Texas Life and Health Insurance Practice Test

Answer choices

1. A. Giving a visitor the agency’s public street address
2. B. Scheduling an appointment without discussing any insurance product
3. C. Insurance transacting: recommend, explain, and accept premium as an agent
4. D. Directing a caller to the insurer’s publicly listed claims telephone number

Wrong-answer review

• A. Giving a visitor the agency’s public street address: Giving a public address does not include recommending, explaining, or transacting insurance in the facts presented.
• B. Scheduling an appointment without discussing any insurance product: Merely scheduling an appointment without product discussion does not contain the solicitation, coverage explanation, or premium handling present in the correct choice.
• D. Directing a caller to the insurer’s publicly listed claims telephone number: Providing a public claims number does not involve recommending coverage, negotiating a policy, or receiving premium in the facts presented.

Answer choices

1. A. Quarterly mode must provide a larger face amount because it costs more in total
2. B. Annual mode changes the policy from term to permanent insurance
3. C. Payment frequency never affects total yearly outlay
4. D. Annual mode usually has lower total cost than frequent modes

Answer choices

1. A. The enrollee’s evidence of coverage stating plan rights and limits
2. B. The specialist’s standard cash-price list
3. C. A different insurer’s preferred-provider directory
4. D. The enrollee’s life insurance policy summary

Answer choices

1. A. Noncancelable
2. B. Guaranteed-renewable health coverage with protected renewal rights
3. C. Conditionally renewable with no stated conditions
4. D. Cancelable at the insurer's discretion

Answer choices

1. A. Keep the projection because illustrated returns become guaranteed when signed
2. B. Remove guaranteed values and show only the higher projection
3. C. Separate guaranteed and nonguaranteed elements; disclose lapse risk
4. D. Replace the illustration with a verbal promise of sufficient subaccount returns

Answer choices

1. A. Nothing; the general-lines license authorizes Medicare sales
2. B. Complete required Medicare certification before recommending the product
3. C. Sell now if described as interchangeable with Medicare Advantage
4. D. Only a property-and-casualty appointment is needed

Answer choices

1. A. Medicare Part C, also called Medicare Advantage for beneficiaries
2. B. A standalone Part D plan added to no other Medicare coverage
3. C. Medigap used as a replacement for both Part A and Part B
4. D. Part A alone with a supplemental outpatient rider issued by Medicare

Answer choices

1. A. Variable life insurance with investment options and risk
2. B. A short-term bank deposit with guaranteed principal
3. C. Fixed life insurance that places all investment risk on the insurer while using no investment options
4. D. Specified-disease health insurance

Answer choices

1. A. An HRA funded through employee salary reductions
2. B. A health FSA whose defining feature is individual ownership and permanent portability
3. C. A health savings account (HSA) for qualifying medical expenses
4. D. An HRA that the employee funds and takes to any future employer

Answer choices

1. A. Noncontributory, because the employer pays more than half
2. B. Contributory group coverage partly paid by employees
3. C. Noncontributory, because employees receive certificates instead of the master contract
4. D. Individual coverage, because any employee contribution ends group status