Texas Life and Health Insurance Exam (Latest 2026
Update) Questions & Correct Detailed Answers| Already
Graded A+|Latest Version!!!
All of these statements about Equity Indexed Life Insurance are
correct EXCEPT
Cash value has a minimum rate of accumulation
If the gain on the index goes beyond the policy's minimum rate of
return, the cash value will mirror that of the index
The premiums can be lowered or raised, based on investment
performance
Tied to an equity index such as the S&P 500
The premiums can be lowered or raised, based on investment
performance
Which of these is an element of a Variable Life policy?
A fixed, level premium
What type of life insurance incorporates flexible premiums and an
adjustable death benefit?
Universal Life
T would like to be assured $10,000 is available in 10 years to replace
a roof on his house. What kind of $10,000 policy should T purchase?
Ten-Year Endowment
What type of life policy covers 2 lives and pays the face amount after
the first one dies?
pg. 1
,Joint Life Policy
Life insurance that covers an insured's whole life with level premiums
paid over a limited time is called
Limited-Pay Life
What kind of life insurance product covers children under their
parent's policy?
Term rider
Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the
amount of the premium payment
Policyowner has no say where the investment will go but can choose
the premium mode
The investment vehicle for this type of policy is held in the insurer's
general portfolio
The death benefit can vary but the policyowner has no say in the
premium amount paid
Policyowner controls where the investment will go and selects the
amount of the premium payment
P is looking to purchase a life insurance policy that will pay a stated
monthly income to his beneficiaries for 20 years after he dies and a
lump sum of $20,000 at the end of that 20 year period. What type of
policy should P purchase?
Family Maintenance policy
pg. 2
,Which of the following statements about a Variable Whole Life policy
is CORRECT?
It provides a minimum guaranteed Death benefit
It is a combination of a Limited Period Endowment and a Decreasing
Term policy
Its premiums and benefits are variable
It has a guaranteed rate of return
It provides a minimum guaranteed Death benefit
Credit Life insurance is
issued in an amount not to exceed the amount of the loan
The amount of coverage on a group credit life policy is limited to
the insured's total loan value
Term insurance has which of the following characteristics?
Expires at the end of the policy period
What does a Face Amount Plus Cash Value Policy supposed to pay at
the insured's death?
Face amount plus the policy's cash value
A life policy with a death benefit that can fluctuate according to the
performance of its underlying investment portfolio is referred to as
Variable Life
pg. 3
, K buys a policy where the premium stays fixed for the first 5 years.
The premium then increases in year 6 and stays level thereafter, all the
while the death benefit remains the same. What kind of policy is this?
Modified Whole Life
Which of these life products is NOT considered interest-sensitive?
Modified Whole Life
What type of life policy covers two people and pays upon the death of
the last insured?
Survivorship
Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the
amount of the premium payment
T has a term policy that allows him to continue the coverage after
expiration of the initial policy period. What type of term coverage is
this?
Renewable
At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?
Upon completion of the application
Who elects the governing body of a mutual insurance company?
policyholders
pg. 4
Update) Questions & Correct Detailed Answers| Already
Graded A+|Latest Version!!!
All of these statements about Equity Indexed Life Insurance are
correct EXCEPT
Cash value has a minimum rate of accumulation
If the gain on the index goes beyond the policy's minimum rate of
return, the cash value will mirror that of the index
The premiums can be lowered or raised, based on investment
performance
Tied to an equity index such as the S&P 500
The premiums can be lowered or raised, based on investment
performance
Which of these is an element of a Variable Life policy?
A fixed, level premium
What type of life insurance incorporates flexible premiums and an
adjustable death benefit?
Universal Life
T would like to be assured $10,000 is available in 10 years to replace
a roof on his house. What kind of $10,000 policy should T purchase?
Ten-Year Endowment
What type of life policy covers 2 lives and pays the face amount after
the first one dies?
pg. 1
,Joint Life Policy
Life insurance that covers an insured's whole life with level premiums
paid over a limited time is called
Limited-Pay Life
What kind of life insurance product covers children under their
parent's policy?
Term rider
Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the
amount of the premium payment
Policyowner has no say where the investment will go but can choose
the premium mode
The investment vehicle for this type of policy is held in the insurer's
general portfolio
The death benefit can vary but the policyowner has no say in the
premium amount paid
Policyowner controls where the investment will go and selects the
amount of the premium payment
P is looking to purchase a life insurance policy that will pay a stated
monthly income to his beneficiaries for 20 years after he dies and a
lump sum of $20,000 at the end of that 20 year period. What type of
policy should P purchase?
Family Maintenance policy
pg. 2
,Which of the following statements about a Variable Whole Life policy
is CORRECT?
It provides a minimum guaranteed Death benefit
It is a combination of a Limited Period Endowment and a Decreasing
Term policy
Its premiums and benefits are variable
It has a guaranteed rate of return
It provides a minimum guaranteed Death benefit
Credit Life insurance is
issued in an amount not to exceed the amount of the loan
The amount of coverage on a group credit life policy is limited to
the insured's total loan value
Term insurance has which of the following characteristics?
Expires at the end of the policy period
What does a Face Amount Plus Cash Value Policy supposed to pay at
the insured's death?
Face amount plus the policy's cash value
A life policy with a death benefit that can fluctuate according to the
performance of its underlying investment portfolio is referred to as
Variable Life
pg. 3
, K buys a policy where the premium stays fixed for the first 5 years.
The premium then increases in year 6 and stays level thereafter, all the
while the death benefit remains the same. What kind of policy is this?
Modified Whole Life
Which of these life products is NOT considered interest-sensitive?
Modified Whole Life
What type of life policy covers two people and pays upon the death of
the last insured?
Survivorship
Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the
amount of the premium payment
T has a term policy that allows him to continue the coverage after
expiration of the initial policy period. What type of term coverage is
this?
Renewable
At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?
Upon completion of the application
Who elects the governing body of a mutual insurance company?
policyholders
pg. 4
