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TEXAS STATE LIFE AND HEALTH INSURANCE EXAM
SIMULATOR 2024-2025 ACTUAL EXAM 100
QUESTIONS AND CORRECT DETAILED ANSWERS
A 42-year-old executive wants to purchase life insurance that
will allow for increases or decreases to coverage as his/her
needs change. Which of the following policies will best meet this
need?
Endowment at Age 75
Universal Life
Graded Benefit Whole Life
Modified Whole Life - ...ANSWER✓✓✓Universal Life
A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she injures
herself while walking in the park, what coverage would be
considered primary?
Medicaid
Long-term care
Medicare
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Her group health plan - ...ANSWER✓✓✓Her group health plan
A Business Disability Buyout plan policy is designed
as an incurred expense plan
with a very short Elimination period
to pay benefits to the Corporation or other shareholders
to pay benefits to the insured's spouse - ...ANSWER✓✓✓to pay
benefits to the Corporation or other shareholders
A certificate of authority does which of the following?
Gives an agent authority to represent a specific insurance
company
Permits an agent to solicit insurance in Texas
Permits a decreased agent's relative to act as an agent for a
limited period of time
Permits an insurance company to transact business in Texas -
...ANSWER✓✓✓Permits an insurance company to transact
business in Texas
A comprehensive major medical health insurance policy contains
an Eligible Expenses provision which identifies the types of
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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
A creditor who requires a debtor to obtain insurance from a
particular company or agent as a condition for a loan is
guilty of
coercion
fraud
rebating
boycotting - ...ANSWER✓✓✓coercion
A father who dies within 3 years after purchasing a life insurance
policy on his infant daughter can have the policy premiums
waived under which provision?
Payor provision
Accelerated Benefits provision
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Assignment provision
Waiver of Premium provision - ...ANSWER✓✓✓Payor provision
A foreign insurance company is one that is incorporated
under Texas law
under the laws of another state
is a territory of the United States
outside the United States - ...ANSWER✓✓✓under the laws of
another state
A group life insurance policy may NOT insure groups consisting
exclusively of persons who are
salaried, clerical, or administrative employees
hourly paid laborers or their supervisors
administrative, managerial, or sales personnel
related by marriage, blood or legal adoption -
...ANSWER✓✓✓related by marriage, blood or legal adoption
A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a
TEXAS STATE LIFE AND HEALTH INSURANCE EXAM
SIMULATOR 2024-2025 ACTUAL EXAM 100
QUESTIONS AND CORRECT DETAILED ANSWERS
A 42-year-old executive wants to purchase life insurance that
will allow for increases or decreases to coverage as his/her
needs change. Which of the following policies will best meet this
need?
Endowment at Age 75
Universal Life
Graded Benefit Whole Life
Modified Whole Life - ...ANSWER✓✓✓Universal Life
A 66 year-old is covered under a group health plan while
employed with a business that has 40 employees. If she injures
herself while walking in the park, what coverage would be
considered primary?
Medicaid
Long-term care
Medicare
,2|Page
Her group health plan - ...ANSWER✓✓✓Her group health plan
A Business Disability Buyout plan policy is designed
as an incurred expense plan
with a very short Elimination period
to pay benefits to the Corporation or other shareholders
to pay benefits to the insured's spouse - ...ANSWER✓✓✓to pay
benefits to the Corporation or other shareholders
A certificate of authority does which of the following?
Gives an agent authority to represent a specific insurance
company
Permits an agent to solicit insurance in Texas
Permits a decreased agent's relative to act as an agent for a
limited period of time
Permits an insurance company to transact business in Texas -
...ANSWER✓✓✓Permits an insurance company to transact
business in Texas
A comprehensive major medical health insurance policy contains
an Eligible Expenses provision which identifies the types of
,3|Page
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
A creditor who requires a debtor to obtain insurance from a
particular company or agent as a condition for a loan is
guilty of
coercion
fraud
rebating
boycotting - ...ANSWER✓✓✓coercion
A father who dies within 3 years after purchasing a life insurance
policy on his infant daughter can have the policy premiums
waived under which provision?
Payor provision
Accelerated Benefits provision
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Assignment provision
Waiver of Premium provision - ...ANSWER✓✓✓Payor provision
A foreign insurance company is one that is incorporated
under Texas law
under the laws of another state
is a territory of the United States
outside the United States - ...ANSWER✓✓✓under the laws of
another state
A group life insurance policy may NOT insure groups consisting
exclusively of persons who are
salaried, clerical, or administrative employees
hourly paid laborers or their supervisors
administrative, managerial, or sales personnel
related by marriage, blood or legal adoption -
...ANSWER✓✓✓related by marriage, blood or legal adoption
A group-owned insurance company that is formed to assume
and spread the liability risks of its members is known as a
