pg. 1 New 2025 TX Life And Health Insurance Exam Prep Test Bank with 350 Questions and Correct Answers | Texas Life, Health and Accident Exam Prep Test Bank Latest 2025-2026 | TX Life Insurance Exam 2025 (Newest!)
In Texas, an individual life insurance policy is REQUIRED to have a grace period of 31 days What type of rider would be added to an Accident and Health policy if the policyowner wants to ensure the policy will continue if he/she ever becomes totally disabled?Waiver of Premium Loan A newly licensed General Lines agent must complete a MINIMUM of how many hours of continuing education within 24 months after initial license?24 hours Insurance agent licenses normally must be renewed every
- years
The Insurance Commissioner may examine the records of an insurance company in order to determine the solvency of the company What MUST an insurance company use in its advertising?Its true corporate name An insurance agent does NOT have fiduciary responsibilities to other agents A group life insurance policy may NOT insure groups consisting exclusively of persons who are related by marriage, blood or legal adoption 1 / 4
pg. 2 If an insurance company is organized under the laws of New Jersey and licensed to do business here, it is considered which of the following in Texas?a foreign company In Texas, a domestic insurance company is defined as a company that is incorporated and formed in Texas Under the Texas code, the MAXIMUM for which a spouse may be insured in a
company group life program with a $50,000 death benefit is:
25,000
Under the Nonforfeiture Law, a cash surrender value payment may be deferred by the insurance company for NO LONGER than how many months?6 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
- years
All of the following are defined as doing insurance business EXCEPT selling mutual funds All of the following provisions must be included in life insurance policies
EXCEPT
Extended Term A certificate of authority does which of the following?Permits an insurance company to transact business in Texas 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 If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely 2 / 4
pg. 3 pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age Which of the following circumstances would cause a Medicare Supplement policy to be cancelled?The insured fails to pay the premium An applicant for an agent's license must meet which of the following requirements?Be honest, trustworthy, and reliable Medicare Part A and Part B do NOT pay for dental work Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy?Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company 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 An insurance company organized under New York laws and licensed to do business in Texas is considered a(n) foreign company 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 A provision in a life insurance policy that pays the policy owner an amount that
does not surpass the guaranteed cash value is called the:
Policy Loan Provision 3 / 4
pg. 4 At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?Upon completion of the application Who elects the governing body of a mutual insurance company?policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure?Treaty The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called reserves Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated 1970 - Fair Credit Reporting Act What is the consideration given by an insurer in the Consideration clause of a life policy?Promise to pay a death benefit When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have insurable interest in the proposed insured Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called representations The part of a life insurance policy guaranteed to be true is called a(n) warranty
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