Texas S tate Exam Simulator - Life and Health Insurance (200 Questions Practice Exam)2025-2026 Latest Updated New version VERIFIED 100%

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1. An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value... has been paid. This type of annuity is called An installment Refund annuity A Straight Life annuity A Cash Refund annuity A Joint Life annuity: An installment Refund annuity 2. One becomes eligible for Social Security disability benefits after having been disabled for 3 months 5 months 6 months 12 months: 5 months 3. 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: 20-Pay Life accumulates cash value faster than Straight Life 4. Who makes the legally enforceable promises in a unilateral insurance poli- cy? Beneficiary Insurance company Insured Applicant: Insurance company 5. The Consideration clause in a life insurance policy indicates that a policy- owner's consideration consists of a completed application and the initial premium agreeing to a physical examination 1 / 41 Texas S tate Exam Simulator - Life and Health Insurance (200 Questions Practice Exam)2025-2026 Latest Updated New version VERIFIED 100% Study online at https://quizlet.com/_4t8rfi delivery of policy disclosure of any medical conditions: the initial premium 6. Which parts of a life insurance policy are guaranteed to be true? Rating Representation Statement Warranty: Warranty 7. A comprehensive major medical health insurance policy contains an Eligi- ble 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: experimental and investigative services 8. If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses? Long-term care Indemnity Medicare Supplement Medicaid: Medicare Supplement 9. S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits? No benefits are payable under the Master contract Full benefits are payable under the Master contract Full benefits are payable under the converted policy Benefits less required premium are payable under the converted policy: Full benefits are payable under the Master contract 10. All of the following are limited benefit plans EXCEPT cancer policies life insurance policies dental policies critical illness policies: life insurance policies 2 / 41 Texas S tate Exam Simulator - Life and Health Insurance (200 Questions Practice Exam)2025-2026 Latest Updated New version VERIFIED 100% Study online at https://quizlet.com/_4t8rfi 11. 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: Guaranteed Insurability Option rider 12. An agent whose license has been revoked is required to wait at least five years before applying for a new license submit all previously written policies to the Commissioner of Insurance's office for servicing of the accounts cancel all policies currently in effect and advise the insureds to place them elsewhere continue to service the existing accounts but not solicit new business: wait at least five years before applying for a new license 13. The benefits under a Disability Buy-Out policy are normally paid in installments taxable to the beneficiary payable to the company or another shareholder normally paid after a short elimination period: payable to the company or another shareholder 14. he Health Insurance Portability and Accountability Act (HIPAA) gives pri- vacy protection for insolvency health information financial information overinsurance: health information 15. How are surrender charges deducted in a life policy with a rear-end loaded provision? Deducted from the death benefit Deducted when the policy is discontinued Deducted from policy's cash value 3 / 41 Texas S tate Exam Simulator - Life and Health Insurance (200 Questions Practice Exam)2025-2026 Latest Updated New version VERIFIED 100% Study online at https://quizlet.com/_4t8rfi Deducted when assigned to another policyowner: Deducted when the policy is discontinued 16. What MUST an insurance company use in its advertising? Its trade name Its true corporate name Its service mark Its corporate logo: Its true corporate name 17. An accident policy will most likely pay a benefit for a(n) self-inflicted injury critical illness on-the-job accident off-the-job accident: off-the-job accident 18. 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 policy is delivered free-look period has expired insurance company issues policy initial premium is collected: free-look period has expired 19. When a policyowner cash surrenders a Universal Life insurance policy in it's early years, this may be considered a red flag for a(n) Federal Fair Credit Act Violation Title 18 Fraud violation Anti-Money Laundering violation Unfair Trade Practice violation: Anti-Money Laundering violation 20. Which of these do NOT constitute policy delivery? Policy mailed to applicant Policy mailed to agent Policy delivered to the applicant by the agent Policy issued with a rating: Policy issued with a rating 21. What is the MINIMUM number of Activities of Daily Living (ADL) an insured must be unable to perform to qualify for Long Term Care benefits? 4 / 41 State Exam Simulator - Life and Health Insurance (200 Questions Practice Exam)2025-2026 Latest Updated New version VERIFIED 100% Study online at https://quizlet.com/_4t8rfi 5 / 41 Texas 1 2 3 4: 2 22. An agent who tells a client that dividends are guaranteed may be guilty of fraud rebating misrepresentation slander: misrepresentation 23. Which statement regarding a Key Employee Life policy is NOT true? The application must be signed by the key employee Its purpose is to prevent the financial loss that may ensue if a key employee dies The beneficiary is named by the key employee The company purchases, owns, pays the premiums and is the beneficiary: The beneficiary is named by the key employee 24. A policyowner's rights are limited under which beneficiary designation? Revocable Tertiary Contingent Irrevocable: Irrevocable 25. Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take? Deposit the applicant's check into his account and make a personal check out to the insurance company from his personal account Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company Cross off his name on the "pay to" portion of the check, write the name of the insurance company, and send the check back to the insurance company Deposit the check in to his personal account, use the funds to purchase a cashiers check, and send the new cashiers check back to the insuranc [Show More]

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