TEXAS LIFE AND HEALTH STATE EXAM SIMULATOR PART

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TEXAS LIFE AND HEALTH STATE EXAM SIMULATOR PART

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

-Format: Multiple-choice / Flashcard

Question 1: Every 12 months after the initial enrollment period, an HMO must hold an open enrollment period of

Answer:

31 days Question 2: Which statement regarding the Change of Beneficiary provision is true?

Answer:

The policyowner can change the beneficiary

Question 3: An example of an unfair claims settlement practice is

Answer:

turning down a claim without providing the basis of denial Question 4: In order to establish a Health Reimbursement Arrangement (HRA), it MUST

Answer:

be established by the employer

Question 5: When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the

Answer:

Entire Contract provision

Question 6: The phrase "transacting business" includes

Answer:

collecting premiums Question 7: Which of the following health insurance policy provisions specifies the health care services a policy will provide?

Answer:

Insuring clause

Question 8: All students attending a large university could be covered by

Answer:

a blanket policy

Question 9: The Notice of Claims provision requires a policyowner to

Answer:

notify an insurer of a claim within a specified time Question 10: 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?

Answer:

Increase her policy's coverage amount Question 11: The Consolidated Omnibus Budge Reconciliation Act (COBRA) gives workers (and their families) whose employment has been terminated

Answer:

continue group health benefits

Question 12: What kind of insurance policy supplies an income stream over a set period of time that starts when the insured dies?

Answer:

Family Maintenance Policy Question 13: G purchased a Family Income policy at age 40, The policy has a 20-year rider period. If G were to die at age 50, how long would G's family receive an income?

Answer:

10 years

Question 14: What does a 401(k) plan generally provide its participants?

Answer:

Salary-deferral contributions

Question 15: With whom may an agent legally share commissions?

Answer:

Another agent with the same line of insurance Question 16: Which of these statement concerning an individual Disability Income policy is TRUE?

Answer:

Normally includes an Elimination period Question 17: In a Disability Income policy, which of these clauses acts as a deductible?

Answer:

Elimination Period Question 18: An insurer is NOT required to provide information on fraudulent claims if requested by

Answer:

an insured Question 19: What is the maximum Social Security Disability benefit amount an insured can receive?

Answer:

100% of the insured's Primary Insurance Amount (PIA)

Question 20: Which of the following Dividend options results in taxable income to the policyowner?

Answer:

Accumulation at Interest Question 21: With Accident Death and Dismemberment polices, what is the purpose of Grace period?

Answer:

Gives the policyowner additional time to pay overdue premiums Question 22: R had received full disability income benefits for 6 months. When he returns to work, he is only able to resume half his normal daily workload. Which provision pays reduced benefits to R while he is not working at full capacity?

Answer:

Residual Disability Question 23: An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be

Answer:

converted to an individual permanent policy at an individual rate Question 24: Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?

Answer:

Subrogation

Question 25: A domestic insurance company in Texas is considered a company that

Answer:

is incorporated and formed in Texas Question 26: T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?

Answer:

Request of the change will be refused