TEXAS STATE EXAM SIMULATOR - LIFE
AND HEALTH INSURANCE EXAM |
QUESTIONS & ANSWERS (VERIFIED) |
LATEST UPDATE | GRADED A+
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
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity
Correct Answer: An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been disabled
for
3 months
5 months
6 months
1
,12 months
Correct Answer: 5 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
Correct Answer: 20-Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant
Correct Answer: Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and
2
,the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions
Correct Answer: the initial premium
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty
Correct Answer: Warranty
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
3
, Correct Answer: experimental and investigative services
If ma mretiree mon mMedicare mrequired mfive mhospital mstays min mone myear, mwhich mpolicy mwould
m provide mthe mbest minsurance mfor mexcess mhospital mexpenses?
Long-term mcare
m Indemnity
Medicare mSupplement
m Medicaid
Correct mAnswer: Medicare mSupplement
S, mwhile min mthe mprocess mof mconverting mher mgroup mlife minsurance mto man mindividual
policy, mdies. mWhat mhappens mto mthe mclaim mher mbeneficiary msubmits?
m
No mbenefits mare mpayable munder mthe mMaster
m contract mFull mbenefits mare mpayable munder mthe
m Master mcontract mFull mbenefits mare mpayable munder
m the mconverted mpolicy
Benefits mless mrequired mpremium mare mpayable munder mthe mconverted mpolicy
Correct mAnswer: Full mbenefits mare mpayable munder mthe mMaster mcontract
All mof mthe mfollowing mare mlimited mbenefit mplans mEXCEPT
cancer mpolicies
AND HEALTH INSURANCE EXAM |
QUESTIONS & ANSWERS (VERIFIED) |
LATEST UPDATE | GRADED A+
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
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity
Correct Answer: An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been disabled
for
3 months
5 months
6 months
1
,12 months
Correct Answer: 5 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
Correct Answer: 20-Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant
Correct Answer: Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and
2
,the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions
Correct Answer: the initial premium
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty
Correct Answer: Warranty
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
3
, Correct Answer: experimental and investigative services
If ma mretiree mon mMedicare mrequired mfive mhospital mstays min mone myear, mwhich mpolicy mwould
m provide mthe mbest minsurance mfor mexcess mhospital mexpenses?
Long-term mcare
m Indemnity
Medicare mSupplement
m Medicaid
Correct mAnswer: Medicare mSupplement
S, mwhile min mthe mprocess mof mconverting mher mgroup mlife minsurance mto man mindividual
policy, mdies. mWhat mhappens mto mthe mclaim mher mbeneficiary msubmits?
m
No mbenefits mare mpayable munder mthe mMaster
m contract mFull mbenefits mare mpayable munder mthe
m Master mcontract mFull mbenefits mare mpayable munder
m the mconverted mpolicy
Benefits mless mrequired mpremium mare mpayable munder mthe mconverted mpolicy
Correct mAnswer: Full mbenefits mare mpayable munder mthe mMaster mcontract
All mof mthe mfollowing mare mlimited mbenefit mplans mEXCEPT
cancer mpolicies
