Last Exam

Question 1

How much notice must department provide to agent prior to agent’s license expiring

10

30

Answer 1

30

Question 2

When are agents required to provide outline of coverage to applicant for individual long term care policy

At time of policy solicitation

At time of policy delivery

Answer 2

At time of policy solicitation

Question 3

When enrolling an applicant for hmo coverage all of following evidence of coverage must be provided to applicant except

Applicant’s health status

Cancellation provisions

Answer 3

Applicant’s health status

Question 4

Which of following does not have to be included on first page of Medicare supplement policy

Premium rates

Company’s rights to change premium

Answer 4

Premium rates

Question 5

It is the agents responsibility to notify the department on a monthly basis about all of the following except

Change of mailing address

Change in agent’s marital status

Answer 5

Marital status

Question 6

Who is responsible for covering expenses associated with examination of domestic insurers

Insurance guaranty association

Insurer being examined

Answer 6

Insurer being examined

Question 7

In texas life insurance policies that include illustrations must include which of following

Illustration is not part of the insurance contract

Values in the illustration are guaranteed

Answer 7

Illustration is not part of the insurance contract

Question 8

During a policy solicitation an insurer exaggerates the financial condition of one of its competitors and makes it sound worse than it is

Defamation

Misrepresentation

Answer 8

Defamation

Question 9

In this state in order for an employer to obtain group health coverage for small employers what percentage of employees are required to be covered by the plan

75

50

Answer 9

75

Question 10

Which of following is not a duty of commissioner

Develop insurance rates

Regulate the internal affairs of the department

Answer 10

Develop ins rates

Question 11

What provision helps to make sure that the insured is protected in the event of a lapse in the policy

Continuity

Grace period

Answer 11

Grace period

Question 12

Under an hmo child immunizations costs cannot be charged for children under what minimum age

3
6

Answer 12

6

Question 13

All following are true of credit life except

Insured names beneficiary

Premium payments is included in loan payments

Answer 13

Insured names beneficiary

Question 14

Sharing commissions is legal if

The other party is licensed fro same lines of ins as the agent sharing the commission

Other party has any valid insurance license

Answer 14

Other party is licensed for same lines of ins as agent sharing commission

Question 15

Which is true regarding coverage for chemical dependency treatment in group health ins policies issued in this state

Coverage is optional and may be offered at the discretion of the insurer

Benefits provided must be the same as for any other physical illness

Answer 15

Benefits provided must be the same as for any other physical illness

Question 16

Family term rider incorporates

Whole life and other insured term
Spouse term and children’s term

Answer 16

Spouse term and children’s term

Question 17

Which is not a medicaid qualifier

Insurability

Residency

Answer 17

Insurability

Question 18

According to common disaster clause if insured and primary beneficiary are killed in same accident and it cannot be determined who died first which following will be assumed

Primary beneficiary died before insured

Deaths occurred same time

Answer 18

Primary beneficiary died before the insured

Question 19

A new homebuyer wants to purchase a life ins policy that would protect his family against losing the home should he die before th mortgage was paid. The most inexpensive type of policy that would accomplish this need would be

Deceasing term

Level term

Answer 19

Decreasing term

Question 20

If an insured is not entirely satisfied with a policy issued the insured may return it to the insurance company and rec a refund of entire premium paid at which of following times

Within 10 days of when policy was delivered

Within 10 days of when the policy was issued

Answer 20

Within 10 days of when the policy was delivered

Question 21

The entire contract includes all of the following except

A buyer’s guide

A copy of the application

Answer 21

A buyer’s guide

Question 22

Which of the following would not be eligible for coverage under key person

Owner of a shop

Pharmacist in a drug store

Answer 22

Owner of a shop
Owner is not a key person but the principal

Question 23

Medicare suppplement policy must havea free look period of at least

10 days

30 days

Answer 23

30 days

Question 24

What is purpose of disability buy sell agreement

Allow business buyout in case of owner’s disability

Help business meet overhead expenses in case of owner’s disability

Answer 24

Allow business buyout in case of owner’s disability

Question 25

Which of following best describes pure life annuity Provides highest monthly benefits Continues payments to beneficiary when annuitant dies

Answer 25

Provides highest monthly benefits

Question 26

Regarding health ins all of following are tax deductible except Employee paid group disability income Employer paid group acacidental death and dismemberment

Answer 26

Employee paid group disability income

Question 27

Which of following is guaranteed under variable whole life ins policy Cash value Minimum death benefit

Answer 27

Minimum death benefit

Question 28

When life ins proceeds are used to pay inheritance taxes and federal estate taxes it is known as Life settlement Estate conservation

Answer 28

Estate conservation

Question 29

An applicant may challenge info discovered aaa result of an investigative consumer report under which of the following acts Fair credit reporting act Consumer credit protection act

Answer 29

Fair cr reporting act

Question 30

Couple wants to include entire family in their whole life policy under one rider. Which of following riders will help them achieve that goal Family term Other insured term

Answer 30

Family term

Question 31

Under mandatory uniform provision notice of claim written notice of claim must be submitted to insurer within wha time parameters Within 20 days Within 60 days

Answer 31

Within 20 days

Question 32

Where are premiu8ms from fixed annuities invest4ed General account Separate account

Answer 32

General account

Question 33

Applicant misstates his age on application for health ins policy. He states tha the is 39 but his actual age is 49. When he files a claim what wil most likely happen Benefits paid will be those that would have been purchased at the correct age If Mistake was found after incontestability period, the benefit will be paid in full

Answer 33

Benefits paid will be those that would have been purchased at the correct age

Question 34

All of following are consideration in an ins policy except Cash value in policy Statements on application

Answer 34

Cash value in policy

Question 35

An elimination waiting period may not have to be satisfied for a disability in which of the following Insured suffers a relapse of prior disability within six months from initial covered disability Insured contracts an incurable disease

Answer 35

Insured suffers a relapse of prior disability within six months from initial covered disability

Question 36

Which of following would not trigger the payment of accelerated death benefits Being permanently disabled Being permanently institutionalized

Answer 36

Being permanently disabled

Question 37

The purpose of the fair credit reporting act is to Protect consumers against the circulation of inaccurate or obsolete personal or financial info Ensure the consumers rec a copy of the investigative consumer reports

Answer 37

Protect consumers against the circulation of inaccurate or obsolete personal or financial info

Question 38

The benefits for group disability plans are based on Flat amount Percentage of worker’s income

Answer 38

Percentage of worker’s income

Question 39

On adjustable life policy can assume the form of Only permanent insurance Either term ins or permanent ins

Answer 39

Either term ins or permanent ins

Question 40

Considering the principals of liquidity how would the policyowner use today’s cash values in life ins policy Use it for emergency expenses Find a retirement

Answer 40

Use it for emergency expenses

Question 41

An equity indexed annuity will row passed on Performance of a recognized index Performance ins separate account

Answer 41

Performance of a recognized index

Question 42

All must sign an application for health ins except the Proposed insured Insurer

Answer 42

Insurer

Question 43

An annuity would normally be purchased by an individual who wants to Create an estate Provide income for retirement

Answer 43

Create an estate

Question 44

An ira contribution can be made from which of the following Cash Stocks and bonds

Answer 44

Cash

Question 45

Which fo the following is the primary source of info that an insurer uses to evaluate an insured’s risk for life ins Risk analysis Ins application

Answer 45

Ins application

Question 46

An insured and his spouse recently had a child. Which of following riders would allow the couple to insure the child for a limited period of time at a specified amount Children’s term rider Payor rider

Answer 46

Children’s term rider

Question 47

Which of following is a correct statement about annuities Fixed annuities have the annuitant assume the risks on investment Fixed annuities do not provide protection against inflation

Answer 47

Fixed annuities do not provide protection against inflation

Question 48

When may hiv related test results be provided to the mib Only if individual is not identified When given i authorization by the patient

Answer 48

Only if the individual is not identified

Question 49

Which of the following is not true regarding a deferred annuity Income payments will begin 1 year from date of purchase It is used to accumulate funds for retirement

Answer 49

Income payments will begin 1 year from date of purchase

Question 50

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 Accidental death rider Double indemnity rider

Answer 50

Accidental death rider

Question 51

An applicant gives her agent a completed application and the initial premium. What can agent issue her that acknowledges the initial premium payment Premium receipt Conditional receipt

Answer 51

Conditional receipt

Question 52

All of the following are characteristics of group health ins plans except Parties that hold a group health ins contract are the employees and the employer Cost of insuring an individual is less than what would be charged for comparable benefits under an individual plan

Answer 52

Parties that hold a group health ins contract are the employees and the employer

Question 53

Which of following best defines probationary period in group health policies Specified period of time that person joining a group has to wait before becoming eligible for coverage Number of days that must expire after onset of an illness before benefits will be earned

Answer 53

Specified period of time that person joining a group has to wait before becoming eligible for coverage

Question 54

An insured had a heart attack while jogging but is expected to return to work in approximately six weeks. The insured’s disability income policy will Replace a percentage of his lost income Not pay

Answer 54

Replace a percentage of his lost income

Question 55

All of the following are true about key person ins except Death benefit is taxable to the business Employee must give written consent by signing the application

Answer 55

Death beenfit is taxable to the business

Question 56

Which would not be considered a limited coverage policy Special risk policy Major medical expense ins

Answer 56

Major medical expense ins

Question 57

Which time period is general enrollment period for Medicare part b January 1 through march 31 March 1 through may 31

Answer 57

January 1 through march 31

Question 58

What is it called when a doctor accepts the Medicare approved amount Acceptance Assignment

Answer 58

Assignment

Question 59

In whole life ins when is policy cash value scheduled to equal face amount At insured’s age 100 When insured paid up all policy loans

Answer 59

At insured age 100

Question 60

In this state the owner gets a free look of specified number of days from The date of application Delivery of policy

Answer 60

Delivery of policy

Question 61

In order to reinstate a life ins policy the insured must do all of the following except Pay next year’s premium in advance Repay any outstanding loans and interest

Answer 61

Pay next year’s premium in advance