TEXAS STATE EXAM SIMULATOR - LIFE AND HEALTH

TEXAS STATE EXAM SIMULATOR - LIFE AND HEALTH

INSURANCE (200 QUESTIONS EXAM) VERIFIED FOR 2025

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called

An installment Refund annuity A Straight Life annuity A Cash Refund annuity A Joint Life annuity - CORRECT ANSWER✔✔An installment Refund annuity

One becomes eligible for Social Security disability benefits after having been disabled for

• months
• months
• months

12 months - CORRECT ANSWER✔✔5 months

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?

Straight life accumulates faster than Limited-pay Life 20-Pay Life accumulates cash value faster than Straight Life 1 / 4

Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial rating 20-Pay Life and Straight Life accumulate cash value at the same rate - CORRECT ANSWER✔✔20- Pay Life accumulates cash value faster than Straight Life

Who makes the legally enforceable promises in a unilateral insurance policy?

Beneficiary Insurance company Insured Applicant - CORRECT ANSWER✔✔Insurance company

The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and

the initial premium agreeing to a physical examination delivery of policy disclosure of any medical conditions - CORRECT ANSWER✔✔the initial premium

Which parts of a life insurance policy are guaranteed to be true?

Rating Representation Statement Warranty - CORRECT ANSWER✔✔Warranty

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A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered EXCEPT for

hospital charges physician fees experimental and investigative services nursing services - CORRECT ANSWER✔✔experimental and investigative services

If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses?

Long-term care Indemnity Medicare Supplement Medicaid - CORRECT ANSWER✔✔Medicare Supplement

S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?

No benefits are payable under the Master contract Full benefits are payable under the Master contract Full benefits are payable under the converted policy Benefits less required premium are payable under the converted policy - CORRECT ANSWER✔✔Full benefits are payable under the Master contract

All of the following are limited benefit plans EXCEPT 3 / 4

cancer policies life insurance policies dental policies critical illness policies - CORRECT ANSWER✔✔life insurance policies

A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy.What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow?

Extended Term rider Cost of Living Adjustment rider Guaranteed Insurability Option rider Waiver of Premium rider - CORRECT ANSWER✔✔Guaranteed Insurability Option rider

An agent whose license has been revoked is required to

wait at least five years before applying for a new license submit all previously written policies to the Commissioner of Insurance's office for servicing of the accounts cancel all policies currently in effect and advise the insureds to place them elsewhere continue to service the existing accounts but not solicit new business - CORRECT ANSWER✔✔wait at least five years before applying for a new license

The benefits under a Disability Buy-Out policy are

normally paid in installments

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