TEXAS STATE LIFE AND HEALTH INSURANCE EXAM SIMULATOR 2023-2024 ACTUAL EXAM 300 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES|ALREADY GRADED A+||BRAND NEW!!

The Universal Life Policy is called an unbundled Life Policy because the policyholder
can see the expense charges, the interest earned, and the - ....ANSWER...Cost of
insurance
The investment gains from a Universal Life Policy usually go toward - ....ANSWER...the
cash value
What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?
- ....ANSWER...12 months
What type of life insurance gives the greatest amount of coverage for a limited period of
time? - ....ANSWER...Term life
An Evidence of Coverage form may be issued by a Health Maintenance Organization
(HMO) after being approved by the - ....ANSWER...Commissioner
The reason for a business having a Business Overhead Expense Disability Plan is to
cover - ....ANSWER...fixed business expenses
B the insurance agent tells his clients that their rights may be impaired if they fail to
complete a release form within a given period of time. B may be found guilty of -
....ANSWER...coercion
Which requirement must be met for an association to be eligible for a group life plan? -
....ANSWER...Group was formed for a purpose other than acquiring insurance
T owns an Accident & Health policy and notifies her insurance company that she has
chosen a less hazardous occupation. Under the Change of Occupation provision, which
of the following actions may her insurance company take? - ....ANSWER...Increase her
policy's coverage amount
P is the insured on a participating life policy. Which statement is true if P's premiums are
waived due to a disability? - ....ANSWER...P will still receive declared dividends
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? - ....ANSWER...20-Pay LIfe
accumulates cash value faster than Straight Life
M has an insurance policy that also has an outstanding policy loan at the time of M's
death. The insurer will deduct the outstanding loan balance from the -
....ANSWER...policy proceeds
A new agent must complete at LEAST___hours of continuing education within 24
months of initial licensure - ....ANSWER...24
Which of the following services is NOT covered under hospitalization expense policy? -
....ANSWER...surgeon's fees
A person who is insured within a group contract will be given a -
....ANSWER...certificate
In Texas, which of these statements regarding the Suicide clause is TRUE? -
....ANSWER...An insurer may not use suicide as a defense against payment after the
second year
An insured's inability to perform two or more activities of daily living may trigger which
type of policy rider? - ....ANSWER...Long term care
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed? - ....ANSWER...Decreasing term policy
An example of an unfair claims settlement practice is - ....ANSWER...turning down a
claim without providing the basis of denial
When must insurable interest be present in order for a life insurance policy to be valid? -
....ANSWER...When the application is made
Which Long Term Care insurance statement is true? - ....ANSWER...Pre-existing
conditions must be covered after the coverage has been in force for six months
J let her life insurance policy lapse 8 months ago due to nonpayment. She can
reestablish coverage under which of the following provisions? -
....ANSWER...Reinstatement provision
A life insurance policy that provides a policyowner with cash value along with a level
face amount is called - ....ANSWER...Whole life
With a Basic Medical Expense policy, what does the hospitalization expense cover? -
....ANSWER...hospital room and board
What is the purpose of a Policy Summary? - ....ANSWER...It highlights the critical parts
of the policy issued
T was treated for an ailment 2 months prior to applying for a health insurance policy.
This condition was noted on the application and the policy was issued shortly
afterwards.How will the insurer likely consider this condition? - ....ANSWER...Insurer will
likely treat as a pre-existing condition which may not be covered for one year
How are policyowner dividends treated in regards to income tax? -
....ANSWER...Interest on accumulations is taxed
What does a Guaranteed Insurability rider provide a Disability Income policyowner? -
....ANSWER...The ability of periodically increase the amount of coverage without
evidence of insurability
The Consolidate Omnibus Budget Reconciliation Act (COBRA) gives workers (and their
families) whose employement has been terminated the right to - ....ANSWER...continue
group health benefits
The amount of coverage on a group credit life policy limited to - ....ANSWER...the
insured's total loan value
When an insurer issues a policy that refuses to cover certain risks, this is referred to as
an - ....ANSWER...exclusion
N is covered by a Term Life policy and does not make the required premium payment
which was due August 1. N dies September 15. What action will the insurer take? -
....ANSWER...Claim will be denied
Which of the following is the reimbursement of benefits for the treatment of a
beneficiary's injuries caused by a third party? - ....ANSWER...Subrogation
An individual Disability Income insurance applicant may be required to submit all of the
following information EXCEPT - ....ANSWER...spouse's occupation
A foreign insurance company conducting insurance business in Texas -
....ANSWER...was formed under the laws of another state
A retirement plan that sets aside part of the company's net income for distributions to
qualified employees is called a - ....ANSWER...profit-sharing plan
What action will an insurer take if an interest payment on a policy loan is not made on
time? - ....ANSWER...automatically add the amount of interest due to the loan balance
Which of the following actions is NOT possible with a Universal Life policy? -
....ANSWER...Premiums may be applied as a credit aganist income tax
Life insurance that covers an insured's whole life with level premiums paid over a limited
time called - ....ANSWER...Limited Pay Life
Which of the following is NOT included in a life insurance illustration? -
....ANSWER...Company's mortality table
If an individual has an Accidental Death and Dismemberment policy and dies, an
autopsy can be performed in all these situations, EXCEPT - ....ANSWER...When the
state prohibits this by law
Which of the following medical expenses does Cancer insurance NOT cover? -
....ANSWER...Arthritis
Under a trustee group life policy, who would be eligible for a certificate of coverage? -
....ANSWER...Employee
J is 35-years old and looking to purchase a whole life insurance policy. Which of the
following types of policies will provide the most rapid growth of cash value? -
....ANSWER...20-pay Life
V is insured under an individual Disability Income policy with a 30-day Elimination
period. On July 1, he is involved in an accident and temporarily disabled. He returns to
work on December 1. How many months of benefit are payable? - ....ANSWER...4
months
A plan through the Marketp