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Texas General Lines — Life, Accident, Health and HMO practice questions

218 free questions with answers and explanations.

Practice test
  1. 201.A Texas-licensed agent is found to have knowingly misrepresented the terms of an insurance policy to a prospective client to induce them to purchase it. This act is an example of which unfair trade practice?Texas Statutes and Rules Common to Life, Accident, Health and HMO
  2. 202.Which of the following entities is responsible for examining the books and records of insurers and agents to ensure compliance with Texas insurance laws?Texas Statutes and Rules Common to Life, Accident, Health and HMO
  3. 203.A Texas-licensed agent is convicted of a felony involving dishonesty. What is the agent's obligation regarding reporting this conviction to the Texas Department of Insurance (TDI)?Texas Statutes and Rules Common to Life, Accident, Health and HMO
  4. 204.An agent is found to have placed insurance coverage with an unauthorized insurer in Texas. What is the Texas Department of Insurance's (TDI) primary concern regarding such an action?Texas Statutes and Rules Common to Life, Accident, Health and HMO
  5. 205.A life insurance applicant intentionally provides false information about their medical history on the application. The policy is issued, and two years later, the insured dies due to a condition that would have been discovered if accurate information had been provided. What will likely happen regarding the policy's payout?Life Insurance
  6. 206.An applicant for a $1,000,000 life insurance policy is found to be a substandard risk due to a pre-existing health condition. Which of the following actions is the insurer LEAST likely to take?Life Insurance
  7. 207.A life insurance policyowner wants to ensure that if they are unable to pay premiums due to severe disability, the policy will remain in force without requiring further premium payments. Which rider would they add to their policy?Life Insurance
  8. 208.A Texas resident is covered by an individual health insurance policy that contains a provision limiting benefits for pre-existing conditions. Under Texas law, what is the maximum exclusionary period for a pre-existing condition in an individual health insurance policy if the insured has no prior creditable coverage?Texas Statutes and Rules Specific to Accident, Health and HMO
  9. 209.A Texas-licensed agent is found to have offered a prospective client a discount on their auto insurance if they purchase a life insurance policy from the agent. This practice is prohibited under Texas insurance law as:Texas Statutes and Rules Common to Life, Accident, Health and HMO
  10. 210.A small employer in Texas with 30 eligible employees wishes to offer group health insurance. Under Texas law, what is the minimum percentage of eligible employees who must elect to participate in a non-contributory group health plan for the plan to be issued?Texas Statutes and Rules Specific to Accident, Health and HMO
  11. 211.A life insurance policy includes a provision that states if the insured and the primary beneficiary die in a common accident, and it cannot be determined who died first, the policy proceeds will be paid as if the insured survived the beneficiary. Which provision is this?Life Insurance
  12. 212.A life insurance agent in Texas wants to use a new business card design that includes their personal financial planning certification alongside their insurance license information. What guidelines must the agent follow regarding advertising multiple licenses?Texas Statutes and Rules Common to Life, Accident, Health and HMO
  13. 213.A life insurance policyowner has chosen the 'Paid-Up Additions' dividend option. Which of the following statements BEST describes the effect of this option?Life Insurance
  14. 214.An insurance company operating in Texas wishes to offer a new type of accident insurance policy. Before issuing this policy to the public, what is the primary action the company must take regarding the policy form?Texas Statutes and Rules Common to Life, Accident, Health and HMO
  15. 215.A client is seeking a life insurance policy that offers maximum flexibility in premium payments and death benefit amounts, along with investment choices for the cash value. Which type of policy would best suit their needs?Life Insurance
  16. 216.An HMO in Texas determines that a proposed medical treatment for an enrollee is not medically necessary and issues an adverse determination. The enrollee wishes to appeal this decision. What is the FIRST step the enrollee must take in the internal review process?Texas Statutes and Rules Specific to Accident, Health and HMO
  17. 217.A 35-year-old individual purchases a $250,000 Whole Life insurance policy. After 5 years, the policy has accumulated a cash value of $15,000. If the policyowner decides to surrender the policy for its cash value, what is the tax implication if they paid $12,000 in total premiums?Life Insurance
  18. 218.A Texas-licensed agent is found to have offered a prospective client a discount on their annual premium if they purchase a new life insurance policy through them, rather than through another agent. This action is considered which of the following?Texas Statutes and Rules Common to Life, Accident, Health and HMO