TEXAS LIFE AND HEALTH INSURANCE FINAL EXAM

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TEXAS LIFE AND HEALTH INSURANCE FINAL EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -99 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?Issue the policy with a diabetes exclusion Issue the policy with an altered Time of Payment of Claims provision Issue the policy with a rating Decline the applicant

Answer:

Issue the policy with an altered Time of Payment of Claims provision Question 2: T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?Income for a fixed period stated in the contract Income that cannot be outlived by the owner Inflation protection Tax-free income

Answer:

Income that cannot be outlived by the owner Question 3: ABC Insurance Company has accepted a life insurance application which contains unanswered questions. The company then makes the application part of the life contract. In this

situation, the insurer has:

waived one of its legal rights issued a voidable policy committed an act of fraud assigned the risk to a reinsurer

Answer:

waived one of its legal rights Question 4: A group life insurance policy may NOT insure groups consisting exclusively of persons who are salaried, clerical, or administrative employees hourly paid laborers or their supervisors administrative, managerial, or sales personnel related by marriage, blood or legal adoption

Answer:

related by marriage, blood or legal adoption Question 5: T has a term policy that allows him to continue the coverage after expiration of the initial policy period. What type of term coverage is this?Renewable Increasing Level Decreasing

Answer:

Renewable Question 6: Which of the following types of policies pays a benefit if the insured goes blind?Universal life AD&D Endowment Adjustable life

Answer:

AD&D

Question 7: Which of these is NOT a type of agent authority?

Express Implied Principal Apparent

Answer:

Principal

Question 8: Under the Texas insurance code, which of the following statements about the Suicide clause is CORRECT?The Commissioner of Insurance must review insurance companies' Suicide clauses every five years for discrimination A Suicide clause must apply equally to Life and Accidental Death and Dismemberment (AD&D) policies An insurance company must actuarially justify any suicide limitation Suicide may not be a defense against payment after the second year

Answer:

Suicide may not be a defense against payment after the second year Question 9: 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:

policy is delivered free-look period has expired insurance company issues policy initial premium is collected

Answer:

free-look period has expired Question 10: Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Texas Insurance Code covering *rebating *false advertising *discrimination *unfair methods of competition

Answer:

unfair methods of competition Question 11: Which of the following types of health coverage frequently uses a deductible?Major Medical policy Basic Surgical policy Basic Hospital policy Worker's Compensation

Answer:

Major Medical policy

Question 12: Which of the following situations does a Critical Illness plan cover?Asthma Leukemia Alcohol rehabilitation Severe car accident

Answer:

Leukemia Question 13: Group life policies MUST include all of the following provisions EXCEPT Ownership Beneficiary Designation Conversion Privilege Right to Loan Proceeds

Answer:

Right to Loan Proceeds Question 14: Which of the following types of organizations are prepaid group health plans, where members pay in advance for the services of participating physicians and hospitals that have agreements?

PPO HMO MEWA POS

Answer:

HMO

Question 15: Which statement is TRUE in regards to a policy loan?

Past-due interest payments not paid after 3 months will void the policy Past-due interest on a policy loan is added to the total debt Insurance companies can send delinquent interest accounts to a collection agency Insurance companies can charge an interest rate based on the policyowner's credit report

Answer:

Past-due interest on a policy loan is added to the total debt Question 16: Which statement regarding the Misstatement of Age provision is considered to be true?Coverage will be adjusted to reflect the insured's true age if a misstatement of age is discovered Requires that a new policy must be applied for if a misstatement of age is found on the current policy Misstatement of Age provision is valid only during the contestable period Insurer may void the policy if a misstatement of age is discovered