TEXAS INSURANCE LICENSE EXAM LATEST
EXAM | ALL QUESTIONS AND CORRECT
ANSWERS | ALREADY GRADED A+ | VERIFIED
ANSWERS
"A producer does not have the authority to change a policy or waive any of
its provisions". The health provision that best describes this statement is
called the ------CORRECT ANSWER---------------Entire Contract
Under what system do a group of doctors and hospitals in a designated
area contract with an insurer to provide services at a prearranged cost to
the insured? ------CORRECT ANSWER---------------PPO
What advantage does the renewability feature give to a term policy? ------
CORRECT ANSWER---------------The insured may extend the coverage
period
An Evidence of Coverage form may be issued by a Health Maintenance
Organization (HMO) after being approved by the ------CORRECT
ANSWER---------------commissioner
An insurance company organized under New York laws and licensed to do
business in Texas is considered a(n) ------CORRECT ANSWER---------------
foreign company
If an insurance company issues a Disability income policy that it cannot
cancel or for which it cannot increase premiums, the type of renewability
,that best desribes this policy is called ------CORRECT ANSWER---------------
noncancellable
Which of the following statements BEST defines usual, customary, and
reasonable (UCR) charges? ------CORRECT ANSWER---------------The
maximum amount considered eligible for reimbursement by an insurance
company under a health plan
Stranger Originated Life Insurance (STOLI) has been found to be in
violation of which of the following contractual elements? ------CORRECT
ANSWER---------------Legal Purpose (Insurable Interest)
in a qualified retirement plan, the yearly contributions to an employee's
account: ------CORRECT ANSWER---------------are restricted to maximum
levels set by the IRS
Who is NOT required to sign a life insurance application? ------CORRECT
ANSWER---------------beneficiary
Which of these is NOT considered to be a right given to a policyowner? -----
-CORRECT ANSWER---------------Modify a provision in the insurance
contract
Which of the following statements about health coverage for newborns is
NOT true? ------CORRECT ANSWER---------------Coverage is limited to only
congenital defects
,Which of the following best describes a contingent beneficiary? ------
CORRECT ANSWER---------------Person designated by the insured to
receive policy proceeds in the event that the primary beneficiary dies
before the insured
The federal income tax treatment of employer-provided group Medical
Expense insurance can be accurately described as. ------CORRECT
ANSWER---------------Employee's premiums paid by the employer is tax-
deductible to the employer as a business expenditure
Which of the following is NOT included in a life insurance illustration? ------
CORRECT ANSWER---------------company's mortality table
Which of the following is NOT a required provision in group life policies? ----
--CORRECT ANSWER---------------Right to Loan
Which of the following is a valid reason for an enrollee to be cancelled by a
Health Maintenance
Organization (HMO) plan? ------CORRECT ANSWER---------------
Nonpayment of coverage
What is considered to be a characteristic of a Conditionally Renewable
Health Insurance policy? ------CORRECT ANSWER---------------Premiums
may increase at time of renewal
Under a Renewable Term policy. ------CORRECT ANSWER---------------the
renewal premium is calculated on the basis of the insured's attained age
, A pilot applies for Life insurance. The insurer approves the application with
a $10 additional monthly premium modification due to the risk involved. The
pilot declines the additional premium modification.
The insurer will then likely issue the coverage with a(n) ------CORRECT
ANSWER---------------Aviation exclusion
If an insured's age was misstated on a life insurance contract, the
Misstatement of Age provision requires that any death benefit payable
would be ------CORRECT ANSWER---------------an amount that the
premiums paid would have purchased at the current age
A Nonforfeiture clause gives the policyowner ------CORRECT ANSWER-----
----------guaranteed values even if the policy has lapsed
One becomes eligible for Social Security disability benefits after having
been disabled for: ------CORRECT ANSWER---------------5 months
Insurance policies are considered aleatory contracts because ------
CORRECT ANSWER---------------performance is conditioned upon a future
occurrence
What type of rider would be added to an Accident and Health policy if the
policyowner wants to ensure the policy will continue it he/she ever
becomes totally disabled? ------CORRECT ANSWER---------------Waiver of
Premium rider
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