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XCEL practice exams

Terms in this set (235)

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?
20-Pay Life accumulates cash value faster than Straight Life
A variable insurance policy:
does not guarantee a return on its investment accounts
A Renewable Term Policy is renewable at the option of the:
Insured
Which of these types of life insurance allows the policyowner to have level premiums and to also choose from a selection of investment options?
Variable Life
Which of the following actions is NOT possible with a Universal Life policy?
Premiums may be applied as a credit against income tax
Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health?
conversion
What type of policy would offer a 40-year old the quickest accumulation of cash value?
20-pay life
A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need?
Universal Life
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?
20-pay Life
All of these insurance products require an agent to have proper FINRA securities registration in order to sell them, EXCEPT for:
Modified Whole Life
All of these are characteristics of an Adjustable Life policy, EXCEPT:
face amount can be adjusted using policy dividends
What kind of special need would a policyowner require with an Adjustable Life insurance policy?
flexible premiums
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile accident. How much will the insurance company pay the beneficiary?
$20,000 death benefit
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?
Face amount plus the policy's cash value
Variable Life products require a producer to
hold a Life Insurance license and a Securities license
What kind of life policy either pays the face value upon the death of the insured or when the insured reaches age 100?
whole life
Q would like to purchase $100,000 of permanent protection on his wife and $50,000 of Term coverage on himself under the same policy. What kind of policy should Q purchase?
Whole life policy with other insured rider
Which of the following types of policies pays a benefit if the insured goes blind?
AD&D
All of these statements about Equity Indexed Life Insurance are correct, EXCEPT:
The premiums can be lowered or raised, based on investment performance
M purchases a $70,000 Life Insurance Policy with premium payments of $550 a year for the first 5 years. At the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. The face amount will remain at $70,000 throughout the life of the policy. The type of policy that M has purchased is
Modified Premium Life
Additional coverage can be added to a Whole Life policy by adding a(n):
decreasing term rider
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:
policy proceeds
Which provision prevents an insurer from changing the terms of the contract with the policyowner by referring to documents not found within the policy itself?
Entire Contract provision
S buys a $50,000 whole life policy with a $50,000 Accidental Death and Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the beneficiary?
$50,000
A policy loan is made possible by which of these life insurance policy features?
Cash value provision
What is the Suicide provision designed to do?
safeguard the insurer from an applicant who is contemplating suicide
In a Life insurance contract, an insurance company's promise to pay stated benefits is called the:
Insuring clause
The Consideration clause in a life insurance policy indicates that a policyowner's consideration consists of a completed application and
the initial premium
D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive?
The full face amount
N is a student pilot with a large life insurance policy. Which of these features would limit the insurer's obligation in the event N was killed while flying as a student pilot?
exclusion
Which statement is TRUE in regards to a policy loan?
Past-due interest on a policy loan is added to the total debt
When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n):
exclusion
S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT
beneficiary's age
Which life insurance rider typically appears on a Juvenile life insurance policy?
payor benefit rider
How are surrender charges deducted in a life policy with a rear-end loaded provision?
Deducted when the policy is discontinued
The Consideration clause in a life insurance contract contains what pertinent information?
Amount of premium payments and when they are due
In a life insurance policy, which provision states who may select policy options, designate and name a beneficiary, and be the recipient of any financial benefits from the policy?
Owner's Rights
Which rider provides coverage for a child under a parent's life insurance policy?
Child term rider
Whose life is covered on a life insurance policy that contains a payor benefit clause?
child
The agreement in a life insurance contract that states a specific sum of money will be paid to a designated person upon an insured's death is called a(n):
...
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
A level premium indicates:
the premium is fixed for the entire duration of the contract
What percent of personal life insurance premiums is usually deductible for federal income tax purposes?
0%
What is the underlying concept regarding level premiums?
The early years are charged more than what is needed
C is trying to determine whether to convert her convertible term life policy to whole life insurance using her original age or attained age. What factor would affect her decision the most?
the cost
When can a policyowner change a revocable beneficiary?
anytime
Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary?
Life Income
A policyowner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fulfill this need?
irrevocable
On a life insurance policy, who is qualified to change the beneficiary designation?
Policyowner
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable beneficiary. What action will the insurance company take if T requests a change of beneficiary?
Request of the change will be refused
Which of the following best describes a contingent beneficiary?
Person designated by the insured to receive policy proceeds in the event that the primary beneficiary dies before the insured
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?
$0
Which of the following statements is CORRECT regarding the tax treatment of a lump-sum payment paid to a life insurance policy's primary beneficiary?
All proceeds are income tax free in the year they are received
Quarterly premium payments increase the annual cost of insurance because
interest to the insurer is decreased while the administrative costs are increased
A policyowner is allowed to pay premiums more than once a year under which provision?
Mode of Premium
What is the purpose of a Policy Summary?
It highlights the critical parts of the policy issued
A student pilot can pay regular premium costs for her life insurance policy with the addition of which of the following?
Aviation exclusion
A life insurance application must be signed by all of these, EXCEPT:
beneficiary
An agent gives a conditional receipt to a client for an insurance policy after collecting the initial premium. When will the policy become effective?
When the conditions of the receipt are met
Which parts of a life insurance policy are guaranteed to be true?
warranty
Which factors are taken into consideration when an insurance company determines the premium rate for a Whole Life policy on an applicant?
Risk classification
Which of the following statements is CORRECT about an agent who is taking an insurance application?
The agent should have the applicant initial any changes made on the application
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following, EXCEPT:
Signed HIPAA disclosure
The USA Patriot Act was enacted in:
2001
A Medical Information Report (MIB) report may disclose which of the following:
Prior use of marjuana
At what time must a policyowner have insurable interest on the insured in order for the life policy to be valid?
At the time of application
What would the Medical Information Bureau (MIB) identify?
Testing positive for marijuana use from a previous screening
What is the purpose of the U.S.A. Patriot Act?
detect and deter terrorism
An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the:
applicant's physician
P is a producer who notices 5 questions on a life application were not answered. What actions should P take?
Set up a meeting with the applicant to answer the remaining questions
Group life insurance policies are generally written as:
annually renewable term
What type of group insurance plan involves employees sharing the cost?
contributory plan
Which of the following statements about noncontributory employee group life insurance is FALSE?
A minimum number of employees is required to participate
Which requirement must be met for an association to be eligible for a group life plan?
Group was formed for a purpose other than acquiring insurance
Under a trustee group life policy, who would be eligible for a certificate of coverage?
employee
S, while in the process of converting her group life insurance to an individual policy, dies. What happens to the claim her beneficiary submits?
Full benefits are payable under the Master contract
An employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a:
$25,000 individual whole life policy
When an employee is terminated, which statement about a group term life conversion is true?
Policy proceeds will be paid if the employee dies during the conversion period
If its employees share in the cost of insurance, what type of group life insurance plan would a corporation have?
Contributory
Which provision is NOT a requirement in a group life policy?
accidental
What is considered to be a characteristic of an immediate annuity?
Benefit payments start within one payment period of purchase
P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy?
An immediate annuity
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
Immediate annuity
N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?
Fixed Deferred
What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?
variable
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
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
Which of the following annuities pays benefits based on units rather than specific dollar amounts?
Variable annuity
Which of the following is NOT included in an annuity contract?
AD&D rider
The type of annuity that can be purchased with one monetary deposit is called a(n):
immediate annuity
Which of the following does Social Security NOT provide benefits for?
dismemberment
All of these are considered to be a benefit under Social Security, EXCEPT for:
unemployment
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 months
Which of the following factors affects the amount of monthly disability benefits payable under Social Security?
The amount of the benefits available from other sources
What is Old Age and Survivors Health Insurance (OASDHI) also known as?
social security
An individual working part-time has an annual income of $25,000. If this individual has an IRA, what is the maximum deductible IRA contribution allowable?
$2,500
All of the following statements about traditional individual retirement accounts are false EXCEPT
10% penalty is applied to withdrawals before age 59 1/2
In a qualified retirement plan, the yearly contributions to an employee's account:
are restricted to maximum levels set by the IRS
Post-tax dollar contributions are found in:
Roth IRA investments
An individual participant personally received eligible rollover funds from a profit-sharing plan. What is the income tax withholding requirements for this transaction?
20% is withheld for income taxes
Which tax would an IRA participant be subjected to on distributions received prior to age 59 1/2?
Ordinary income tax and a 10% tax penalty for early withdrawal
What type of employee welfare plans are not subject to ERISA regulations?
Church plans
Which of the following is TRUE about a qualified retirement that is "top heavy"?
More than 60% of plan assets are in key employee accounts
At the age of 45, an individual withdraws $50,000 from his Qualified Profit-Sharing Plan and then deposits this amount into a personal savings account. This action would result in:
Income tax and a 10% penalty assessed upon funds withdrawn from the Qualified Plan
A qualified profit-sharing plan is designed to:
allow employees to participate in the profits of the company
In life insurance, the needs approach is used mostly to establish:
how much life insurance a client should apply for
In a Key Employee life insurance policy, the third-party owner can be all of the following, EXCEPT:
insured
Which statement regarding a Key Employee Life policy is NOT true?
The beneficiary is named by the key employee
C is a key employee at ABC Incorporated. If a Key Employee life policy is purchased on her life, which of these statements would be true?
ABC is the policyowner, C is the insured, and ABC is the beneficiary
Which of these is NOT a reason for purchasing life insurance on the life of a minor?
If both parents were to die, it would provide death benefits to the child
Which of the following claims are typically excluded from Medical expense policies?
Intentionally self-inflicted injuries
K has an Accidental Death and Dismemberment (AD&D) 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
Many small business owners worry how their business would survive financially if the owner becomes disabled. The policy which BEST addresses this concern is:
Business Overhead Expense
The benefits under a Disability Buy-Out policy are:
payable to the company or another shareholder
Which of the following is the reimbursement of benefits for the treatment of a beneficiary's injuries caused by a third party?
Subrogation
XYZ Company pays the entire premium for its group health plan. The MINIMUM percentage of eligible employees that must be covered is:
100%
A Business Overhead Expense policy:
covers business expenses such as rent and utilities
What is issued to each employee of an employer health plan?
certificate
What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary requires his/her consent when a change of beneficiary is made?
Irrevocable beneficiary
On an Accidental Death and Dismemberment (AD&D) insurance policy, who is qualified to change the beneficiary designation?
Policyowner
P is an employee who quits her job and wants to convert her group health coverage to an individual policy. After the expiration of COBRA laws, which of the following statements is TRUE?
She does NOT need to provide evidence of insurability
The Health Insurance Portability and Accountability Act (HIPAA) gives privacy protection for:
health information
The reason for a business having a Business Overhead Expense Disability Plan is to cover:
fixed business expenses
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and Dismemberment policy insuring their father. Their mother was named contingent beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba accident shortly afterwards. How much of the death benefit will the mother receive?
$0
Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy?
reimbursement
A 66 year-old is covered under a group health plan while employed with a business that has 40 employees. If she injures herself while walking in the park, what coverage would be considered primary?
Her group health plan
Which of the following does Social Security NOT provide benefits for?
dismemberment
What does Medicare Parts A and B cover?
Part A covers hospitalization; Part B covers doctor's services
Medicare Part A and Part B do NOT pay for:
dental work
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
A medical care provider which typically delivers health services at its own local medical facility is known as a:
HMO
Which of these is considered a true statement regarding Medicaid?
Funded by both state and federal governments
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?
PPO
Which of the following organizations would make reimbursement payments directly to the insured individual for covered medical expenditures?
Commercial insurer
The percentage of an individual's Primary Insurance Amount (PIA) determines the benefits paid in which of the following programs?
Social Security Disability Income
Which of these is NOT a characteristic of a Health Reimbursement Arrangement (HRA)?
Employee funds the HRA entirely
Deductibles are used in health policies to lower:
overuse of medical services
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?
Insurer will likely treat as a pre-existing condition which may not be covered for one year
With a Basic Medical Expense policy, what does the hospitalization expense cover?
hospital room and board
Which of these options can an individual use their medical flexible spending account to pay for?
prescription drugs
Which of the following costs would a Basic Hospital/Surgical policy likely cover?
Surgically removing a facial birthmark
Which of the following situations does a Critical Illness plan cover?
leukemia
A prospective insured completes and signs an application for health insurance but intentionally conceals information about a pre-existing heart condition. The company issues the policy. Two months later, the insured suffers a heart attack and submits a claim. While processing the claim, the company discovers the pre-existing condition. In this situation, the company will:
continue coverage but exclude the heart condition
Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT?
If the employee paid for qualified medical expenses, the reimbursements may be tax-free
An individual has a Major Medical policy with a $5,000 deductible and an 80/20 Coinsurance clause. How much will the INSURED have to pay if a total of $15,000 in covered medical expenses are incurred?
$5,000 + 20% of the remaining bill = $7,000
Which of the following individual health insurance policies will provide the broadest protection?
major medical
The first portion of a covered Major Medical insurance expense that the insured is required to pay is called the:
initial deductible
A comprehensive major medical health insurance policy contains an Eligible Expenses provision which identifies the types of health care services that are covered. All of the following health care services are typically covered, EXCEPT for:
experimental and investigative services
In Major Medical Expense policies, what is the intent of a Stop Loss provision?
Limits an insured's out-of-pocket medical expenses
N has a Major Medical policy that only pays a portion of N's medical expenses. N is responsible for paying the remaining balance. This provision is known as:
coinsurance
A disability elimination period is best described as a:
time deductible
What is the elimination period of an individual disability policy?
Time period a disabled person must wait before benefits are paid
What is the primary factor that determines the benefits paid under a disability income policy?
wages
Disability policies do NOT normally pay for disabilities arising from which of the following?
war
N is covered under an individual Disability policy with a 30-day Elimination period and a monthly benefit of $500. N is totally disabled for 3 1/2 months. N's total benefit received on this claim is:
$1,250". After the 30-day Elimination period has been satisfied, the total benefit paid on this claim is $1,250 ($500+$500+$250).
What does a Guaranteed Insurability rider provide a Disability Income policyowner?
The ability to periodically increase the amount of coverage without evidence of insurability
A physician opens up a new practice and qualifies for a $7,000/month Disability Income policy. What rider would the physician add if he wants the ability to increase his policy benefit as his practice and income grow?
Guaranteed Insurability Option rider
In a Disability Income policy, which of these clauses acts as a deductible?
Elimination period
An insured owns an individual Disability Income policy with a 30-day Elimination Period for sickness and accidents and a monthly indemnity benefit of $500. If the insured is disabled for 3 1/2 months, what is the MAXIMUM amount he would receive for an approved claim?
$1,250
3.5 months - 1 month elimination period = 2.5 months. 2.5 months X $500 monthly indemnity = $1,250.
Which of these statements concerning an individual Disability Income policy is TRUE?
Normally includes an Elimination period
If a retiree on Medicare required five hospital stays in one year, which policy would provide the best insurance for excess hospital expenses?
Medicare Supplement
Medicare Part C is:
available to those who are enrolled in Medicare Part A and Part B
What is the MINIMUM number of Activities of Daily Living (ADL) an insured must be unable to perform to qualify for Long Term Care benefits?
2
Which of the following types of care is typically not covered in a Long-Term Care policy?
acupuncture
Medicare Part B does NOT cover:
inpatient hospital services
M's insurance company denied a reinstatement application for her lapsed health insurance policy. The company did not notify M of this denial. How many days from the reinstatement application date does the insurance company have to notify M of the denial before the policy will be automatically placed back in force?
45 days
S filed a written Proof of Loss for a Disability Income claim on September 1. The insurance company did not respond to the claim. S can take legal action against the insurer beginning:
November 1
An insurance company normally has 2 years to contest information provided on an accident and health application. This 2 year period begins on the date that the:
insurer dates the policy
An insured must notify an insurer of a medical claim within how many days after an accident?
20
Which health policy clause specifies the amount of benefits to be paid?
Insuring
In health insurance policies, a waiver of premium provision keeps the coverage in force without premium payments:
After an insured has become totally disabled as defined in the policy
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:
noncancellable
According to the Time Payment of Claims provision, the insurer must pay Disability Income benefits no less frequently than which of the following options?
monthly
P is a Major Medical policyowner who is hospitalized as a result of injuries sustained from participating in a carjacking. How will the insurer most likely handle this claim?
Claim will be denied
T files a claim on his Accident and Health policy after being treated for an illness. The insurance company believes that T misrepresented his actual health on the initial insurance application and is, therefore, disputing the claim's validity. The provision that limits the time period during which the company may dispute a claim's validity is called:
Time Limit on Certain Defenses
What is considered to be a characteristic of a Conditionally Renewable Health Insurance policy?
Premiums may increase at time of renewal
Which type of renewability best describes a Disability Income policy that covers an individual until the age of 65, but the insurer has the right to change the premium rate for the overall risk class?
Guaranteed renewable
Which health policy clause stipulates that an insurance company must attach a copy of the application to the policy to ensure that it is part of the contract?
Entire Contract
Which of the following provisions specifies how long a policyowner's health coverage will remain in effect if the policyowner does not pay the premium when it is due?
grace period
J, an Accidental Death and Dismemberment (AD&D) policy holder, dies after injuries sustained in an accident. J's age as stated on the application five years ago was found to be understated by ten years. Which of the following actions will the insurance company take?
The insurer will adjust the benefit to what the premiums paid would have purchased at the insured's actual age
With Accidental Death and Dismemberment policies, what is the purpose of the Grace Period?
Gives the policyowner additional time to pay past due premiums
Which Accident and Health policy provision addresses preexisting conditions?
Time Limit on Certain Defenses
The clause identifying which losses resulting from an accident or sickness are insured by the policy is called the:
Insuring clause
What is the purpose of the Time of Payment of Claims provision?
Prevents delayed claim payments made by the insurer
An assignment of benefits of a Health Policy:
transfers payments to someone other than the policyowner
Which type of plan normally includes hospice benefits?
managed care plans
An agent takes an individual Disability Income application, collects the appropriate premium, and issues the prospective insured a conditional receipt. The next step the insurance company will take is to:
determine if the applicant is an acceptable risk by completing standard underwriting procedures
Pre-hospitalization authorization is considered an example of:
managed care
P is self-employed and owns an Individual Disability Income policy. He becomes totally disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this income is subject to federal income tax?
$0
Which of the following actions will an insurance company most likely NOT take if an applicant, who has diabetes, applies for a Disability Income policy?
Issue the policy with an altered Time of Payment of Claims provision
Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?
Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company
Which mode of payment is NOT used by health insurance policies?
Single Premium
A prepaid application for individual Disability Income insurance was recently submitted to an insurer. When the insurer received the Medical Information Bureau (MIB) report, the report showed that the applicant had suffered a stroke 18 months ago, something that was not disclosed on the application. Which of the following actions would the insurance company NOT take?
Send a notice to the MIB that the applicant was declined
Information obtained from a phone conversation to the proposed insured can be found in which of these reports?
inspection report
Which of the following are NOT managed care organizations?
Medical Information Bureau (MIB)
An insurance company may be judged guilty of false advertising if it
exaggerates its dividends in a newspaper advertisement
An insurance company must do which of the following to terminate an agent's appointment?
Send notice of the termination to the Texas Department of Insurance
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
A Health Maintenance Organization (HMO) may issue an Evidence of Coverage form after it has been approved by the
Commissioner of Insurance
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
An agent whose license has been revoked is required to
wait at least five years before applying for a new license
An insurance agent does NOT have fiduciary responsibilities to
other agents
A life insurance illustration is NOT required to include the
company's mortality table
An agent MUST do which of the following during a sales presentation for a participating life insurance policy?
Include a statement that dividends are not guaranteed
An organization that solicits insurance only among its members is known as a
fraternal benefit society
Under an individual life insurance policy, an insured may assign a MAXIMUM of what percentage of policy ownership?
100%
In Texas, a domestic insurance company is defined as a company that
is incorporated and formed in Texas
Which of the following BEST describes Credit Life insurance?
Insurance issued on a debtor to cover outstanding balances on installment loans
The Insurance Commissioner may examine the records of an insurance company in order to
determine the solvency of the company
A Long-Term Care policy must offer a MINIMUM benefit period of how many months?
12
Insurance agent licenses normally must be renewed every
2 years
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Texas Insurance Code covering
unfair methods of competition
An insurance company must provide information on fraudulent claims at the request of all of the following entities EXCEPT
an insured
Under the Nonforfeiture Law, a cash surrender value payment may be deferred by the insurance company for NO LONGER than how many months?
6
Which of the following circumstances would cause a Medicare Supplement policy to be cancelled?
The insured fails to pay the premium
An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons?
Failure to pay for coverage
What percentage of continuing education instruction MUST be completed in the classroom or classroom equivalent?
50%
Which of the following statements is NOT CORRECT about the Commissioner of Insurance?
The Commissioner must be elected in a general election
An applicant for an agent's license must meet which of the following requirements?
Be honest, trustworthy, and reliable
An agent who tells a client that dividends are guaranteed may be guilty of
misrepresentation
The Commissioner of Insurance has the power and duty to take all of the following actions EXCEPT
activate insurance companies' financial reserves
All of the following statements about health coverage for newborns are correct EXCEPT
coverage during the first year is limited to congenital defects
An agent may legally share commissions only with
another agent who is licensed in the same line of insurance
Insurance company agent appointments remain in force for which of the following maximum periods of time, if any?
Until terminated or withdrawn
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
All of the following provisions must be included in life insurance policies EXCEPT
Extended term
All of the following may charge fees for insurance advice EXCEPT
Legal reserve agents
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
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
Benefits for drug and alcohol treatment under a group health policy must include all of the following services EXCEPT
transportation to and from an outpatient facility
The Commissioner of insurance may suspend, revoke, or refuse to renew the license of an agent who
is found guilty of misrepresentation or fraud in obtaining the license
An agent MUST give a prospective insured an Outline of Coverage when taking an application for a
Medicare Supplement policy
The Misstatement of Age provision requires that if the age of the insured is misstated, then any amount payable is
an amount that the premiums paid would have purchased at the current age or ages
An individual life insurance policy issued in Texas MUST have a grace period for premium payment of how many days?
31
Who can purchase a plan through the Marketplace?
Any legal resident except those incarcerated
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