Texas life and health insurance test exam 200questions and answers latest update 2023/2024, Exams of Nursing

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200questions and answers latest update

2023/2024 GRADED A+

individual - correct answers premiums paid with after tax dollars, not tax deductible- death benefit tax free, lump sum- death benefit taxabkle to an estate- dividend tax free, accumulate at interest, interest taxable insurance - correct answers transfer of risk agent - correct answers producer or field underwriter insurer - correct answers principle agency contract - correct answers between agent and insurer- spells out each one's duties- contains the express authority applicant/proposed insured - correct answers seeks insurance from insurer death benefit - correct answers face amount- paid to beneficiary beneficiary - correct answers receives the policy proceeds when insured dies- doesn't have to sign contract policyowner - correct answers has all rights and privileges in a policy-pays premium, making changes, naming beneficiary- may or may not be insured

200questions and answers latest update

2023/2024 GRADED A+

3rd party ownership - correct answers insured and policyowner are different people- parent/child; key person; group life/health application - correct answers main source of underwriting agent report - correct answers part of the application process, but does not become part of contract entire contract - correct answers application, policy, riders, amendments representations - correct answers statements made by applicant believed to be true but not guaranteed misrepresentations - correct answers lies told by applicant warranty - correct answers absolutely true statement fraud in life - correct answers after 2 years claim cannot be denied (Period of Incontestability) fraud in health - correct answers claim can be denied as long as policy in force (material)

200questions and answers latest update

2023/2024 GRADED A+

conditional receipt - correct answers given to insureds who pay premium with application life policy replacement - correct answers stop paying on one policy and start paying on a new one health policy replacement - correct answers don't cancel old policy till new one is issued disclosure authorization notice - correct answers states the insurers practice regarding the collection of personal information HIV testing - correct answers results only known to: insured, their doctor, insurer, dept of health and human services policy summary - correct answers summarizes features and elements of policy being issued buyers guide - correct answers explain how buyer should go about choosing type and amount of insurance- given at time of application USA patriot act - correct answers anti-money laundering- 9/11- must file suspicious activity report within 30 days of initial discovery underwriting - correct answers risk classification process

200questions and answers latest update

2023/2024 GRADED A+

insurable interest - correct answers policyowner must face the possibility of losing money or something of value in the event of loss- exists at time of application- between owner and insured- paramedical exam - correct answers results give current health status attending physician statement - correct answers gives past health information (MIB) medical information bureau - correct answers adverse medical info- made up of insurers- non-profit organization consumer reports - correct answers credit reports, employment records, character, reputation, habits investigative consumer report - correct answers interview friends, associates, neighbors- must be notified within 3 days report is taking- 5 days to get info to consumer fair credit reporting act - correct answers ensures records are confidential, accurate, relevant, properly used- allows consumer to contact reporting agency to get info on why they got declined- cant get info from insurer- fine for violating is $2, standard risk - correct answers representative of majority of people in the same class- covered at a standard rate

200questions and answers latest update

2023/2024 GRADED A+

substandard risk - correct answers high risk because health issues- rated up/ pays more money- must sign statement of good health, amendment, and pay extra premium preferred risk - correct answers healthier lifestyle- pays lower premium than substandard STOLI/IOLI - correct answers taking out policy on a person with intent of selling it to a 3rd party- violates concept of insurable interest consideration - correct answers something of value each party promises to each other- answers on the application, promising to pay in event of loss legal purpose - correct answers insurable interest, consent, must be of age, not high or drunk, mentally competent conditional - correct answers certain conditions must be met by both parties unilateral - correct answers only one of the parties is legally bound adhesion - correct answers take it or leave it aleatory - correct answers unequal amounts are exchanged

200questions and answers latest update

2023/2024 GRADED A+

permanent policies - correct answers coverage up to age 100- cash value = face amount- guaranteed minimum interest rate 3-4%- takes 3 years to build cash value whole life - correct answers guaranteed minimum interest rate- level or fixed premium whole life straight life - correct answers premiums scheduled up to age 100 whole life limited pay - correct answers premiums paid up in a shorter time- builds cash value faster than a straight life- 20 pay whole life- life paid up to 65- endows at 100 single premium - correct answers can build cash value immediately adjustable life - correct answers guaranteed minimum interest rate- insured can adjust face amount, premiums, period of protection- face amount cant be increased w/out proof of insurability universal life - correct answers interest/ market sensitive product- guaranteed minimum interest rate- flexible premium- (ART)- cash account- option A: level death benefit, beneficiary only collects death benefit- option B: increasing death benefit, beneficiary collect death benefit and cash value

200questions and answers latest update

2023/2024 GRADED A+

interest sensitive whole life - correct answers guaranteed minimum interest rate- level premium equity indexed whole life - correct answers s&p 500- guaranteed minimum interest rate- level premium- seeks higher returns variable life insurance - correct answers must have securities license, registered with FINRA, SEC- insured picks sub account- no guarantees of a return- funds kept in separate account- hedge against inflation- minimum death benefit guaranteed $100k term life insurance - correct answers temporary protection- pure death protection- no cash value level term - correct answers death benefit stays the same throughout the term increasing term - correct answers death benefit increases- ROP rider decreasing term - correct answers death benefit decreases- credit life annually renewable term - correct answers premium goes up every year- based on attained age- proof of insurability not required each year- lowest premium in the early years

200questions and answers latest update

2023/2024 GRADED A+

annuities - correct answers for liquidation of an estate- no death benefit- owner: person, corp, trust- annuitant: person only- used mainly for retirement purposes- considered fixed except for variable immediate - correct answers after 1st month but within first year of purchase deferred - correct answers after 1st year of purchase accumulation period - correct answers pay in period- funding your annuity annuitization period - correct answers pay out period- providing you an income straight life annuity - correct answers income you cant outlive- die too soon, insurer keeps the rest life income with period certain - correct answers pays for the life of the annuitant- has period certain (20 years) for a beneficiary- annuitant dies during this time, beneficiary gets the time left life income with refund - correct answers annuitant dies too soon, remainder refunded to beneficiary joint life annuity - correct answers payments for 2 people- stop after 1st one dies

200questions and answers latest update

2023/2024 GRADED A+

joint and survivor - correct answers payment for 2 people- stop after 2 one dies variable annuities - correct answers accumulation period/ accumulation units & annuitization period/ annuity units: level premium- # of units not known in advance (underlying investment)- no guarantees of return equity indexed annuity - correct answers tied to s&p 500- life license only needed to sell- guaranteed minimum interest rate waiver of premium - correct answers pays premium if insured becomes disabled- 6 month waiting period- reimburses premiums paid during waiting period payor benefit rider - correct answers is the waiver of premium rider- 3rd party ownership- waives premium if payor dies or becomes disabled guaranteed insurability rider - correct answers allows insured to add more coverage at future dates without proof of insurability- cost of increased coverage be based on attained age accidental death rider - correct answers pays 2x or 3x face amount of policy for accidental death- death must usually occur within 90 days accidental death and dismemberment rider - correct answers principle sum paid for accidental death or double dismemberment, blindness, or deafness- capital sum paid for loss of one limb

200questions and answers latest update

2023/2024 GRADED A+

term rider - correct answers added to a permanent policy- less expensive way to add extra coverage other insured rider - correct answers coverage for a spouse or newborn child- term coverage- family term rider children's term rider - correct answers one low cost, no matter how many kids- allows kids to convert to permanent protection at 18 or 21, without proof of insurability return of premium rider - correct answers increasing term insurance- beneficiary collects both the death benefit and premiums paid on policy- insured lives to end of term, gets back all premiums provisions - correct answers protect the insured entire contract provision - correct answers application, riders, policy, ammendments- prevents insurer from changing policy once it is issued- changes only made by an officer of the insurer insuring clause - correct answers heart of the policy- states who the parties to the contract are- amount of premium and coverage- states the insurers promising to pay benefits

200questions and answers latest update

2023/2024 GRADED A+

consideration clause - correct answers something of value each party promises to each other- insured: answers on application and premium- insurer: promising to pay benefits owners rights - correct answers paying premium, making changes, naming beneficiary- common disaster provision - correct answers uniform simultaneous death law- will assume primary beneficiary died first- protects contingent beneficiary mode of premium payment - correct answers frequency- more frequent the mode, higher the premium grace period - correct answers 30 days for individual life- 31 days for group life- prevents a policy from lapsing due to non-payment or premium- death benefit would be paid, minus earned premium automatic premium loan - correct answers helps prevent lapse of permanent policy- takes premium from cash value- when no more cash value, policy will lapse reinstatement provision - correct answers after a policy lapses, up to 3 years- pay back premiums + interest- proof of insurability

200questions and answers latest update

2023/2024 GRADED A+

policy loans - correct answers only found in permanent policies- insurer can charge interest- loans are not taxed- loan balance would be deducted from death benefit incontestability provision` - correct answers insurer can contest claims during the first 2 years- after 2 years, they cannot deny a claim assignment provision - correct answers transferring owners rights- absolute: complete a permanent transfer of all rights in a policy- collateral: loan from bank, allows bank to collect amount owed, beneficiary collects balance, all rights transferred back to insured when loan paid off non-forfeiture options - correct answers required by law in all permanent policies- 20 years of options must be illustrated in policy- cash value in policy cant be forfeited- cash surrender value- extended term- reduced paid up extended term non- forfeiture option - correct answers uses cash value to purchase a new term policy- same face amount as in prior permanent policy- length of term depends on age, cash value, and face amount- provides highest amount of protection reduced paid up non-forfeiture option - correct answers uses cash value to purchase another permanent policy- single premium- new policy has a reduced face amount from old policy- can continue to build cash value- provides the longest period of protection

200questions and answers latest update

2023/2024 GRADED A+

dividend options - correct answers paid on participating policies/ mutual companies- paid to policyholders- not guaranteed- not taxable- cash option- interest, always taxable- paid up addition- one year term option settlement options - correct answers how proceeds from death benefit can be received lump sum cash (settlement option) - correct answers tax free to beneficiary interest only (settlement option) - correct answers insurer pays out only the interest it is earning- always taxable- only option to preserve the principle fixed amount (settlement option) - correct answers I choose amount- insurer chooses the time period- interest will be part of each payment- all proceeds get paid out fixed period (settlement option) - correct answers I choose period- insurer chooses amount- interest will be a part of each payment- all proceeds paid out accelerated benefits - correct answers insured has terminal illness, death expected within 2 years- early payout up to 100%- not taxable- reduces amount payable to beneficiary long term care rider (accelerated benefits) - correct answers insured can take from death benefit to pay for nursing home- reduces death benefit- usually only up at a certain % will be tax free

200questions and answers latest update

2023/2024 GRADED A+

exclusions - correct answers aviation, criminal activity, war and military viatical settlement - correct answers selling policy to a 3rd party when you have a terminal illness life settlements - correct answers old person selling to a 3rd party group life - correct answers employer is policyholder, gets master policy- employees get certificates of insurance- evidence of insurability not required- ART- convert to a permanent policy(31 days) contributory plan - correct answers employee pays part or all of the premium- 75% non-contributory plan - correct answers employer pays all the premium- 100% qualified plans (retirement) - correct answers qualify for preferential tax treatment- pre tax dollars used- must have IRS approval- vesting requirement- designed for employees and beneficiaries- not favor highly paid employees- contributions grow tax deferred rollovers (retirement) - correct answers no penalty- one plan trustee to another- from qualified to qualified- direct distribution, 20% withheld, 60 days to put in new plan

200questions and answers latest update

2023/2024 GRADED A+

premature distributions (retirement) - correct answers 10% IRS penalty- 59 1/ IRA/ individual retirement account - correct answers anyone with earned income can contribute- low contribution limits- contributions may be tax deductible or even pre-tax dollars ROTH IRA - correct answers funded with after tax dollars- grows tax free, after 5 years SEP/ simplified employee pension - correct answers suitable for small employers- high contribution limit Keogh plan (hr 10) - correct answers for self employed partners and their employees TSA/ tax sheltered annuity - correct answers 403b:employees of public school systems- 501c-3:certain non-profits and religious organizations 401k - correct answers retirement plans for large corporations SIMPLE plans - correct answers less than 100 employees profit sharing - correct answers systematic and substantial

200questions and answers latest update

2023/2024 GRADED A+

personal needs - correct answers survivor protection- cash accumulation- estate creation- estate conservation business needs - correct answers executive bonus- key person policy- buy/sell agreement executive bonus - correct answers employer gives employee wage increase in the amount of the premium on life insurance policy- employee owns and pays for the policy key person policy - correct answers specialized knowledge, skills or business contacts- business pays premiums, not deductible- business gets benefits, tax free buy/sell agreement - correct answers how a business is going to change hands if one of the owner dies- funded with life insurance- business pays the premiums, not deductible- business gets benefit, tax free- multiple partners, cross purchase plan insured status (social security) - correct answers fully insured, 40 quarters of coverage, 10 years of work- partially insured, 6 out of the last 13 quarters before becoming eligible for benefits retirement (social security) - correct answers age 66 and fully insured- partial benefits at 62- amount of benefits based on PIA

200questions and answers latest update

2023/2024 GRADED A+

disability (social security) - correct answers disability expected to last 12 months or end in death- 5 month waiting period- fully insured- age 23 and under, 6 credits- age 24 to 31, 12 credits MEC/ modified endowment contract - correct answers applies to cash value policies- when over funded, lose their tax advantages- 7 pay test- 7 pay whole life- LIFO, last in first out- 10% IRS penalty, 59 1/2- tax deferred, cash value basic hospital expense policy - correct answers first dollar coverage, no deductible- hospital indemnity policy- pays specific dollar amount per day while confined to the hospital- inadequate coverage for every day health needs surgical expense policy - correct answers only pays for surgical- surgical schedule- relative value approach, maximum procedure like open heart surgery is at the top and each procedure below it has points assigned to it- conversion factor, represents total amount payable per point major medical policy - correct answers deductible, higher the deductible lower the premium- co-insurance- stop loss limit- unlimited coverage with the ACA- supplementary major medical deductible - correct answers amount you pay before cost sharing with insurance company, higher the deductible lower the premium co-insurance - correct answers % of cost sharing with insurance company, 90/10- 80/20- 70/30- 50/

200questions and answers latest update

2023/2024 GRADED A+

stop loss limit - correct answers out of pocket maximum, insured is no longer billed for medical expenses supplementary major medical - correct answers picks up where basic policy stops, corridor deductible HMO/ health maintenance organization - correct answers managed care plane- limited choices of providers and hospitals- insured=subscribers- insureds pick primary car physician, must get referral to see any other doctor, gatekeeper, subscriber co go outside of network but pays more money- pre-paid basis- copayment- geographic regions- must provide inpatient hospital care and emergency care in or out of the service area gatekeeper concept - correct answers keeps down the cost of high priced specialists pre-paid basis - correct answers doctors get paid a set fee attributed to each member- capitated basis PPO/ preferred provider organization - correct answers doctors get paid a fee for the service they provide- managed care plan- coinsurance and deductibles can apply- member can see any doctor within the network, if go outside network benefits will be reduced POS/ point of service plan - correct answers combination of HMO and PPO- HMO, doctors get paid on a capitated basis, member picks a PCP- PPO, member can go see any doctor on the list without a referral

200questions and answers latest update

2023/2024 GRADED A+

FSA/ flexible spending account - correct answers cafeteria plan, pick which benefits you want, health care account, dependent care account- IRS sets limits to amounts that can be contributed, pretax dollars lowers taxable incomer for year, use it or lose it rule HRA/ health reimbursement account - correct answers consists of funds set aside by employer to reimburse employee- employer sets eligibility requirements and contribution limits, allows employers of all sizes to offer this benefit- remains with originating employer if employee leaves HSA/ health savings account - correct answers funds set aside by employer and employee- if funds are used for anything other than a healthcare expenditure and employee is under age 65, pay ordinary income tax + 20% penalty- after age 65, only income tax HDHP/ high deductible health plan - correct answers HSA, HRA, and MSA, linked to HDHP presumptive disability - correct answers provision that states conditions that would automatically qualify the insured for full disability benefits- quadriplegic- permanent blindness or deafness- loss of 2 limbs recurrent disability - correct answers provision that states a similar disability can be considered a continuation of the prior periods, picks up where it left off, whether during the elimination period or benefit period

200questions and answers latest update

2023/2024 GRADED A+

elimination period (disability) - correct answers deductible measured in days not dollars- begins from the onset of a disability, injury or illness- must be satisfied before benefits will be paid- the longer the elimination period the lower the premium benefit period (disability) - correct answers payments to insured- benefits have to be paid at least monthly- begins once elimination period has been satisfied- the longer the benefit period the higher the premium probationary period - correct answers applies to pre-existing conditions- starts when policy if first issued- must be satisfied before an illness would be covered- tp help prevent adverse selection- does not apply to accidents or injuries accidental bodily injury - correct answers damage to the body must be unexpected and unintended, more liberal accidental means - correct answers cause of accident must be unexpected and unintended, more strict business overhead expense policy (disability) - correct answers purchased by a small business owner- doesn't replace his income- covers rent, salaries, utilities, lease agreements, etc- premiums deductible as a business expense- benefits taxable to the business key person policy (disability) - correct answers someone with specialized knowledge, skills, or business contacts- premiums paid by business not deductible- benefits to business owner not taxable

200questions and answers latest update

2023/2024 GRADED A+

buy/sell agreement ( disability) - correct answers how is a business going to change hands if one of the owner dies- funded with life insurance- premiums paid by business not deductible- benefits to business owner not taxable- cross purchase plan, multiple partners group disability - correct answers done through employer- short term, benefit period of 13 to 26 weeks- long term, benefit period can be more than 2 years- non-occupational basis only covers off the job only long term care (health care) - correct answers to assist with activities of daily living- 30 day free look period- guaranteed renewable- must have at least a 12 month benefit period- benefits are tax free to the insured- cannot exclude: alzheimers, dementia or parkinsons- skilled care- intermediate care- custodial care- home health care- residential care- adult day care- respite care skilled care - correct answers only provided by medical personnel in an institutional setting intermediate care - correct answers only provided by medical personnel in institutional setting or the patients own home custodial care - correct answers can be provided by non-medical personnel institutional setting or patients own home home health care - correct answers provided by a skilled nursing or other professional service

200questions and answers latest update

2023/2024 GRADED A+

residential care - correct answers not home, insured resides in a residential retirement community adult day care - correct answers for fictionally impaired adults on less than a 24 hour basis respite care - correct answers designed to give relief to a family caregiver so they can take a break group health insurance - correct answers done through employer- proof of insurability not required- underwriter group as a whole- cost is based on average age of group and ratio men to women- association group- conversion privilege association group - correct answers professional or other alumni association can buy group coverage- must have at least 100 members- constitution, by laws and hold annual meetings conversion privilege - correct answers for all terminated employees- convert to an individual policy within 31 days- proof of insurability not required- insurer is allowed to evaluate, could be rated up and have lesser benefits than the group COBRA/ consolidated omnibus budget reconciliation act of 1985 - correct answers requires employers with 20 or more employees to extend group health coverage to terminated employees after a qualifying event- coverage extended up to 18 months, must exercise extension within 60 days- 36 months, death of the

200questions and answers latest update

2023/2024 GRADED A+

employee, divorce or legal separation- employer collects premium, can only charge an extra 2%- employee $25- employer $75- TOTAL $100- COBRA $102 dread disease - correct answers cancer or heart disease policy short term medical - correct answers covers up to 11 months hospital indemnity - correct answers basic medical expense plans grace period (health) - correct answers depends on mode- weekly 7 days, monthly 10 days, all other modes 31 days reinstatement (health) - correct answers after a policy has lapsed- pay back premiums plus interest- prove insurability- accidents covered immediately, illness covered after 10 days notice of claim - correct answers 20 days, notice to agent= notice to insurer claim forms - correct answers 15 days, if forms not received, submitting any written proof will suffice proof of loss - correct answers 90 days, not to exceed 1 year

200questions and answers latest update

2023/2024 GRADED A+

time of payment of claims (health) - correct answers the when, claims are to be paid immediately upon written proof of loss, usually 60 days- disability claims must be paid at least monthly payment of claims (health) - correct answers the who, claim payments to be made to insured, beneficiary, estate, unless otherwise assigned to a doctor or hospital legal action (health) - correct answers wait 60 days no later than 3 years probationary period (health) - correct answers group: before eligible to participate in benefits- disability: from when a policy is first issued before illness covered waiver of premium (health) - correct answers provision or rider in a disability policy- after 6 months of disability, premiums waived and premiums paid during waiting period are reimbursed managed care plans - control costs - correct answers pre-authorization or prior approval requirements- usual, reasonable and customary, costs differ depending on where you live- concurrent review- controlled access of providers- coinsurance- copayment- deductibles concurrent review - correct answers follow along as you progress through treatment

200questions and answers latest update

2023/2024 GRADED A+

carry over provision - correct answers deductible hasn't been met, any expenses incurred during last 3 months of the year can be carried over to the next year to meet the new deductible, change of occupation (health) - correct answers less dangerous to more dangerous benefits go down- more dangerous to less dangerous premiums go down multiple indemnity rider (health) - correct answers added to AD&D policy, pays 2x or 3x face amount exclusion/ impairment rider - correct answers takes away coverage for pre- existing conditions nursing home care - correct answers only covered by LTC policy or Medicaid medicare - correct answers federal medical expense program part A - correct answers hospital insurance, premium free at age 65- in patient hospital, first 90 days are covered per benefit period- deductible and daily copays- skilled nursing care, first 100 days are covered part B - correct answers medical insurance, optional or premium- doctors, lad tests, x-rays- outpatient hospital- deductible + 20% coinsurance with no stop loss