Guarantee Exam Life and Health Insurance Texas
The Probationary period is
A specified period of time that a person joining a group has to wait before becoming eligable for coverage
In which Medicare supplemental policies are the oore benefits found ?
All plans
A lucky individual won the state lottery , so the state will be sending him a check each month for the next 25 years . What type of annuity products are they likely to use to provide these benefits ?
Immediate annuity
What type of health insurance plan provides broad medical expense coverage without requiring an insured to meet a deductible ?
Indemnity
All of the following must sign an application for health insurance EXCEPT the
Insurer
Riley reads an agreement on the first page of her policy which includes a list of losses that will be covered by her insurer . What is the name of this agreement ?
Insuring Clause
Which of the following is TRUE of level term insurance ?
It is temporary protection
Which of the following used to be called Medicare + Choice Plans ?
Medicare Advantage Plans
When a whole life policy lapses or is surrendered prior to maturity , the cash value can be used to
Purchase a single premium policy for a reduced face amount
Which entity has the option of including optional provisions in a health insurance policy ?
The Insurer
Once the initial benefit limit in Medicare Part D is reached , how is the beneficiary affected ?
The beneficiary is then responsible for a portion of prescription drug costs .
Which of the following is NOT a feature of a guaranteed renewable provision ?
The insurer can increase the policy premium on an individual basis
A temporary license holder can receive a commission from a sale made to all of the following EXCEPT
The license holder's sister - in - law
All of the following statements about the continuing education requirement in this state are true EXCEPT
licensed agents must comply by January 1 of even - numbered years
How long is the incontestability period in group life insurance policies issued in Texas ?
2 years
If an individual willfully violates provisions of the Fair Credit Reporting Act , what is the maximum civil penalty ?
2,500
Which of the following individuals would be a likely candidate to purchase a deferred annuity ?
Someone who wants to grow retirement funds tax deferred
When an insurer issues an individual health insurance policy that is guaranteed renewable , the insurer agrees
To renew the policy until the insured has reached age 65
Hospital indemnity / hospital confinement indemnity policy will provide payment based on
The number of days confined in a hospital
Your client is sole proprietor and wishes to include his family on a medical expense plan . How much of the cost of the medical expense plan can be deducted ( since he is considered self - employed ) ?
100 %
An applicant may challenge information discovered as a result of an investigative consumer report under which of the following Acts ?
Fair Credit Reporting Act
Why is an equity indexed annuity considered to be a fixed annuity ?
It has a guaranteed minimum interest rate
If a credit life policy is terminated upon the payment of the death benefit , what happens to the premium paid into the policy ?
The premium is considered earned , so no refund is required .
All of the following are true about variable products EXCEPT
The premiums are invested in the insurer's general account .
Which is true about a spouse term rider ?
The rider is usually level term insurance ,
A temporary license in this state is valid for
180 days
Which of the following would NOT constitute a policy replacement ?
Converting group coverage to individual coverage
All of the following are personal uses of life insurance EXCEPT
Buy - sell agreement .
If a license is revoked , the licensee will NOT be eligible for a new license
For 5 years
When is the earliest a policy may go into effect ?
When the application is signed and a check is given to the agent
The LEAST expensive first - year premium is found in which of the following policies ?
Annually Renewable Term
Which of the following elements of an insurance contract requires payment of premium ?
Consideration
Which of the following is a correct statement about annuities ?
Fixed annuities do not provide protection against inflation .
All of the following are changes to health insurance plans introduced by the PPACA EXCEPT
Full - cost coverage for all medical expenses .
Your client wants to provide a retirement income for his elderly parents in case something happens to him , He wants to make sure that both beneficiaries are guaranteed an income for life . Which settlement option should this policyowner select ?
Soint and Survivor
Which of the following is NOT true regarding the annuitant ?
The annuitant cannot be the same person as the annuity owner
The Insurance Commissioner may examine the affairs of any insurer as often as necessary , but not less frequently than once every
5 years
An individual is approaching retirement age and is concerned about having proper coverage should he have to be placed in a Long - Term Care ( LTC ) facility . His agent told him that LTC policies would provide necessary coverage at all of the following levels EXCEPT
Acute
If an insured dies , and it is discovered that the insured misstated his / her age or gender , the life insurance company will
Adjust the death benefit to what the premium would have purchased at the actual age or gender
While completing a life insurance application the applicant realizes that she should have answered an earlier question differently . What should the agent do to make the necessary change ?
Cross out the incorrect information , write in the correct answer , and have the applicant initial the change
Which of the following terms refers to solicitation , negotiation , effectuation or advising related to an insurance contract ?
Insurance transaction
The provision that sets forth the basic agreement between the insurer and the insured and states the insurer's promise to pay the death benefit upon the insured's death is called the
Insuring clause
Which of the following best describes a Major Medical Expense Policy ?
It provides catastrophic medical coverage beyond basic benefits on a usual , customary and reasonable basis .
A married couple purchase a life insurance policy on their newborn baby . They are concerned about what would happen to the policy if either one of them were unable to continue making the premium payments due to death or disability . Which policy rider should their agent recommend ?
Payor benefit
A husband and wife both incur expenses that are attributed to a single major medical insurance deductible . Which type of deductible do they have in their policy ?
Family
According to the Common Disaster clause , if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first , which of the following will be assumed ?
The primary beneficiary died before the insured .
The death proceeds for life insurance policies must be paid to the claimant within what time period after due proof of death of the insured ?
2 months
An IRA contribution can be made from which of the following ?
Cash
Which of the following provisions states the insurer's right to change premium amounts ?
Continuation Provision
A whole life policy is surrendered for a reduced - paid up policy . The cash value in the new policy will
Continue to increase
What is the difference between a straight life policy and a 20 - pay whole life policy ?
Premium payment period
Which of the following statements is NOT true regarding health insurance policy provisions ?
All additional provisions written by insurers are cataloged by their respective states ,
An applicant misstates his age on his application for a health insurance policy . He states that he is 39 , but his actual age is 49. When he files a claim , what will most likely happen ?
Benefits paid will be those that would have been purchased at the correct age
What license or licenses are required to sell variable annuities ?
Both a life insurance license and a securities license
Which of the following is true regarding a joint life annuity ?
The payments stop at the first death
What is the maximum amount of time an insurer may delay payment of a claim without having to pay an additional interest ?
60 days
If an insured is injured while committing an illegal act and the insured's health policy contains the legal Occupation provision , what percentage of the claim will be paid ?
0 %
The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT
Purchase of a new home
The benefits in Medical Expense Insurance are
Received income tax free by the individual
An annuity has accumulated the cash value of $ 70,000 , of which $ 30,000 is from premium payments . The annultant dies during the accumulation phase . The beneficiary will receive
70,000
Who must pay for the cost of a medical examination required in the process of underwriting ?
Insurer
What effect will the long - term care ( LTC ) rider have on the death benefit of a life insurance policy if LTC benefits were paid to the insured ?
Reduce the death benefit
Which of the following is the primary source of information that an insurer uses to evaluate an insured's risk for life insurance ?
Insurance application
A brain surgeon has an accident and develops tremors in her right arm . Which disability income policy definition of total disability will cover her for all losses ?
"Own occupation" less restrictive than other definitions
In an individual life insurance policy , when must the nonforfeiture benefits begin ?
After 3 policy years
A core Medicare supplement policy ( Plan A ) will cover all of the following expenses EXCEPT
Part A deductible
Which of the following services will NOT be provided by an HMO ?
Unlimited coverage for treatment for drug rehabilitation
Which of the following is a statement that is guaranteed to be true , and if untrue , may breach an insurance contract ?
Warranty
Which of the following riders pays a beneficiary a death benefit that is double or triple the face amount if the insured's death was caused by an accident as defined in the policy ?
An Accidental Death Rider
Life Insurance can provide which of the following ?
Survivor protection
All of the following health insurance disability benefits are income tax free EXCEPT
Employer - paid group disability
Regarding the PPACA health care tax credit , which of the following is true ?
Persons receiving Medicaid are not eligible .
Which of the following does NOT have to be included on the first page of a Medicare supplement policy ?
Premium rates
If a life insurance company uses HIV testing as a part of its underwriting , when must an applicant be notified of the procedure ?
Prior to performance of the test
If a basic medical insurance plan's benefits are exhausted , what type of plan will then begin covering those losses ?
Supplementary major medical
An insured had a heart attack while jogging , but is expected to return to work in approximately 6 weeks . The insured's Disability Income policy will
Replace a percentage of his lost income
An insured decides to surrender his Whole Life insurance policy . The cash value at surrender is higher than the premiums paid into the policy , due to interest . What part of the surrender value would be income taxable ?
The difference between the premiums paid and the cash value
A Medicare supplement policy must have a free - look period of at least
30 days .
Reports required by the Texas Department of Insurance based on complaints about unfair settlement practices must contain information . EXCEPT
The resident state of the claimants .
Under the mandatory uniform provision " Notice of Claim " , written notice of a claim must be submitted to the insurer within what time parameters ?
Within 20 days
An insured was diagnosed two years ago with kidney cancer . She was treated with surgeries and chemotherapy and is now in remission . She also has a 30 - year smoking history . The insured is now healthy enough to work and has just started a full - time job . Which describes the health insurance that she will most likely receive ?
excluding She would be covered under her employer's group health insurance plan , without higher premiums
Under a health insurance policy , benefits , other than death benefits , that have not otherwise been assigned , will be paid to
The insured
