Practice Exam 2025 Latest Test Bank with 280 Questions

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TEXAS LIFE AND

HEALTH

INSURANCE

EXAM

QUESTIONS AND

ANSWERS

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Question 1: N is covered by a Term Life policy and does not make the required

premium payment which was due August 1. N dies September 15. What action will the insurer take?

• The policy will be automatically renewed
• Claim will be paid in full
• Claim will be paid minus the premium due
• Claim will be denied

Correct Answer: Claim will be denied

Question 2: S owns a life insurance policy with cash values that fluctuate

according to the underlying investment performance of common stocks. Which of these policies does S own?

• Variable Whole Life
• Universal Life
• Modified Whole Life
• Adjustable Life

Correct Answer: Variable Whole Life

Question 3: 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):

• Entire Contract provision
• Insuring agreement
• Consideration clause
• Beneficiary clause

Correct Answer: Insuring agreement

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Question 4: If a 10-Year Term Life policy contains a Renewability provision, the policy will renew

• only if premium payments are doubled
• upon completion of a new medical exam
• without evidence of insurability
• with proof of good health

Correct Answer: without evidence of insurability

Question 5: J is issued a Life Insurance policy with a death benefit of

$100,000. She pays $600 per year in premium for the first 5 years. The premium then increases to $900 per year in the sixth year, and remains level thereafter. The policy's death benefit also remains at $100,000. Which type of Life Insurance policy is this?

• Graded Premium Life
• Step-Rate Term
• Adjustable Life
• Modified Premium Life

Correct Answer: Modified Premium Life

Question 6: Which rider provides coverage for a child under a parent's life

insurance policy?

• Payor benefit rider
• Child term rider
• Juvenile endowment rider
• Family maintenance rider

Correct Answer: Child term rider

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Question 7: When does a Guaranteed Insurability Rider allow the insured to buy

additional coverage?

• at any time the insured chooses with a medical exam
• only when the cash value reaches a certain amount
• at future dates specified in the contract with no evidence of insurability

required

• only when the policy is initially issued

Correct Answer: at future dates specified in the contract with no evidence of

insurability required

Question 8: K has a health policy that must be renewed by the insurer and the

premiums can only be increased if applied to the entire class of insureds. This

type of policy is considered:

• guaranteed renewable
• noncancellable
• conditionally renewable
• optionally renewable

Correct Answer: guaranteed renewable

Question 9: Variable Life products require a producer to

• hold only a Life Insurance license
• have at least 5 years of industry experience
• hold only a Securities license
• hold a Life Insurance license and a Securities license

Correct Answer: hold a Life Insurance license and a Securities license