Pearson vue Texas life and health insurance test questions

Pearson vue Texas life and health insurance test questions Students also studied Social Science BusinessInsurance Save

chapter 13: Blue Cross Blue Shield

17 terms tashionnaPreview MAA Quiz 10 Review 57 terms anachambers00 Preview chapter 6 79 terms Victor_Diaz2178 Preview MODU 18 terms fvw Who is obligated to make sure all questions are answered and all necessary signatures are collected on the application?The Agent An underwriter is reviewing an applicant with an extensive medical history. Which of the following would give the underwriter a better understanding of how the applicant has been treated for various illnesses?Attending physician's statement Which of the following would NOT be eligible for coverage under key person?The owner of the shop With Adjustable Life, the owner can change all of the following EXCEPT The insured Which of the following is provided by skilled medical personnel to those who need occasional medical assistance or rehabilitative care?Intermediate care Partial disability usually pays what percentage of the total disability benefit?50% Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis?

• Residential care
• Assisted living
• Home health care
• Adult day care
• Adult day care

An insured's long-tern care policy is scheduled to pay fixed amount of coverage of $120 per day. The long-term care facility only charged $100 per day.How much will the insurance company pay?

• 20% of the total cost
• $120 a day
• $100 a day
• 80% of the total cost
• $120 a day

In comparison to a policy that uses the accidental means definition, a policy that uses the accidental bodily injury definition would provide coverage that is

• More limited in duration
• Broader in duration
• Broder in general
• More limited in general
• Broader in general

An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?

• The entire living benefits is considered

taxable income

• A portion of the benefits up to a limit is

tax-free; the rest is taxable income

• Principle is tax free, but interest is taxed
• The entire benefits will be received tax

free

• B. A portion of the benefits up to a limit is tax-free; the rest is taxable income

All of the following are true of an annuity owner EXCEPT

• The owner has the right to name the

beneficiary

• The owner is the party who may

surrender the annuity

• The owner must be the party to receive

benefits

• The owner pays the premiums on the

annuity

• The owner must be the party to receive benefits

How is emergency care covered for a member of an HMO?

• An HMO emergency specialist will cover

the patient

• A member of an HMO can receive care

in or out of the HMO service area, but care is preferred in the service area

• A member of an HMO may receive care

at any emergency facility, at the same cost as if in his or her own service area

• HMOs have salaried member physicians,

but they do not cover emergency care

• A member of an HMO can receive care in or out of the HMO service area, but

care is preferred in the service area

Death benefits payable to a beneficiary under a life insurance policy are generally

• Subject to income taxation by the

federal government

• Exempt from income taxation if under

$10,000

• Exempt from income taxation if over

$10,000

• Not subject to income taxation by the

federal government

• Not subject to income taxation by the federal government

Which of the following best describes the aleatory nature of an insurance contract?

• Only one of the parties being legally

bound by the contract

• Ambiguities are interpreted in favor of

the insured

• Policies are submitted to the insurer on a

take-it-or-leave-it basis

• Exchange of unequal values
• Exchange of unequal values

Which of the following is considered a presumptive disability under a disability income policy

• Loss of two limbs
• Loss of an eye
• Loss of hearing in one ear
• Loss of one hand or foot
• loss of two limbs

An insured purchased a noncancelable health insurance policy 1 year ago. Which of the following circumstances would NOT be a reason for the insurance company to cancel the policy?

• The insured reaches the maximum age

limit specified in the policy

• Within two years of the application, the

insurer discovers a misrepresentation

• The insured is an accident and incurs a

large claim

• The insured does not pay the premium
• The insured is an accident and incurs a large claim

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

• The same as the original policy minus the

cash value

• Equal to the original policy for as long as

the cash values will purchase

• In lesser amounts for the remaining

policy term of age 100

• Equal to the cash value surrendered

from the policy

• Equal to the original policy for as long as the cash values will purchase

*What is the purpose of settlement options?

• They are guarantees built into the policy
• They guarantee a return of excess

premiums

• they provide the beneficiary the income

he/she cannot outlive

• Determines how the death benefit will

be paid to the beneficiary

• Determines how the death benefit will be paid to the beneficiary

The premium charged for exercising the guaranteed insurability Rider is based upon the insured's

• Assumed age
• Average age
• Issue age
• Attained age
• Attained age

Which of the following best describes the "first-dollar coverage" principle in basic medical insurance?

• The insured must first pay a deductible
• The insurer covers the first claim on the

policy

• Deductibles and coinsurance are taxed

first

• The insured is not required to pay a

deductible

• The insured is not required to pay a deductible

Which of the following determines the cash value of a variable life policy?

• The performance of the policy portfolio
• The company's general account
• The policy's guarantees
• The premium mode
• The premium mode

An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?

• The date of the application
• The date of the medical exam
• The date of policy delivery
• The date of issue
• The date of the medical exam

An applicant who receives a preferred risk classification qualifies for

• Higher premiums than a person who

receives a sub-standard risk

• Higher premiums than a person who

receives a standard risk

• Lower premiums than a person who

receives a standard risk

• Dividends payable for lack of claims
• Lower premiums than a person who receives a standard risk