Texas Life and Health Insurance Exam 2023, Exams of Nursing

Download Texas Life and Health Insurance Exam 2023 and more Exams Nursing in PDF only on Docsity! Texas Life and Health Insurance Exam latest 2023 What type of reinsurance contract involves two companies automatically sharing their risk exposure? - ✅Treaty The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called - ✅reserves When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - ✅insurable interest Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called - ✅representations The part of a life insurance policy guaranteed to be true is called a(n) - ✅warranty Which of these is NOT a type of agent authority? Express Implied Principal Apparent - ✅Principal The Consideration clause of an insurance contract includes - ✅the schedule and amount of premium payments E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to? - ✅In this situation, the proceeds from E's life insurance policy will go to F. Which term defines the legally enforceable promise in an insurance contract by the insurer? - ✅Unilateral Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid. - ✅conditional Which of these require an offer, acceptance, and consideration? - ✅Contract Which of these is NOT considered to be an element of an insurance contract? the offer acceptance negotiating consideration - ✅negotiating An agent is an individual that represents whom? - ✅Insurer Which policy requires an agent to register with the National Association of Securities Dealers (NASD) before selling? - ✅Variable Life Which of the following actions require a policy owner to provide proof of insurability in an Adjustable Life policy? - ✅increase face amount When a policy owner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply? - ✅Conversion provision What type of life insurance are credit policies issued as? - ✅Term How long does the coverage normally remain on a limited-pay life policy? - ✅age 100 All of these statements about Equity Indexed Life Insurance are correct EXCEPT - Cash value has a minimum rate of accumulation - If the gain on the index goes beyond the policy's minimum rate of return, the cash value will mirror that of the index -The premiums can be lowered or raised, based on investment performance -Tied to an equity index such as the S&P 500 - ✅The premiums can be lowered or raised, based on investment performance What type of life insurance incorporates flexible premiums and an adjustable death benefit? - ✅Universal Life What type of life policy covers 2 lives and pays the face amount after the first one dies? - ✅Joint Life Policy Life insurance that covers an insured's whole life with level premiums paid over a limited time is called - ✅Limited-Pay Life When can a policyowner change a revocable beneficiary? - ✅anytime K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed? - ✅daughter M purchased an Accidental Death and Dismemberment (AD&D) policy and named his son as beneficiary. M has the right to change the beneficiary designation at anytime. What type of beneficiary is his son? - ✅revocable K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, where will the money go? - ✅To P's estate A policyowner's rights are limited under which beneficiary designation? - ✅Irrevocable A level premium indicates - ✅the premium is fixed for the entire duration of the contract On a life insurance policy, who is qualified to change the beneficiary designation? - ✅Policyowner J chooses a monthly premium payment mode on his Whole Life insurance policy. Which of these statements is correct? -The gross premium is higher on a monthly payment mode as compared to being paid annually -The gross premium is lower on a monthly payment mode as compared to being paid annually -The cash value from a life policy paid on a monthly basis builds quicker than one paid on an annual basis -The face amount of a life policy paid on a monthly basis is higher than one paid on an annual basis - ✅The gross premium is higher on a monthly payment mode as compared to being paid annually Any changes made on an insurance application requires the initials of whom? - ✅Applicant In order for coverage on a non-medical insurance application to take effect the same day, the producer must collect a signed application and - ✅the initial premium Which of these factors do NOT play a role in the underwriting of a life insurance policy? -Avocations -Credit status -Marital status - Occupation - ✅marital status An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors? -Height - Weight -Gender -Medical history - ✅gender What type of group plan involves employees sharing the cost? - ✅contributory plan A noncontributory group term life plan is characterized by - ✅the entire cost of the plan is paid for by the employer W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n) -Flexible Premium Deferred annuity -Variable annuity -Immediate annuity -Straight Life annuity - ✅Immediate annuity T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this? - ✅Life Annuity with Period Certain The annuity that represents the largest possible monthly payment to an individual annuitant is a(n) - ✅Straight Life annuity Which of these statements concerning an Individual Straight Life annuity is accurate? - ✅Payments are made to an annuitant for life Which type of contract liquidates an estate through recurrent payments? - ✅Annuity P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase? - ✅Deferred One becomes eligible for Social Security disability benefits after having been disabled for - ✅5 months What is Old Age and Survivors Health Insurance (OASDHI) also known as? - ✅Social Security Q is severely injured in an automobile accident and becomes totally disabled. How many months must Q be disabled before being able to apply for Social Security disability benefits? - ✅5 Which product would best serve a retired individual looking to invest a lump-sum of money through an insurance company? - ✅Annuity An IRA owner can start making withdrawals and NOT be subjected to a tax penalty beginning at what age? - ✅59 1/2 A Key Employee policy is taken out by Company X on its vice president. Ten years later, this employee leaves Company X and begins working for Company Y. If this individual were to die and the policy is still in force and unchanged, where would the death proceeds be directed? - ✅Company X All students attending a large university could be covered by - ✅a blanket policy The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for - ✅health information Which type of provider is known for stressing preventative medical care? - ✅Health Maintenance Organizations (HMO's) The individual who provides general medical care for a patient as well as the referral for specialized care is known as a - ✅Primary Care Physician The health insurance program which is administered by each state and funded by both the federal and state governments is called - ✅Medicaid Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures? - ✅Commercial insurer What does Medicare Parts A and B cover? - ✅Part A covers hospitalization; Part B covers doctor's services Under the Texas insurance code, an insurance company must pay death benefits for suicide if the policy has been in force for a MINIMUM of - ✅2 years A certificate of authority does which of the following? - ✅Permits an insurance company to transact business in Texas After the initial enrollment period, an HMO must hold an open enrollment period of how many days at LEAST once in every 12-month period? - ✅31 A Health Maintenance Organization (HMO) may issue an Evidence of Coverage form after it has been approved by the - ✅Commissioner of Insurance A Long-Term Care policy must offer a MINIMUM benefit period of how many months? - ✅12 A foreign insurance company is one that is incorporated - ✅under the laws of another state Under an individual life insurance policy, an insured may assign a MAXIMUM of what percentage of policy ownership? - ✅100% Who can purchase a plan through the Marketplace? - ✅Any legal resident except those incarcerated An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons? - ✅Failure to pay for coverage Under Texas insurance law, the term "transacting business" includes - ✅collecting premiums A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of - ✅coercion An agent who tells claimants that their rights may be impaired if they fail to complete a release form within a given period of time could be guilty of - ✅coercion Which of the following is an example of rebating? - ✅returning a portion of a premium as inducement to purchase insurance A stock insurance company is owned by it's - ✅stockholders An agent who tells a client that dividends are guaranteed may be guilty of - ✅misrepresentation An individual life insurance policy issued in Texas MUST have a grace period for premium payment of how many days? - ✅31 An agent may legally share commissions only with - ✅another agent who is licensed in the same line of insurance An agent whose license has been revoked is required to - ✅wait at least five years before applying for a new license The Commissioner of Insurance may issue a temporary agent's license for a maximum of how many days? - ✅90 Insurance company agent appointments remain in force for which of the following maximum periods of time, if any? - ✅Until terminated or withdrawn If an insured sustains a loss on a policy sold by an agent through an insurance company that is not authorized to do business in Texas, which of the following would be liable? - ✅The agent and the company