Texas Health and Life Insurance Exam Latest Version., Exams of Personal Health

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Texas Health and Life Insurance Exam

Latest Version.

A business owner buys a disability income policy paying $2000 per month which of these riders could be used to increase the benefits as his business grows without having to prove insurability? a) elimination period b) guaranteed purchase option c) impairment rider d) waiver of premium - ✔✔Answer: B guaranteed purchase option A cancer policy covers all of these, except? a) chemotherapy b) immunotherapy c) Appendectomy d) Physical therapy - ✔✔Answer: C appendectomy A certificate would be given to which of these in a group health plan? a) spouses b) employee c) policy owner

d) employer - ✔✔Answer: B Employee A conversion privilege in a group health plan allows which of the following? a) 31 days to request Cobra coverage under your group health insurance policy without proof of insurability b) continuation of coverage for a dependent beyond age 26 for physical or mental handicap c) 31 days to convert the group coverage to an individual health insurance policy without proof of insurability d) the right to convert your ex-employers group health to your new employers group health - ✔✔Answer: C 31 days to convert the group coverage to an individual health insurance policy without proof of insurability A corporation hires a new president. Concerned about losing him in an accident or to an illness. All of these would be true, except? a) the employer would request a key person plan b) the employee picks the beneficiary c) the employee must sign the application d) employer is the applicant/owner - ✔✔Answer: B The employee picks the beneficiary

A long term care policy will provide payment for which of these? a) pre-hospital doctor visit b) home health c) post hospital doctor visit d) hospitalization - ✔✔Answer: B Home health A person has a major medical policy with premiums due on the 1st of every month. The individual does not pay May or June's payment and goes into the hospital on June 18. the insurer will? a) deny the claim b) Pay the claim minus the premium due c) request May's payment d) request May and June's payment - ✔✔Answer: A deny the claim A person is shot while committing a crime. What will the health insurer do? a) Pay the whole hospital bill b) Pay none of the hospital bill c) Pay the whole hospital bill minus the deductible d) Pay only half of the hospital bill - ✔✔Answer: B Pay none of the hospital bill

A person is told they won't receive any aid processing a claim unless they sign a release form. This is known as? a) coercion b) discrimination c) intimidation d) boycott - ✔✔Answer: A Coercion A person submitted an application for a disability income policy. The applicant submitted the premium and received a conditional receipt. The person suffers a disability before the medical was completed. What will the insurer do? a) Pay the claim and issue the policy b) deny the claim but not issue the policy c) Pay the claim but not issue the policy d) deny the claim and issue the policy - ✔✔Answer: B deny the claim but not issue the policy A policy owner/insured takes a loan of 1/2 the cash value. The owner doesn't pay any interest that accumulates on the loan. which of these would be true? a) dividends are withheld until the loan is paid back b) interest is added to the loan annually

c) interest is deducted from the loan annually d) dividends and interest are both withheld until the loan is paid back - ✔✔Answer: B Interest is added to the loan annually A producer failed to complete the required 24 hours on continuing education within the 24 month period. Which of these would apply? a) The producer has 90 days to complete the continuing education and pay $50 for each hour not completed b) The producer has 30 days to complete the continuing education and pay $50 for each hour not completed c) The producer has 60 days to complete the continuing education and pay $50 for each hour not completed d) The producer needs to pay $50 for each hour not completed and apply for a new license - ✔✔Answer: a A statement made in an application for life insurance which is substantially true would be considered? a) warranty b) representation c) waiver d) misrepresentation - ✔✔Answer: B Representation

A student pilots death would be covered in a life insurance policy if an insurer did not add which of these? a) exclusion b) Incontestability c) Non-forfeiture d) legal action - ✔✔Answer: A exclusion According to the Affordable Care Act all of these would be eligible for a catastrophic health plan, EXCEPT? a) those with a hardship exemption b) people who can't qualify for medicaid c) people under 30 d) those who can't afford insurance - ✔✔Answer: D Those who can't afford insurance According to the fair credit reporting act, when must an applicant be informed of obtaining a credit report in the underwriting of the policy? a) at the time of application b) at the time of policy issuance c) at the time of policy delivery d) at the time of underwriting - ✔✔Answer: A At the time of application

After an investigation, an insurer denies a false claim. The insurer must? a) terminate policy as of claim date b) provide a reasonable explanation c) immediately terminate the policy back to issue date d) wait until the renewal to non renew the policy - ✔✔Answer: B Provide a reasonable explanation AIDS testing requires all of these, EXCEPT? a) gathering of data on positive results for studies b) questions about HIV and AIDS are illegal c) underwriting required testing d) signed consent for testing - ✔✔Answer: A Gathering of data on positive results for studies aids testing requires? a) insurer will provide test results to spouse only b) insurer will provide test results to anyone who request them in writing c) insured must give written approval d) insured must give verbal approval - ✔✔Answer: C

insured must give written approval all of the following are eligible to participate in a Keogh Plan except? a) sales person b) Manager c) secretary d) silent partner - ✔✔Answer: D silent partner All of the following are prohibited provisions in a long term care policy, except? a) limits or denies benefits to a policy holder who is diagnosed with any destructive brain tissue disease with will result in loss of brain function b) provides coverage for only skilled nursing care instead of lower levels of care c) canceling a policy due to nonpayment of premium d) cancels, non-renews, or terminates the policy on the grounds of age or deterioration of the mental or physical health of the insured - ✔✔Answer: C Canceling a policy due to nonpayment or premium all of the following can be used to deny a life insurance policy, except? a) height

b) gender c) Health d) Weight - ✔✔Answer: b gender all of the following could be used by insurance company underwriters to determine acceptability of an applicant for insurance except? a) medical information bureau b) high school and/or college GPA c) attending physician statement d) inspection report - ✔✔Answer: B High school and/or college GPA an accidental death and dismemberment will pay which of these? a) A person dies of cancer b) commercial pilot dies in an airplane accident c) A person dies in a car crash d) A person dies of a heart attack - ✔✔Answer: C A person dies in a car crash An applicant did not disclose a medial condition on a life insurance application 5 years later that person died due to the non disclosed condition. The insurer will?

a) keep all premiums and void the policy b) refund all premiums and void the policy c) pay the whole amount of the policy to the beneficiary d) pay half of the policy to the beneficiary - ✔✔Answer: C Pay the whole amount of the policy to the beneficiary An applicant lied about their age for a universal life policy. The insurer found out the truth at the time of death. The insurer will? a) request the beneficiary to pay back the premiums for the correct age before paying the death benefit b) refund all premiums and void the policy c) pay the policy death benefit to reflect the correct age d) pay the policy as it was issued - ✔✔Answer: C Pay the policy death benefit to reflect the correct age An application for life insurance was submitted without all the questions being answered. The policy was issued and the incomplete application was attached. Which of these apply? a) the insurer waived their right to use any information from the unanswered questions. b) the policy will later be found to be incomplete, it will be voided and all premiums refunded. c) The insurer issued a normal policy and all provisions will apply regardless of the unanswered questions.

d) The insurer will deny a claim if the information from the unanswered questions were the result of the insured's death - ✔✔Answer: A The insurer waived their right to use any information from the unanswered questions An incorporated insurance company that sells shares would be? a) stock b) fraternal c) mutual d) lloyd's - ✔✔Answer: A Stock An insurance company incorporated in New York selling polices in Texas would be called? a) domestic b) mutual c) alien d) foreign - ✔✔Answer: D Foreign an insurer in Texas may cancel a Medicare supplement for which reason? a) Insured failed to pay premiums

b) too many claims c) insured turn 90 d) Insureds health has gotten progressively worse - ✔✔Answer: a an insurer paying claims under usual, customary and reasonable would be which of these? a) a way for the insurer to decrease premiums b) A way for the insurer to limit what they pay of the medical cost c) a way for the insurer to increase premiums d) a way for the insurer to pay 100% of the medical cost - ✔✔Answer: B A way for the insurer to limit what they pay of the medical cost An insurer wishing to dissolve their relationship with a producer would? a) terminate producers insurance license b) non renew producers insurance license c) file a law suit d) terminate producers appointment - ✔✔Answer: D Terminate producers appointment and insured has 2000 in medical bill on a policy with $100 deductible and 80/20 coinsurance. The insurer paid? *2000-100•0.8=? a) $

b) $ c) $ d) $380 - ✔✔Answer: A $ Basic medical expense plans pay for benefits how? a) unlimited amount b) 1/2 the total cost of all charges c) The full amount of the bill d) as per policy schedule - ✔✔Answer: D As per policy schedule Cobra would cover dependents of an employee for how long after the death of the employee? a) no months b) 18 months c) 36 months d) 20 months - ✔✔Answer: C 36 months Credit life is insurance for which of these? a) Insurance on the life of the debtor

b) Insurance on the life of the lender c) it is a type of disability insurance d) Insurance to pay your credit card - ✔✔Answer: A Insurance on the life of the debtor death proceeds in a group life plan our? a) gift taxable to the beneficiary b) tax free to the beneficiary c) taxable to the beneficiary d) only partially taxable to the beneficiary - ✔✔Answer: B tax free to the beneficiary Dividends paid by stock insurers are paid to: a) service providers b) shareholders c) policy holders d) agencies - ✔✔Answer: B Shareholders employees in a group life insurance plan would find information about their benefits in? a) Insurance policy

b) notice of coverage c) nothing only the employer d) certificate of insurance - ✔✔Answer: D certificate of insurance employer paid premiums in a group life policy are taxable to? a) The employee if the death benefit exceeds $50, b) The employee if the death benefit exceeds $25, c) The employer if the death benefit exceeds $25, d) The employer if the death benefit exceeds $50,000 - ✔✔Answer: A The employee if the death benefit exceeds $50, Every Long-Term Care policy must provide a ______-day free look period from the date the policy is delivered. a) 45 b) 20 c) 10 d) 30 - ✔✔Answer: D 30 Flexible Spending Accounts FSA's pay for which of these? a) elective cosmetic surgeries

b) reimbursed medical expenses c) cancer treatment only d) unreimbursed medical expenses - ✔✔Answer: D Unreimbursed medial expenses For which if the following polices must an Outline of Coverage be delivered? a) major medical b) medicare supplement c) HMO d) disability - ✔✔Answer: B Medicare supplement fraudulent misstatements on a health policy causes claims to be denied because of which of these? a) entire contract b) payment of claims c) reinstatement d) Time limit on certain defenses - ✔✔Answer: D Time limit on certain defenses G has a life policy with his new wife listed as primary beneficiary and his son listed as contingent beneficiary. The whole family dies in the same

accident. According to the Common Disaster Clause where will the policy proceeds be paid? a) wife's estate b) g's estate c) son's estate d) wife's and g's estate both share equally - ✔✔Answer: B G's estate G has a life policy with his wife listen as primary beneficiary. They both die in a car accident. They don't know who died first. According to the Uniform Simultaneous Death Act where will the policy proceeds be paid? a) wife's estate b) g's estate c) g's next of kin d) wife's next of kin - ✔✔Answer: B G's estate H and Q are coprimary beneficiaries on an accidental death and dismemberment policy on their mom for $100,000. The husband is the contingent beneficiary. Q dies of cancer and the mom days 2 months later in an auto accident. How much did the policy pay the father? a) $ b) $50,

c) $100, d) $25,000 - ✔✔Answer: A $ HMO certificates of authority must be approved by? a) commissioner of insurance b) governor c) HMOs board of directors d) HMOs shareholders - ✔✔Answer: A commissioner of insurance how are death benefits received from a group life insurance policy? a) income tax free b) Capital gains taxable c) income taxable only to the extent the employee paid premiums d) fully income taxable - ✔✔Answer: A income tax free how do you PPO's save consumers in their healthcare costs? a) they offer senior discounts b) they charge minors less than adults c) they waive their charges in cases of emergency care

d) they charge patients within the PPO less than those who are not in the PPO - ✔✔Answer: D they charge patients within the PPO less than those who are not in the PPO How long after passing your exam must you apply for your insurance license? a) 6 months b) 24 months c) 18 months d) 12 months - ✔✔Answer: D 12 how long can the reinstatement period be in a life insurance policy? - ✔✔5 years How many hours of continuing education hours must be ethics per renewal period? a) 24 b) 10 c) 12 d) 2 - ✔✔Answer: D 2

if a misrepresentation is found to be material. the insurer would? - ✔✔void the policy If an applicant or insured discovers error in their credit report, the fair credit reporting act requires the following to correct the report? a) applicant/insured b) producer c) credit reporting agency d) underwriter - ✔✔Answer: C Credit reporting agency If an insurer accepts an incomplete application and issues the policy, what must they do? a) get the application competed within the incontestability period b) void the policy and rewrite it c) honor the policy d) resubmit a new application immediately - ✔✔Answer: C Honor the policy in an IRA a 10% penalty is levied for which of these? a) money withdrawn before age 59 1/ b) money withdrawn before age 62

c) money withdrawn before age 65 d) money withdrawn after age 70 1/2 - ✔✔Answer: A money withdrawn before age 59 1/2 in health insurance, newborn infant coverage covers all of the following, except: a) routine care b) birth abnormalities c) SIDS (sudden infant death syndrome) d) congenital defects - ✔✔Answer: C SIDS (sudden infant death syndrome) in medical expense insurance, newborn infants born with congenital defects are covered? a) 15 days old b) not covered without a rider c) from the moment of birth d) 14 days old - ✔✔Answer: C from the moment of birth In order for a claimant to be eligible for _______ benefits, they must qualify based upon income and medical need. a) medicare supplement

b) medicaid c) long-term care d) medicare - ✔✔Answer: B Medicaid In order to have Medicare part C the individual must have? a) A and B b) A only c) B only d) A, B and D - ✔✔Answer: A A and B In order to have Medicare part C the individual must have? a) A, B and D b) A only c) A and B d) B only - ✔✔Answer: C A and B In which of the following policies is the cash value in the policy invested in stocks and/or bonds? a) universal life

b) limited pay whole life c) single premium whole life d) variable life - ✔✔Answer: D Variable life In which of these settlement options for life insurance would the death benefit not be paid out over a period of time? a) fixed period b) fixed amount c) life income only d) interest only - ✔✔Answer: D Interest only In which policy does the premium and face amount remain level all the way to age 100? a) modified whole life b) straight whole life c) limited pay whole life d) universal life - ✔✔Answer: B Straight whole life in which policy with the automatic premium loan not apply?

a) whole life b) endowment c) Limited pay d) term - ✔✔answer: d Term in which retirement plan, if the employer puts money in his own account must he also put money in his employees account? a) simple b) IRA c) SEP d) TSA - ✔✔Answer: C SEP J injures his lower back loading his furniture into a moving van. He recovers and then four months later reinjures the same area. What type of disability is this? a) temporary disability b) recurrent disability c) residual disability d) presumptive disability - ✔✔Answer: B recurrent disability

L has a debt and purchases a credit life policy. What does it do? a) pays L's loan at L's death b) pays L's spouse at L's death c) pays L's credit card debt at L's death d) pays L's employer atL's death - ✔✔Answer: A pays L's loan at L's death Long term care policies pay for all of these, EXCEPT? a) skilled nurses b) rehabilitation c) substance abuse d) home health care - ✔✔Answer: C Substance abuse Lorraine's position has been terminated, and she is interested in converting her group life coverage to an individual policy. In the process, she will find all of the following to be true, except? a) she will be converting her group term benefit to an individual term benefit b) she has 31 days of eligibility to convert to the private plan without having to prove insurability c) The premium will be at a higher than normal to include the insurers guaranteed convertible surcharge