FINAL EXAM - TEXAS LIFE AND HEALTH

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FINAL EXAM - TEXAS LIFE AND HEALTH

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -98 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Major Medical policies typically

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contain a deductible and coinsurance Question 2: A whole life insurance policyowner does not wish to continue making a premium payments. Which of the following enables the policyowner to sell the policy for more than its cash value?

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Life settlement contract Question 3: Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT?

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If the employee paid for qualified medical expenses, the reimbursements may be tax-free Question 4: ABC Insurance Company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. ABC is committing a prohibited act under Texas insurance laws covering

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unfair methods of competition

Question 5: Which of these provisions require proof of insurability after a policy has lapsed?

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Reinstatement Question 6: Bryce purchased a disability income policy with a rider that guarantees him the option of purchasing additional amounts of coverage at predetermined times without requiring to provide evidence of insurability. What kind of rider is this?

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Guaranteed Insurability rider

Question 7: What is required for an agent whose license has been revoked?

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Wait at least 5 years before applying for a new license Question 8: T has Disability Income policy that pays a monthly benefit of $5000. If T becomes partially disabled, what can he likely expect?

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Less than $5,000 per month benefit regardless of the cause Question 9: A certificate of _____ permits an insurance company to transact business in Texas.

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Authority

Question 10: An example of an unfair claims settlement practice is

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turning down a claim without providing the basis of denial Question 11: The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers

(and their families) whose employment has been terminated the right to:

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continue group health benefits Question 12: Every 12-months after an initial enrollment period, an HMO must hold an open enrollment period of

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31 days

Question 13: Which statement is true regarding a minor beneficiary?

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Normally, a guardian is required to be appointed in the Beneficiary clause of the contract Question 14: When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

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Conversion Provision Question 15: The individual who provides general medical care for a patient as well as the

referral for specialized care is known as:

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Primary Care Physician

Question 16: Which of these do NOT constitute policy delivery?

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Policy issued with a rating Question 17: P is a producer who notices 5 questions on a life application were not answered.What actions should P take?

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Set up a meeting with the applicant to answer the remaining questions Question 18: Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?

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Reimbursement Question 19: N is covered by a Term Life policy and does not make the required premium payment which was due August

• N dies September 15. What action will the insurer take?

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Claim will be denied.

Question 20: Which of the following is the MOST important factor when deciding how much Disability Income coverage an applicant should purchase?

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Applicants monthly income.Question 21: A medicare supplement policy may be cancelled for which of the following reasons?

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The premium has not been paid by the insured

Question 22: How long does an insurance company appointment remain in force?

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Until terminated

Question 23: Basic Medical Expense Insurance

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has lower benefit limits than Major Medical insurance Question 24: M completes an application for life insurance but does not pay the initial premium.All of these actions must occur before M's policy goes into effect EXCEPT

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free-look period has expired Question 25: Upon delivery of a rated life insurance policy, the Producer must obtain each of the following EXCEPT

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Signed HIPPA disclosures Question 26: Why would the Insurance Commissioner examine the records of an insurance company?

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To determine the solvency of the company