Texas State Exam Simulator Practice Life and Health
Insurance 200 Questions with Verified Answers
An annuity promises that, if the annuitant dies before receiving payments equal
to the correct value, the payments will be continued to a beneficiary until an
amount equal to the contract value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - CORRECT ANSWER An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been
disabled for
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the
insurer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate - CORRECT
ANSWER 20-Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
,Insurance company
Insured
Applicant - CORRECT ANSWER Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions - CORRECT ANSWER the initial premium
Which parts of a life insurance policy are guaranteed to be true?
A comprehensive major medical health insurance policy contains an Eligible
Expenses provision which identifies the types of health care services that are
covered. All of the following health care services are typically covered EXCEPT for
hospital charges
physician fees
experimental and investigative services
nursing services - CORRECT ANSWER experimental and investigative services
If a retiree on Medicare required five hospital stays in one year, which policy
would provide the best insurance for excess hospital expenses?
,S, while in the process of converting her group life insurance to an individual
policy, dies. What happens to the claim her beneficiary submits?
No benefits are payable under the Master contract
Full benefits are payable under the Master contract
Full benefits are payable under the converted policy
Benefits less required premium are payable under the converted policy -
CORRECT ANSWER Full benefits are payable under the Master contract
All of the following are limited benefit plans EXCEPT
cancer policies
life insurance policies
dental policies
critical illness policies - CORRECT ANSWER life insurance policies
A physician opens up a new practice and qualifies for a $7,000/month Disability
Income policy. What rider would the physician add if he wants the ability to
increase his policy benefit as his practice and income grow?
Extended Term rider
Cost of Living Adjustment rider
Guaranteed Insurability Option rider
Waiver of Premium rider - CORRECT ANSWER Guaranteed Insurability Option
rider
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 - CORRECT
ANSWER wait at least five years before applying for a new license
The benefits under a Disability Buy-Out policy are
, normally paid in installments
taxable to the beneficiary
payable to the company or another shareholder
normally paid after a short elimination period - CORRECT ANSWER payable to the
company or another shareholder
he Health Insurance Portability and Accountability Act (HIPAA) gives privacy
protection for
insolvency
health information
financial information
overinsurance - CORRECT ANSWER health information
How are surrender charges deducted in a life policy with a rear-end loaded
provision?
Deducted from the death benefit
Deducted when the policy is discontinued
Deducted from policy's cash value
Deducted when assigned to another policyowner - CORRECT ANSWER Deducted
when the policy is discontinued
What MUST an insurance company use in its advertising?
Its trade name
Its true corporate name
Its service mark
Its corporate logo - CORRECT ANSWER Its true corporate name
An accident policy will most likely pay a benefit for a(n)
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