process of converting her group life insurance to an individual policy,
S dies. What happens to the claim her beneficiary submits?
o A. No benefits are payable under the Master contract
o B. Full benefits are payable under the Master contract
o C. Full benefits are payable under the converted policy
o D. Benefits less required premium are payable under the converted policy
o E. Full benefits are payable under the Master contract
10. All of the following are limited benefit plans EXCEPT:
o A. cancer policies
o B. life insurance policies
o C. dental policies
o D. critical illness policies
o E. life insurance policies
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?
o A. Extended Term rider
o B. Cost of Living Adjustment rider
o C. Guaranteed Insurability Option rider
o D. Waiver of Premium rider
o E. Guaranteed Insurability Option rider
12. An agent whose license has been revoked is required to:
o A. wait at least five years before applying for a new license
o B. submit all previously written policies to the Commissioner of
Insurance's office for servicing of the accounts
o C. cancel all policies currently in effect and advise the insureds to place
them elsewhere
o D. continue to service the existing accounts but not solicit new business
o E. wait at least five years before applying for a new license
