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

Tarrant County CollegePersonal Health

A study guide or practice exam for the texas life and health insurance state exam, which is required for individuals seeking to obtain a license to sell life and health insurance products in the state of texas. A wide range of topics related to life and health insurance, including policy types, coverage provisions, regulatory requirements, and insurance industry practices. The questions and answers provided in the document are designed to test the candidate's knowledge and understanding of these key insurance concepts. By studying this document, individuals preparing for the texas life and health state exam can gain valuable insights and practice answering the types of questions that may appear on the actual exam. The document could be particularly useful for university students pursuing degrees in insurance, finance, or risk management, as well as for insurance professionals seeking to maintain or renew their licenses in texas.

Typology: Exams

2024/2025

Available from 09/29/2024

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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
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Texas Life and Health State Exam Exam

  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
  1. A Medicare Supplement policy may be cancelled for which of the following reasons? - ✔✔The premium has not been paid by the insured
  2. A new agent must complete at LEAST___hours of continuing education within 24 months of initial licensure - ✔✔ 24
  3. A person who is insured within a group contract will be given a - ✔✔certificate
  4. A plan through the Marketplace may be purchased by - ✔✔any legal resident (except those imprisoned)
  5. A policy of adhesion can only be modified by whom? - ✔✔The insurance company
  6. 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
  7. A retirement plan that sets aside part of the company's net income for distributions to qualified employees is called a - ✔✔profit-sharing plan
  1. According to the Time Limit of Certain defenses provision in an Individual Health Insurance Policy, nonfraudulent misstatements first become incontestable - ✔✔two years from the date of the policy was issued
  2. Additional coverage can be added to a whole Life policy by adding an - ✔✔Decreasing term rider
  3. 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? - ✔✔Return to the customer, collect a new check made out to the insurance company and send the new check out to the insurance company
  4. An applicant MUST receive an Outline of Coverage when an application is taken for an - ✔✔Medicare Supplement policy
  5. An employee is covered under a company group life plan with a $50,000 death benefit. What is the MAXIMUM amount a spouse may be insured fore under this program? - ✔✔$25,
  1. 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
  2. An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the - ✔✔Commissioner
  3. An example of an unfair claims settlement practice is - ✔✔turning down a claim without providing the basis of denial
  4. An example of false advertising would be - ✔✔An insurer exaggerating its dividends in a magazine advertisement
  5. An immediate annuity consists of a - ✔✔Single Premium
  6. An individual Disability Income insurance applicant may be required to submit all of the following information EXCEPT - ✔✔spouse's occupation
  7. 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,
  1. 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
  2. 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
  3. 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
  4. Credit Life Insurance is - ✔✔insurance issued on a debtor to cover outstanding loan balances
  5. 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
  6. During a sales presentation for a participating life insurance policy, an agent MUST - ✔✔make a prospect understand that dividends are NOT guaranteed
  1. Every 12-months after the initial enrollment period, an HMO must hold an open enrollment period of - ✔✔31 days
  2. F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed? - ✔✔Decreasing term policy
  3. G is an accountant who has ten employees and is concerned about how the business would survive financially if G became disabled. The type of policy which BEST addresses this concern is - ✔✔Business Overhead Expense
  4. How are policyowner dividends treated in regards to income tax?
    • ✔✔Interest on accumulations is taxed
  5. How does a typical Variable Life Policy investment account grow?
    • ✔✔Through mutual funds, stocks, bonds
  6. How long does an insurance company appointment remain in force? - ✔✔Until terminated
  7. If an individual has an Accidental Death and Dismemberment policy and dies, an autopsy can be performed in all these situations, EXCEPT - ✔✔When the state prohibits this by law
  1. Insurers may request a hearing within ___ if their policy is reject - ✔✔20 days
  2. 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
  3. 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
  4. J would like to maintain the right to change beneficiaries. Which beneficiary designation should be used? - ✔✔Revocable
  5. 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
  6. Life insurance that covers an insured's whole life with level premiums paid over a limited time called - ✔✔Limited Pay Life
  1. 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
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  1. T was treated for an ailment 2 months prior to applying for a health insurance policy. This condition was noted on the application and the policy was issued shortly afterwards.How will the insurer likely consider this condition? - ✔✔Insurer will likely treat as a pre- existing condition which may not be covered for one year
  2. Term insurance has which of the following characteristics? - ✔✔Expires at the end of the policy period
  3. The Accelerated Death Benefit provision in a life insurance policy is also known as an - ✔✔Living Benefit
  4. The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n) - ✔✔Insuring agreement
  5. The amount of coverage on a group credit life policy limited to - ✔✔the insured's total loan value
  6. The Consolidate Omnibus Budget Reconciliation Act (COBRA) gives workers (and their families) whose employement has been terminated the right to - ✔✔continue group health benefits
  1. The federal income tax treatment of employer-provided group Medical Expense insurance can be accurately described as - ✔✔Employee's premiums paid by the employer is tax deductible to the empolyer as business expenditure
  2. The investment gains from a Universal Life Policy usually go toward - ✔✔the cash value
  3. The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs? - ✔✔Social Security Disability Income
  4. The provision that defines to whom the insurer will pay benefits to is called - ✔✔Payment of Claims
  5. The reason for a business having a Business Overhead Expense Disability Plan is to cover - ✔✔fixed business expenses
  6. The reason for backdating a policy is - ✔✔to obtain a premium rate based on an earlier age
  7. The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the - ✔✔Cost of insurance
  1. 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
  2. What benefit does the Payor clause on a Juvenile Life policy provide? - ✔✔Premiums are waived if payor becomes disabled
  3. What does a Guaranteed Insurability rider provide a Disability Income policyowner? - ✔✔The ability of periodically increase the amount of coverage without evidence of insurability
  4. What is an organization that solicits insurance only to its member? - ✔✔Fraternal benefit society
  5. What is considered a valid reason for small businesses to insure the lives of its major shareholders - ✔✔Fund a buy-sell agreement
  6. What is Medicare? - ✔✔is a hospital and medical expense insurance program
  7. What is the MINIMUM benefit period that must be offered by a Long-Term Care policy? - ✔✔12 months
  1. What is the purpose of a Policy Summary? - ✔✔It highlights the critical parts of the policy issued
  2. 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
  3. What provision in a life insurance policy states that the application is considered part of the contract? - ✔✔Entire Contract provision
  4. What type of employee welfare plans are not subject to ERISA regulations? - ✔✔Church plans
  5. What type of insurance offers permanent life coverage with premiums that are payable for life? - ✔✔Whole Life
  6. What type of life insurance gives the greatest amount of coverage for a limited period of time? - ✔✔Term life
  7. What type of life insurance incorporates flexible premiums and an adjustable death benefit? - ✔✔Universal Life
  1. Which mode of payment is NOT used by health insurance policies? - ✔✔Single premium
  2. Which of the following actions is NOT possible with a Universal Life policy? - ✔✔Premiums may be applied as a credit aganist income tax
  3. Which of the following actions require a policyowner to provide proof of insurability in an Adjustable Life policy? - ✔✔increase face amount
  4. Which of the following characteristics is CORRECT about Interest Sensitive Whole Life? - ✔✔Premium payments can vary
  5. Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? - ✔✔Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company
  6. Which of the following does Social Security NOT provide benefits - ✔✔Dismemberment
  7. Which of the following is a requirement for obtaining a Texas insurance agent's license? - ✔✔Be honest, trustworthy and reliable
  1. Which of the following is a valid reason for an enrollee to be cancelled by a Health Maintenance Organization (HMO) plan? - ✔✔Nonpayment of coverage
  2. Which of the following is NOT a required provision in group life policies? - ✔✔Right to Loan
  3. Which of the following is NOT included in a life insurance illustration? - ✔✔Company's mortality table
  4. Which of the following is NOT included in an annuity contract? - ✔✔AD&D rider
  5. Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party? - ✔✔Subrogation
  6. Which of the following may NOT charge fees for insurance advice?
- ✔✔Legal reserve agents
  1. Which of the following medical expenses does Cancer insurance NOT cover? - ✔✔Arthritis