TEXASnSTATEnEXAMnSIMULATOR-
LIFEnHEALTHnINSURANCEn200nQUESTIONSnANDnCORRECTnANSWERS//nGRADEDnA+
Annannuitynpromisesnthat,nif nthenannuitantndiesnbeforenreceivingnpaymentsnequalntonthencorrectnvalue,nthe
n payments n willn be ncontinued ntonan beneficiary n untiln annamountn equalnton the ncontractnvaluen hasn beennpaid.n
Thisntype nofnannuitynisncalled
AnninstallmentnRefundnannuityn
AnStraightnLife nannuity
AnCashnRefundnannuity
AnJointnLife nannuityn-nanswer-AnninstallmentnRefundnannuity
One nbecomesneligible nfornSocialnSecurityndisabilitynbenefitsnafternhavingnbeenndisablednforn
3nmonths
5nmonths
6nmonths
12nmonthsn-nanswer-5nmonths
Anpotentialnclient,nagen40,nwouldnlikentonpurchasenanWholenLife npolicynthatnwillnaccumulatencashnvalue natn
anfasternrate ninnthenearlynyearsnofnthenpolicy.nWhichnofnthesenstatementsnmadenbynthe nproducernwouldnb
e ncorrect?
Straightnlife naccumulatesnfasternthannLimited-paynLife
20-PaynLife naccumulatesncashnvalue nfasternthannStraightnLife
Cashnvalue naccumulationnof nbothn20-PaynLife nandnStraightnLife ndependnonnthe ninsurer'snfinancialnrating
20-PaynLife nandnStraightnLife naccumulate ncashnvalue natnthe nsame nrate n-nanswer-20-
PaynLife naccumulatesncashnvalue nfasternthannStraightnLife
Whonmakesnthenlegallynenforceablenpromisesninnanunilateralninsurance npolicy?nBeneficia
ry
Insurance ncompany
n Insured
Applicantn-nanswer-Insurance ncompany
,The nConsiderationnclauseninnanlife ninsurance npolicynindicatesnthatnanpolicyowner'snconsiderationnconsistsn
ofnancompletednapplicationnand
the ninitialnpremium
agreeingntonanphysicalnexaminationndeliver
ynof npolicy
disclosure nofnanynmedicalnconditionsn-nanswer-the ninitialnpremium
Whichnpartsnof nanlifeninsurancenpolicynare nguaranteedntonbentrue?n
Rating
RepresentationnStat
ement
Warrantyn-nanswer-Warranty
Ancomprehensive nmajornmedicalnhealthninsurancenpolicyncontainsnannEligible nExpensesnprovisionnwhichni
dentifiesnthentypesnofnhealthncare nservicesnthatnarencovered.nAllnofnthenfollowingnhealthncare nservicesnare n
typicallyncoverednEXCEPTnfor
hospitalncharges
n physiciannfees
experimentalnandninvestigative nservices
nursingnservicesn-nanswer-experimentalnandninvestigative nservices
IfnanretireenonnMedicare nrequirednfive nhospitalnstaysninnonenyear,nwhichnpolicynwouldnprovide nthe nbestnins
urance nfornexcessnhospitalnexpenses?
Long-
termncare nInde
mnity
Medicare nSupplement
Medicaidn-nanswer-Medicare nSupplement
S,nwhile ninnthenprocessnofnconvertingnherngroupnlifeninsurance ntonannindividualnpolicy,ndies.nWhatnhappens
n ton the n claimn hern beneficiary n submits?
,Nonbenefitsnare npayable nundernthenMasterncontractn
Fullnbenefitsnare npayable nundernthenMasterncontract
n Fullnbenefitsnarenpayablenundernthenconvertednpolic
y
Benefitsnlessnrequirednpremiumnarenpayable nundernthenconvertednpolicyn-nanswer-
Fullnbenefitsnare npayable nundernthe nMasterncontract
Allnof nthe nfollowingnare nlimitednbenefitnplansnEXCEPTncanc
ernpolicies
life ninsurance npoliciesnde
ntalnpolicies
criticalnillnessnpoliciesn-nanswer-life ninsurance npolicies
Anphysiciannopensnupnannewnpracticenandnqualifiesnfornan$7,000/monthnDisabilitynIncomenpolicy.nWhat
n ridernwouldn the nphysician n addn if nhen wantsn then ability n ton increasen hisnpolicy n benefitn asnhisn practicen an
dnincome ngrow?
ExtendednTermnrider
CostnofnLivingnAdjustmentnridernGuarante
ednInsurabilitynOptionnrider
Waivernof nPremiumnridern- nanswer-GuaranteednInsurabilitynOptionnrider
Annagentnwhose nlicense nhasnbeennrevokednisnrequirednto
waitnatnleastnfive nyearsnbefore napplyingnfornannewnlicense
submitnallnpreviouslynwrittennpoliciesntonthenCommissionernofnInsurance'snofficenfornservicingnofnthe
n accounts
cancelnallnpoliciesncurrentlyninneffectnandnadvise nthe ninsuredsntonplace nthemnelsewhere
continuentonservicenthenexistingnaccountsnbutnnotnsolicitnnewnbusinessn-nanswer-
waitnatnleastnfive nyearsnbefore napplyingnfornannewnlicense
The nbenefitsnundernanDisabilitynBuy-Outnpolicynare
, normallynpaidninninstallmentsnt
axable ntonthe nbeneficiary
payable ntonthe ncompanynornanothernshareholder
normallynpaidnafternanshortneliminationnperiodn-nanswer-payable ntonthencompanynornanothernshareholder
he nHealthnInsurance nPortabilitynandnAccountabilitynActn(HIPAA) ngivesnprivacynprotectionnfor
insolvency
healthninformationnfi
nancialninformation
overinsurance n-nanswer-healthninformation
Hownare nsurrendernchargesndeductedninnanlife npolicynwithnanrear-endnloadednprovision?
DeductednfromnthendeathnbenefitnDeduct
ednwhennthenpolicynisndiscontinuednDeduc
tednfromnpolicy'sncashnvalue
Deductednwhennassignedntonanothernpolicyownern-nanswer-Deductednwhennthe npolicynisndiscontinued
WhatnMUSTnanninsurance ncompanynuse ninnitsnadvertising?
Itsntrade nname
Itsntrue ncorporate nnamen
Itsnservice nmark
Itsncorporate nlogon-nanswer-Itsntrue ncorporate nname
Annaccidentnpolicynwillnmostnlikelynpaynanbenefitnforna(n)
LIFEnHEALTHnINSURANCEn200nQUESTIONSnANDnCORRECTnANSWERS//nGRADEDnA+
Annannuitynpromisesnthat,nif nthenannuitantndiesnbeforenreceivingnpaymentsnequalntonthencorrectnvalue,nthe
n payments n willn be ncontinued ntonan beneficiary n untiln annamountn equalnton the ncontractnvaluen hasn beennpaid.n
Thisntype nofnannuitynisncalled
AnninstallmentnRefundnannuityn
AnStraightnLife nannuity
AnCashnRefundnannuity
AnJointnLife nannuityn-nanswer-AnninstallmentnRefundnannuity
One nbecomesneligible nfornSocialnSecurityndisabilitynbenefitsnafternhavingnbeenndisablednforn
3nmonths
5nmonths
6nmonths
12nmonthsn-nanswer-5nmonths
Anpotentialnclient,nagen40,nwouldnlikentonpurchasenanWholenLife npolicynthatnwillnaccumulatencashnvalue natn
anfasternrate ninnthenearlynyearsnofnthenpolicy.nWhichnofnthesenstatementsnmadenbynthe nproducernwouldnb
e ncorrect?
Straightnlife naccumulatesnfasternthannLimited-paynLife
20-PaynLife naccumulatesncashnvalue nfasternthannStraightnLife
Cashnvalue naccumulationnof nbothn20-PaynLife nandnStraightnLife ndependnonnthe ninsurer'snfinancialnrating
20-PaynLife nandnStraightnLife naccumulate ncashnvalue natnthe nsame nrate n-nanswer-20-
PaynLife naccumulatesncashnvalue nfasternthannStraightnLife
Whonmakesnthenlegallynenforceablenpromisesninnanunilateralninsurance npolicy?nBeneficia
ry
Insurance ncompany
n Insured
Applicantn-nanswer-Insurance ncompany
,The nConsiderationnclauseninnanlife ninsurance npolicynindicatesnthatnanpolicyowner'snconsiderationnconsistsn
ofnancompletednapplicationnand
the ninitialnpremium
agreeingntonanphysicalnexaminationndeliver
ynof npolicy
disclosure nofnanynmedicalnconditionsn-nanswer-the ninitialnpremium
Whichnpartsnof nanlifeninsurancenpolicynare nguaranteedntonbentrue?n
Rating
RepresentationnStat
ement
Warrantyn-nanswer-Warranty
Ancomprehensive nmajornmedicalnhealthninsurancenpolicyncontainsnannEligible nExpensesnprovisionnwhichni
dentifiesnthentypesnofnhealthncare nservicesnthatnarencovered.nAllnofnthenfollowingnhealthncare nservicesnare n
typicallyncoverednEXCEPTnfor
hospitalncharges
n physiciannfees
experimentalnandninvestigative nservices
nursingnservicesn-nanswer-experimentalnandninvestigative nservices
IfnanretireenonnMedicare nrequirednfive nhospitalnstaysninnonenyear,nwhichnpolicynwouldnprovide nthe nbestnins
urance nfornexcessnhospitalnexpenses?
Long-
termncare nInde
mnity
Medicare nSupplement
Medicaidn-nanswer-Medicare nSupplement
S,nwhile ninnthenprocessnofnconvertingnherngroupnlifeninsurance ntonannindividualnpolicy,ndies.nWhatnhappens
n ton the n claimn hern beneficiary n submits?
,Nonbenefitsnare npayable nundernthenMasterncontractn
Fullnbenefitsnare npayable nundernthenMasterncontract
n Fullnbenefitsnarenpayablenundernthenconvertednpolic
y
Benefitsnlessnrequirednpremiumnarenpayable nundernthenconvertednpolicyn-nanswer-
Fullnbenefitsnare npayable nundernthe nMasterncontract
Allnof nthe nfollowingnare nlimitednbenefitnplansnEXCEPTncanc
ernpolicies
life ninsurance npoliciesnde
ntalnpolicies
criticalnillnessnpoliciesn-nanswer-life ninsurance npolicies
Anphysiciannopensnupnannewnpracticenandnqualifiesnfornan$7,000/monthnDisabilitynIncomenpolicy.nWhat
n ridernwouldn the nphysician n addn if nhen wantsn then ability n ton increasen hisnpolicy n benefitn asnhisn practicen an
dnincome ngrow?
ExtendednTermnrider
CostnofnLivingnAdjustmentnridernGuarante
ednInsurabilitynOptionnrider
Waivernof nPremiumnridern- nanswer-GuaranteednInsurabilitynOptionnrider
Annagentnwhose nlicense nhasnbeennrevokednisnrequirednto
waitnatnleastnfive nyearsnbefore napplyingnfornannewnlicense
submitnallnpreviouslynwrittennpoliciesntonthenCommissionernofnInsurance'snofficenfornservicingnofnthe
n accounts
cancelnallnpoliciesncurrentlyninneffectnandnadvise nthe ninsuredsntonplace nthemnelsewhere
continuentonservicenthenexistingnaccountsnbutnnotnsolicitnnewnbusinessn-nanswer-
waitnatnleastnfive nyearsnbefore napplyingnfornannewnlicense
The nbenefitsnundernanDisabilitynBuy-Outnpolicynare
, normallynpaidninninstallmentsnt
axable ntonthe nbeneficiary
payable ntonthe ncompanynornanothernshareholder
normallynpaidnafternanshortneliminationnperiodn-nanswer-payable ntonthencompanynornanothernshareholder
he nHealthnInsurance nPortabilitynandnAccountabilitynActn(HIPAA) ngivesnprivacynprotectionnfor
insolvency
healthninformationnfi
nancialninformation
overinsurance n-nanswer-healthninformation
Hownare nsurrendernchargesndeductedninnanlife npolicynwithnanrear-endnloadednprovision?
DeductednfromnthendeathnbenefitnDeduct
ednwhennthenpolicynisndiscontinuednDeduc
tednfromnpolicy'sncashnvalue
Deductednwhennassignedntonanothernpolicyownern-nanswer-Deductednwhennthe npolicynisndiscontinued
WhatnMUSTnanninsurance ncompanynuse ninnitsnadvertising?
Itsntrade nname
Itsntrue ncorporate nnamen
Itsnservice nmark
Itsncorporate nlogon-nanswer-Itsntrue ncorporate nname
Annaccidentnpolicynwillnmostnlikelynpaynanbenefitnforna(n)
