LIFE HEALTH LICENSE TEST TEXAS EXAM FX

PDF Download LIFE & HEALTH LICENSE TEST TEXAS EXAM FX Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The employee usually has a period of ? days after terminating from the group in order to exercise the conversion option. During this time, the employee is still covered under the original group policy.

Answer:

31

Question 2: Group health insurance policies

Answer:

must cover everyone in the group, regardless of age, health history, and occupation. Because of this blanket coverage, the group as a whole is assessed for insurability. The size, average age, gender ratio, persistency, and industry of the group are considered, along with other factors, when determining premiums. Groups can be reassessed annually in order to adjust premium amounts.Question 3: Which of the following is INCORRECT concerning a noncontributory group plan?

Answer:

The employer receives a master policy, and employees receive a certificate of insurance.

Question 4: health insurance grace period

Answer:

The grace period is 7 days if the premium is paid weekly, 10 days if paid monthly, and 31 days for all other modes.

Question 5: Which of the following would be deducted from the death benefit paid to a beneficiary, if a partial accelerated death benefit had been paid while the insured was still alive?

Answer:

Amount paid with the accelerated benefit, plus the earnings lost by the insurance company in interest income from the accelerated benefit Question 6: Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner?

Answer:

Third-party ownership

Question 7: Physical Exam and Autopsy provision

Answer:

allows the insurer to examine the insured as much as is reasonably necessary while the claim is being processed, provided that the insurer pays the expenses.

Question 8: Policy backdating.

Answer:

is not a mandatory provision; in fact, backdating a policy more than 6 months is prohibited.

Question 9: Anyone who violates the Insurance Code of Texas may be fined up to

Answer:

$25,000.

Question 10: During partial withdrawal from a universal life policy, which portion will be taxed?

Answer:

the interest earned on the withdrawn cash value may be subject to taxation.Question 11: In a direct rollover, how is the money transferred from one plan to the new one?

Answer:

From trustee to trustee

Question 12: Nonforfeiture values

Answer:

include cash surrender, extended term and reduced paid-up. Interest only is a settlement option.

Question 13: Which of the following describes the tax advantage of a qualified retirement plan

Answer:

The earnings in the plan accumulate tax deferred.

Question 14: Rebating

Answer:

defined as any inducement offered to the insured in the sale of insurance products that is not specified in the policy. Both the offer and acceptance of a rebate are illegal.

Question 15: elimination period

Answer:

the time immediately following the start of a disability when benefits are not payable. This is used to reduce the cost of providing coverage and eliminates the filing of many claims

Question 16: What is the main purpose of the Seven-pay Test?

Answer:

It determines if the insurance policy is an MEC.

Question 17: impairment rider

Answer:

excludes a specified condition from coverage, therefore, reducing benefits. An insurance company will not charge extra for a rider that reduces benefits.

Question 18: Commissioner of Insurance

Answer:

can issue a temporary, 90-day life insurance agent's license.Question 19: Where in the policy must the HMO insurer provide information about the HMO's name, address, and toll-free number?

Answer:

On the face page

Question 20: Misrepresentation

Answer:

Making false or misleading statements with the intent to defraud another misrepresentation is issuing, publishing or circulating any illustration or sales material that is false, misleading or deceptive as to policy benefits or terms, the payment of dividends, etc. This includes oral

statements.Question 21: Which rider is often used in business life insurance policies when the policyowner needs to change the insured under the policy?

Answer:

Substitute insured rider Question 22: The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

Answer:

One-year term option.The dividend is utilized to purchase one year term insurance.

Question 23: All of the following are business uses of life insurance EXCEPT

Answer:

Funding against general company financial loss.Question 24: Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain

Answer:

A statement that is sufficiently clear to identify the insured and the nature of the claim.The Insurance Code requires that each policy must include, "Written notice of claim must be given to the insurer within 20 days after the occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible".Question 25: Which provision of a life insurance policy states the insurer's duty to pay benefits upon the death of the insured, and to whom the benefits will be paid?

Answer:

Insuring clause

Question 26: convertible term policy

Answer:

has a provision that allows the policyowner to convert to permanent insurance.