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Texas General Lines Life, Accident and Health Exam Prep Questions and Answers, Exams of Advanced Education

A collection of questions and answers related to texas general lines life, accident and health insurance exam preparation. It covers various aspects of insurance, including health insurance coverage, life insurance policies, annuity contracts, and insurance regulations in texas. Useful for individuals preparing for insurance exams in texas.

Typology: Exams

2024/2025

Available from 11/12/2024

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Download Texas General Lines Life, Accident and Health Exam Prep Questions and Answers and more Exams Advanced Education in PDF only on Docsity!

TX GENERAL LINES LIFE, ACCIDENT

AND HEALTH EXAM PREP Questions And

Answers 100% Guaranteed Success.

Health insurance coverage under COBRA, HIPAA guarantees that the person will - correct answer.of health Have Acces to a guaranteed-issue individual health policy, regardless

All the following statements about ordinary (or straight) whole life insurance are correct - correct answer. The cash value remains level throughout the life of the policy Which activity in NOT an error or omission that makes an agent or producer legally to both the insurance and the insure - correct answer. Placing insurance with an approved surplus line insurer All the following statements about the taxation of annuities are correct EXEPT: - correct answer. Qualified annuities are taxes no different than no qualified annuities Which of the following statements about utmost good faith in insurance is correct - correct answer. Both the insurance and the insurer must act in utmost good faith Which annuity settlement option pays income for the annuitant's life, but no less than fora specified number of year - correct answer. Life income with period certain

Tim has paid only four premium totally $1000 on his health insurance policy when he was diagnosed with cancer. The insurance company paid more than $100.000 to cover the medical bills for his treatments which of the following characteristics of insurancecontracts - correct answer. They are aleatory

Jack, an insurance agent, offers free season football tickets to anyone who buys a life insurance policy from him. This sales practice is called - correct answer. rebating

After Todd was injured in a car crash, he received occupational theyto help him return to work. His disability income policy paid for this therapy because it had - correct answer. A rehabilitation provision If a small employer insurance decides to terminate all small employer health benefits plans it issues in TEXAS, it must notify the TEXAS commissioner and all affected employer of its intent to do so at least - correct answer. At least 180 days before it ends coverage Contract characteristics is unique to insurance contracts but NOT all contracts - correct answer. Unilateral When first meeting prospective insurance applicants, a producer must give them adocument that explains the general features, benefits, and condition of type of insurance being considered. Which is called a - correct answer. Buyer's Guide Abby, who life in New York she is a licensed life insurance agent , wants to apply fo a nonresident license in Texas. To do so, she must submit which of the following to TDI -correct answer. An aplicación, few and letter of certification from her home state

Amanda used a basic illustration to help Mark. a potencial cliente, de understand how the cash value of his life insurance policy would grow. Mark then agreed to buy the policy. Which of the following best describes Amanda's duties which respect todelivering a copy of the illustration used - correct answer. Amanda must deliver a signed copy ilustración to both Mark and the insurer With respect to the transfer-for-value rule, which of the following situations would result in the new owner being subject to tax on the policy's gain upon the insured's death - correct answer. Policy is sold by the insured to neighborhood in exchange for cash Which of the following describes the options available with a universal life insurance policy the owner no longer wishes to maintain - correct answer. Surrender the policy for its cash value or let the policy continue without premium until the cash value can no longer cover monthly deductions A section 125 cafeteria plan may cover which of these expenses - correct answer. Health insurance premiums An insurance producer tells a life insurance applicant that he has the authority to waivethe medical exam that is normally required by the insurer with every application. The insurer may be required to accept the application without a medical exam due to the producers: - correct answer. Apparent authority A long-term care rider on a life insurance policy will pay benefits if the insured isdiagnosed as chronically ill due to which of the following? - correct answer. Either a medical or cognitive (mental health) reason

Which federal law group health plans and protects their enrollees - correct answer. A What type of state regulation gives a person in poor health or with a pre-existing condition the opportunity to buy health insurance - correct answer. Guaranteed issue With certain limitations a policyowner may change all of the following in a life insurance policy, EXCEPT: - correct answer. The incontestability provision With certain limitations, a policyowner may change all of the following in a life insurance policy, EXCEPT: - correct answer. A Where can a person set up a health care savings account (HSA) - correct answer.Financial institution

Which statement about converting coverage under a children's term rider is correct - correct answer. Conversion is possible even if the child is uninsurable, and the converted policy coverage amount may be greater than amount provided under the rider Which of the statements regarding the replacement of a life insurance policy is correct - correct answer. Replacing a policy will require the insured to go through a new contestability The commissioner issued a cease and desist order against Nether Insurance Company for committing certain practices when settling claims. Nether ignores the order. The commissioner may refer to which of the following for enforcement. - correct answer. State attorney general Which type of group health insurance plan bases premios and benefits in the claimexperience of similar groups in the region - correct answer. Community-rated plan

Which of the following explains why the human life values approach to deter main insurance needs is rarely used today - correct answer. It doesn't factor in all that it takes to secure a family's financial futures For tax purposes, a self-employed person includes all the following, EXCEPT: - correct answer. An incorporated business owner Which policy requires the insurer to give the insured the forms necessary to file a claim -correct answer. Claim forms

The intoxicate and marítima provision let's an insurer deny a claim if - correct answer. A loss result from intoxication or use of non-prescribed narcotics When Matthew met with a potential client, he used a life insurance illustration to show how the policy's cash value would grow over the clients lifetime. Matthew could include

all of the following in the illustration without violating Texas regulations EXCEPT: - correct answer. As statement that the policy is type of investment and saving plan Annuity contracts include a provision to pay a death benefit if the owner or annuitant doesn't before the contract annuitizes. What does this death benefit typically equal - correct answer. Either the contract's accumulated valued or the amount of premium the owner invested whichever is greater The purpose of policy exclusions is to specify: - correct answer. Condiciones that the policy does not cover An insured medical expense plan requires the insured to pay the medical car provider for each service rendered. The insurer then reimburses the insured. On what basis arebenefits paid - correct answer. Free-for-service

Which of the following correctly describes the disability income benefit rider availability with life insurance policies - correct answer. It pays a monthly income de terminated by a formula specified in the policy if the insured becomes disabled, without impactingthe policy's cash value or face amount

Te Generic Informetion Nondiscrimimation Act(GINA) essentially does which of the following - correct answer. It prohibits insurance companies from discrimination on the basis of information delivered through a genetic test JOHN a Tex resident, is covered under a credit life insurance policy while he pays off a car loan. Coverage is paid through December, when his loan is scheduled to be paid. If JOHN pays off the car loan is September (3 months early) which of the following descuwhat the very life insurance company must do with reap to a premium refund - correct answer.date JOHN paid off the loan It must refund the premium for the thee-month period following the

Provider operated by an organization That has a representative form of leadership, operates on lodge system, and exist solely for the benefit of its member and their beneficiaries is called a - correct answer. Risk retention group Which of the following is correct about the HMO claims process - correct answer. Members no not need to Sumit claims forms for services provided within the network Life insurance is commonly used for all the following needed EXCEPT - correct answer.To save for a new car in several years

Which association protects owners of life and health insurance policies issued by insurance who become financially unable to pay claims and benefits - correct answer. Life, Accidents, Health and Hospital Service Insurance Guaranty Association

Which of the following statements regarding the taxation of deaf benefits dead paid from a group life insurance plan is correct - correct answer. The death benefits is income tax free, but interest earned on found left with the insurer under a settlement option istaxable in the year earned

Besides select policy anniversary dates, a life insurance guaranteed insurability rider usually permits special alternative option dates that typically include all the following, EXCEPT - correct answer. The policyowner's loss of job Loss of a job is generally not a qualifying special event What is the mathematical concept of probability that helps insurance estimates the statistics likelihood of mortality or morbidity losses at any given age - correct answer.Law of large number

Medicare Part B benefits exclude coverage for - correct answer. G All of the following statements about indexed life insurance are correct EXCEPT -correct answer. Vaccinations

In What form does the MIB present it's information to insurance - correct answer. Memetic codes, indicating risk identified in previous applications, that are communicated electronically Which of the following types of qualified retirement plan can include life insurance in the plan funding - correct answer. With respect to annuities, the basic purpose for the exclusion ratio is to Which of the following distribution a sum of money regularly, starting very shortly afterthey are bought - correct answer. Retirement annuity

Immediate annuities distribute a sum of money regularly, starting very shortly after they bought All the following regarding the " spendthrift clause" of life insurance policy are correct EXCEPT - correct answer. The spendthrift clauses keeps benefits from claiming any death benefits until the insurer checks their personal and business credit history Alice Owen a long-term Carr policy, Her return of premium option allows her to have aportion of the premium - correct answer. Paid to her car estate or a named beneficiary when she dies A return of premium option in a LTC policy return a portion of the premium paid for the coverage to the insured dies. The amount of the returned premium depends on whetherthe insured used the policy's benefits and if so, to what extent.

Structured settlement most commonly use - correct answer. Immediate fixed annuities Which of the following must HMO members to receive covered care - correct answer.HMO's network of providers and caregivers

HMOs must provide their subscribers (enrollees) with evidence of coverage, which must include all the following EXCEPT - correct answer. H If a Social Security benefits recipients has income from other sources, including wages and investment earnings, what percentage of Social Security benefits exceeding a combined income threshold may be income taxable - correct answer. Anywhere from 50% to 85 percent of Social Security benefits will be subject to income taxation A Medical Expense Policy covers the cost of health care services delivered according to

  • correct answer. The plan or policy Care qplan qcombines qthe qfeatures qof qothers qplans q- q qcorrect qanswer. q q qPOS qplan Points-of-service q(POS) qplan qcombine qthat qthe qcost qcontroles qof qan qHMOS qwith qthe qflexibility qthat qa qpreferred qprovider qorganization q(PPO) qand qtraditional qmedical qinsurance qpolicy qhave qwith qrespect qto qthe qselection qof qhealth qcare qproviders How qdisability qmany qbenefits qSocial qqSecurity- q qcorrect qcredits qanswer. qmust q q q 40 qa q qcreditsworker q qearn qto qqualify qfor qSocial qSecurity

A qworker qbecomes qfully qinsured qand qeligible qfor qall qSocial qSecurity qbenefits q(including qdisability qbenefits) qwith q 40 qcredits XYZ qof qthe qinsurance qfollowing qhas qpractices qbeen q changedqin qunfair qqwithdiscrimination qunfairly qdiscrimination q- q qcorrect qanswer. qamong q q q qXYZinsurance. qchanged qWhich qtwo qindividual qinsured qof qthe qsame qclass qand qrisk qdifferent qpremium qfor qlife qinsurance qpolicies qbased qon qwhere qthey qlived qand qtheir qethnicities When qanswer. qan q q q qapplicantdetermine qapplies qthe qpremium qfor qinsurance, qrate qa qproducer qis qNot qrequired qto q- q qcorrect

SHELLY qis qan qagent qand qhas qbeen qmisrepresentation qthe qterm qof qthe qpolicies qthat qshe qsell qin qorder qto qboost qher qcommissions. qWhen qthe qTexas qDeparment qof qInsurance q qdiscoverscriminal qproceedings qher qactions, qagainst qit qcan q qdoher qall qof qthe qfollowing qEXCEPT q- q qcorrect qanswer. q q qbeing

If qthe qTecas qDepartment qof qinsurance qdiscovers qthat qShelly qis qengaging qin qfraudulent qacts, qits qcan qrefer qattorneys qand qUnited qState qattorneys Which qstatement qabout qgroup qhealth qinsurance qis qtrue q- q qcorrect qanswer. q q qInsurers qmay qimpose qrestrictions qand qexclusions qon qindividual qand qgroup qpolicies.

Mary qlost qher qjob qon qJune q15. qShe qwants qto qconvert qher qgroup qlife qinsurance qpolicy qto q qananswer. qindividual q q qJuly qpolicy. q 16 qTo qdo qso qMary qmust qapply qfor qa qconversion qpolicy qbuy q- q qcorrect

Which qof qthe qfollowing qis qNot qcorrect qabout qthe qincome qtax qimplications qof qthe qpremium qpaid qand qbenefits qreceived qunder qa qmedical qexpense qinsurance qpolicy q- q qcorrect qanswer. q q qBenefits qare qadded qto qgross qincome q Because qMedical qexpense qinsurance qpolicy qbenefits qare qnot qadded qto qgross qincome qand qare qnot qtaxed. In qrequirement, qa qmajor qmedical qhow q (^) muchqinsurance qof qthe qplan qcovered qwith q aqexpenses qdeductible qwill qand qinsured qa q80/20 qpay qcoinsurance q- q qcorrect qanswer. q q q 20 qpercent qof qall qexpenses qafter qpaying qthe qdeductible All qof qthe qfollowing qStatements qabout qthe qfixed qamount qlife qinsurance qsettlement qoption q qarebasis. qcorrect qEXCEPT q- q qcorrect qanswer. q q qPayments qmust qbe qmade qon qa qmonthly

How qdoes qthe qconformity qwith qstate qstatues qprovision qresolve qprovisions qin qa qpolicy qthey qconflict qwith qthe qlaws qof qthe qinsured'd qstate. q- q qcorrect qanswer. q q qThe qpolicy qwill qbe qautomatically qamended qto qcomply qwith qthe qlaws qof qthe qinsured's qstate Which qtype qof qhealth qinsurance qplan qis qparticularly qsuitable qfor qthe qsenior qinsurance qmarket q- q qcorrect qanswer. q q qMedical qplans Which qoptional qprovision qlimits qthe qtotal qcoverage qthat qa qsingle qinsurance qassumes q qwithissued qrespect qto qthis qto qperson qany qone q- q q qcorrectinsured, qanswer. qregardless q q qOther qof qthe qinsurance qnumber q qinof q (^) thisqpolicies qinsurer qthe qinsured

Advertisement qfor qindeterminate qpremium qwhole qlife qpolicies qsold qin qTexas qmust qprominently qset qforth qall qthe qfollowing qterms qEXCEPT q- q qcorrect qanswer. q q qThe qfact qthe qnon qguaranteed qmaximum qpremium qcan qnever qbe qchanged. Because qAdvertisements qfor qindeterminate qpremium qlife qpolicies qmust qdisplay qthe qfact qthat qmaximum qpremium qin qnot qguaranteed qand qmay qbe qchanged. JEFF qindustry qgraduated qas qa qlife qfrom qand qqcollegehealth q (^) insuranceqtwo qyears q (^) counselor.qago qand qwants qHis qmentor qto qwork qadvises qin qthe q qinsurancehim qthat qhe qmust q- q qcorrect qanswer. q q qPass qan qexam qcornering qthe qbasic qof qlife qand qhealth qinsurance, qbusiness qinsurance, qand qstate qplanning, qamong qother qtopics. Because qexamination qTo q recetaqthat qcovers qlife qhealth qtopics qinsurance qsuch qas qqthecounselor qfundamentals qlicense, qof qJEFF qlife qand qmust qhealth qpass q (^) insurance,qand qfinancial qand qeconomics, qand qbusiness qinsurance qand qestate qplanning.

Janet qhas qbeen qcontinuously qlicensed qas qan qagent qin qTexas qfor qthe qpast q 25 qyears. qHer q qfriend,state's qqSteven,continuing qis q qaeducation qnonresident qrequirements. qlicensee qin q (^) WhenqTexas q (^) theyqand q qaskevery qyou qyear qfor q qcompletesadvice qon qqmeetinghis qthe qTexas qcontinuing qeducation qrequirements, qyou qinform qthem qthat q- q qcorrect qanswer. q q qNeither qSteve qnor qJanet qneeds qto qcomply qwith qTexas's qcontinuing qeducation qrequirements. Who qwould qNOT qbe qeligible qfor qMedicare qenrollment q- q qcorrect qanswer. q q qA qperson qunder qage q 65 qwho qhas qreceived qSocial qSecurity qdisability qbenefits qfor q 6 qmonths Frank, qand qaplican qfor qlife qinsurance qwho qis qa qsubstandard qrisk, qcan qexpect qto qpay qa qqpremiumGenerally qthat qhigher qis qbest qthan qdescribed qfor qa qstandard qas qwhich qrisk. qof qthe qfollowing q- q qcorrect qanswer. q q

Because qAn qapplicants qwho qrepresents qa qsubstandard qrisk qwill qpay qa qhigher qpremium qto qoffset qthe qhigher qrisk. Bob qbought qa quniversal qlife qinsurance qpolicy qwith qa q$100.000 qstipulated qamount qand qchose qan qOption q 2 q(increasing) qdeath qbenefits. qAt qhis qdeath qten qyears qlater, qthe qpolicy's qcash qvalue qhad qincreased qto q50.000 qwhat qwill qhis qbeneficiary qreceive. q- q qcorrect qanswer. q q q$150.000 q Because qUL qdeath qbenefits qOption q 2 qpays qan qincreasing qdeath qbenefits qequal qto qa qlevel qnet qamount qat qrisk qplus qthe qcash qvalue. qThe qbeneficiary qwill qget q$150,000 q(the q$100.00 qspecified qamount qplus q$50.000 qincrease qin qcash qvalue) Bob qbought qa q$100.000 qten-year qlevel qterm qInsurance qpolicy qon qMarch q1,2012. qWhat q qwillany q happenqbenefits. qif qhe qdoes qon qApril,2020 q- q qcorrect qanswer. q q qBob's qbenefits qwill qnot qpay

Because qBobs's q$100.000 qten-year qlevel qterm qpolicy qgives qhim qlevel q$100.000 qof qcoverage qduring qthe qten qyears qcoverage qperiod, qthrough qMarch q1,2020, qIF qBob's qdies q qafterpayables. qthe qten-years qperiod, qthe qpolicy qwill qhave qexpire qand qno qbenefits qwill qbe

What qis qthe qonly qrestriction qon qnaming qan qannuitant q- q qcorrect qanswer. q q qThe qannuity qmust qbe qa qnatural qperson. An qinsurance qincurs q$7,000 qin qcover qmedical qexpenses. qHer qcomprehensive qmajor qmedical qpolicy qrequires qher qto qpay q$500 qof qthose qespeses qbefore qthe qpoly qwill qpay qa qbenefits qbased qon qthe qremaining q$6.500. qWhat qkind qof qdeductible qdoes qthe qinsured qhave? q- q qcorrect qanswer. q q qFlat qdeductible Which qof qthe qfollowing qof qhealth qinsurance qbased qbenefits qon qthe qindemnification qof qthe qinsured q- q qcorrect qanswer. q q qbasic qmedical qexpenses qinsurance.

Because qMedical qexpenses q(indemnity) qinsurance qis qthe qtraditional qform qof qhealth qcare qcoverage qbased qon qindemnification qof qthe qinsured. What qtype qof qlife qcompany qis qowned qby qthe qpolicyholders q- q qcorrect qanswer. q q qMutual qcompany. q Because qparticipating qMutual qlife qqcompaniesinsurance qpolicies qare qowed qthat qby qdistribute qthe qpolicy qexcess qowners. qpremium qThese q qbenefitscompanies qn qthe qissue qform qof qdividends. The qbasic qpurpose qfor qthe qre-entry qoption qwith qa qrenewable qterm qlife qinsurance qpolicy q qisrather qto qlet qthan qthe qqguaranteedpolicyowner q (^) renewq- q qcorrect qrates. qanswer. q q qrenew qthe qpolicy qat qlower qcurrent qrates

Because qto qget qthe qlower qcurrent q(" qattained qage') qrate qthey qis qthe qfeature qof qthe qre- entry qoption. qThe qinsured qmust qprove qinsurability qat qthe qtime qof qrenewal qor qat qperiodic qintervals qthroughout qthe qpolicy's qterm ÉRISA qdoes qNOT qregulate qgroup qhealth qinsurance qplans qwith qrespect qto q- q qcorrect qanswer. q q qPromoting qthe qsponsor's qbest qinterest. Which qpermit q ofqa qqtax-freethe qfollowing qexchange qbest q explainsqof qan qannuity qwhy. qqSecciónfor qa qlife qq (^1035) insurance qof qTax qpolicy qCode q- q qqdoescorrect qNOT qanswer. q q qAllowing qa qtax-free qexchange qagainst qan qannuity qfor qlife qinsurance qwould qenable qtaxable qannuity qgain qto qescape qtaxation qvía qthe qlife qinsurance qdeath qbenefits Under qa qsurvivor qlife qinsurance qpolicy, qwhen qdoes qthe qinsurer qpay qthe qdead qbenefits q- q qcorrect qanswer. q q qUp qon qthe qdeath qof qthe qinsured qwho qdies qsecond In qsetting qpremiums qfor qa qnew qpolicy, qwhen qdo qactuaries qassume qthose qpremiums qwill qbe qpaid q- q qcorrect qanswer. q q qThey qwill Be qpaid qin qfull qat qthe qbeginning qof qthe qpolicy qyear Which qof qthe qfollowing qwill qhappen qif qa qtraditional qIRA qowner qdies qbefore qall qof qthe qfunds qin qhis qor qher qaccount qhave qbeen qpaid qout q- q qcorrect qanswer. q q qH Jessica, qage q25, qbuys qa q$100,000 qlife qinsurance qpolicy. qThe qinitial qpremium qis qlower q qthanpolicy qstraight qperiod. qwhole qAfter qqthat,life qrates qthe q qpremiumand qincreases qlevels q qeachoff qand qyear qstays qfor qqtheat qthat qfirst qamount qten qyears qfor q ofqthe qthe qlife qof qthe qpolicy. qWhat qtype qof qpolicy qdoes qJessica qown? q- q qcorrect qanswer. q q qgraded qpremium qwhole qlife All qpolicies qthe qfollowing qEXCEPT qare q- q q qtypescorrect qof qanswer. qriders qthat q q qGuaranteed qare qavailable qdividend qwith qmost qrider qtypes qof qlife qinsurance

Which qis qNOT qa qstandard qrenew qabilities qprovision q- q qcorrect qanswer. q q qOptionally qcancelable q Because qthe qnoncancellable, qguaranteed qrenewable, qconditionally qrenewable, qoptionally qrenewable, qand qcancelable qprovisions qdefine qthe qright qto qrenew qa qhealth qinsurance qpolicy. Ginny's qbirth. qShe qmedical qadopts qplan qa q5-year-old qprovides q coverageqchild qon q (^) Julyqfor q theq1. q (^) Whatqnewborn qbenefits qchildren qis qshe qfrom qentitled qtheir q qdateto q- q qof qcorrect qanswer. q q qAutomatic qcoverage qfor qthe qfirst q 31 qyears qfollowing qadoption, qafter qwhich qJenny qmust qpay qa qpremium. Under qcontain qTexas qa(n) q q-law, q qcorrect qan qindividual qanswer. qq q qlifeAccelerated qinsurance qqbenefitspolicy qmay, qprovision qbut qis qNot qrequired qto,

What qmay qan qinsurance qcancel qeither qwhole qlife qor qterm qiLife qinsurance q- q qcorrect qanswer. q q qThe qinsurer qmay qcancel qboth qtypes qof qpolicies qif qthe qpolicyowner qdoes qnot qpay qthe qpremiums q Because qthe qinsurer qmay qcancel qeither qtype qof qlife qinsurance qpolicy qif qthe qpolicyowner qdoes qnot qpay qpremiums Which qpolicy qqofloan, qthe q (^) includingqfollowing q (^) accruedqwill qhappen qinterest, qif qthe qever qoutstanding qexceeds q balanceqthe qpolicy's qof qwhole qcash q qlifevalue qinsurance q- q qcorrect qanswer. q q qThe qinsurer qwill qcancel qthe qpolicy The qtime qlimit qon qcertain qdefenses qprovision qin qa qhealth qinsurance qpolicy qis qlike qwhich qprovision qin qa qlife qinsurance qpolicy q- q qcorrect qanswer. q q qIncontestable qclause Because qthe qtime qlimit qon qcertain qdefenses qprovision qis qlike qthe qincontestable qclause qin qlife qinsurance A qproducer qwho qdetect qinconsistent qthat qlead qher qto qsuspect qthe qclaimant qis qmaking qa q qfalsewithin qclaim q 30 qdays qfor qbenefits qis qrequired qto q- q qcorrect qanswer. q q qReport qthe qsuspicions qto qTDI

From qan qinsurance qperspective, qunderwriting qis qbest qdefined qas q- q qcorrect qanswer. q q qThe qprocess qof qdetermining qif qan qapplicant qis qan qinsurable qrisk As qa qcontract, qhealth qinsurance qpolicy qrequires qall qof qthe qfollowing qelements qEXCEPT q- q qcorrect qanswer. q q qA qdeadline Which qof qthe qfollowing qis qNOT qan qallowance qbasis qfor qexcluding qcoverage qunder qa qlong-term qcare qpolicy q- q qcorrect qanswer. q q qAlzheimer's qdisease

Which qstatement qdescribes qthe q"pool qof qmoney" qapproach qto qbenefits qunder qa qLong- term qcare qinsurance qpolicy q- q qcorrect qanswer. q q qBenefits qare qdefined qas qa qtotal qsum qof q qmoneylasts qfrom qwhich qmoney qcan qbe qdrawn qin qany qamount qfor qas qlong qas qthe qmoney

Which qis qthe qamount qthat qis qpaid qfor qdismemberment qunder qan qaccident qdeath qand qdismemberment q(AD&D) qinsurance qpolicy q- q qcorrect qanswer. q q qCapital qsum In qa qthird- qparty qlife qinsurance qcontract q, qthe qparties qto qcontract qare qthe q- q qcorrect qanswer. q q qThe qowner, qthe qinsured, qand qthe qinsurance qcompany q Because qtwo qparties qin qa qstandard qtwo-party qinsurance qcontract qare qthe qowner qand qthe q Ininsurance qa qthird-party qcompany. qcontract, q qthe qowner qand qthe qinsured qare qdifferent qpeople.

Which qstatement qdescribes qthe qtax qtreatment qof qpremium qfor qbusiness qdisability qbuy- out qinsurance q- q qcorrect qanswer. q q qPremium qare qnot qdeductible, qand qbenefits qare qnot qtaxed Which qstatement qcorrectly qdescribes qthe qincome qtax qtreatment qof qemployer- qfunded qgroup qlife qinsurance qcoverage qon qa qcovered qemployee q- q qcorrect qanswer. q q qThe qvalue qof qcoverage qexceeding q$50.000 qis qtaxable qto qthe qemployee; qbelow qthat, qit qis qtax qfree In qa qparticipating qlife qinsurance qpays, qthe qinsurance qcompany qpays qthe qpolicyowner qa qdividend qout qof qwhich qof qthe qfollowing q- q qcorrect qanswer. q q qThe qinsurer's qdivisible qsurplus A qnotice qof qclaims qtell qthe qinsurer qthat qthe qinsured q- q qcorrect qanswer. q q qWill qmake qa qclaim qand qneeds qthe qnecessary qclaims qforms Which qof qthe qfollowing qstatements qregarding qlife qinsurance qpolicy qcost qcomparison qmethods qis qcorrect q- q qcorrect qanswer. q q qThere qare qtwo qtypes, qthe qtraditional qnet qcost qMetodo qand qthe qinterest-adjusted qnet qcosts qmethod, qand qthe qinterest-adjusted qnet qcost qmethod qis qmost qcommonly qused qtoday JANET qis qlicensed qlife qinsurance qagent qin qTexas qand qwas qso qbusy qwith qher qinsurance qpractice qthat qshe qforgot qto qcomplement qall qof qher qcontinuing qeducation qcredits. qHow qlong qis qthe qgrace qperiod qshe qhas qto qmake qup qthe qmissing qcredits q- q qcorrect qanswer. q q qShe qcannot qmake qup qthe qmissing qcredits Christina qlives qin qa qstate qthat qprohibits qmedical qunderwriting qin qthe qsale qof qhealth qinsurance. qWhat qshe qapplies qfor qan qindividual qhealth qinsurance qpolicy, qthe qinsurer q- q qcorrect qanswer. q q qMust quse qa qsingle qcommunity qrate qto qset qthe qpremium Ben qowns qa q$100.000 qpolicy qon qhis qlife, qwhich qsell qto qhis qyounger qbrother, qBart, qfor q$50.000 qBart qnames qhimself qbeneficiary qand qpays qthe qpolicy's qannual q$1.

qpremium. qFor qyears qafter qthe qsale, qBen qdies, qand qBart qreceives qthe qpolicy's q$100. qdeath qbenefits. qUnder qthe qtransfer-for-value qrule, qwhat qis qBart's qtaxable q"gain" qon qthe qpolicy q- q qcorrect qanswer. q q q$44, Because, qBart's qgain qin qthe qpolicy qis q$44.000: qthe q$100.000 qdeath qbenefits qless qthe q$50.000 qporches qprice qand q$6.000 qpremium qpaid Under qhealth q theqbenefits qAge q Discriminationqfor qolder qemployees qin qEmployment qmust: q- q q (^) correctqAct, qan qanswer. qemployer q q qmaintain qthat qreduces qequal qgroup qcontributions qfor qall qemployees Because qthe qcost qof qreduced qbenefits qfor qolder qemployees qis qsimilar qto qthe qcost qof qfull q qbenefitscontribution qfor q qyoungerfor qall qemployees. qworkers. qTherefore, qthe qemployer qmust qmaintain qequal

Which qof qthe qfollowing qstatements qabout qinsurance qexecutives qbonus qplans qis qcorrect q- q qcorrect qanswer. q q qThe qportion qof qthe qpremium qpaid qby qthe qemployer qcan qbe qdeducted qby qthe qemployer qand qis qtreated qas qtaxable qincome qto qthe qexecutive q Under qan qexecutive qbonus qplan, qthe qportion qof qthe qpremium qpaid qby qthe qemployer qis qtaxable qincome qto qthe qexecutive qand qdeductible qby qthe qemployer Which qpolicy qis qNOT qa qtype qa qbasic qmedical qexpense qpolicy q- q qcorrect qanswer. q q qlab qexpense

If qan qapplicant qfor qinsurance qunintentional qmisstates qher qage qon qher qlife qinsurance qapplication, qwhat qwill qthe qinsurer qdo qif qthis qis qdiscovered qafter qthe qend qof qthe qcontestability qperiod q- q qcorrect qanswer. q q qThe qinsurer qwill qre-calculate qthe qdeath qbenefits Medical qexpenses qinsurance qplans qare qdivided qinto qwhich qtwo qclases q- q qcorrect qanswer. q q qIndemnity qplans qand qmanaged qcare qplans Ann qbecause qwants qshe qto qqreplaceis qnot qsatisfied qher qexisting qwith qqitsMedicare qcost qand qsupplements qthe qtype qof q qpolicycoverage qwith qprovided. qanother q policyqIn qthis qcase, qher qagent qHenry qmust: q- q qcorrect qanswer. q q qProvide qa qnotice qregarding qreplacement qto qAnna qstating qthat qthere qwill qbe qno qduplication qof qcoverage The qdisability qflat qbenefits qbenefits qamount q- q qcorrect qfor qqanswer.partial qdisability q q q 50 qpercent qis qusually qwhat qpercent qof qthe qfull

Which qproduct qsupplements qMedicare qbuy qofferings qbenefits qdelivered qthrough qa qnetwork qof qhealth qcare qproviders q- q qcorrect qanswer. q q qMedicare qSELECT qplan Which qof qthe qfollowing qtypes qof qlife qinsurance qis qthe qleast qexpensive qway qto qprovide qmortgage qloan qprotection q- q qcorrect qanswer. q q qDecreasing qterm qinsurance

In qTexas, qnew qenrollment qto qan qHMO qwho qdo qnot qchoose qa qprimary qcare qphysician q qwithfollowing qan qestablished qwritten qnotice qperiod qby qqtheof qtime qHMO qcan q- q q qcorrecthave qtheir qanswer. qcoverage q q q 30 qqcancelleddays q qhow qmany qdays Because qFailure qof qthe qsubscriber qto qestablish qa qprimary qcare qphysician q(PCP) qrelationship qwithin qan qestablished qperiod qcan qresult qin qcancellation qafter q 30 qday's qwritten qnotice Which qof qthe qfollowing qcorrectly qdescribes qthe qtwo qbasic qcategories qof qlife qinsurance qsettlement qoptions q- q qcorrect qanswer. q q qThose qwithout qa qlife qcontingency qand qthose qwith qa qlife qcontingency Adam qhe qsubmits qis qMedicare qa qclaim qbeneficiary qfor qcovered qand qservices qenrollment qto qboth, qin qhis qhow qstate's qwill qMedicare qMedicare qand qprogram. qMedicare qWhen qpay qthe qclaims q- q qcorrect qanswer. q q qMedicare qwill qbe qthe qprimary qinsurance, qand qMedicaid qwill qbe qthe qsecondary qinsurer q Because qMedicare qis qthe qprimary qinsurer, qMedicaid qis qthe qsecondary qinsurer Reimbursement qhealth qinsurance qpolicies, qin qcontract qto qvalued qhealth qinsurance qpolicies, qpay qbenefits qbased qon q- q qcorrect qanswer. q q qThe qcost qof qthe qmedical qcare qreceived A qbusiness qoffers qa qgroup qdisability qincome qplan qpays qthe qpremium. qIf qan qemployee qsuffers qa qdisabling qinjury, qthe qbenefits qpaid qto qthe qemployee qwill qbe q- q qcorrect qanswer. q q qTaxable qincome qto qthe qemployee Joe qis qemployed qby qDelta qMotors, qInc. qHe qparticipates qin qDeltas,s qgroup qhealth q q q qinsuranceJoe's qprimary qplan q qforplan qemployees. qWhat qshould qthis qplan qbe qconsidered q- q qcorrect qanswer.

In qcases qwhere qan qexisting qlife qinsurance qpolicy qis qgoing qto qbe qreplaced qby qnew qlife qinsurance qpolicy, qthe qproducer qmust qdo qall qthe qfollowing qEXCEPT q- q qcorrect qanswer. q q q qSignthe qreplacement qa qform qassuming qfull qresponsibility qfor qany qconsequences qhay qmay qresult qfrom

When qa qperson qapplies qfor qMedicaid, qthe qlimits qand qthe qtypes qof qincome qand qassets qcounted qvary qdepending qon: q- q qcorrect qanswer. q q qwhere qthe qapplicant qhas qa qspouse qwho qneeds qsupport ql What qhappens qto qa qgroup qhealth qinsurance qplan qwhen qmembers qleave qthe qgroup q- q qcorrect qanswer. q q qNothing qwill qhappen Which qdisability qstatement qincome q qbestpolicy qdescribes q- q qcorrect qthe qanswer. qpurpose q q qprovide qfor qa qbusiness qthe qbusinesses qowning qqwitha qkey qfunds qperson qto quse qfor qany qpurpose qupon qa qkey qemployee's qdisability

When qmust qinsurable qinterest qexist qfor qa qlife qinsurance qcontract qto qbe qvalid? q- q qcorrect q qanswer.applies q (^) forq q qIt qa qis qlife qonly qinsurance qnecessary qcontract qfor qinsurable qinterest qto qexist qat qthe qtime qapplicant

Under qstandard qexclusion, qmust qinsurers qwould qdeny qcoverage qof qwhich qof qthe qfollowing q- q qcorrect qanswer. q q qSomeone qserving qas qan qaircraft qmember A qpolicyowner qcan qaccess qthe qcash qvalue qof qmany qlife qinsurance qpolicies qtrough qwithdrawals, qloans, qor qpolicy qsurrender. qWhich qof qthe qfollowing qdescribes qthe qability qto qeasy qconvert qlife qinsurance qinto qcash q- q qcorrect qanswer. q q qliquidity All qrate(AIR) qof qthe q followingqare qcorrect qstatements qEXCEPT qregarding q- q qcorrect q aqanswer. qvariable q q q qannuity'sif qthe qactual qassumes qreturn qqisinterest qgreater qthan qthe qAIR, qpayments qwill qdecrease All qthe qFollowing quses qfor qlife qinsurance qin qa qbusiness qrepresent qa qvalid qinsurance q qinterest,customer qEXCEPT qto qmake q q-up q qcorrect qfor qthe qanswer. qfinancial q q q qlossesLife qinsurance qthat qmight qpurchased qoccur qwhen qon qan qthat qimportant qcustomer qdies! In qthe qpurchase qof qa qlife qinsurance qcontract, qthe qapplicant's qconsiderations qconsist qof q- q qcorrect qanswer. q q qthe qsigned qapplication qand qthe qfirst qpremium q Because qthe qconsideration qpolicyowner qgive qinsurers qincludes qthe qapplication qwith qthe qrepresentations qit qcontains qand qthe qfirst qpremium Which qinsurance qcompany qfunctions qcalculates qcompany qmortality qand qmorbidity qrates qqasactuarial qwell qas qdivision qthe qdividends qon qparticipating qlife qinsurance qpolicies q- q qcorrect qanswer. q q

If qa qpermanent qlife qinsurance qpolicy qlapses qand qthe qowner qdoes qNOT qselect qa qnon qforfeitures qoption qinsurance qwill qautomatically q- q qcorrect qanswer. q q qapply qthe qextended qterm qinsurance qoption An qinsurance's qrecord qof qcomplaints qmust qinclude qall qof qthe qfollowing qinformation qEXCEPT q- q qcorrect qanswer. q q qThe qcommissions qpaid qon qpolicies qfor qwhich qcompanies qwere qreceived Tax qlaw qconsiders qany qlimited qpayment qlife qinsurance qpolicy qthat qis qpaid-up qin qseven qyears qor qless qto qbe qwhich qof qthe qfollowing q- q qcorrect qanswer. q q qa qmodified qendowed qcontract q Because qendowment qLife qcontracts qinsurance q(MECs), qpolicies qwhich qthat qare qmeans qpaid-up qthat qin qthey qseven qlose qyears qsome qor qof qless qthe q areqtax qmodified qadvantages qusually qenjoyed qby qlife qinsurance qpolicies

Which qhealth qinsurance qpolicy qprovides qincome qwhen qdisability qkeeps qthe qinsured qfrom qworking q- q qcorrect qanswer. q q qdisability qincome qpolicy An qagent qcommissions qon qMedicare qsupplement qpolicies qin qten qfirst qyear qCANNOT qexceed qwhat qpercent qof qcommissions qin qthe qsecond qyear q- q qcorrect qanswer. q q q 200 qpercent Under qa qpolicy's qof qpayment qprovision, qwhat qis qthe qfirst qthing qan qinsurer qtries qto qdo qwith qthe qdeath qbenefits qif qthere qis qno qvalid qbeneficiary qavailable q- q qcorrect qanswer. q q qThe qinsurer qlooks qfor qa qblood qrelative qor qsomeone qwith qa qvalid qclaims qas qthe qnew qbeneficiary q Because qin qthese qcases, qthe qinsurer qname qblood qrelative qor qsomeone qwith qa qvalid qclaim qas qthe qnew qbeneficiary A qdeferred qannuities qrider qthat qlets qthe qannuity qowner qcommit qonly qpart qof qthe qannuity's q qfundswithdrawal qproviding qat qthe qguaranteed qowner's qdiscretion, qlifetime qincome, qis qcalled qleaving qa: q- q qcorrect qthe qremainder qanswer. q q q qavailableGuaranteed qfor qincome qrider When qdoes qa qwaiver qof qpremium qrider qexcuse qthe qinsured qfrom qpaying qthe qpolicy's qpremium? q- q qcorrect qanswer. q q qWhen qthe qinsured qis qtotally qdisable q Because, qa qwaiver qof qpremium qrider qexcuses qthe qinsured qform qpaying qthe qpolicy's qpremium qduring qperiods qof qtotal qdisability. qThe qinsured qmust qpay qthe qpremium qduring qthe qelimination qperiod. qIf, qafter qthe qperiod, qthe qinsured qremains qdisabled, qthe qwaver qwill qbe qeffective qback qto qthe qfirst qday qof qdisability. All qthe qfollowing qstatements qregarding qwithdrawals qfrom qq quniversal qlife qpolicy qare qcorrect qEXCEPT q- q qcorrect qanswer. q q qPolicy qloans qare qnot qpermitted qwith quniversal qlife qinsurance qpolicies q Because. qpermanent qPolicy qlife qpolicies. qloans qare qUniversal qpermitted qlife qwith qinsurance quniversal qpolicies qlife qpolicies qalmost qas qpermit qwell qqaspartial qtraditional qsurrenders. The qdeath qbenefits qof qa qfixed qdeferred qannuity qequals q- q qcorrect qanswer. q q qThe qcontract's qaccumulated qvalue qwhen qdead qoccurs From qan qinsurance qperspective, qall qthe qfollowing qstatements qregarding qrisk qand qloss qare qcorrect qEXCEPT q- q qcorrect qanswer. q q qOnly qspeculative qrisk qis qinsurable Allqcorrect qthe qfollowing qanswer. q q q qstatementsSmoking q qcigarettesregarding qqisperils qan q (^) exampleqare qhazards qof qperil qare qcorrect qEXCEPT q- q

Because qa qperil qis qthe qevent qthat qinsurance qprotects qagainst. qSmoking qis qa qmoral qhazard qthat qincreases qthe qchance qof qencountering qthe qperil qof qdeath qand qillness Lucy qis qapplying qfor qan qindividual qhealth qinsurance qpolicy qand qdisclosed qthat qshe qis qdiabetic, qwhich qis qconsidered qwhich qof qthe qfollowing q- q qcorrect qanswer. q q qA qphysical qhazard q Because qthe qchance qa qphisical qof qloss qhazard qis qa qphysical qcharacteristic, qsuch qas qdiabetic, qthat qincreases

From qan qinsurance qperspective, qthe qterm q"loss qexposure" qmeans q- q qcorrect qanswer. q q qThe qextent qto qwhich qan qinsurer qis qsubject qpossible qto qloss Because qall qcalled qloss qexposure, qexposure qis qthe qstate qof qbeing qsubject qto qa qposible qloss. qThe qextent qof qloss qexposure qon qthe qpremium qit qchanges