TEXAS STATE EXAM SIMULATOR -
LIFE AND HEALTH INSURANCE
(WRITTEN) QUESTIONS AND
ANSWERS 100% CORRECT 2025
LATES UPDATE.
,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 - ANSWERAn
installment Refund annuity
One becomes eligible for Social Security disability benefits after having been disabled
for - ANSWER5 months
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?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's
financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate - ANSWER20-
Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy? -
ANSWERInsurance company
The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and - ANSWERthe initial premium
Which parts of a life insurance policy are guaranteed to be true? - ANSWERWarranty
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 - ANSWERexperimental and investigative services
If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses? - ANSWERMedicare
Supplement
S, while in the process of converting her group life insurance to an individual policy,
dies. What happens to the claim her beneficiary submits? - ANSWERFull benefits are
payable under the Master contract
, All of the following are limited benefit plans EXCEPT
cancer policies
life insurance policies
dental policies
critical illness policies - ANSWERlife insurance policies
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? - ANSWERGuaranteed Insurability Option
rider
An agent whose license has been revoked is required to - ANSWERwait at least five
years before applying for a new license
The benefits under a Disability Buy-Out policy are - ANSWERpayable to the company
or another shareholder
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy
protection for - ANSWERhealth information
How are surrender charges deducted in a life policy with a rear-end loaded provision? -
ANSWERDeducted when the policy is discontinued
What MUST an insurance company use in its advertising? - ANSWERIts true corporate
name
An accident policy will most likely pay a benefit for a(n) - ANSWERoff-the-job accident
M completes an application for life insurance but does not pay the initial premium. All of
these actions must occur before M's policy goes into effect EXCEPT
policy is delivered
free-look period has expired
insurance company issues policy
initial premium is collected - ANSWERfree-look period has expired
When a policyowner cash surrenders a Universal Life insurance policy in it's early
years, this may be considered a red flag for a(n) - ANSWERAnti-Money Laundering
violation
Which of these do NOT constitute policy delivery?
Policy mailed to applicant
Policy mailed to agent
LIFE AND HEALTH INSURANCE
(WRITTEN) QUESTIONS AND
ANSWERS 100% CORRECT 2025
LATES UPDATE.
,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 - ANSWERAn
installment Refund annuity
One becomes eligible for Social Security disability benefits after having been disabled
for - ANSWER5 months
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?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's
financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate - ANSWER20-
Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy? -
ANSWERInsurance company
The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and - ANSWERthe initial premium
Which parts of a life insurance policy are guaranteed to be true? - ANSWERWarranty
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 - ANSWERexperimental and investigative services
If a retiree on Medicare required five hospital stays in one year, which policy would
provide the best insurance for excess hospital expenses? - ANSWERMedicare
Supplement
S, while in the process of converting her group life insurance to an individual policy,
dies. What happens to the claim her beneficiary submits? - ANSWERFull benefits are
payable under the Master contract
, All of the following are limited benefit plans EXCEPT
cancer policies
life insurance policies
dental policies
critical illness policies - ANSWERlife insurance policies
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? - ANSWERGuaranteed Insurability Option
rider
An agent whose license has been revoked is required to - ANSWERwait at least five
years before applying for a new license
The benefits under a Disability Buy-Out policy are - ANSWERpayable to the company
or another shareholder
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy
protection for - ANSWERhealth information
How are surrender charges deducted in a life policy with a rear-end loaded provision? -
ANSWERDeducted when the policy is discontinued
What MUST an insurance company use in its advertising? - ANSWERIts true corporate
name
An accident policy will most likely pay a benefit for a(n) - ANSWERoff-the-job accident
M completes an application for life insurance but does not pay the initial premium. All of
these actions must occur before M's policy goes into effect EXCEPT
policy is delivered
free-look period has expired
insurance company issues policy
initial premium is collected - ANSWERfree-look period has expired
When a policyowner cash surrenders a Universal Life insurance policy in it's early
years, this may be considered a red flag for a(n) - ANSWERAnti-Money Laundering
violation
Which of these do NOT constitute policy delivery?
Policy mailed to applicant
Policy mailed to agent
