Texas Life and Health Insurance Exam Latest 2023/2024, Exams of Community Health

Download Texas Life and Health Insurance Exam Latest 2023/2024 and more Exams Community Health in PDF only on Docsity! Texas Life and Health Insurance Exam Latest 2023/2024 Which of these characteristics is consistent with a Straight Life Policy? - ✔P️remiums are payable for as long as there is insurance coverage in force Which of the following are Equity Indexed annuities typically invested in? - ✔S️&P 500 Which of the following does Social Security NOT provide benefits for? - ✔D️ismemberment An example of false advertising would be - ✔A️n insurer exaggerating its dividends in a magazine advertisement A 45 year-old woman won $100,000 in a scratch-off lottery ticket. She purchased an annuity that will pay her $1500 per month beginning at age 60. Which of these annuities did this woman purchase? - ✔D️eferred Fixed Annuity Which of the following types of organizations are prepaid group health plans, where members pay in advance for the services of participating physicians and hospitals that have agreements? - ✔H️MO Which action will a life insurance company most likely take if an insured dies and it is discovered that the insured's age was misstated on the application? - ✔P️ay an amount the premiums would have purchased at the insured's actual age Q is looking to buy a life insurance policy that will provide the greatest amount of protection for a temporary time period. Which of these policies should Q purchase? - ✔T️erm Life An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? - ✔5️9 1/2 An applicant MUST receive an Outline of Coverage when an application is taken for a(n) - ✔M️edicare Supplement policy Life insurance that covers an insured's whole life with level premiums paid over a limited time is called: - ✔L️imited Pay Life An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance clause. How much will the INSURED have to pay is a total of $15,000 in covered medical expenses are incurred? - ✔$️7000 $5,000 + 20% = $7,000 How long can a cash surrender value payment be deferred by the insurance company under the Nonforfeiture Law? - ✔6️ months An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the - ✔C️ommissioner What is an organization that solicits insurance only to its members? - ✔F️raternal benefit society Which of the following is NOT a reason for a business to buy key person life insurance? - ✔A️ pension deficiency is the key employee dies When an insurance company sends a policy to the insured with an attached application, the element that makes the application part of the contract between the insured and the insurer is called the: - ✔E️ntire Contract Provision One becomes eligible for Social Security disability benefits after having been disabled for - ✔5️ Months An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim? - ✔$️1,250 A license may be denied, suspended, or revoked if the licensee - ✔i️s found guilty of misrepresentation in obtaining the license Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed? - ✔M️isrepresentation K's whole life insurance policy lapsed two months ago due to nonpayment. She would now like to reinstate the policy. All of these statements are correct about the policy's reinstatement EXCEPT - ✔K️ will forfeit the right to use the automatic loan provision upon reinstatement When a policy pays dividends to its policyholders, it is said to be - ✔p️articipating What is the basic function of an annuity? - A foreign insurance company conducting insurance business in Texas - ✔w️as formed under the-laws of another state K is looking to purchase Renewable Term insurance. Which of these types of Term insurance may be renewable? - ✔L️evel All of the following statements about traditional individual retirement accounts are false EXCEPT - ✔1️0% penalty is applied to withdrawals before age 59 1/2 All of these statements about the Waiver of Premium provision are correct EXCEPT - ✔I️nsured must be eligible for Social Security disability for claim to be accepted P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? - ✔P️ will still receive declared dividends Which of the following consists of an offer, acceptance, and consideration? - ✔C️ontract Which of the following policy provisions prohibits an insurance company from incorporating external documents into an insurance policy? - ✔E️ntire Contract S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary? - ✔$️50,000 K is the insured and P is the sole beneficiary on an Accidental Death and Dismemberment (AD&D) insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true? - ✔P️roceeds will be paid to P's estate What kind of life insurance product covers children under their parent's policy? - ✔A️ term rider The consideration clause in a life insurance policy indicates that a policy owner's consideration consists of a completed application and - ✔T️he initial premium Why must an insurance applicant answer all questions on the application? - ✔S️tatements and representations on the application are part of the consideration for issuing a policy Which of these statements concerning an individual Straight Life annuity is accurate? - ✔P️ayments are made to an annuitant for life The amount of coverage on a group credit life policy is limited to: - ✔T️he insured's total loan value M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What determines the claim M is eligible for? - ✔D️etermined by the terms of the policy The sections of an insurance contract which limit coverage are called - ✔e️xclusions A Hospital/Surgical Expense policy was purchased for a family of four in March of 2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar year. Two claims were paid in September 2013, each incurring medical expenses in excess of the deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as well. What would be this family's out-of-pocket medical expenses for 2013? - ✔$️1,000 When determining the monthly benefit amount for a disability amount for a disability Income policy, the factor that limits the amount a prospective insured may purchase is: - ✔I️ncome Which of the following is TRUE is the owner of an IRA names their spouse as beneficiary, but then dies before any distributions are made? - ✔T️he account can be rolled into the surviving spouse's IRA 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: - ✔V️ariable Life Under an interest sensitive whole life policy - ✔c️ash values are determined by interest rates To terminate an agent's appointment, an insurance company must - ✔s️end termination notice to the Texas Department of Insurance Deductibles are used in health policies to lower - ✔o️veruse of medical services An insured is past due on his life insurance premium, but is still within the Grace Period. What will the beneficiary receive if the insured dies during this Grace Period? - ✔F️ull face amount minus any past due premiums In Texas, how long must a policy be enforce before an insurance company must pay death benefits for suicide? - ✔2️ years S, age 40, is looking to buy a Life Insurance policy that will allow for increases or decreases in coverage as his needs change. The policy best suited for S would be - ✔U️niversal Life Under a Graded Premium Whole Life policy, - ✔t️he premium increases each year during the early years of the contract and remains the same after that time If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have? - ✔C️ontributory Which of the following types of care is typically not covered in a Long-Term Care policy? - ✔A️cupuncture A pilot applies for Life Insurance. The insurer approves the application with a $10 additional monthly premium modification due to the risk involved. The pilot declines the additional premium modification. The insurer will then likely issue the coverage with a(n) - ✔A️viation Exclusion K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and starts receiving payments August 1. These payments will continue for as long as she and her spouse lives. Which type of annuity did K purchase? - ✔S️ingle Premium Immediate Joint with Survivor Annuity The most important factor to consider when determining whether to convert term insurance at the insured's attained age or the insured's original age is: - ✔T️he Cost An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - ✔F️air Credit Reporting Act Before a life policy is issued, which of these contract elements is necessary? - ✔A️ signed application by the prospect Which statement is TRUE in regards to a policy loan? - ✔P️ast-due interest on a policy loan is added to the total debt An immediate annuity consists of a - ✔S️ingle Premium Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted? - ✔I️f Tom's employment is terminated, 20% of the funds would be forfeited ✔U️sed to prevent nonessential medical costs Which of the following actions does the Commissioner of Insurance NOT have the power to conduct? - ✔A️ctivate insurance companies' financial reserves X is insured with a disability income policy that provides coverage until age 65. This policy allows the insurer to change the premium rate for the overall risk class assigned. Which of these renewability features does this policy contain? - ✔G️uaranteed Renewable Who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in Texas? - ✔T️he agent and the company As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of? - ✔ coercion A provision in a life insurance policy that pays the policy owner an amount that does not surpass the guaranteed cash value is called the: - ✔P️olicy Loan Provision Which of these describe a participating insurance policy? - ✔P️olicyowners are entitled to receive dividends Who owns a stock insurance company? - ✔S️tockholders What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled? - ✔W️aiver of Premium Loan The consideration clause of an insurance contract includes - ✔t️he schedule and amount of premium payments In Texas, an individual life insurance policy is REQUIRED to have a grace period of - ✔3️1 days Which of the following actions is required by an insured who leave the primary area of medical coverage and seeks medical care? - ✔O️btain prior approval from the insurer to the medical service Which of the following is a requirement for obtaining a Texas insurance agent's license? - ✔B️e honest, trustworthy, and reliable When an insured has the same disability within a specified time period and the insurance company provides the same benefits without a new waiting period, the second disability is covered under which of the following benefits? - ✔R️ecurrent disability K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary? - ✔$️20,000 death benefit When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - ✔i️nsurable interest in the proposed insured Which of these options can an individual use their medical flexible spending account to pay for? - ✔p️rescription drugs A medicare supplement policy may be cancelled for which of the following reasons? - ✔T️he premium has not been paid by the insured T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide? - ✔I️ncome that cannot be outlived by the owner A policy owner would like to change the beneficiary on a life insurance policy and make the change permanent. which type of designation would fulfill this need? - ✔i️rrevocable Which of the following will a Long Term Care plan typically provide benefits for? - ✔h️ome health care What type of life policy covers two people and pays upon the death of the last insured? - ✔S️urvivorship The phrase "transacting business" includes - ✔c️ollecting premiums Which of these needs is satisfied by Adjustable Life insurance? - ✔I️nsured's need for flexible premiums An insurance company organized under New York laws and licensed to do business in Texas is considered a(n) - ✔f️oreign company A major medical policy typically: - ✔p️rovides benefits for reasonable and necessary medical expenses, subject to policy limits Credit Life Insurance is - ✔i️nsurance issued on a debtor to cover outstanding loan balances Which of these would be considered a Limited-Pay Life policy? - ✔L️ife Paid-Up at Age 70 A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a: - ✔p️rofit-sharing plan Generally, how long is a benefit period for a Major Medical Expense Plan? - ✔O️ne year Which of the following benefits is NOT required under a group health plan for drug and alcohol treatment? - ✔T️ransportation to and from a treatment facility A policy of adhesion can only be modified by whom? - ✔T️he insurance company Variable whole Life Insurance can be described as - ✔b️oth an insurance and securities product An insurance agent has a fiduciary responsibility to all of the following except - ✔o️ther agents T purchased a $100,000 single premium, Straight Life annuity 5 years ago. He has received monthly payments since the inception of the annuity. If T dies, the insurance company - ✔d️oes NOT have to make any further payments N is a 40-year old applicant who would like to retire at age 70. He is looking to buy a life insurance policy with level premiums, permanent protection, and be paid-up at retirement. Which of these should N purchase? - ✔3️0 Pay Life What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? - ✔F️ace amount plus the policy's cash value During a sales presentation for a participating life insurance policy, an agent MUST - ✔m️ake a prospect understand that dividends are NOT guaranteed