Texas State Exam Simulator - Life and

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Texas State Exam Simulator - Life and Health Insurance (200 Questions Practice Exam) Latest Version Already Passed

What is the main purpose of the Texas Department of Insurance?

• Sell insurance to residents

✔✔ B. Regulate and oversee the insurance industry

• Manage retirement funds
• Process tax returns

What is the primary feature of a renewable term policy?

• Converts automatically to whole life
• Requires no premium payments

✔✔ C. Allows policy renewal without proof of insurability

• Pays dividends annually

Which of the following best describes an HMO (Health Maintenance Organization)?✔✔ A. Members must choose from a specific provider network 1 / 4

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• Coverage applies in all countries
• Premiums are based on income only
• It is only available through employers

Which rider pays the premium if the insured becomes disabled?

• Accidental death rider

✔✔ B. Waiver of premium rider

• Guaranteed insurability rider
• Family term rider

In Texas, the grace period for individual life insurance policies is:

• 5 days
• 15 days

✔✔ C. 31 days

• 60 days

Which type of policy allows partial withdrawals from the cash value?✔✔ A. Universal life 2 / 4

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• Term life
• Group life
• Accidental death only

In a group life policy, who is the policyholder?

• The employee

✔✔ B. The employer

• The insurance agent
• The beneficiary

Which of these is an example of a limited health policy?

• PPO plan

✔✔ B. Cancer insurance

• Major medical insurance
• Disability income policy

The purpose of a coordination of benefits (COB) clause is to:

✔✔ A. Prevent overpayment when insured has multiple health plans 3 / 4

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• Increase monthly premiums
• Restrict access to coverage
• Automatically cancel duplicate plans

A life insurance policy becomes incontestable in Texas after:

• 6 months
• 1 year

✔✔ C. 2 years

• 5 years

What is the advantage of convertible term life insurance?

• Premiums stay the same for life
• It earns interest annually
• Can be renewed at age 85

✔✔ D. Can be converted to permanent coverage without a medical exam

What is the purpose of an accidental death benefit rider?✔✔ A. Pays an additional sum if death is caused by accident

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