Texas Life and Health 5

Which of the following provides coverage on a first-dollar basis?

Basic expense

At least 2 and not more than 50

Evidence of coverage.

To be eligible for a Health Savings Account, an individual must be covered by a

High-deductible health plan.

The Commissioner has full power and authority to do all of the following EXCEPT

Draft insurance laws.

In life insurance policies, cash value increases

Grow tax deferred.

All advertisements are the responsibility of the

Insurer.

The policyowner wants to make sure that upon his death, the life policy will pay a portion of the proceeds annually to his spouse, but that the principal will be paid to their children when they reach a certain age. Which settlement option should the policy owner choose?

Interest only option

Why is an equity indexed annuity considered to be a fixed annuity?

It has a guaranteed minimum interest rate.

Which of the following is considered a presumptive disability under a disability income policy?

Loss of two limbs

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid-up option

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide proof of insurability?

Proof of insurability is not required.

The annual contribution limit of a Dependent Care Flexible Spending Account is set by

The IRS.

The initial amount of credit life insurance may NOT exceed

The amount to be repaid under the contract.

Which statement is NOT true regarding underwriting group health insurance?

The group is assessed individually for insurability.

An employee quits his job on May 15 and doesn't covert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

The insurer will pay the full death benefit from the group policy to the beneficiary.

All of the following statements apply to temporary licenses EXCEPT

They may be renewed.

If an insurance company offers Medicare supplement policies, it must offer which of the following plans?

A

All of the following are to be included in the application for a certificate of authority to act as an HMO EXCEPT

Records of previous insurers.

Which of the following individuals will be eligible for coverage on the Health Insurance Marketplace?

A permanent resident lawfully present in the U.S.

All of the following are true about the group disability Income insurance EXCEPT

Coverage applies both on and off the job.

Issue age policy premiums increase in response to which of the following factors?

Increased benefits

What are the two components of a universal policy?

Insurance and cash account

According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT

Reduction of premium

Which two terms are associated with the way an annuity is funded?

Single or periodic payments

If an agent suspects that insurance fraud is being committed, within how many days must the agent notify the Insurance Fraud Unit of the Department of Insurance?

30 days

Which of the following is NOT covered under a long-term care policy?

Acute care in a hospital

The LEAST expensive first-year premium is found in which of the following policies?

Annually Renewable Term

What is the main difference between coinsurance and copayments?

Copayment is a set dollar amount.

All of the following statements about Medicare Part B are correct EXCEPT

It is a compulsory program

All of the following are true of an annuity owner EXCEPT

The owner must be the party to receive benefits.

Which of the following best describes what the annuity period is?

The period of time during which accumulated money is converted into income payments

All of the following are general requirements of a qualified plan EXCEPT

The plan must provide an offset for social security benefits.

What is the maximum allowed value of a gift that an agent can give to an insured without violating the regulation on rebating?

$25

An individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT

15-year level term.

Which entity has the authority to grant a temporary life insurance agent's license?

Commissioner of Insurance only

Which of the following types of insurance policies is most commonly used in credit life insurance?

Decreasing term

What is the goal of the HMO?

Early detection through regular checkups

Which of the following is NOT true regarding policy loans?

Money borrowed from the cash value is taxable.

An insured is involved in a car accident. In addition to general, less serious injuries, he permanently loses the use of his leg and is rendered completely blind. The blindness improves a month later. To what extent will he receive Presumptive Disability benefits?

No benefits

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

The responsibility of making certain that an application for insurance is filled out completely, correctly, and to the best of his or her knowledge is the responsibility of whom?

The producer

A 63-year-old man is planning to be employed until age 68. When will he be eligible for Medicare?

Age 65, regardless of his employment status

An insured under a life policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?

Viatical settlement

The classification "Small Employer" means any person or firm that during the preceding year employed how many employees?

At least 2 and not more than 50

HMOs that contract with outside physicians to provide health care service to their subscribers compensate those providers on a

Capitation basis

According to the provisions of the Patient Protection and Affordable Care Act, all of the following are required preventive care services EXCEPT

Cervical cancer exams for all women starting at age 40.

The dividend option in which the policyowner uses dividends to purchase a term policy for one year is referred to as the

One-year term option.

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Payor Benefit

An insurer must acknowledge receipt of a Notice of Claim within how many days?

15

The validity of coverage under a life insurance policy may not be contested, except for nonpayment of premium, after the policy has been in force for at least how many years?

2 years

All of the following would be considered rebating EXCEPT

An agent misrepresents policy benefits to convince a policyowner to replace policies.

An insurance professional advises a client regarding the benefits of her life insurance policy, in exchange for a fee. Which of the following terms best describes this type of insurance professional?

Counselor

An insurance agent wants for a client to replace her current annuities plan with another one. He presents the new one in an incomplete and dishonest way, which makes the new contract seem far more appealing than the original one. The policyowner ends up surrendering her original contract and replacing it with the new one. Which term best describes what the agent did?

Twisting