TEXAS LIFE AND HEALTH STATE EXAM SIMULATOR

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TEXAS LIFE AND HEALTH STATE EXAM SIMULATOR

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

-Format: Multiple-choice / Flashcard

Question 1: Credit Life Insurance is

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insurance issued on a debtor to cover outstanding loan balances Question 2: 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?

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Claim will be denied Question 3: Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

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Inspection report Question 4: An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be

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converted to an individual permanent policy at an individual rate

Question 5: P received Disability income benefits for 3 months then returns to work. She is able to work one month before her condition returns, leaving her disabled once again. What would the insurance company most likely regard this second period of disability as?

Answer:

A recurrent disability

Question 6: Which Long Term Care insurance statement is true?

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Pre-existing conditions must be covered after the coverage has been in force for six months Question 7: ___ of continuing education MUST be completed in the classroom or classroom equivalent

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50% Question 8: T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take?

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Increase her policy's coverage amount Question 9: The federal income tax treatment of employer-provided group Medical Expense insurance can be accurately described as

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Employee's premiums paid by the employer is tax deductible to the empolyer as business expenditure Question 10: A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a

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profit-sharing plan Question 11: The Consolidate Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employement has been terminated the right to

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continue group health benefits

Question 12: A certificate of ____ permits an insurance company to transact business in Texas

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authority Question 13: Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?

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Variable Life Question 14: The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the

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Cost of insurance Question 15: An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim?

Answer:

$1,250

Question 16: During a sales presentation for a participating life insurance policy, an agent MUST

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make a prospect understand that dividends are NOT guaranteed Question 17: Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy?

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increase face amount Question 18: A life insurance policy would be considered a wagering contract WITHOUT

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insurable interest

Question 19: Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

Answer:

Return to the customer, collect a new check made out to the insurance company and send the new check out to the insurance company

Question 20: A plan through the Marketplace may be purchased by

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any legal resident (except those imprisoned) Question 21: When an insurer issues a policy that refuses to cover certain risks, this is referred to as an

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exclusion Question 22: The provision that defines to whom the insurer will pay benefits to is called

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Payment of Claims Question 23: 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?

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Insurer will likely treat as a pre-existing condition which may not be covered for one year Question 24: K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

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Daughter Question 25: Q applied for life insurance and submitted the initial premium on January

• The policy was issued February 1, but it was not delivered by the agent until February 7. Q is

dissatisfied and returns the policy February 13. How will the insurer handle this situation?

Answer:

Policy was retured within the free-look period, premium will be fully refunded