Final Exam Life & Health Insurance Texas (Latest 2023 - 2024)
Complete Answers 100% Correct
1. A Variable insurance policy:
-guarantees a minimum rate of return -does not allow the policyowner to assume the investment risk -does not guarantee a return on its investment accounts -does not guarantee an assignment provision
Answer: -does not guarantee a return on its investment accounts
- The individual most likely to buy a Medicare Supplement policy
would be a(n)
-unemployed 64-year old female -62-year old male covered by Medicaid -68-year old male covered by Medicare -uninsured 60-year old male
Answer: -68-year old male covered by Medicare Available to those
on Medicare
- 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?
-Allow her to take a tax deduction on unearned premiums -Increase her policy's coverage amount -Decrease her policy's coverage amount -Nothing
Answer: -Increase her policy's coverage amount Change of
occupation provision in an A&H Policy, if insured notifies the insurance company a less hazardous occupation, the insurance company may increase the policy's coverage 1 / 4
- The Consideration clause in a life insurance policy indicates that
a policy- owner's consideration consists of a completed application and
-the initial premium -agreeing to a physical examination -delivery of policy -disclosure of any medical conditions
Answer: -the initial premium
The consideration clause states that the policyowner's consideration consists of a completed appli- cation and the first initial payment premium.
- An individual Disability Income insurance applicant may be
required to submit all the following information, except:
-Medical History -Gross Income -Occupation -Spouse Occupation
Answer: -Spouse Occupation
- The Consideration clause in a life insurance contract contains
what perti- nent information?
-Summary of Benefits -Offer and Acceptance -Entire Contract -Amount of premium payments and when they are due
Answer: -Amount of premium payments and when they are due The
consideration clause in a life insurance policy specifies the amount and frequency of premium payments that the policyowners must take to keep the insurance in force.
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- Who is liable when an insured suffers a loss on a policy sold by
an agent through an insurer not authorized to conduct business in Texas?
-The insured -The agent and the insured -The agent and the company -The commissioner of insurance
Answer: -The agent and the company Any agent that sells an
insurance policy for an unauthorized insurer runs the risk of being respon- sible for unpaid claims if the unauthorized insurer does not
- What is Old Age and Survivors Health Insurance (OASDHI) also
known as?
-Medicare -Social Security -Medicaid -FICA
Answer: -Social Security
- When an insured changes to a more hazardous occupation, which
disabil- ity policy provision allows an insurer to adjust policy benefits and rates?
-Relation of earnings to insurance provision -Change of occupation provision -Conformity of state statues provision -Entire contract provisions
Answer: -Change of occupation provision
- a life insurance policyowner would like to take out a policy loan
against the cash value in his whole life policy. The interest rate applied to the this loan may vary over time. This is referred to as a(n) rate 3 / 4
loan.-Fluctuating -Fixed -Variable -Increasing
Answer: -Variable The interest rate on a variable rate cash loan may
vary over time
- A Hospital/Surgical Expense policy was purchased for a family
of four in March of 2013. The policy was issued with a $500 deductible and a limit of four deductibles per calendar year. Two claims were paid in September 2013, each incurring medical expenses in excess of the deductible. Two additional claims were filed in 2014, each in excess of the deductible amount as well.What would be this family's out-of-pocket medical expenses for 2013?
-$500
-$1,000
-$1,500
-$2,000
Answer: -$1,000 In this situation, the insured's maximum out of
pocket expenses for 2013 would be $1k
- C was injured while deep sea diving and requires a hospital stay.
C has a Major Medical policy with a 80/20 coinsurance clause and a $400 deductible. What is the MAXIMUM C will pay if the covered medical expenses are $2000?
-$0 -$400 -$720
$1,000
Answer: -$720 $400 deductible + 20% of remaining medical bill =
$720
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