Texas State Exam Simulator - Life and Health Insurance (200 Questions Practice Exam) Actual Exam Latest Update 2024-2025 Questions and 100% Verified Correct Answers Guaranteed A+
A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need?
Endowment at Age 75 Universal Life Graded Benefit Whole Life
Modified Whole Life - CORRECT ANSWER: Universal Life
A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would be considered primary?
Medicaid Long-term care Medicare
Her group health plan - CORRECT ANSWER: Her group health plan
A Business Disability Buyout plan policy is designed
as an incurred expense plan with a very short Elimination period to pay benefits to the Corporation or other shareholders to pay benefits to the insured's spouse - CORRECT ANSWER: to pay benefits to the Corporation or other shareholders
A certificate of authority does which of the following?
Gives an agent authority to represent a specific insurance company Permits an agent to solicit insurance in Texas Permits a decreased agent's relative to act as an agent for a limited period of time
Permits an insurance company to transact business in Texas - CORRECT ANSWER:
Permits an insurance company to transact business in Texas
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A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered EXCEPT for
hospital charges physician fees experimental and investigative services
nursing services - CORRECT ANSWER: experimental and investigative services
A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of
coercion fraud rebating
boycotting - CORRECT ANSWER: coercion
A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?
Payor provision Accelerated Benefits provision Assignment provision
Waiver of Premium provision - CORRECT ANSWER: Payor provision
A foreign insurance company is one that is incorporated
under Texas law under the laws of another state is a territory of the United States
outside the United States - CORRECT ANSWER: under the laws of another state
A group life insurance policy may NOT insure groups consisting exclusively of persons who are
salaried, clerical, or administrative employees hourly paid laborers or their supervisors administrative, managerial, or sales personnel
related by marriage, blood or legal adoption - CORRECT ANSWER: related by
marriage, blood or legal adoption
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a
treaty insurer 2 / 4
risk retention group risk assumption group
captive insurer - CORRECT ANSWER: risk retention group
A Health Reimbursement Arrangement MUST be established
with employee funding with other employer-sponsored benefit plans by the employer
only during specific open enrollment periods - CORRECT ANSWER: by the employer
A life insurance illustration is NOT required to include the
name of the insurer underwriting or rating classification upon which the illustration is based initial death benefit
company's mortality table - CORRECT ANSWER: company's mortality table
A Long-Term Care policy must offer a MINIMUM benefit period of how many months?
12 18 24
30 - CORRECT ANSWER: 12
A long-term care rider in a life insurance policy pays a daily benefit in the event of which of the following?
Critical illness Terminal illness Inability of the insured to perform more than 2 Activities of Daily Living (ADL's) Inability of the insured to maintain insurance premiums due to unemployment - CORRECT ANSWER: Inability of the insured to perform more than 2 Activities of Daily Living (ADL's)
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life insurance, would require how many policies?
3 6 9
12 - CORRECT ANSWER: 6
A newly licensed General Lines agent must complete a MINIMUM of how many hours of continuing education within 24 months after initial license?
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10 15 20
24 - CORRECT ANSWER: 24
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as
a fraternal benefit society a stock insurer a mutual insurer the Life and Health Insurance Guaranty Association - CORRECT ANSWER: a fraternal benefit society
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow?
Extended Term rider Cost of Living Adjustment rider Guaranteed Insurability Option rider
Waiver of Premium rider - CORRECT ANSWER: Guaranteed Insurability Option rider
A policyowner's rights are limited under which beneficiary designation?
Revocable Tertiary Contingent
Irrevocable - CORRECT ANSWER: Irrevocable
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?
Straight life accumulates faster than Limited-pay Life 20-Pay Life accumulates cash value faster than Straight Life Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial rating 20-Pay Life and Straight Life accumulate cash value at the same rate - CORRECT
ANSWER: 20-Pay Life accumulates cash value faster than Straight Life
A Renewable Term Policy is renewable at the option of the
Owner Company Insured
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