TEXAS STATE EXAM SIMULATOR - LIFE AND HEALTH

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TEXAS STATE EXAM SIMULATOR - LIFE AND HEALTH

INSURANCE (200 QUESTIONS PRACTICE EXAM)

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

-Format: Multiple-choice / Flashcard

Question 1: K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?Return of premiums paid Cash value plus interest $20,000 death benefit Face amount plus interest

Answer:

$20,000 death benefit Question 2: The Commissioner of Insurance may issue a temporary agent's license for a maximum of how many days?180 90 60 30

Answer:

90 Question 3: 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?

Collect initial premium Collect initial premium along with a signed health statement Explain to the applicant the policy is no longer in effect due to change in health condition Collect initial premium and leave a binding receipt

Answer:

Collect initial premium along with a signed health statement Question 4: Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due?Grace Period Consideration Waiver of Premium Reinstatement

Answer:

Grace Period Question 5: P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?She DOES need to provide evidence of insurability She does NOT need to provide evidence of insurability She will have up to 6 months to convert to an individual policy She will be paying exactly the same premium for the individual plan as she did the group plan

Answer:

She does NOT need to provide evidence of insurability

Question 6: What is issued to each employee of an employer health plan?

Provision Receipt Policy Certificate

Answer:

Certificate Question 7: The Insurance Commissioner may examine the records of an insurance company in order to determine the solvency of the company determine the trust deposits of the company approve the claims records of the company for tax purposes assess the company's value on behalf of a prospective client

Answer:

determine the solvency of the company

Question 8: Basic Hospital and Surgical policy benefits are

lower than the actual expenses incurred higher than the actual expenses incurred normally subject to deductibles normally subject to coinsurance

Answer:

lower than the actual expenses incurred Question 9: The Consideration clause in a life insurance contract contains what pertinent information?Summary of benefits Offer and acceptance Entire Contract Amount of premium payments and when they are due

Answer:

Amount of premium payments and when they are due

Question 10: Which of the following best describes a contingent beneficiary?

Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured Person designated by the primary beneficiary's executor to receive policy proceeds Person designated by the state to receive policy proceeds in the event that the primary beneficiary dies Person designated by the insurance comapany to receive policy proceeds in the event that the primary beneficiary dies

Answer:

Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured

Question 11: What is the purpose of the Time of Payment of Claims provision?

Requires the insured to wait 60 days after submitting Proof of Loss before filing a lawsuit Prevents delayed claim payments made by the insurer Requires a probation period for each claim filed by the insured Protects the insurer from frivolous lawsuits

Answer:

Prevents delayed claim payments made by the insurer

Question 12: An agent whose license has been revoked is required to

wait at least five years before applying for a new license submit all previously written policies to the Commissioner of Insurance's office for servicing of the accounts cancel all policies currently in effect and advise the insureds to place them elsewhere continue to service the existing accounts but not solicit new business

Answer:

wait at least five years before applying for a new license Question 13: An agent who tells a client that dividends are guaranteed may be guilty of fraud rebating misrepresentation slander

Answer:

misrepresentation

Question 14: What does Medicare Parts A and B cover?

Part A covers hospitalization; Part B covers long-term care Part A covers doctor's services; Part B covers hospitalization Part A covers hospitalization; Part B covers doctor's services Part A covers prescription drugs; Part B covers disability

Answer:

Part A covers hospitalization; Part B covers doctor's services Question 15: 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 16: 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?Allow her to take a tax deduction on unearned premiums Increase her policy's coverage amount Decrease her policy's coverage amount Nothing