OpenExamsFREE PRACTICE — ANY EXAM

Free General Lines - Life, Accident & Health - English Practice Questions

164 free questions · Answer explanations · No signup required

View examination details, outline and sources

Loading selected examination banks…

Sample Practice Questions

Try these 10 sample questions from the General Lines - Life, Accident & Health - English practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1A client wants permanent life coverage with level scheduled premiums throughout the insured's life. Which product matches this funding pattern?

    1. A. Ordinary whole life
    2. B. Limited-pay whole life
    3. C. Universal life
    4. D. Annually renewable term life

    Answer: A

    Explanation: "Premiums stay the same throughout the insured’s life" Ordinary whole life uses level scheduled premiums for life; the other named products use different coverage or payment structures.

    Reference: NAIC Life Insurance Topics — Traditional whole life products—ordinary whole life

  2. 2A policyholder wants the option to buy more life insurance at a later date despite a health change. Which rider provides this right?

    1. A. Term rider
    2. B. Waiver-of-premium rider
    3. C. Guaranteed-insurability rider
    4. D. Accelerated-death-benefit rider

    Answer: C

    Explanation: "lets you buy additional coverage regardless of your age or health" Guaranteed insurability preserves the future purchase right regardless of later age or health.

    Reference: Texas Department of Insurance Life Insurance Guide — Common life insurance riders—guaranteed insurability

  3. 3A policy owner transfers an existing life policy to a buyer in exchange for cash. What kind of transaction is this?

    1. A. A policy replacement involving a newly issued life contract.
    2. B. A nonforfeiture election under the existing policy.
    3. C. A life settlement involving sale of the existing policy.
    4. D. A group-life conversion into an individual contract.

    Answer: C

    Explanation: "A life settlement is the sale of a life insurance policy" The defining act is sale of an existing life policy, whereas the alternatives describe changes of coverage without such a sale.

    Reference: NAIC Understanding Life Settlements — What is a life settlement?

  4. 4A self-employed professional wants an insurance benefit to replace personal earnings when disability prevents work. Which policy type fits?

    1. A. Business overhead expense disability policy
    2. B. Business disability buyout policy
    3. C. Key employee disability policy
    4. D. Individual disability income policy

    Answer: D

    Explanation: "Disability insurance is designed to replace income or other expenses" Individual disability income responds to lost personal earnings; the other genuine disability products insure different business interests.

    Reference: NAIC Small Business Insurance — Disability insurance—income replacement

  5. 5A covered loss begins under a Texas accident and health policy. What is the latest statutory day by which notice of claim normally must be given after the loss begins?

    1. A. Before the 10th day
    2. B. Before the 15th day
    3. C. Before the 21st day
    4. D. Before the 30th day

    Answer: C

    Explanation: "before the 21st day after the date of the occurrence or beginning of any loss" The required wording sets the normal outer deadline before day 21, subject to the statute's reasonable-possibility allowance.

    Reference: Texas Insurance Code Chapter 1201 — Texas Insurance Code §1201.211—Notice of Claim

  6. 6Two health plans coordinate one covered claim. In what sequence do the plans normally process it?

    1. A. Secondary plan first, then primary plan
    2. B. Each plan processes half before either pays
    3. C. Primary plan first, then secondary plan
    4. D. Lower-deductible plan first, then the other

    Answer: C

    Explanation: "The primary health plan processes your insurance claim first" The designated primary processes first; the secondary then considers the remaining eligible amount.

    Reference: NAIC Consumer Guide to Using Your Health Plan — Coordination of benefits—primary and secondary plans

  7. 7Before a consumer reporting agency releases a medical-information report for life underwriting, which permission is needed?

    1. A. An employer benefit enrollment form
    2. B. The applicant's permission to issue the report
    3. C. A general notice of privacy practices
    4. D. A policyholder's beneficiary designation

    Answer: B

    Explanation: "permission before the CRA can issue the report" The applicant's permission must precede CRA release of the medical report; the other documents have different functions.

    Reference: Federal Trade Commission Consumer Reports: What Insurers Need to Know — Medical information in consumer reports—permission

  8. 8A Texas producer asks who serves as the Department of Insurance's chief executive and administrative officer. Which official fills that role?

    1. A. The Commissioner of Insurance
    2. B. The Attorney General
    3. C. The State Comptroller
    4. D. The Secretary of State

    Answer: A

    Explanation: TIC §31.021 states, "The commissioner is the department's chief executive and administrative officer." Therefore, the Commissioner of Insurance is the correct official.

    Reference: Texas Constitution and Statutes — TIC §31.021(a)

  9. 9A Texas health plan provides maternity benefits. Before what day may it not exclude initial coverage of a newborn?

    1. A. Before the 31st day after birth
    2. B. Before the 45th day after birth
    3. C. Before the 61st day after birth
    4. D. Before the 91st day after birth

    Answer: C

    Explanation: TIC §1367.003 prohibits exclusion or limitation of initial newborn coverage "before the 61st day after the date of the child's birth."

    Reference: Texas Constitution and Statutes — TIC §1367.003(1)

  10. 10Under Texas law, what payment basis is central to the definition of a health maintenance organization?

    1. A. A prepaid basis
    2. B. A retrospective indemnity basis only
    3. C. A workers' compensation basis
    4. D. A charitable donation basis

    Answer: A

    Explanation: TIC §843.002 defines an HMO as a person who arranges for or provides a health care plan to enrollees "on a prepaid basis."

    Reference: Texas Constitution and Statutes — TIC §843.002(14)

Topics in this practice bank

These topics describe the available practice for General Lines - Life, Accident & Health - English. Review the examination outline and its sources for scope and allocation details.

  • I. TYPES OF POLICIES
    • Traditional whole life products
    • Traditional whole life products — Ordinary whole life
    • Traditional whole life products — Limited-pay and single-premium life
    • Interest/market-sensitive/adjustable life products
    • Interest/market-sensitive/adjustable life products — Universal life
    • Interest/market-sensitive/adjustable life products — Variable whole life
    • Interest/market-sensitive/adjustable life products — Variable universal life
    • Interest/market-sensitive/adjustable life products — Interest-sensitive whole life
    • Interest/market-sensitive/adjustable life products — Indexed life
    • Term life
    • Term life — Types
    • Term life — Types — Level
    • Term life — Types — Decreasing
    • Term life — Types — Return of premium
    • Term life — Types — Annually renewable
    • Term life — Special features
    • Term life — Special features — Renewable
    • Convertible Annuities
    • Convertible Annuities — Single and flexible premium
    • Convertible Annuities — Immediate and deferred
    • Convertible Annuities — Fixed and variable
    • Convertible Annuities — Indexed
    • Convertible Annuities — Accumulation and Annuity Periods
    • Convertible Annuities — Payout options
    • Combination plans and variations
    • Combination plans and variations — Joint life (first to die)
    • Combination plans and variations — Survivorship life (second to die)
  • II. POLICY RIDERS, PROVISIONS, OPTIONS, AND EXCLUSIONS
    • Policy riders
    • Policy riders — Waiver of premium and waiver of monthly deduction
    • Policy riders — Guaranteed insurability
    • Policy riders — Payor benefit
    • Policy riders — Accidental death and/or accidental death and dismemberment
    • Policy riders — Term riders
    • Policy riders — Other insureds
    • Policy riders — Long term care
    • Policy riders — Return of premium
    • Policy riders — Disability
    • Policy riders — Cost of Living
    • Policy provisions and options
    • Policy provisions and options — Entire contract
    • Policy provisions and options — Insuring clause
    • Policy provisions and options — Free look
    • Policy provisions and options — Consideration
    • Policy provisions and options — Owner’s rights
    • Policy provisions and options — Beneficiary designations
    • Policy provisions and options — Beneficiary designations — Primary and contingent
    • Policy provisions and options — Beneficiary designations — Revocable and irrevocable
    • Policy provisions and options — Beneficiary designations — Common disaster
    • Policy provisions and options — Beneficiary designations — Minor beneficiaries
    • Policy provisions and options — Beneficiary designations — Designation by class
    • Policy provisions and options — Premium Payment
    • Policy provisions and options — Premium Payment — Modes
    • Policy provisions and options — Premium Payment — Grace period
    • Policy provisions and options — Premium Payment — Automatic premium loan
    • Policy provisions and options — Premium Payment — Level or flexible
    • Policy provisions and options — Reinstatement
    • Policy provisions and options — Policy loans, withdrawals, partial surrenders
    • Policy provisions and options — Non-forfeiture options
    • Policy provisions and options — Dividends and dividend options (e.g. participating, non-participating)
    • Policy provisions and options — Incontestability
    • Policy provisions and options — Assignments
    • Policy provisions and options — Suicide
    • Policy provisions and options — Misstatement of age and gender
    • Policy provisions and options — Settlement options
    • Policy provisions and options — Accelerated death benefits
    • Policy exclusions
    • Policy exclusions — War
    • Policy exclusions — Aviation
    • Policy exclusions — Dangerous Occupation
  • III. COMPLETING THE APPLICATION, UNDERWRITING, AND DELIVERING THE POLICES
    • Completing the application
    • Completing the application — Required signatures
    • Completing the application — Changes in the application
    • Completing the application — Consequences of incomplete applications
    • Completing the application — Warranties and representations
    • Completing the application — Collecting the initial premium and issuing the receipt
    • Completing the application — Replacement
    • Completing the application — Disclosures at point of sale (e.g., HIPAA, HIV consent)
    • Completing the application — USA PATRIOT Act/anti-money laundering
    • Completing the application — Gramm-Leach-Bliley Act (GLBA) Privacy
    • Underwriting
    • Underwriting — Insurable interest
    • Underwriting — Medical information and consumer reports
    • Underwriting — Fair Credit Reporting Act
    • Underwriting — Risk classification
    • Underwriting — Stranger/Investor-owned life insurance (STOLI/IOLI)
    • Delivering the policy
    • Delivering the policy — When coverage begins
    • Delivering the policy — Explaining the policy and its provisions, riders, exclusions, and ratings to the client
    • Contract law
    • Contract law — Elements of a contract
    • Contract law — Elements of a contract — Consideration
    • Contract law — Elements of a contract — Offer and Acceptance
    • Contract law — Elements of a contract — Competent parties
    • Contract law — Elements of a contract — Legal purpose
    • Contract law — Unique aspects of the insurance contract
    • Contract law — Unique aspects of the insurance contract — Conditional
    • Contract law — Unique aspects of the insurance contract — Unilateral
    • Contract law — Unique aspects of the insurance contract — Adhesion
    • Contract law — Unique aspects of the insurance contract — Aleatory
  • IV. RETIREMENT AND OTHER INSURANCE CONCEPTS
    • Third-party ownership
    • Life Settlements
    • Group life insurance
    • Group life insurance — Conversion privilege
    • Group life insurance — Contributory vs. noncontributory
    • Retirement plans
    • Retirement plans — Qualified plans
    • Retirement plans — Nonqualified plans
    • Life insurance needs analysis/suitability
    • Life insurance needs analysis/suitability — Personal insurance needs
    • Life insurance needs analysis/suitability — Business insurance needs
    • Life insurance needs analysis/suitability — Business insurance needs — Key person
    • Life insurance needs analysis/suitability — Business insurance needs — Buy sell
    • Social Security benefits
    • Tax treatment of insurance premiums, proceeds, and dividends
    • Tax treatment of insurance premiums, proceeds, and dividends — Individual life
    • Tax treatment of insurance premiums, proceeds, and dividends — Group life
    • Tax treatment of insurance premiums, proceeds, and dividends — Modified Endowment Contracts (MECs)
  • V. TYPES OF POLICIES
    • Disability income
    • Disability income — Individual disability income policy
    • Disability income — Business overhead expense policy
    • Disability income — Business disability buyout policy
    • Disability income — Group disability income policy
    • Disability income — Key employee policy
    • Accidental death and dismemberment
    • Medical expense insurance
    • Medical expense insurance — Basic hospital, medical, and surgical policies
    • Medical expense insurance — Major medical policies
    • Medical expense insurance — Health Maintenance Organizations (HMOs)
    • Medical expense insurance — Preferred Provider Organizations (PPOs)
    • Medical expense insurance — Point of Service (POS) plans
    • Medical expense insurance — Flexible Spending Accounts (FSAs)
    • Medical expense insurance — High Deductible Health Plans (HDHPs) and related Health Savings Accounts (HSAs)
    • Medical expense insurance — Health Reimbursement Accounts (HRAs)
    • Medicare supplement policies
    • Group insurance
    • Group insurance — Differences between individual and group contracts
    • Group insurance — General characteristics
    • Group insurance — COBRA
    • Individual/Group Long Term Care (LTC)
    • Individual/Group Long Term Care (LTC) — Eligibility
    • Individual/Group Long Term Care (LTC) — Levels of care
    • Other policies
    • Other policies — Dental
    • Other policies — Vision
    • Other policies — Cancer
    • Other policies — Critical illness or specified disease
    • Other policies — Worksite (employer-sponsored)
    • Other policies — Hospital indemnity
    • Other policies — Short-term medical
    • Other policies — Accident
  • VI. POLICY PROVISIONS, CLAUSES, AND RIDERS
    • Mandatory and optional provisions
    • Mandatory and optional provisions — Entire contract
    • Mandatory and optional provisions — Time limit on certain defenses (incontestable)
    • Mandatory and optional provisions — Grace period
    • Mandatory and optional provisions — Reinstatement
    • Mandatory and optional provisions — Notice of claim
    • Mandatory and optional provisions — Claim forms
    • Mandatory and optional provisions — Proof of loss
    • Mandatory and optional provisions — Time of payment of claims
    • Mandatory and optional provisions — Payment of claims
    • Mandatory and optional provisions — Physical examination and autopsy
    • Mandatory and optional provisions — Legal actions
    • Mandatory and optional provisions — Change of beneficiary
    • Mandatory and optional provisions — Misstatement of age or gender
    • Mandatory and optional provisions — Change of occupation
    • Mandatory and optional provisions — Illegal occupation
    • Mandatory and optional provisions — Relation of earnings to insurance
    • Other provisions and clauses
    • Other provisions and clauses — Insuring clause
    • Other provisions and clauses — Free look
    • Other provisions and clauses — Consideration clause
    • Other provisions and clauses — Probationary period
    • Other provisions and clauses — Elimination period
    • Other provisions and clauses — Waiver of premium
    • Other provisions and clauses — Exclusions and limitations
    • Other provisions and clauses — Preexisting conditions
    • Other provisions and clauses — Coinsurance
    • Other provisions and clauses — Deductibles
    • Other provisions and clauses — Eligible expenses
    • Other provisions and clauses — Copayments
    • Other provisions and clauses — Pre-authorizations and prior approval requirements
    • Other provisions and clauses — Usual, reasonable, and customary (URC) charges
    • Other provisions and clauses — Lifetime, annual, or per cause maximum benefit limits
    • Riders
    • Riders — Impairment/exclusions
    • Riders — Guaranteed insurability
    • Riders — Future increase option
    • Rights of renewability
    • Rights of renewability — Noncancelable
    • Rights of renewability — Cancelable
    • Rights of renewability — Guaranteed renewable
  • VII. SOCIAL INSURANCE
    • Medicare (Parts A, B, C, D)
    • Medicaid
    • Social Security benefits
  • VIII. OTHER INSURANCE CONCEPTS
    • Total, partial, recurrent and residual disability
    • Owner’s rights
    • Dependent children benefits
    • Primary and contingent beneficiaries
    • Modes of premium payments
    • Nonduplication and coordination of benefits (e.g., primary vs. excess)
    • Occupational vs. non-occupational
    • Tax treatment of premiums and proceeds of insurance contracts (e.g., disability income and medical expenses, etc.)
    • Managed care
    • Workers Compensation
    • Subrogation
  • IX. FIELD UNDERWRITING PROCEDURES
    • Completing the application
    • Explaining sources of insurability and HIPAA privacy information (e.g., MIB Report, Fair Credit Reporting Act, etc.)
    • Initial premium payment and receipt and consequences of the receipt (e.g., medical examination, etc.)
    • Submitting application (and initial premium if collected) to company for underwriting
    • Policy delivery
    • Explaining policy and its provisions, riders, exclusions, and ratings to clients
    • Replacement
    • Contract law
    • Contract law — Elements of a contract
    • Contract law — Insurable interest
    • Contract law — Warranties and representations
    • Contract law — Unique aspects of the insurance contract
    • Contract law — Unique aspects of the insurance contract — Conditional
    • Contract law — Unique aspects of the insurance contract — Unilateral
    • Contract law — Unique aspects of the insurance contract — Adhesion
    • Contract law — Unique aspects of the insurance contract — Aleatory
  • I. TEXAS STATUTES AND RULES COMMON TO LIFE AND HEALTH INSURANCE
    • Commissioner of Insurance
    • Commissioner of Insurance — General powers and duties
    • Commissioner of Insurance — Examination of records
    • Commissioner of Insurance — Investigation/Notice of hearing
    • Commissioner of Insurance — Penalties
    • Commissioner of Insurance — Cease and desist orders
    • Insurance definitions
    • Insurance definitions — Certificate of authority
    • Insurance definitions — Transacting insurance
    • Insurance definitions — Foreign, domestic, alien
    • Insurance definitions — Stock, mutual
    • Insurance definitions — Fraternals
    • Licensing requirements
    • Licensing requirements — Types
    • Licensing requirements — Types — Agent/Agency
    • Licensing requirements — Types — Nonresident agent
    • Licensing requirements — Types — Temporary
    • Licensing requirements — Exemptions/exceptions
    • Licensing requirements — Appointment
    • Licensing requirements — Continuing education
    • Licensing requirements — Records maintenance
    • Licensing requirements — License denial, renewal, expiration
    • Licensing requirements — License termination, revocation, suspension
    • Licensing requirements — Notification to Department of certain information
    • Licensing requirements — Notification to Department of certain information — Change of address
    • Licensing requirements — Notification to Department of certain information — Felony convictions
    • Licensing requirements — Notification to Department of certain information — Administrative action taken against a license holder
    • Marketing practices
    • Marketing practices — Unfair/Prohibited trade practices
    • Marketing practices — Unfair/Prohibited trade practices — Claims methods and practices
    • Marketing practices — Unfair/Prohibited trade practices — False advertising
    • Marketing practices — Unfair/Prohibited trade practices — Misrepresentation
    • Marketing practices — Unfair/Prohibited trade practices — Defamation
    • Marketing practices — Unfair/Prohibited trade practices — Rebating
    • Marketing practices — Unfair/Prohibited trade practices — Fraud
    • Marketing practices — Unfair/Prohibited trade practices — Boycott, coercion, intimidation
    • Marketing practices — Unfair/Prohibited trade practices — Commingling
    • Marketing practices — Unfair/Prohibited trade practices — Unfair discrimination
    • Agent duties/responsibilities
    • Agent duties/responsibilities — Commission sharing
    • Texas Life and Health Guaranty Association
  • II. TEXAS STATUTES AND RULES PERTINENT TO LIFE INSURANCE ONLY
    • Marketing and Solicitation
    • Marketing and Solicitation — Advertising/Illustrations
    • Marketing and Solicitation — Policy Summary/Buyer’s Guide
    • Individual life and annuity policy provisions
    • Individual life and annuity policy provisions — Free look
    • Individual life and annuity policy provisions — Grace period
    • Individual life and annuity policy provisions — Policy loans
    • Individual life and annuity policy provisions — Prohibited provisions
    • Individual life and annuity policy provisions — Incontestability
    • Individual life and annuity policy provisions — Entire Contract
    • Individual life and annuity policy provisions — Premiums payable in advance
    • Individual life and annuity policy provisions — Statement of insured
    • Individual life and annuity policy provisions — Misstatement of age
    • Individual life and annuity policy provisions — Time for Settlement of a Claim
    • Individual life and annuity policy provisions — Designation of beneficiary, transfer, or assignment of policy
    • Individual life and annuity policy provisions — Assignment of benefits
    • Individual life and annuity policy provisions — Accelerated Term Life benefits
    • Individual life and annuity policy provisions — Reinstatement
    • Individual life and annuity policy provisions — Limitations of lawsuits
    • Individual life and annuity policy provisions — Settlement at maturity
    • Group life
    • Group life — Group eligibility and underwriting requirements
    • Group life — Conversion to individual policy
    • Group life — Dependent coverage
    • Group life — Assignment
    • Group life — Required provisions
    • Group life — Accelerated benefits
    • Credit life
    • Replacement
    • Replacement — Purpose
    • Replacement — Definitions
    • Replacement — Duties of agent
    • Replacement — Duties of replacing insurance company
    • Nonforfeiture law
  • III. Texas statutes and rules pertinent to accident and health insurance only
    • Required group and individual policy provisions
    • Required group and individual policy provisions — Coverage for newborns
    • Required group and individual policy provisions — Definition of dependent
    • Required group and individual policy provisions — Coverage for chemical dependency
    • Medicare supplement
    • Medicare supplement — Minimum standards
    • Medicare supplement — Cancellation
    • AIDS testing requirements
    • Long Term Care
    • Small group health insurance
    • Small group health insurance — Eligibility
    • Small group health insurance — Coverage and Benefits
    • Affordable Care Act
    • Affordable Care Act — Exchanges/Marketplace (Section 1321)
    • Affordable Care Act — Taxes and subsidies (Section 1401, 1402)
    • Affordable Care Act — Essential health benefits (Section 1302, 18022)
    • Affordable Care Act — Essential health benefits (Section 1302, 18022) — Mental health and substance use disorder services
    • Affordable Care Act — Essential health benefits (Section 1302, 18022) — Pediatric services
    • Affordable Care Act — Essential health benefits (Section 1302, 18022) — Preventive services
    • Affordable Care Act — Employer notification responsibilities (Section 1511-1515)
  • IV. TEXAS STATUTES AND RULES PERTINENT TO HEALTH MAINTENANCE ORGANIZATIONS (HMOS)
    • Definitions
    • Evidence of coverage
    • Nonrenewal/cancellation
    • Enrollment
    • Out of network claims

How to use these free practice questions

Choose an answer, check the explanation, and review your progress by chapter. Practice questions and explanations are free to access without signing up.

These are independent study questions, not actual examination items. For examination requirements and official information, view General Lines - Life, Accident & Health - English details.