TEXAS LIFE AND HEALTH PRE-LICENSING EXAM

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TEXAS LIFE AND HEALTH PRE-LICENSING EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Insurer will likely treat as a pre-existing condition which may not be covered for one year

Answer:

T was treated for an ailment 2 months prior to applying for a health insurance policy. This condition was noted on the application and the policy was issued shortly afterwards. How will the insurer likely consider this condition?

Question 2: Collect initial premium along with a signed health statement

Answer:

On August 6, D submitted an application for a $50,000 Life Insurance policy and did not pay the initial premium. On August 18, D went to his doctor complaining of chest pains and some tests were given by the doctor. The life policy was delivered by the producer on August 20 and D explains what had recently taken place with the doctor. What action should the producer then take?Question 3: If the employee paid for qualified medical expenses, the reimbursements may be tax-free

Answer:

Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT?

Question 4: other agents

Answer:

An insurance agent has a fiduciary responsibility to all of the following EXCEPT

Question 5: Universal Life

Answer:

S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for S would be

Question 6: is found guilty of misrepresentation in obtaining the license

Answer:

A license may be denied, suspended, or revoked if the licensee?

Question 7: coercion

Answer:

As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

Question 8: additional life coverage

Answer:

A Term Life rider offers the insured

Question 9: 31 days

Answer:

In Texas, an individual life insurance policy is REQUIRED to have a grace period of

Question 10: Expense incurred

Answer:

Long Term Care policies will usually pay for eligible benefits using which of the following methods?

Question 11: 10% penalty is applied to withdrawals before age 59 1/2

Answer:

All of the following statements about traditional individual retirement accounts are false EXCEPT

Question 12: performance is conditioned upon a future occurrence

Answer:

Insurance policies are considered aleatory contracts because

Question 13: anti-money laundering rules

Answer:

T cash surrenders a recently-issued whole life policy. He also requests that the proceeds be payable to an unrelated third party. T would likely be red-flagged for violation of

Question 14: Major Medical

Answer:

A catastrophic illness would be best covered by which of the following health insurance plans?

Question 15: Individuals who are related by blood

Answer:

Which of the following groups may NOT be insured by a group life insurance policy?

Question 16: 6

Answer:

Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement is funded with individual life insurance. How many total life policies are needed for this agreement?

Question 17: Adjust the premium payments

Answer:

Which of the following statements describes what an Accident and Health policyowner may NOT do?

Question 18: extended term

Answer:

Which of these provisions is NOT required in life insurance policies?

Question 19: commissioner

Answer:

An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the

Question 20: When the conditions of the receipt are met

Answer:

An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium.When will the policy become effective?

Question 21: unfair methods of competition

Answer:

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

Question 22: automatically add the amount of interest due to the loan balance

Answer:

What action will an insurer take if an interest payment on a policy loan is not made on time?

Question 23: Proceeds will go to the contingent beneficiary

Answer:

A primary beneficiary has died before the insured in a life insurance policy. A contingent beneficiary is also named in the policy. Which of the following will occur when the insured dies?

Question 24: adjust the death benefit to a reduced amount

Answer:

L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L had understated her age on the application. Under the Misstatement of Age provision,

the insurer will:

Question 25: When consideration is provided by one of the parties to the contract

Answer:

At what point does an informal agreement become a binding contract?

Question 26: the initial premium

Answer:

In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and

Question 27: Right to Loan

Answer:

Which of the following is NOT a required provision in group life policies?