Texas Life and Health Insurance Exam (2025) questions with
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verified detailed solutions || ||
A company that owns a life insurance policy on one of its key employees may do all of the
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following EXCEPT ||
Change the policy's interest rate|| || || ||
3 multiple choice options
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An individual participant personally received eligible rollover funds from a profit-sharing
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plan. What is the income tax withholding requirements for this transaction?
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20% is withheld for income taxes
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3 multiple choice options
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A Limited-Pay Life policy has:
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premium payments limited to a specified number of years
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3 multiple choice options
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P died five years after purchasing a life policy. While investigating the claim, the insurer
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discovered material misrepresentations made by P during the application process. Which of
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these actions will the insurer take?
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Beneficiary will be paid the Death Benefit || || || || || ||
3 multiple choice options
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,All of these are characteristics of a Health Reimbursement Arrangement (HRA) EXCEPT
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HRA is entirely funded by the employee
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3 multiple choice options
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A term life insurance policy matures:
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upon the insured's death during the term of the policy
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3 multiple choice options
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How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
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Dismemberment (AD&D) policy?
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If the primary beneficiary dies before the insured
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3 multiple choice options
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Which of the following is considered an element of a Variable Life Policy?
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Underlying equity investment || ||
3 multiple choice options
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Which of these is an element of a Variable Life policy
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A fixed, level premium
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3 multiple choice options
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,An individual working part-time has an annual income of $25,000. If this individual has an
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IRA, what is the maximum deductible IRA contribution allowable?
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$6,000
3 multiple choice options
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Premature IRA distributions are assessed a penalty tax of
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10%
3 multiple choice options
|| || ||
All of these are characteristics of an Adjustable Life policy, EXCEPT:
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face amount can be adjusted using policy dividends
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3 multiple choice options
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N is covered by a Term Life policy and does not make the required premium payment
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which was due August 1. N dies September 15. What action will the insurer take?
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Claim will be denied || || ||
3 multiple choice options
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S owns a life insurance policy with cash values that fluctuate according to the underlying
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investment performance of common stocks. Which of these policies does S own?
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Variable Whole Life || ||
3 multiple choice options
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, 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):
|| || || || || || || || || ||
Insuring agreement ||
3 multiple choice options
|| || ||
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
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without evidence of insurability || || ||
3 multiple choice options
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J is issued a Life Insurance policy with a death benefit of $100,000. She pays $600 per year
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in premium for the first 5 years. The premium then increases to $900 per year in the sixth
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year, and remains level thereafter. The policy's death benefit also remains at $100,000.
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Which type of Life Insurance policy is this?
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Modified Premium Life || ||
3 multiple choice options
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Which rider provides coverage for a child under a parent's life insurance policy?
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Child term rider || ||
3 multiple choice options
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When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
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verified detailed solutions || ||
A company that owns a life insurance policy on one of its key employees may do all of the
|| || || || || || || || || || || || || || || || || || ||
following EXCEPT ||
Change the policy's interest rate|| || || ||
3 multiple choice options
|| || ||
An individual participant personally received eligible rollover funds from a profit-sharing
|| || || || || || || || || || ||
plan. What is the income tax withholding requirements for this transaction?
|| || || || || || || || || ||
20% is withheld for income taxes
|| || || || ||
3 multiple choice options
|| || ||
A Limited-Pay Life policy has:
|| || || ||
premium payments limited to a specified number of years
|| || || || || || || ||
3 multiple choice options
|| || ||
P died five years after purchasing a life policy. While investigating the claim, the insurer
|| || || || || || || || || || || || || || ||
discovered material misrepresentations made by P during the application process. Which of
|| || || || || || || || || || || ||
these actions will the insurer take?
|| || || || ||
Beneficiary will be paid the Death Benefit || || || || || ||
3 multiple choice options
|| || ||
,All of these are characteristics of a Health Reimbursement Arrangement (HRA) EXCEPT
|| || || || || || || || || || ||
HRA is entirely funded by the employee
|| || || || || ||
3 multiple choice options
|| || ||
A term life insurance policy matures:
|| || || || ||
upon the insured's death during the term of the policy
|| || || || || || || || ||
3 multiple choice options
|| || ||
How would a contingent beneficiary receive the policy proceeds in an Accidental Death and
|| || || || || || || || || || || || ||
Dismemberment (AD&D) policy?
|| || ||
If the primary beneficiary dies before the insured
|| || || || || || ||
3 multiple choice options
|| || ||
Which of the following is considered an element of a Variable Life Policy?
|| || || || || || || || || || || ||
Underlying equity investment || ||
3 multiple choice options
|| || ||
Which of these is an element of a Variable Life policy
|| || || || || || || || || ||
A fixed, level premium
|| || ||
3 multiple choice options
|| || ||
,An individual working part-time has an annual income of $25,000. If this individual has an
|| || || || || || || || || || || || || || ||
IRA, what is the maximum deductible IRA contribution allowable?
|| || || || || || || ||
$6,000
3 multiple choice options
|| || ||
Premature IRA distributions are assessed a penalty tax of
|| || || || || || || ||
10%
3 multiple choice options
|| || ||
All of these are characteristics of an Adjustable Life policy, EXCEPT:
|| || || || || || || || || ||
face amount can be adjusted using policy dividends
|| || || || || || ||
3 multiple choice options
|| || ||
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?
|| || || || || || || || || || || || || ||
Claim will be denied || || ||
3 multiple choice options
|| || ||
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 || ||
3 multiple choice options
|| || ||
, 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):
|| || || || || || || || || ||
Insuring agreement ||
3 multiple choice options
|| || ||
If a 10-Year Term Life policy contains a Renewability provision, the policy will renew
|| || || || || || || || || || || || ||
without evidence of insurability || || ||
3 multiple choice options
|| || ||
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?
|| || || || || || ||
Modified Premium Life || ||
3 multiple choice options
|| || ||
Which rider provides coverage for a child under a parent's life insurance policy?
|| || || || || || || || || || || ||
Child term rider || ||
3 multiple choice options
|| || ||
When does a Guaranteed Insurability Rider allow the insured to buy additional coverage?
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