Texas Life and Health other questions

How many hours of continuing education can be carried over from one licensing period to the next?

0

An investor buys a life policy on an elderly person in order to sell it for a life settlement. This is an example of

A STOLI policy.

Which of the following is NOT a possible penalty for a violation of the Insurance Code?

A fine up to $100,000

Level term insurance provides a level death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insured's age at the time of renewal.

Level term insurance provides a level term death benefit and a level premium during the policy term. If the policy renews at the end of a specified period of time, the policy premium will be

Adjusted to the insureds age at the time of renewal

Which of the following long-term care benefits would provide coverage for care for functionally impaired adults on a less than 24-hour basis?

Adult day care

While a claim is pending, an insurance company may require

An independent examination as often as reasonably required

In Texas, how is the Commissioner of Insurance placed in office?

Appointed by the Governer for a term of 2 years.

Which members of a corportation or partnership are required to obtain an individual insurance agent's license in order for the association to be licensed?

At least one officer or partner and any other person acting as an agent

Which of the following is NOT required to be stated in the outline of coverage with a long-term care policy?

Basic information about supplementary policies

What is the main difference between coinsurance and copayments?

Copayment is a set dollar amount.

Which of the following is NOT an exclusion in medial expense insurance policies?

Coverage for dependents

Which one of the following is an eligibility requirement for Social Security disability income benefits?

Fully insured status

In an HMO a Primary Care Physician is called a

Gatekeeper

Which of the following would NOT be considered rebating?

Giving a client a $25 dollar pen with the insurers logo during the insurance application process

An applicant for a health insurance policy returns a completed application to her agent, along with a check for the first premium. She receives a conditional receipt two weeks later. Which of the following has the insurer done by this point?

Neither approved the application nor issued the policy

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

An insured is covered by a disability income policy that contains an accidental means clause. The insured exits a bus by jumping down the steps and breaks an ankle. What coverage will apply?

No coverage will apply, since the injury could have been forseen.

Regarding the taxation of Business Overhead Policies

Premiums are deductible, and benefits are taxed.

All of the following are characteristics of group life insurance EXCEPT

Premiums are determined by the age, sex and occupation of each individual certificate holder.

Certain conditions such a dismemberment or total and permanent blindness, will automatically qualify the insured for full disability benefits. Which disability policy provision does this describe?

Presumptive disability

An employer has sponsored a qualified retirement plan for it's employees where the employer will contribute money whenever a profit is realized. What is this called?

Profit sharing plan

All of the following are considered unfair trade practices in the business of insurance EXCEPT

Sharing commisions

Workers Compensation benefits are regulated by which entity?

State government

Which of the following statements about a suicide clause in a life insurance policy is TRUE?

Suicide is excluded for a specific period of years and covered thereafter

The initial amount of credit life insurance may NOT exceed

The amount to be repaid under the contract.

When a life insurance policy was issued, the policyowner designated a primary and contingent beneficiary. Several years later, both the insured and the primary beneficiary died in the same car accident, and it was impossible to determine who died first. Which of the following would receive the death benefit?

The insured's contingent beneficiary

If an insured continually uses the automatic premium loan option to pay the policy premium,

The policy will terminate when the cash value is reduced to nothing.

Which is true about a spouse term rider?

The rider is usually level term insurance

Under and extended term nonforfeiture option, the policy cash value is converted to

The same face amount as the whole life policy

An insured makes regular contributions to his Health Savings Account. How are those contributions treated in regards to taxation?

They are tax deductible.

Which of the following is NOT true regarding Equity Indexed Annuities?

They earn lower interest rates than fixed annuities.

Which of the following is NOT true regarding partial disability?

This is a form of insurance that covers part-time workers

What is the purpose of a disclosure statement in life insurance policies?

To explain features and benefits of a proposed policy to the consumer

What is the purpose of coinsurance provisions?

To help the insurance company to prevent overutilization of the policy

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 policy owner ends up surrendering her original contract and replacing it with a new one. Which term best describes what the agent did?

Twisting

A medical expense policy that establishes the amount of benefit based upon the prevailing charges which fall within the standard range of fees normally charged for a specific procedure by a doctor of similar training and experience in that geographic area is known as

Usual, customary and reasonable

Under what condition are group disability income benefits received by an employee NOT taxable as income?

When the benefits received are equal or less than the employee's percentage of the contribution.

What is the timeframe for filling revelant Suspicious Activity Reports?

Within 30 day of initial discovery

An individual purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

Which of the following is INCORRECT concerning Medicaid?

It is solely a federally administered program.

The premium of survivorship life policy compared with that of a joint life policy would be

Lower

What is the official name for the Social Security program?

Old Age Survivors Disability Insurance

Which of the following provisions would prevent an insurance company from paying a reimbursement claim to someone other than the policyowner?

Payment of Claims

The primary beneficiary of her husband's life policy found that no settlement option was stated in the policy on the date of her husband's death. Who will select the settlement option in this case?

The beneficiary

An insured purchased a 10-year level term policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

An insured submitted a notice of claim to the insurer, but never received claims forms. He later submits proof of loss, and explains the nature and extent of loss in a hand-written letter to the insurer. Which of the following would be true?

The insured was in compliance with policy requirements and claims.

Which of the following riders would NOT increase the premium for a policy owner?

Impairment rider

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

Increased benefits

Which of the following best describes "first-dollar" coverage principle in basic medical insurance?

The insured is not required to pay a deductible.

An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term?

The insured may renew the policy for another 10 years, but at a higher premium rate.

Stranger-originated life insurance policies are in direct opposition to the principle of

Insurable interest

In which of the following situations is it legal to limit coverage based on a marital status?

It is never legal to limit coverage based on marital status.

An insured who has an Accidental Death and Dismemberment policy loses her left arm in an accident. What type of benefit will she most likely receive from this policy?

The capital amount in a lump sum

All of the following information must be included in the evidence of coverage for an HMO plan EXCEPT

The insurance agent's name and license number