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TEXAS STATE EXAM SIMULATOR - LIFE AND HEALTH
INSURANCE (QUESTIONS WITH VERIFIED ANSWERS
PRACTICE EXAM) 2026\2027
An annuity promises that, if the annuitant dies before receiving payments equal
to the correct value, the payments will be continued to a beneficiary until an
amount equal to the contract value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - CORRECT ANSWER An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been
disabled for
3 months
5 months
6 months
12 months - CORRECT ANSWER 5 months
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A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the
insurer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate -
correctanswer-20-Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant - CORRECT ANSWER Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and
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the initial premium agreeing to a
physical examination delivery of
policy disclosure of any medical
conditions - CORRECT ANSWER
the initial premium
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty - CORRECT ANSWER Warranty
A comprehensive major medical health insurance policy contains an Eligible
Expenses provision which identifies the types of health care services that are
covered. All of the following health care services are typically covered EXCEPT for
hospital charges physician fees experimental and investigative services
nursing services - CORRECT ANSWER experimental and investigative
services K purchased a $10,000 Life Policy that will pay the face amount
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to her if she lives to age 65, or to her beneficiary if she dies before age
65. K purchased which of the following types of policies?
Limited-Pay Life
Term to Age 65
Whole Life Paid-Up at Age 65
Endowment at Age 65 - CORRECT ANSWER Endowment at Age 65
T was treated for an ailment 2 months prior to applying for a health insurance
policy. This condition was noted on the application and the policy was issued
shortly afterwards.How will the insurer likely consider this condition?
Insurer will require a higher deductible for any claims resulting from this condition
Insurer is required to initially cover this pre-existing condition
Insurer will permanently exclude the condition from the policy
Insurer will likely treat as a pre-existing condition which may not be covered for
one year - CORRECT ANSWER Insurer will likely treat as a pre-existing condition
which may not be covered for one year
What would the Medical Information Bureau (MIB) identify?
Testing positive for marijuana use from a previous screening
TEXAS STATE EXAM SIMULATOR - LIFE AND HEALTH
INSURANCE (QUESTIONS WITH VERIFIED ANSWERS
PRACTICE EXAM) 2026\2027
An annuity promises that, if the annuitant dies before receiving payments equal
to the correct value, the payments will be continued to a beneficiary until an
amount equal to the contract value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - CORRECT ANSWER An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been
disabled for
3 months
5 months
6 months
12 months - CORRECT ANSWER 5 months
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A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the
insurer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same rate -
correctanswer-20-Pay Life accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant - CORRECT ANSWER Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's
consideration consists of a completed application and
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the initial premium agreeing to a
physical examination delivery of
policy disclosure of any medical
conditions - CORRECT ANSWER
the initial premium
Which parts of a life insurance policy are guaranteed to be true?
Rating
Representation
Statement
Warranty - CORRECT ANSWER Warranty
A comprehensive major medical health insurance policy contains an Eligible
Expenses provision which identifies the types of health care services that are
covered. All of the following health care services are typically covered EXCEPT for
hospital charges physician fees experimental and investigative services
nursing services - CORRECT ANSWER experimental and investigative
services K purchased a $10,000 Life Policy that will pay the face amount
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to her if she lives to age 65, or to her beneficiary if she dies before age
65. K purchased which of the following types of policies?
Limited-Pay Life
Term to Age 65
Whole Life Paid-Up at Age 65
Endowment at Age 65 - CORRECT ANSWER Endowment at Age 65
T was treated for an ailment 2 months prior to applying for a health insurance
policy. This condition was noted on the application and the policy was issued
shortly afterwards.How will the insurer likely consider this condition?
Insurer will require a higher deductible for any claims resulting from this condition
Insurer is required to initially cover this pre-existing condition
Insurer will permanently exclude the condition from the policy
Insurer will likely treat as a pre-existing condition which may not be covered for
one year - CORRECT ANSWER Insurer will likely treat as a pre-existing condition
which may not be covered for one year
What would the Medical Information Bureau (MIB) identify?
Testing positive for marijuana use from a previous screening
