FREE AND STUDY GAMES ABOUT TX LIFE HEALTH EXAM

PDF Download FREE AND STUDY GAMES ABOUT TX LIFE & HEALTH EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -60 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation Question 1: An assignment of benefits of a Health Policy: -transfers payments to someone other than the policyowner -is prohibited by state law -is allowed only on policies dates after 1992 -transfers rights from the company to the policyholder

Answer:

ANSWER: transfers payments to someone other than the policyowner

An assignment of benefits of a Health Policy transfers payments to someone other than the policyowner.Question 2: 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

Answer:

ANSWER: 20-Pay Life accumulates cash value faster than Straight Life

In this situation, the statement "20-Pay Life accumulates cash value faster than Straight Life" would be correct.

Question 3: T applies for a life insurance policy and is told by the producer that the insurer is bound to the coverage as of the date of the application or medical examination, whichever is later. Assuming that T is an acceptable risk, what item is given to T?-Bi

Answer:

ANSWER: Conditional receipt

A conditional receipt binds the insurer to coverage as of the date of the application or medical exam, provided the proposed insured is determined to be an acceptable risk.Question 4: Which of the following actions does the Commissioner of Insurance NOT have the power to conduct?-Activate insurance companies' financial reserves -Compute insurance companies' required financial reserves -Issue insurance licenses -Handle insurance-r

Answer:

ANSWER: Activate insurance companies' financial reserves

The Commissioner of Insurance has the power and duty to take all of these actions EXCEPT activate insurance companies' financial reserves.

Question 5: Which of these is an element of a Variable Life policy?

-A fixed, level premium -Insurer assumes the investment risk -No investment risk to the policyowner -Rate of returns are guaranteed

Answer:

ANSWER: A fixed, level premium

Variable Whole Life policies have a fixed, level premium.Question 6: 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

Answer:

ANSWER: Substandard applicants are never declined by underwriters

This is false. An individual can be rated substandard for a number of reasons and can even be rejected outright.Question 7: The Notice of Claims provision requires a policyowner to: -provide proof of loss to an insurer within a specified time -notify an insurer of a claim within a specified time -wait 60 days after filing a claim to initiate a lawsuit against an insure

Answer:

ANSWER: notify an insurer of a claim within a specified time

The Notice of Claims provision spells out the insured's duty to provide the insurer with reasonable notice in the event of a loss.Question 8: Medicaid was designed to assist individuals who are: -Federal employees -disabled -in poor health -below a specific income limit

Answer:

ANSWER: below a specific income limit

Medicaid was enacted to provide medical assistance to those whose income is below a specific limit.Question 9: 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?

-Claim will be denied -Claim will be paid in full -Claim will be partially paid -Claim w

Answer:

ANSWER: Claim will be denied

In this situation, the insurance company will deny the claim, as the policy would have lapsed due to nonpayment by September 15.

Question 10: ____ of continuing education MUST be completed in the classroom or classroom equivalent.-20% -50% -80% -100%

Answer:

ANSWER: 50%

50% of continuing education requirement must be spent in a classroom setting.Question 11: Which of the following characteristics is associated with a large group disability income policy?-No waiting periods -No medical underwriting -No elimination periods -No limit of benefits

Answer:

ANSWER: No medical underwriting

A large group disability income policy can be distinguished by no medical underwriting.Question 12: Which type of life insurance beneficiary requires his/her consent when a change of beneficiary is attempted by the policyowner?-Irrevocable beneficiary -Tertiary beneficiary -Primary beneficiary -Revocable beneficiary

Answer:

ANSWER: Irrevocable beneficiary

An irrevocable designation may not be changed without the written consent of the beneficiary.Question 13: After an insured gives notice of loss, what must he/she do if the insurer does not furnish forms?-File a lawsuit -Contact the insurer again requesting forms -Nothing -File written proof of loss