150 QUESTION EXAM SIMULATOR: TEXAS LIFE AND

PDF Download

150 QUESTION EXAM SIMULATOR: TEXAS LIFE AND

HEALTH

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: What is required for an agent whose license has been revoked?

Answer:

wait at least five years before applying for a new license

Question 2: With whom may an agent legally share commissions?

Answer:

Another agent with the same line of insurance Question 3: 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?

Answer:

Family Maintenance Policy Question 4: Traditional individual retirement annuity (IRA) distributions must start by:

Answer:

April 1st of the year following the year the participant attains age 70 1/2

Question 5: An example of an unfair claims settlement practice is

Answer:

turning down a claim without providing the basis of denial Question 6: The amount of monthly disability benefits payable under Social Security is affected by which of the following factors?

Answer:

The amount of the benefits available from other sources Question 7: Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

Answer:

Inspection report Question 8: Which of these terms accurately defines an underwriter's assessment of information on a health insurance application?

Answer:

Risk classification Question 9: Which of the following BEST describes a short-term medical expense policy?

Answer:

nonrenewable Question 10: What type of life insurance incorporates flexible premiums and an adjustable death benefit?

Answer:

Universal Life Question 11: Y purchased $100,000 worth of permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on the same policy. Which of these policies did Y purchase?

Answer:

A Whole Life Policy with an Other Insured Rider

Question 12: In Texas, which of these statements regarding the Suicide clause is TRUE?

Answer:

An insurer may not use suicide as a defense against payment after the second year Question 13: A temporary agent's license issued by the Commissioner of Insurance is valid for up to ___ days.

Answer:

90 Question 14: Credit life insurance is typically issued with which of the following types of coverage?

Answer:

Decreasing term Question 15: As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

Answer:

coercion

Question 16: How often must an insurance agent license normally be renewed?

Answer:

every two years

Question 17: Which Long Term Care insurance statement is true?

Answer:

Pre-existing conditions must be covered after the coverage has been in force for six months Question 18: Which of the following is a valid reason for an enrollee to be cancelled by a Health Maintenance Organization (HMO) plan?

Answer:

Nonpayment of coverage Question 19: Which of the following is TRUE about a qualified retirement that is "top heavy"?

Answer:

More than 60% of plan assets are in key employee accounts

Question 20: The free-look provision begins

Answer:

Upon receipt of the policy by the policyowner Question 21: When must insurable interest be present in order for a life insurance policy to be valid?

Answer:

When the application is made Question 22: A certificate of ________ permits an insurance company to transact business in Texas.

Answer:

authority Question 23: Which of these retirement plans can be started by an employee, even if another plan is in existence?

Answer:

Individual Retirement Account (IRA)

Question 24: Which of these is NOT an example of doing insurance business?

Answer:

Selling shares of stock

Question 25: To terminate an agent's appointment, an insurance company must

Answer:

send termination notice to the Texas Department of Insurance Question 26: How long does an individual have to "rollover" funds from an IRA or qualified plan?

Answer:

60 days Question 27: In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?

Answer:

Owner's Rights