TEXAS STATE EXAM SIMULATOR LIFE
AND HEALTH INSURANCE 2 VERSIONS
2025/2026 BANK CURRENTLY TESTING
COMPLETE QUESTIONS WITH DETAILED
VERIFIED ANSWERS /ALREADY GRADED
A+
If the insured and primary beneficiary are both killed in
the same accident and it cannot be determined who died
first, where are the death proceeds to be directed under the
Uniform Simultaneous Death Act?
Primary beneficiary's estate
Primary beneficiary's next of kin
Insured's estate
Insured's contingent beneficiary - ....ANSWER...Insured's
contingent beneficiary
Which of these is NOT considered to be a cost connected
with an individual's death?
,Funeral expense
Tax liability
Business expenses
Probate costs - ....ANSWER...Business expenses
Which of the following requires insurers to disclose when
an applicant's consumer or credit history is being
investigated
1970 - Fair Credit Reporting Act
1959 - Intervention by (SEC) The Securities and Exchange
Commission
1999 - Financial Services Modernization Act
1945 - The McCarran-Ferguson Act - ....ANSWER...1970 -
Fair Credit Reporting Act
What kind of life insurance policy pays a specified
monthly income to a beneficiary for 30 years and then
pays a lump sum benefit at the end of that 30 years?
Family Lump Sum Policy
,Family Maintenance Policy
Family Survivor Policy
Family Income Policy - ....ANSWER...Family
Maintenance Policy
Which of the following statements about the classification
of applicants is INCORRECT?
Substandard applicants are never declined by underwriters
Substandard applicants are occasionally declined by
underwriters
Preferred risk applicants typically have better premium
rates than standard risk applicants
An applicant can be classified as substandard risk because
of a hazardous job - ....ANSWER...Substandard
applicants are never declined by underwriters
A Health Reimbursement Arrangement MUST be
established
with employee funding
, with other employer-sponsored benefit plans
by the employer
only during specific open enrollment periods -
....ANSWER...by the employer
Variable annuities may invest premiums in each of the
following EXCEPT
Common Stock
Money Market securities
Insurer's corporate business account
Junk bonds - ....ANSWER...Insurer's corporate business
account
Under the USA Patriot Act, insurers are required to report
receipt of cash payments in excess of
$10,000
$7,500
$5,000
$2,500 - ....ANSWER...$10,000
AND HEALTH INSURANCE 2 VERSIONS
2025/2026 BANK CURRENTLY TESTING
COMPLETE QUESTIONS WITH DETAILED
VERIFIED ANSWERS /ALREADY GRADED
A+
If the insured and primary beneficiary are both killed in
the same accident and it cannot be determined who died
first, where are the death proceeds to be directed under the
Uniform Simultaneous Death Act?
Primary beneficiary's estate
Primary beneficiary's next of kin
Insured's estate
Insured's contingent beneficiary - ....ANSWER...Insured's
contingent beneficiary
Which of these is NOT considered to be a cost connected
with an individual's death?
,Funeral expense
Tax liability
Business expenses
Probate costs - ....ANSWER...Business expenses
Which of the following requires insurers to disclose when
an applicant's consumer or credit history is being
investigated
1970 - Fair Credit Reporting Act
1959 - Intervention by (SEC) The Securities and Exchange
Commission
1999 - Financial Services Modernization Act
1945 - The McCarran-Ferguson Act - ....ANSWER...1970 -
Fair Credit Reporting Act
What kind of life insurance policy pays a specified
monthly income to a beneficiary for 30 years and then
pays a lump sum benefit at the end of that 30 years?
Family Lump Sum Policy
,Family Maintenance Policy
Family Survivor Policy
Family Income Policy - ....ANSWER...Family
Maintenance Policy
Which of the following statements about the classification
of applicants is INCORRECT?
Substandard applicants are never declined by underwriters
Substandard applicants are occasionally declined by
underwriters
Preferred risk applicants typically have better premium
rates than standard risk applicants
An applicant can be classified as substandard risk because
of a hazardous job - ....ANSWER...Substandard
applicants are never declined by underwriters
A Health Reimbursement Arrangement MUST be
established
with employee funding
, with other employer-sponsored benefit plans
by the employer
only during specific open enrollment periods -
....ANSWER...by the employer
Variable annuities may invest premiums in each of the
following EXCEPT
Common Stock
Money Market securities
Insurer's corporate business account
Junk bonds - ....ANSWER...Insurer's corporate business
account
Under the USA Patriot Act, insurers are required to report
receipt of cash payments in excess of
$10,000
$7,500
$5,000
$2,500 - ....ANSWER...$10,000
