Certification Exam: Texas Life and Health Pre-licensing

Which BEST describes how a PPO is less restrictive than an HMO?

Which of these is NOT relevant when determining the amount of personal life insurance needed?

Which of the following is NOT a required provision in group life policies?

In Texas, how long must a policy be in force before an insurance company must pay death benefits for suicide?

K misses a renewal premium but sends a payment the insurer accepts Which policy provision allows coverage to be restored

Which of the following groups may NOT be insured by a group life insurance policy?

What is an organization that solicits insurance only to its members?

When the same disability recurs within a specified period and no new waiting period is required, which benefit applies?

G quits their job and wants to convert group health coverage to an individual policy under COBRA. Which is true?

Any changes made on an insurance application requires the initials of whom?

P is a producer who notices 5 questions on a life application were not answered. What actions should P take?

A temporary agent's license issued by the Commissioner of Insurance is valid for up to ___ days.

When can a policyowner change a revocable beneficiary?

P is insured under a basic cancer plan. Which of the following conditions would be covered under this plan?

Agent J receives a returned premium check made out to him. What action should J take to correct this?

Which premium schedule results in the lowest cost to the policyowner?

A(n) ________ contained in a life insurance policy states that the policy will NOT cover certain risks.

A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?

A Medicare Supplement policy may be cancelled for which of the following reasons?

What action will a life insurer most likely take if an insured dies and their age was misstated on the application?

What is required for an agent whose license has been revoked?

Which type of contract liquidates an estate through recurrent payments?

Which renewability type covers an individual until age 65, with the insurer able to change premiums for the risk class?

P loses an arm in a farm accident and receives $10,000 from his AD&D policy. This benefit is known as the

Who owns a stock insurance company?

According to Mandatory Uniform Policy Provisions, what’s the max time a policy stays in force if the premium is unpaid?

The situation in which a group of physicians are salaried employees and conduct business in an HMO facility is called a

In the event of an illness, a(n) _______ _______ policy would reimburse an insured for loss of earnings.

Which of these is NOT considered to be an element of an insurance contract?

Q applied for life insurance, paid the premium, got the policy Feb 7, and returned it Feb 13. What will the insurer do?

A life insurance policy that ensures premiums are paid if the insured becomes disabled has what kind of rider?

Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling?

The Notice of Claims provision requires a policyowner to:

Under a company group life plan with a $50K death benefit, what’s the MAX a spouse can be insured for under the program?

What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?

An accident policy will most likely pay a benefit for a(n):

C’s Major Medical premium is due September 1. If unpaid and C is hospitalized September 10, how will the insurer act?

With Disability Income insurance, an insurer may limit the monthly benefit due to...

In order to establish a Health Reimbursement Arrangement (HRA), it MUST:

Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?

Which of the following statements about health coverage for newborns is NOT true?

K is an insured under a life insurance policy owned by a third party. Which of these statements is true?

A foreign insurance company conducting insurance business in Texas

A 40yr-old wants a Whole Life policy w/ faster cash value accumulation early. Which statement by the producer is correct

An applicant MUST receive an Outline of Coverage when an application is taken for a(n)

When is the face amount of a Whole Life policy paid?

J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct?

If a retiree on Medicare has five hospital stays in one year, which policy best covers excess hospital expenses?

A non-contributory plan requires ____ participation of all eligible employees.

Tom has a qualified retirement plan with his employer that is 80% "vested." How can this be interpreted?

Which policy provision prohibits an insurance company from incorporating external documents into an insurance policy?

An individual earning $25,000 annually works part-time and has an IRA. What is the maximum deductible IRA contribution?

A certificate of ________ permits an insurance company to transact business in Texas.

How does a typical Variable Life Policy investment account grow?

The Consideration clause of an insurance contract includes:

If B, an agent, tells clients their rights may be impaired for not completing a release form, he may be guilty of...

What type of life policy covers two people and pays upon the death of the last insured?

Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid

If an individual is covered under an Accidental Death Policy & dies an autopsy can be performed in all situations EXCEPT

A life policy provision that pays the owner an amount not exceeding the guaranteed cash value is called the...

Which of the following benefits is NOT required under a group health plan for drug and alcohol treatment?

Every 12-months after the initial enrollment period, an HMO must hold an open enrollment period of

K applies for life insurance, pays the premium, and gets a receipt saying coverage starts if approved. What kind is this

Which of these actions should a producer take when submitting an insurance application to an insurer?

Which of these is an element of a Variable Life policy?

Why must an insurance applicant answer all questions on the application?

Which of the following medical expenses does Cancer insurance NOT cover?

When will a hearing be held after a notice of hearing for unfair or deceptive acts is served to a licensee or insurer?

Coverage to take effect same day on a non-medical insurance application the producer must collect a signed application &

B’s policy provides in-hospital coverage with a limited daily room and board benefit. What type of policy is this?

Which health policy clause specifies the amount of benefits to be paid?

A license may be denied, suspended, or revoked if the licensee?

Which Accident and Health policy provision addresses preexisting conditions?

Which of the following actions does the Commissioner of Insurance NOT have the power to conduct?

The phrase "transacting business" includes

N, covered by a Term Life policy, misses the premium due August 1 & dies September 15. What action will the insurer take

The benefits under a Disability Buy-Out policy are:

Which of the following types of care is typically not covered in a Long-Term Care policy?

Which of the following statement BEST describes what the Legal Actions provision of an Accident & Health policy requires

L dies 10 years after a life policy The insurer discovers an age understatement. Under the Misstatement of Age provision

A Whole Life insurance policyowner does NOT have the right to

T gets a receipt after applying for life insurance and paying the first premium. In this case, T’s coverage is

T files a claim on his Accident and Health polic but the insurer disputes it. Which provision limits the dispute period

Which of the following statements about accumulated interest earned on dividends from an insurance policy is TRUE?

If age is misstated on a life policy, what does the Misstatement of Age provision require for the death benefit?

What’s the MOST important factor in deciding how much Disability Income coverage an applicant should purchase?

An example of false advertising would be

In Texas, an individual life insurance policy is REQUIRED to have a grace period of

To permanently change the beneficiary on an AD&D policy, which type of designation would fulfill this need?

J’s Major Medical policy has a $2,000 deductible and 80/20 Coinsurance. For a $10,000 bill, how much would J pay?

The Common Disaster clause states that if both the insured and sole beneficiary die in a common accident, which is true?

Y purchased $100,000 of permanent protection for himself & $50,000 of 10-year Term coverage for his wife on same policy.

Which of the following is an alternative method of providing health insurance?

What type of life insurance gives the greatest amount of coverage for a limited period of time?

Which life insurance provision states who can select policy options, name a beneficiary, and receive benefits?

An insurance company would most likely pay benefits under an Accidental Death and Dismemberment policy for which loss?

J notices "This policy will only pay for a semi-private room" in her health insurance. This phrase is considered a(n)...

Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?

All of these statements about the Commissioner of Insurance are true EXCEPT

Which of the following BEST describes a short-term medical expense policy?

What would the Medical Information Bureau (MIB) identify?

What advantage does the renewability feature give to a term policy?

Which of the following BEST describes a warranty?

The policy provision that entitles the insurer to establish conditions the insured must meet while a claim is pending is

Under federal tax laws, what is the tax treatment for an employer providing $50,000 of contributory group Term Life?

J an AD&D policyholder dies from accident injuries The insurer finds Js age was understated by 10 yrs What will they do

Which of the following health insurance policy provisions specifies the health care services a policy will provide?

B gets yearly dividends and interest from a participating life policy. What must B include as taxable gross income?

____ of personal life insurance premiums is usually deductible for federal income tax purposes.

The Automatic Premium Loan provision is designed to:

Which of the following statements describes what an Accident and Health policyowner may NOT do?

All of the following statements regarding group health insurance is true, EXCEPT:

What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy?

Which action is an insurance company least likely to take if applicant w/ diabetes applies for Disability Income policy

All of these are characteristics of a Health Reimbursement Arrangement (HRA) EXCEPT

Which of the following is a requirement for obtaining a Texas insurance agent's license?

If the insured and beneficiary die in the same accident and it's unclear who died first, where do the proceeds go?

What must the policyowner provide to the insurer for validation that a loss has occurred?

Which of the following is considered an element of a Variable Life Policy?

A pilot declines a $10 additional premium for life insurance. The insurer will likely issue coverage with a(n)...

Which of the following is a valid reason for an enrollee to be cancelled by a Health Maintenance Organization (HMO) plan

The entity whose sole purpose is sharing medical data among its member companies is called the

What is the Suicide provision designed to do?

A life insurance arrangement which circumvents insurable interest statutes is called:

ABC Insurance engages in boycott, coercion, and intimidation, violating Texas insurance laws on restraint of trade.

Which correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?

The cash value in a(n) ____________ Life policy may fluctuate based on mortality cost, interest, and expenses.

Which type of life insurance allows the policyowner to have level premiums and choose from investment options?

Who is liable when an insured suffers a loss on a policy sold by an agent of an unauthorized insurer in Texas?

A(n) _______ _______ Life policy combines investment choices with a form of Term coverage

What is the purpose of the U.S.A. Patriot Act?

Which of these is considered a statement that is assured to be true in every respect?

The insuring clause

An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the

Credit Life insurance is

Which of the following is NOT a limited benefit plan?

A typical result of a concurrent review is that

If the insured and beneficiary die in the same accident and it's unclear who died first, where do the proceeds go?

All of these are considered to be a benefit under Social Security, EXCEPT for:

When an employee pays part of the premium for a group health plan, which plan is the employee covered under?

Which of these is an element of a Single Premium annuity?

What is the basic function of an annuity?

Which contract permits the remaining partners to buy-out the interest of a disabled business partner?

Bryce buys a disability policy with a rider for additional coverage w/o proof of insurability What kind of rider is this

An example of rebating would be

Long Term Care policies will usually pay for eligible benefits using which of the following methods?

An insurance agent has a fiduciary responsibility to all of the following EXCEPT

S misses the September premium on a Major Medical policy and is hospitalized October 15. How will the insurer respond?

A comprehensive major medical policy has an Eligible Expenses provision outlining covered services. Which is EXCEPTED?

Q buys a $500,000 life policy pays $900 in premiums, & the beneficiary receives $500,000. Which contract feature is this