TEXAS GENERAL LINES - LIFE, ACCIDENT AND HEALTH
INSURANCE PRACTICE EXAM COMPLETE 500 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |
ALREADY GRADED A+
LIFE SECTION 1 - CORRECT ANSWERS-LIFE SECTION 1
19) Which of the following statements about a Renewable Term policy is true? - CORRECT
ANSWERS-A- It is renewable at the option of the insurance company
B- It is renewable at the option of the insured
C- It is renewable at the option of the insurance company, with proof of insurability
D- It is renewable at the option of the insured, with proof of insurability
20) Most Term Life insurance: - CORRECT ANSWERS-A- Is convertible to permanent Whole
Life without a physical exam
B- Has a guaranteed cash value
C- Is renewable with evidence of insurability
D- Is renewable to age 100
21) A life insurance policy whose cash value will fluctuate depending upon the performance of a
separate account is: - CORRECT ANSWERS-A- Limited-pay Life
B- Universal Life
C- Ordinary Life
D- Variable Life
22) A life insurance policy that combines term insurance protection, a flexible premium, and cash value
accumulation is: - CORRECT ANSWERS-A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life
,23) Which of the following types of insurance policies would provide the greatest amount of protection
for a temporary period during which an insured will have limited financial resources? - CORRECT
ANSWERS-A- Term
B- Limited Pay policy
C- Whole Life
D- Annuity
24) At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer explains that he can pay
for the policy in several ways. One method is called 20-Pay Life, and another, Straight Life. Tom wishes to
know which plan will accumulate cash value at a faster rate in the early years of the policy. Which of the
following would be the producer's most appropriate response? - CORRECT ANSWERS-A- "20-
Pay Life will accumulate cash value faster."
B- "The rate of cash-value accumulation depends on the profitability of the insurance company."
C- "Straight Life will accumulate cash value faster."
D- "Both plans will accumulate cash value at the same rate."
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-
amortized $50,000 business-improvement loan. Which of the following plans would adequately protect
Ms. Timms at the minimum premium outlay? - CORRECT ANSWERS-A- $50,000 Whole Life
policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
2) A 45-year old customer who is seeking to supplement his retirement income at age 65 would not buy
a: - CORRECT ANSWERS-A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
,3) John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value will equal
the face amount of the policy when he reaches the age of: - CORRECT ANSWERS-A- 60
B- 70
C- 100
D- 30
4) Which of the following is an example of a Limited-Pay Life policy? - CORRECT ANSWERS-A-
Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
5) Which of the following policies provides the greatest amount of protection for an insured's premium
dollar as well as some cash accumulation? - CORRECT ANSWERS-A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life
6) Which of the following individual policy conversions is usually permitted without any evidence of
insurability? - CORRECT ANSWERS-A- Conversion to a lower-premium plan
B- Conversion from a Whole Life policy to a Term policy
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance
7) Which of the following is NOT correct regarding Ordinary Whole Life policies? - CORRECT
ANSWERS-A- The premiums payments are owed annually until you die or reach age 100
B- The cash value grows more quickly in the beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent insurance
, 8) Which of the following statements is true about the premium payment schedule for a Whole Life
policy? - CORRECT ANSWERS-A- Premiums are payable for a designated period of time only,
after which coverage is no longer provided
B- Premiums are payable until the insured's retirement only, after which coverage is continued
automatically until the insured's death
C- One premium, in the amount of the insured's choice, is payable at the time of application, and the
balance of the premiums is deducted from the face amount of the policy at the time of the insured's
death
D- Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's
death
9) A life insurance policy that covers two parties, but only pays when the last party dies is known as: -
CORRECT ANSWERS-A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
10) Which of the following contracts requires that a series of benefit payments be made at specified
intervals? - CORRECT ANSWERS-A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
11) If a client wants cash value life insurance with a flexible premium and an adjustable death benefit
that will allow the policy owner a choice of various cash value investment options, he should buy: -
CORRECT ANSWERS-A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
INSURANCE PRACTICE EXAM COMPLETE 500 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |
ALREADY GRADED A+
LIFE SECTION 1 - CORRECT ANSWERS-LIFE SECTION 1
19) Which of the following statements about a Renewable Term policy is true? - CORRECT
ANSWERS-A- It is renewable at the option of the insurance company
B- It is renewable at the option of the insured
C- It is renewable at the option of the insurance company, with proof of insurability
D- It is renewable at the option of the insured, with proof of insurability
20) Most Term Life insurance: - CORRECT ANSWERS-A- Is convertible to permanent Whole
Life without a physical exam
B- Has a guaranteed cash value
C- Is renewable with evidence of insurability
D- Is renewable to age 100
21) A life insurance policy whose cash value will fluctuate depending upon the performance of a
separate account is: - CORRECT ANSWERS-A- Limited-pay Life
B- Universal Life
C- Ordinary Life
D- Variable Life
22) A life insurance policy that combines term insurance protection, a flexible premium, and cash value
accumulation is: - CORRECT ANSWERS-A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life
,23) Which of the following types of insurance policies would provide the greatest amount of protection
for a temporary period during which an insured will have limited financial resources? - CORRECT
ANSWERS-A- Term
B- Limited Pay policy
C- Whole Life
D- Annuity
24) At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer explains that he can pay
for the policy in several ways. One method is called 20-Pay Life, and another, Straight Life. Tom wishes to
know which plan will accumulate cash value at a faster rate in the early years of the policy. Which of the
following would be the producer's most appropriate response? - CORRECT ANSWERS-A- "20-
Pay Life will accumulate cash value faster."
B- "The rate of cash-value accumulation depends on the profitability of the insurance company."
C- "Straight Life will accumulate cash value faster."
D- "Both plans will accumulate cash value at the same rate."
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-
amortized $50,000 business-improvement loan. Which of the following plans would adequately protect
Ms. Timms at the minimum premium outlay? - CORRECT ANSWERS-A- $50,000 Whole Life
policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
2) A 45-year old customer who is seeking to supplement his retirement income at age 65 would not buy
a: - CORRECT ANSWERS-A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
,3) John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value will equal
the face amount of the policy when he reaches the age of: - CORRECT ANSWERS-A- 60
B- 70
C- 100
D- 30
4) Which of the following is an example of a Limited-Pay Life policy? - CORRECT ANSWERS-A-
Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
5) Which of the following policies provides the greatest amount of protection for an insured's premium
dollar as well as some cash accumulation? - CORRECT ANSWERS-A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life
6) Which of the following individual policy conversions is usually permitted without any evidence of
insurability? - CORRECT ANSWERS-A- Conversion to a lower-premium plan
B- Conversion from a Whole Life policy to a Term policy
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance
7) Which of the following is NOT correct regarding Ordinary Whole Life policies? - CORRECT
ANSWERS-A- The premiums payments are owed annually until you die or reach age 100
B- The cash value grows more quickly in the beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent insurance
, 8) Which of the following statements is true about the premium payment schedule for a Whole Life
policy? - CORRECT ANSWERS-A- Premiums are payable for a designated period of time only,
after which coverage is no longer provided
B- Premiums are payable until the insured's retirement only, after which coverage is continued
automatically until the insured's death
C- One premium, in the amount of the insured's choice, is payable at the time of application, and the
balance of the premiums is deducted from the face amount of the policy at the time of the insured's
death
D- Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's
death
9) A life insurance policy that covers two parties, but only pays when the last party dies is known as: -
CORRECT ANSWERS-A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
10) Which of the following contracts requires that a series of benefit payments be made at specified
intervals? - CORRECT ANSWERS-A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
11) If a client wants cash value life insurance with a flexible premium and an adjustable death benefit
that will allow the policy owner a choice of various cash value investment options, he should buy: -
CORRECT ANSWERS-A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
