Texas Life and Health Insurance Practice
Test Exam with 100% Correct Answers
2023
T owns an Accident & Health policy and notifies her insurance company that she has
chosen a less hazardous occupation. Under the Change of Occupation provision, which
of the following actions may her insurance company take? - Correct Answer-Increase
her policy's coverage amount
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
a(n) - Correct Answer-Exclusion
An agent who tells claimants that their rights may be impaired if they fail to complete a
release form within a given period of time could be guilty of..? - Correct Answer-
Coercion
What does the insuring agreement in a Life insurance contract establish? - Correct
Answer-An insurer's basic promise
The first portion of a covered Major Medical insurance expense that the insured is
required to pay is called the..? - Correct Answer-Initial deductible
A "reimbursement policy" pays what amount of covered Long-Term Care expenses? -
Correct Answer-Actual covered expenses up to the daily maximum
The agreement in a life insurance contract that states a specific sum of money will be
paid to a designated person upon an insured's death is called a(n) - Correct Answer-
Insuring agreement
W is a 39-year old female who just purchased an annuity to provide income for life
starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) -
Correct Answer-Immediate annuity
Which of these are NOT an example of a Nonforfeiture option? - Correct Answer-Life
Income
S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. S can take legal action against the
insurer beginning..? - Correct Answer-November 1
,An enrollee of a Health Maintenance Organization (HMO) may be cancelled or
nonrenewed for which of the following reasons? - Correct Answer-Failure to pay for
coverage
An agent who tells a client that dividends are guaranteed may be guilty of..? - Correct
Answer-misrepresentation
On delivery of a policy, a signed statement of good health is typically requested if..? -
Correct Answer-The application was submitted without the initial premium.
One becomes eligible for Social Security disability benefits after having been disabled
for..? - Correct Answer-5 mo.
M is insured under a basic Hospital/Surgical Expense policy. A physician performs
surgery on M. What determines the claim M is eligible for? - Correct Answer-
Determined by the terms of the policy
When an insurance application is taken by a producer, which of these statements is
true? - Correct Answer-Any changes made on the application require the applicant's
initials
Which of the following statements BEST describes the intent of a Coinsurance clause in
a Major Medical policy? - Correct Answer-Discourages over utilization of the insurance
coverage
Health insurance benefits NOT covered due to an act of war are..? - Correct Answer-
excluded by the insurer in the contract provisions
Under the Texas code, the MAXIMUM for which a spouse may be insured in a company
group life program with a $50,000 death benefit is: - Correct Answer-25,000 (or 1/2 of
the death benefit)
An agent MUST give a prospective insured an Outline of Coverage when taking an
application for a..? - Correct Answer-Medicare Supplement policy
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? - Correct Answer-Insured's contingent beneficiary
(policy proceeds will be paid as if the insured died last. In other words, the proceeds will
be paid to the secondary or contingent beneficiary)
A policyowner's rights are limited under which beneficiary designation? - Correct
Answer-Irrevocable
An agent whose license has been revoked is required to..? - Correct Answer-wait at
least five years before applying for a new license
, An agent may legally share commissions only with - Correct Answer-another agent who
is licensed in the same line of insurance
Who can purchase a plan through the Marketplace? - Correct Answer-Any legal
resident except those incarcerated
Which of the following circumstances would cause a Medicare Supplement policy to be
cancelled? - Correct Answer-The insured fails to pay the premium
In Texas, a domestic insurance company is defined as a company that..? - Correct
Answer-is incorporated and formed in Texas
All of the following provisions must be included in life insurance policies EXCEPT -
Correct Answer-Extended Term
The Insurance Commissioner may examine the records of an insurance company in
order to - Correct Answer-determine the solvency of the company
Before holding a hearing regarding an agent's unfair or deceptive practice, the
Insurance Commissioner MUST give how many days notice? - Correct Answer-30
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are
prohibited under the Texas Insurance Code covering - Correct Answer-unfair methods
of competition
Which life insurance rider typically appears on a Juvenile life insurance policy? - Correct
Answer-Payor Benefit rider
Which of the following health insurance policy provisions specifies the health care
services a policy will provide? - Correct Answer-Insuring Clause
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? - Correct Answer-Her group health plan. If the employer has
more than 20 employees, the group health plan generally pays first.
A life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached? - Correct Answer-Waiver of
Premiums
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - Correct Answer-Accidental Death and
Dismemberment rider (AD&D)
Test Exam with 100% Correct Answers
2023
T owns an Accident & Health policy and notifies her insurance company that she has
chosen a less hazardous occupation. Under the Change of Occupation provision, which
of the following actions may her insurance company take? - Correct Answer-Increase
her policy's coverage amount
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
a(n) - Correct Answer-Exclusion
An agent who tells claimants that their rights may be impaired if they fail to complete a
release form within a given period of time could be guilty of..? - Correct Answer-
Coercion
What does the insuring agreement in a Life insurance contract establish? - Correct
Answer-An insurer's basic promise
The first portion of a covered Major Medical insurance expense that the insured is
required to pay is called the..? - Correct Answer-Initial deductible
A "reimbursement policy" pays what amount of covered Long-Term Care expenses? -
Correct Answer-Actual covered expenses up to the daily maximum
The agreement in a life insurance contract that states a specific sum of money will be
paid to a designated person upon an insured's death is called a(n) - Correct Answer-
Insuring agreement
W is a 39-year old female who just purchased an annuity to provide income for life
starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) -
Correct Answer-Immediate annuity
Which of these are NOT an example of a Nonforfeiture option? - Correct Answer-Life
Income
S filed a written Proof of Loss for a Disability Income claim on September 1. The
insurance company did not respond to the claim. S can take legal action against the
insurer beginning..? - Correct Answer-November 1
,An enrollee of a Health Maintenance Organization (HMO) may be cancelled or
nonrenewed for which of the following reasons? - Correct Answer-Failure to pay for
coverage
An agent who tells a client that dividends are guaranteed may be guilty of..? - Correct
Answer-misrepresentation
On delivery of a policy, a signed statement of good health is typically requested if..? -
Correct Answer-The application was submitted without the initial premium.
One becomes eligible for Social Security disability benefits after having been disabled
for..? - Correct Answer-5 mo.
M is insured under a basic Hospital/Surgical Expense policy. A physician performs
surgery on M. What determines the claim M is eligible for? - Correct Answer-
Determined by the terms of the policy
When an insurance application is taken by a producer, which of these statements is
true? - Correct Answer-Any changes made on the application require the applicant's
initials
Which of the following statements BEST describes the intent of a Coinsurance clause in
a Major Medical policy? - Correct Answer-Discourages over utilization of the insurance
coverage
Health insurance benefits NOT covered due to an act of war are..? - Correct Answer-
excluded by the insurer in the contract provisions
Under the Texas code, the MAXIMUM for which a spouse may be insured in a company
group life program with a $50,000 death benefit is: - Correct Answer-25,000 (or 1/2 of
the death benefit)
An agent MUST give a prospective insured an Outline of Coverage when taking an
application for a..? - Correct Answer-Medicare Supplement policy
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? - Correct Answer-Insured's contingent beneficiary
(policy proceeds will be paid as if the insured died last. In other words, the proceeds will
be paid to the secondary or contingent beneficiary)
A policyowner's rights are limited under which beneficiary designation? - Correct
Answer-Irrevocable
An agent whose license has been revoked is required to..? - Correct Answer-wait at
least five years before applying for a new license
, An agent may legally share commissions only with - Correct Answer-another agent who
is licensed in the same line of insurance
Who can purchase a plan through the Marketplace? - Correct Answer-Any legal
resident except those incarcerated
Which of the following circumstances would cause a Medicare Supplement policy to be
cancelled? - Correct Answer-The insured fails to pay the premium
In Texas, a domestic insurance company is defined as a company that..? - Correct
Answer-is incorporated and formed in Texas
All of the following provisions must be included in life insurance policies EXCEPT -
Correct Answer-Extended Term
The Insurance Commissioner may examine the records of an insurance company in
order to - Correct Answer-determine the solvency of the company
Before holding a hearing regarding an agent's unfair or deceptive practice, the
Insurance Commissioner MUST give how many days notice? - Correct Answer-30
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are
prohibited under the Texas Insurance Code covering - Correct Answer-unfair methods
of competition
Which life insurance rider typically appears on a Juvenile life insurance policy? - Correct
Answer-Payor Benefit rider
Which of the following health insurance policy provisions specifies the health care
services a policy will provide? - Correct Answer-Insuring Clause
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? - Correct Answer-Her group health plan. If the employer has
more than 20 employees, the group health plan generally pays first.
A life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached? - Correct Answer-Waiver of
Premiums
The option that provides an additional death benefit for a limited amount of time at the
lowest possible cost is called a(n) - Correct Answer-Accidental Death and
Dismemberment rider (AD&D)
