TEXAS GENERAL LINES - LIFE, ACCIDENT
AND HEALTH INSURANCE PRACTICE EXAM /
KEY QUESTIONS WITH 100% CORRECT AND
VERIFIED ANSWERS GRADED A+ 2026
UPDATE.
LIFE SECTION 1 - answer-LIFE SECTION 1
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? - answer-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: - answer-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: - answer-A-
60
B- 70
C- 100
D- 30
,4) Which of the following is an example of a Limited-Pay Life policy? - answer-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? - answer-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? - answer-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? -
answer-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? - answer-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: - answer-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? - answer-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: - answer-A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
12) 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: - answer-A- Flexible premium
Annuity
B- Fixed Annuity
, C- Deferred Annuity
D- Variable Annuity
13) You have a client that is a real estate agent. Which of the following types of
permanent protection is best for this type of client? - answer-A- Variable life
B- Universal life
C- Survivorship life
D- Adjustable life
14) In order to sell variable life insurance you must be registered with which of the
following? - answer-A- The SEC
B- The State
C- The NYSE
D- The NASD
15) Which of the following is an example of a Limited-Pay Life policy: - answer-A-
Traditional Whole Life
B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
16) An insurance producer selling a Variable Annuity whose cash value depends on the
performance of an underlying investment account must be registered with: - answer-A-
The National Association of Insurance Commissioners
B- The National Association of Life Underwriters
C- The Chartered Life Underwriters
D- The Financial Industry Regulatory Authority (FINRA, formerly the NASD)
17) A business owner with a fluctuating income who wants a life insurance policy that
can be changed to suit economic conditions should buy: - answer-A- Variable Life
AND HEALTH INSURANCE PRACTICE EXAM /
KEY QUESTIONS WITH 100% CORRECT AND
VERIFIED ANSWERS GRADED A+ 2026
UPDATE.
LIFE SECTION 1 - answer-LIFE SECTION 1
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? - answer-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: - answer-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: - answer-A-
60
B- 70
C- 100
D- 30
,4) Which of the following is an example of a Limited-Pay Life policy? - answer-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? - answer-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? - answer-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? -
answer-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? - answer-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: - answer-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? - answer-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: - answer-A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
12) 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: - answer-A- Flexible premium
Annuity
B- Fixed Annuity
, C- Deferred Annuity
D- Variable Annuity
13) You have a client that is a real estate agent. Which of the following types of
permanent protection is best for this type of client? - answer-A- Variable life
B- Universal life
C- Survivorship life
D- Adjustable life
14) In order to sell variable life insurance you must be registered with which of the
following? - answer-A- The SEC
B- The State
C- The NYSE
D- The NASD
15) Which of the following is an example of a Limited-Pay Life policy: - answer-A-
Traditional Whole Life
B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
16) An insurance producer selling a Variable Annuity whose cash value depends on the
performance of an underlying investment account must be registered with: - answer-A-
The National Association of Insurance Commissioners
B- The National Association of Life Underwriters
C- The Chartered Life Underwriters
D- The Financial Industry Regulatory Authority (FINRA, formerly the NASD)
17) A business owner with a fluctuating income who wants a life insurance policy that
can be changed to suit economic conditions should buy: - answer-A- Variable Life
