TEXAS HEALTH AND LIFE INSURANCE EXAM 200
QUESTIONS & CORRECT ANSWERS LATEST 2026
Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health? - ANSWER-Conversion
Which of these characteristics is consistent with a Straight Life policy? -
ANSWER-Premiums are payable for as long as there is insurance coverage in
force.
N is a 40-year old applicant who would like to retire at age 70. He is looking to
buy a life insurance policy with level premiums, permanent protection, and be
paid-up at retirement. Which of these should N purchase? - ANSWER-30 Pay Life
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? -
ANSWER-$20,000 death benefit
Whole Life insurance is sometimes referred to as "Straight Life." What does the
word "Straight" indicate when using this phrase? - ANSWER-The duration of
premium payments.
S is close to retiring and would like to purchase a policy that will yield greater
gains than bonds, but will still protect the principal with a minimum level or risk.
Which product would S be advised to purchase? - ANSWER-Equity index
insurance.
,K is shopping for a permanent life insurance policy that will offer her the MOST
protection per dollar of annual premium. Which of these policies best fits her
needs? - ANSWER-Straight life
Who has the option to renew a Renewable Term policy? - ANSWER-Insured
A life policy with a death benefit and cash value that can fluctuate according to the
performance of its underlying investment portfolio is referred to as: - ANSWER-
Variable Life
A term life insurance policy matures: - ANSWER-upon the insured's death during
the term of the policy.
Equity Indexed Life insurance premiums - ANSWER-Cannot be lowered or raised,
based on investment performance.
Which of the following actions require a policy owner to provide proof of
insurance unity in an Adjustable Life policy? - ANSWER-Increase face amount.
What type of life policy offers the owner investment in products such as money-
market funds, long-term bonds and equities? - ANSWER-Variable
Life insurance that covers an insured's whole life with level premiums paid over a
limited time is called: - ANSWER-Limited Pay Life
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? - ANSWER-
Modified Premium Life
, K is looking to purchase Renewable Term insurance. Which of these types of Term
insurance may be renewable? - ANSWER-Level
An architecture firm would stand to lose a lot of money in the event of the death of
its project manager. Which type of policy should the firm purchase on its project
manager? - ANSWER-Key Person Insurance
S is covered by a whole life policy. Which insurance product can cover his
children? - ANSWER-Child term rider
What advantage does the renewability feature give to a term policy? - ANSWER-
The insured may extend the coverage period.
What year was the McCarran-Ferguson Act enacted? - ANSWER-1945
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the - ANSWER-Fair Credit Reporting Act
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - ANSWER-Fair Credit
Reporting Act
When a policy pays dividends to its policyholders, it is said to be - ANSWER-
participating
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - ANSWER-fraternal benefit society
QUESTIONS & CORRECT ANSWERS LATEST 2026
Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health? - ANSWER-Conversion
Which of these characteristics is consistent with a Straight Life policy? -
ANSWER-Premiums are payable for as long as there is insurance coverage in
force.
N is a 40-year old applicant who would like to retire at age 70. He is looking to
buy a life insurance policy with level premiums, permanent protection, and be
paid-up at retirement. Which of these should N purchase? - ANSWER-30 Pay Life
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? -
ANSWER-$20,000 death benefit
Whole Life insurance is sometimes referred to as "Straight Life." What does the
word "Straight" indicate when using this phrase? - ANSWER-The duration of
premium payments.
S is close to retiring and would like to purchase a policy that will yield greater
gains than bonds, but will still protect the principal with a minimum level or risk.
Which product would S be advised to purchase? - ANSWER-Equity index
insurance.
,K is shopping for a permanent life insurance policy that will offer her the MOST
protection per dollar of annual premium. Which of these policies best fits her
needs? - ANSWER-Straight life
Who has the option to renew a Renewable Term policy? - ANSWER-Insured
A life policy with a death benefit and cash value that can fluctuate according to the
performance of its underlying investment portfolio is referred to as: - ANSWER-
Variable Life
A term life insurance policy matures: - ANSWER-upon the insured's death during
the term of the policy.
Equity Indexed Life insurance premiums - ANSWER-Cannot be lowered or raised,
based on investment performance.
Which of the following actions require a policy owner to provide proof of
insurance unity in an Adjustable Life policy? - ANSWER-Increase face amount.
What type of life policy offers the owner investment in products such as money-
market funds, long-term bonds and equities? - ANSWER-Variable
Life insurance that covers an insured's whole life with level premiums paid over a
limited time is called: - ANSWER-Limited Pay Life
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? - ANSWER-
Modified Premium Life
, K is looking to purchase Renewable Term insurance. Which of these types of Term
insurance may be renewable? - ANSWER-Level
An architecture firm would stand to lose a lot of money in the event of the death of
its project manager. Which type of policy should the firm purchase on its project
manager? - ANSWER-Key Person Insurance
S is covered by a whole life policy. Which insurance product can cover his
children? - ANSWER-Child term rider
What advantage does the renewability feature give to a term policy? - ANSWER-
The insured may extend the coverage period.
What year was the McCarran-Ferguson Act enacted? - ANSWER-1945
An insurance applicant MUST be informed of an investigation regarding his/her
reputation and character according to the - ANSWER-Fair Credit Reporting Act
What is the name of the law that requires insurers to disclose information gathering
practices and where the information was obtained? - ANSWER-Fair Credit
Reporting Act
When a policy pays dividends to its policyholders, it is said to be - ANSWER-
participating
A nonprofit incorporated society that does not have capital stock and operates for
the sole benefit of its members is known as: - ANSWER-fraternal benefit society
