1
TEXAS GENERAL LINES LIFE, ACCIDENT
AND HEALTH INSURANCE SECTION I
Exam Questions and Answers Tested and
Approved Graded A+ 2026 New Update
1) Which of the following is NOT correct regarding Ordinary Whole Life policies?
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 <Correct Answer>>D Ordinary
Whole Life is a type of permanent insurance
2) Which of the following statements is true about the premium payment schedule for a
Whole Life policy?
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
Page 1 of 138
,2
D- Premiums are payable throughout the insured's lifetime, and coverage continues until the
insured's death <Correct Answer>>D Premiums are payable throughout the insured's lifetime,
and coverage continues until the insured's death
3) A life insurance policy that covers two parties, but only pays when the last party dies is
known as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life <Correct Answer>>D Survivorship Life
4) Which of the following contracts requires that a series of benefit payments be made at
specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life <Correct Answer>>C- Annuity
5) 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:
A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life <Correct Answer>>D Variable/Universal Life
Page 2 of 138
,3
6) If a person wants to invest a lump sum in an annuity that may appreciate along with market
and economic conditions, they should buy a:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity <Correct Answer>>D Variable Annuity
7) 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?
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 <Correct Answer>>DA $50,000
Decreasing Term policy for 20 years
Explanation: The key here is "minimum premium". Term is the most inexpensive type of
coverage. Since Sandra's $50,000 loan will be paid off over 20 years and the loan balance
will decrease each year, Decreasing Term makes sense. Decreasing Term is not renewable.
8) A 45-year-old customer who is seeking to supplement his retirement income at age 65
would not buy a:
A- Deferred Annuity
Page 3 of 138
, 4
B- Equity Indexed Annuity
Page 4 of 138
TEXAS GENERAL LINES LIFE, ACCIDENT
AND HEALTH INSURANCE SECTION I
Exam Questions and Answers Tested and
Approved Graded A+ 2026 New Update
1) Which of the following is NOT correct regarding Ordinary Whole Life policies?
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 <Correct Answer>>D Ordinary
Whole Life is a type of permanent insurance
2) Which of the following statements is true about the premium payment schedule for a
Whole Life policy?
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
Page 1 of 138
,2
D- Premiums are payable throughout the insured's lifetime, and coverage continues until the
insured's death <Correct Answer>>D Premiums are payable throughout the insured's lifetime,
and coverage continues until the insured's death
3) A life insurance policy that covers two parties, but only pays when the last party dies is
known as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life <Correct Answer>>D Survivorship Life
4) Which of the following contracts requires that a series of benefit payments be made at
specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life <Correct Answer>>C- Annuity
5) 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:
A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life <Correct Answer>>D Variable/Universal Life
Page 2 of 138
,3
6) If a person wants to invest a lump sum in an annuity that may appreciate along with market
and economic conditions, they should buy a:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity <Correct Answer>>D Variable Annuity
7) 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?
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 <Correct Answer>>DA $50,000
Decreasing Term policy for 20 years
Explanation: The key here is "minimum premium". Term is the most inexpensive type of
coverage. Since Sandra's $50,000 loan will be paid off over 20 years and the loan balance
will decrease each year, Decreasing Term makes sense. Decreasing Term is not renewable.
8) A 45-year-old customer who is seeking to supplement his retirement income at age 65
would not buy a:
A- Deferred Annuity
Page 3 of 138
, 4
B- Equity Indexed Annuity
Page 4 of 138
