This Texas Life and Health Insurance Exam Simulator is an advanced digital practice
tool designed to replicate the exact testing environment, question formats, and time
constraints of the official Pearson VUE state licensing exam.
To pass the actual exam, you must achieve a minimum combined score of 70% across
both national general insurance concepts and Texas-specific state regulations. High-quality
simulators usually raise this bar to an 80% passing threshold to give students a safe
knowledge cushion.
Core Categories Covered in the Simulator
Exam simulators pull from a dynamic "bucket" of hundreds of randomized questions,
categorizing them into three primary instructional sections:
• Life Insurance (General & National): Covers policy types (e.g., Variable
Universal Life, Whole Life, Term), policy riders, provisions, options, and
underwriting processes.
• Health Insurance (General & National): Focuses on complex topics including
medical expense plans, disability income, long-term care, Medicare, and group
healthcare regulations.
• Texas Insurance Rules & Regulations: Tests knowledge on the Texas
Department of Insurance (TDI) statutes, licensing laws, marketing practices, and
consumer protection rules.
Sample Simulator Questions & Rationales
The following examples demonstrate the exact phrasing and conceptual logic utilized within
a Texas exam simulator:
• Variable Universal Life (Q: C): Combines flexible, policyowner-directed
premium payments with investment control over cash values in separate accounts.
, • Variable Whole Life (Q: B): Features fluctuating cash values based on
performance, but always maintains a guaranteed minimum death benefit.
• Credit Life Limits (Q: B): Limits the coverage amount to the total outstanding
value of the insured's loan, protecting the lender.
Quiz_________________?
$0 -
Answer✅
P is self-employed and owns an Individual Disability Income policy. He becomes totally
disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this
income is subject to federal income tax?
$20,000
$14,000
$6,000
$0
Quiz_________________?
$0 -
Answer✅
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive?
$1,000,000
$500,000
$250,000
$0
, Quiz_________________?
$10,000 -
Answer✅
Under the USA Patriot Act, insurers are required to report receipt of cash payments in
excess of
$10,000
$7,500
$5,000
$2,500
Quiz_________________?
$20,000 death benefit -
Answer✅
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile
accident. How much will the insurance company pay the beneficiary?
Return of premiums paid
Cash value plus interest
$20,000 death benefit
Face amount plus interest
Quiz_________________?
$25,000 individual whole life policy -
Answer✅
, An employee with $25,000 group term life coverage was recently fired. This employee's
group coverage may be converted to a
$125,000 individual whole life policy
$25,000 modified whole life policy
$25,000 individual term life policy
$25,000 individual whole life policy
Quiz_________________?
$50,000 -
Answer✅
T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment
rider. Five years later, T commits suicide. How much will the insurer pay?
The total premiums paid minus any policy loans
Nothing
$50,000
$100,000
Quiz_________________?
$50,000 minus any outstanding policy loans -
Answer✅
P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the
application asks if P engages in scuba diving, to which P answers "No". The policy is then
issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related
accident in 2011. What will the insurer pay to P's beneficiary?
Premiums paid plus interest
tool designed to replicate the exact testing environment, question formats, and time
constraints of the official Pearson VUE state licensing exam.
To pass the actual exam, you must achieve a minimum combined score of 70% across
both national general insurance concepts and Texas-specific state regulations. High-quality
simulators usually raise this bar to an 80% passing threshold to give students a safe
knowledge cushion.
Core Categories Covered in the Simulator
Exam simulators pull from a dynamic "bucket" of hundreds of randomized questions,
categorizing them into three primary instructional sections:
• Life Insurance (General & National): Covers policy types (e.g., Variable
Universal Life, Whole Life, Term), policy riders, provisions, options, and
underwriting processes.
• Health Insurance (General & National): Focuses on complex topics including
medical expense plans, disability income, long-term care, Medicare, and group
healthcare regulations.
• Texas Insurance Rules & Regulations: Tests knowledge on the Texas
Department of Insurance (TDI) statutes, licensing laws, marketing practices, and
consumer protection rules.
Sample Simulator Questions & Rationales
The following examples demonstrate the exact phrasing and conceptual logic utilized within
a Texas exam simulator:
• Variable Universal Life (Q: C): Combines flexible, policyowner-directed
premium payments with investment control over cash values in separate accounts.
, • Variable Whole Life (Q: B): Features fluctuating cash values based on
performance, but always maintains a guaranteed minimum death benefit.
• Credit Life Limits (Q: B): Limits the coverage amount to the total outstanding
value of the insured's loan, protecting the lender.
Quiz_________________?
$0 -
Answer✅
P is self-employed and owns an Individual Disability Income policy. He becomes totally
disabled on June 1 and receives $2,000 a month for the next 10 months. How much of this
income is subject to federal income tax?
$20,000
$14,000
$6,000
$0
Quiz_________________?
$0 -
Answer✅
T and S are named co-primary beneficiaries on a $500,000 Accidental Death and
Dismemberment policy insuring their father. Their mother was named contingent
beneficiary. Five years later, S dies of natural causes and the father is killed in a scuba
accident shortly afterwards. How much of the death benefit will the mother receive?
$1,000,000
$500,000
$250,000
$0
, Quiz_________________?
$10,000 -
Answer✅
Under the USA Patriot Act, insurers are required to report receipt of cash payments in
excess of
$10,000
$7,500
$5,000
$2,500
Quiz_________________?
$20,000 death benefit -
Answer✅
K pays on a $20,000 20-Year Endowment policy for 10 years and dies from an automobile
accident. How much will the insurance company pay the beneficiary?
Return of premiums paid
Cash value plus interest
$20,000 death benefit
Face amount plus interest
Quiz_________________?
$25,000 individual whole life policy -
Answer✅
, An employee with $25,000 group term life coverage was recently fired. This employee's
group coverage may be converted to a
$125,000 individual whole life policy
$25,000 modified whole life policy
$25,000 individual term life policy
$25,000 individual whole life policy
Quiz_________________?
$50,000 -
Answer✅
T took out a $50,000 life insurance policy with an Accidental Death and Dismemberment
rider. Five years later, T commits suicide. How much will the insurer pay?
The total premiums paid minus any policy loans
Nothing
$50,000
$100,000
Quiz_________________?
$50,000 minus any outstanding policy loans -
Answer✅
P purchases a $50,000 whole life insurance policy in 2005. One of the questions on the
application asks if P engages in scuba diving, to which P answers "No". The policy is then
issued with no scuba exclusions. In 2010, P takes up scuba diving and dies in a scuba-related
accident in 2011. What will the insurer pay to P's beneficiary?
Premiums paid plus interest
