Texas Life and Health State Exam 2024/2025, Exams of Personal Health

Download Texas Life and Health State Exam 2024/2025 and more Exams Personal Health in PDF only on Docsity! Texas Life and Health State Exam Exam 2024/2025 1. ___ of continuing education MUST be completed in the classroom or classroom equivalent - ✔✔50% 2. A certificate of ____ permits an insurance company to transact business in Texas - ✔✔authority 3. A characteristic of Preferred Provider Organizations (PPOS) would be - ✔✔Discounted fees for the patient 4. A domestic insurance company in Texas is considered a company that - ✔✔is incorporated and formed in Texas 5. A foreign insurance company conducting insurance business in Texas - ✔✔was formed under the laws of another state 6. A life insurance policy that provides a policyowner with cash value along with a level face amount is called - ✔✔Whole life 7. A life insurance policy would be considered a wagering contract WITHOUT - ✔✔insurable interest 8. A Medicare Supplement policy may be cancelled for which of the following reasons? - ✔✔The premium has not been paid by the insured 9. A new agent must complete at LEAST___hours of continuing education within 24 months of initial licensure - ✔✔24 10. A person who is insured within a group contract will be given a - ✔✔certificate 11. A plan through the Marketplace may be purchased by - ✔✔any legal resident (except those imprisoned) 12. A policy of adhesion can only be modified by whom? - ✔✔The insurance company 13. A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be correct? - ✔✔20-Pay LIfe accumulates cash value faster than Straight Life 14. A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a - ✔✔profit-sharing plan 26. An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can be - ✔✔converted to an individual permanent policy at an individual rate 27. An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the - ✔✔Commissioner 28. An example of an unfair claims settlement practice is - ✔✔turning down a claim without providing the basis of denial 29. An example of false advertising would be - ✔✔An insurer exaggerating its dividends in a magazine advertisement 30. An immediate annuity consists of a - ✔✔Single Premium 31. An individual Disability Income insurance applicant may be required to submit all of the following information EXCEPT - ✔✔spouse's occupation 32. An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable? - ✔✔$2,500 33. An insurance company organized under New York laws and licensed to do business in Texas is considered an - ✔✔foreign company 34. 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 35. An insured's inability to perform two or more activities of daily living may trigger which type of policy rider? - ✔✔Long term care 36. 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 37. At what point does an informal contract become binding? - ✔✔When one party makes an offer and other party accepts that offer 38. At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - ✔✔Upon completion of the application 39. At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid? - ✔✔At the time application 40. B is a teacher who was injured in a car accident and cannot work. She is now receiving monthly benefits as a result of this accident. Which type of policy does B have? - ✔✔Disability Income 41. B the insurance agent tells his clients that their rights may be impaired if they fail to complete a release form within a given period of time. B may be found guilty of - ✔✔coercion 42. Credit Life Insurance is - ✔✔insurance issued on a debtor to cover outstanding loan balances 43. D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is D's wife. D and his wife divorce and D remarries, transferring ownership of his policy to his new wife. If D dies without making any further changes, to whom will the policy proceeds be paid to? - ✔✔Ex wife 44. During a sales presentation for a participating life insurance policy, an agent MUST - ✔✔make a prospect understand that dividends are NOT guaranteed 58. Insurers may request a hearing within ___ if their policy is reject - ✔✔20 days 59. J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? - ✔✔20-pay Life 60. J let her life insurance policy lapse 8 months ago due to nonpayment. She can reestablish coverage under which of the following provisions? - ✔✔Reinstatement provision 61. J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? - ✔✔Revocable 62. K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - ✔✔Daughter 63. Life insurance that covers an insured's whole life with level premiums paid over a limited time called - ✔✔Limited Pay Life 64. M completes an application for life insurance but does not pay the initial premium. All of these actions must occur before M's policy goes into effect EXCEPT - ✔✔free-look period has expired 65. M has an insurance policy that also has an outstanding policy loan at the time of M's death. The insurer will deduct the outstanding loan balance from the - ✔✔policy proceeds 66. N is covered by a Term Life policy and does not make the required premium payment which was due August 1. N dies September 15. What action will the insurer take? - ✔✔Claim will be denied 67. P is the insured on a participating life policy. Which statement is true if P's premiums are waived due to a disability? - ✔✔P will still receive declared dividends 68. P received Disability income benefits for 3 months then returns to work. She is able to work one month before her condition returns, leaving her disabled once again. What would the insurance company most likely regard this second period of disability as? - ✔✔A recurrent disability 69. P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase? - ✔✔Deferred 70. Q applied for life insurance and submitted the initial premium on January 1. The policy was issued February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and returns the policy February 13. How will the insurer handle this situation? - ✔✔Policy was retured within the free-look period, premium will be fully refunded 71. S has a Whole Life policy with a premium payment due soon. Which provision would keep the policy in force if S does not make the required payment and the policy has adequate cash value from which the premium payment can be made? - ✔✔Automatic Policy Loan 72. T is receiving $3,000/month from a Disability Income policy in which T's employer had paid the premiums. How are the $3,000 benefit payments taxable? - ✔✔Benefits are taxable to T 73. T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? - ✔✔Increase her policy's coverage amount 74. T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay? - ✔✔$50,000 88. Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted? - ✔✔If Tom's employment is terminated, 20% of the funds would be forfeited 89. Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE? - ✔✔Each partner owns a $500,000 policy on their partner's life 90. Under a trustee group life policy, who would be eligible for a certificate of coverage? - ✔✔Employee 91. Under which of the following circumstances will the benefits under COBRA continuation coverage end? - ✔✔All group health plans are terminated by the employer 92. V is insured under an individual Disability Income policy with a 30- day Elimination period. On July 1, he is involved in an accident and temporarily disabled. He returns to work on December 1. How many months of benefit are payable? - ✔✔4 months 93. W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) - ✔✔Immediate annuity 94. What action will an insurer take if an interest payment on a policy loan is not made on time? - ✔✔automatically add the amount of interest due to the loan balance 95. What benefit does the Payor clause on a Juvenile Life policy provide? - ✔✔Premiums are waived if payor becomes disabled 96. What does a Guaranteed Insurability rider provide a Disability Income policyowner? - ✔✔The ability of periodically increase the amount of coverage without evidence of insurability 97. What is an organization that solicits insurance only to its member? - ✔✔Fraternal benefit society 98. What is considered a valid reason for small businesses to insure the lives of its major shareholders - ✔✔Fund a buy-sell agreement 99. What is Medicare? - ✔✔is a hospital and medical expense insurance program 100. What is the MINIMUM benefit period that must be offered by a Long-Term Care policy? - ✔✔12 months 101. What is the purpose of a Policy Summary? - ✔✔It highlights the critical parts of the policy issued 102. What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100? - ✔✔Whole Life 103. What provision in a life insurance policy states that the application is considered part of the contract? - ✔✔Entire Contract provision 104. What type of employee welfare plans are not subject to ERISA regulations? - ✔✔Church plans 105. What type of insurance offers permanent life coverage with premiums that are payable for life? - ✔✔Whole Life 106. What type of life insurance gives the greatest amount of coverage for a limited period of time? - ✔✔Term life 107. What type of life insurance incorporates flexible premiums and an adjustable death benefit? - ✔✔Universal Life 122. Which of the following is a valid reason for an enrollee to be cancelled by a Health Maintenance Organization (HMO) plan? - ✔✔Nonpayment of coverage 123. Which of the following is NOT a required provision in group life policies? - ✔✔Right to Loan 124. Which of the following is NOT included in a life insurance illustration? - ✔✔Company's mortality table 125. Which of the following is NOT included in an annuity contract? - ✔✔AD&D rider 126. Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? - ✔✔Subrogation 127. Which of the following may NOT charge fees for insurance advice? - ✔✔Legal reserve agents 128. Which of the following medical expenses does Cancer insurance NOT cover? - ✔✔Arthritis 129. Which of the following services is NOT covered under hospitalization expense policy? - ✔✔surgeon's fees 130. Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE? - ✔✔It is taxed as ordinary income 131. Which of the following statements about health coverage for newborns is NOT true? - ✔✔Coverage is limited to only congenital defects 132. Which of the following types of organizatons are prepaid group health plans, where members pay in advance for the services of participating physicans and hospitals that have agreements? - ✔✔HMO 133. Which of these describe a participating life insurance policy? - ✔✔Policyowners are entitled to receive dividends 134. Which of these is an element of a Variable Life policy? - ✔✔A fixed, level premium 135. Which of these is considered a mandatory provision? - ✔✔Payment of Claims 136. Which of these provisions is NOT required in life insurance policies? - ✔✔Extended Term 137. Which of these types of coverage is best described as a short term medical policy? - ✔✔interim coverage 138. Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options? - ✔✔Variable Life 139. Which parts of a life insurance policy are guaranteed to be true? - ✔✔Warranty 140. Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? - ✔✔Variable Life 141. Which requirement must be met for an association to be eligible for a group life plan? - ✔✔Group was formed for a purpose other than acquiring insurance 142. Which statement regarding the Change of Beneficiary provision is true? - ✔✔The policyowner can change the beneficiary