Exam (elaborations)
TEXAS LIFE AND HEALTH STATE EXAM SIMULATER QUESTIONS WITH COMPLETE SOLUTIONS
- Course
- Institution
TEXAS LIFE AND HEALTH STATE EXAM SIMULATER QUESTIONS WITH COMPLETE SOLUTIONS
[Show more]
Content preview
TEXAS LIFE AND HEALTH STATE EXAMSIMULATER QUESTIONS WITH
COMPLETE SOLUTIONS
Bryce purchased a disability income policy with a rider that guarantees him the
additional amounts of coverage at predetermined times without requiring to provide
evidence of option of purchasing insurability . What kind of rider is this ? - Answer-
guaranteed insurability rider
In a qualified retirement plan , the yearly contributions to an employee's account : -
Answer-are restricted to maximum levels set by the IRS
Which tax would an IRA participant be subjected to on distributions received prior to age
59 1/2 ? - Answer-Ordinary income tax and a 10 % tax penalty for early withdrawal
An insurance agent has a fiduciary responsibility to all of the following EXCEPT -
Answer-other agents
Which of the following statements is true about most Blue Cross / Blue Shield
organizations ? - Answer-They are nonprofit organizations
Which of the following statements is CORRECT regarding the tax treatment of a lump -
sum payment paid to a life insurance policy's primary beneficiary ? - Answer-all
proceeds are income tax free in the year they are received
Group life insurance policies are generally written as : - Answer-annually renewable
term
Which of the following will a Long Term Care plan typically provide benefits for ? -
Answer-home health care
Which of the following BEST describes how a Preferred Provider Organization ( PPO )
is less restrictive than a Health Maintenance Organization ( HMO ) ? - Answer-More
physicians to choose from
An insurance company organized under New York laws and licensed to do business in
Texas is considered a ( n ) - Answer-foreign company
A temporary agent's licènse issued by the Commissioner of Insurance is valid for up to
days . - Answer-90
What type of life policy covers two people and pays upon the death of the last insured ?
- Answer-Survivorship
,How long can a cash surrender value payment be deferred by the insurance company
under the Nonforfeiture Law ? - Answer-6 months
An employer that offers a qualified retirement plan to its employees is eligible to : -
Answer-make tax - deductible contributions to the plan
Which of the following statements BEST describes the intent of a Coinsurance clause in
a Major Medical policy ? - Answer-Discourages overutilization of the insurance
coverage
S is covered by a whole life policy . Which insurance product can cover his children ? -
Answer-Child term rider
Which of the following medical expenses does Cancer insurance NOT cover ? -
Answer-Arthritis
A life policy with a death benefit and cash value that can fluctuate according to the
performance of its underlying investment portfolio is referred to as : - Answer-Variable
Life
A policy of adhesion can only be modified by whom ? - Answer-The insurance company
The Legal Actions provision of an insurance contract is designed to do all of the
following , EXCEPT : - Answer-protect the producer
If a corporation pays the premium on a group life policy for its employees , the
corporation is required to report how much additional taxable income for each employee
? - Answer-Nothing
D is an architect receiving Disability Income benefits who is not able to return to work
full time , but can work on a part - time basis . Which of these features would allow D to
continue receiving benefits ? - Answer-Residual Benefit clause
Which factors are taken into consideration when an insurance company determines the
premium rate for a Whole Life policy on an applicant ? - Answer-Risk classification
Which of the following BEST describes a short - term medical expense policy ? -
Answer-Nonrenewable
When is the face amount of a Whole Life policy paid ? - Answer-When the insured dies
or at the policy's maturity date , whichever happens first
A promotional advertising item is not considered a rebate unless it has a value equal to
or less than what amount ? - Answer-$ 25
, J would like to maintain the right to change beneficiaries . Which beneficiary designation
should be used ? - Answer-Revocable
Which type of life insurance beneficiary attempted by the policyowner ? requires his /
her consent when a change of beneficiary is - Answer-Irrevocable beneficiary
Under an Interest Sensitive Whole Life policy , - Answer-cash values are determined by
interest rates
Which of these is considered a statement that is assured to be true in every respect ? -
Answer-Warranty
An example of rebating would be - Answer-returning a portion of a premium as
inducement to purchase insurance
additional monthly The insurer will then likely issue the coverage with a ( n ) premium
modification due to the risk A pilot applies for Life insurance . The insurer approves the
application with a $ 10 involved . The pilot declines the additional premium
modification . - Answer-Aviation Exclusion
P loses an arm in a farm accident and is paid $ 10,000 from his Accidental Death and
Dismemberment policy . This benefit is known as the - Answer-Capital Sum
The reason for backdating a policy is - Answer-to obtain a premium rate based on an
earlier age
Which type of plan normally includes hospice benefits ? - Answer-Managed care plans
If a retiree on Medicare required five hospital stays in one year , which policy would
provide the best insurance for excess hospital expenses ? - Answer-Medicare
Supplement
An insurance company the medical history questions conditions that E did not meet ?
the medical history questions and paying the initial premium . E is not . weeks later E
suffers a heart attack and is . because she could not receives E's application for an
individual remember the exact dates . E signed the policy health policy . E did not
complete all of insured . Which of the following clauses details the hospitalized without
completing and submitted it to the insurance company anyway . A few - Answer-
Consideration clause
Whose life is covered on a life insurance policy that contains a payor benefit clause ? -
Answer-Child
In health insurance policies , a waiver of premium provision keeps the coverage in force
without premium payments : - Answer-After an insured has become totally disabled as
defined in the policy .
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79223 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now
