TEXAS STATE EXAM SIMULATOR - LIFE AND HEALTH INSURANCE (200 QUESTIONS
PRACTICE EXAM) |COMPLETE QUESTIONS AND ANSWERS | 2025/2026 LATEST
UPDATE | ALREADY GRADED A+
What percent of personal life insurance premiums is usually deductible for federal income tax
purposes?
100%
75%
50%
0% 0%
Why is an applicant's signature required on a life insurance application?
To attest that the statements on the application are warranties
To attest that the statements on the application are accurate to the best of the applicant's
knowledge
To give Power of Attorney to the producer if needed
To attest that all statements on the application are guaranteed to be true To attest that the
statements on the application are accurate to the best of the applicant's knowledge
When a policyowner exchanges a term policy for a whole life policy without providing proof of
good health, which of these apply?
Extended term option
Conversion provision
1035 Exchange
,Incontestable period Conversion provision
The premiums paid by an employer for his employee's group life insurance are usually
considered to be
tax-deductible to the employer
partially deductible to the employee
tax-deductible to the employee
taxable income to the employee tax-deductible to the employee
An individual who purchases a Life annuity is given protection against
inflation
the risk of dying prematurely
the risk of living longer than expected
the risk of not having enough retirement income the risk of living longer than expected
How are Roth IRA distributions normally taxed?
10% penalty tax is applied
Taxed as ordinary income
Capital gains tax is applied
Distributions are received tax-free Distributions are received tax-free
An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can
be
,converted to an individual permanent policy at an individual rate
converted to an individual permanent policy at a group rate
continued at an individual rate
continued at a group rate converted to an individual permanent policy at an individual rate
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life
insurance, would require how many policies?
3
6
9
12 6
Group life policies MUST include all of the following provisions EXCEPT
Ownership
Beneficiary Designation
Conversion Privilege
Right to Loan Proceeds Right to Loan Proceeds
When can a policyowner change a revocable beneficiary?
Anytime
After the consent of the current beneficiary
Never
, Only if primary beneficiary dies Anytime
The option that provides an additional death benefit for a limited amount of time at the lowest
possible cost is called a(n)
Term rider
Accidental Death and Dismemberment rider (AD&D)
Family rider
Annuity Accidental Death and Dismemberment rider (AD&D)
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following
EXCEPT
Signed HIPAA disclosure
Signed amendment
Signed statement of Good Health
The required premium Signed HIPAA disclosure
An insurance company must provide information on fraudulent claims at the request of all of
the following entities EXCEPT
local law enforcement agencies
the Commissioner of Insurance
the Attorney General
an insured an insured
At what point does an informal contract become binding?
PRACTICE EXAM) |COMPLETE QUESTIONS AND ANSWERS | 2025/2026 LATEST
UPDATE | ALREADY GRADED A+
What percent of personal life insurance premiums is usually deductible for federal income tax
purposes?
100%
75%
50%
0% 0%
Why is an applicant's signature required on a life insurance application?
To attest that the statements on the application are warranties
To attest that the statements on the application are accurate to the best of the applicant's
knowledge
To give Power of Attorney to the producer if needed
To attest that all statements on the application are guaranteed to be true To attest that the
statements on the application are accurate to the best of the applicant's knowledge
When a policyowner exchanges a term policy for a whole life policy without providing proof of
good health, which of these apply?
Extended term option
Conversion provision
1035 Exchange
,Incontestable period Conversion provision
The premiums paid by an employer for his employee's group life insurance are usually
considered to be
tax-deductible to the employer
partially deductible to the employee
tax-deductible to the employee
taxable income to the employee tax-deductible to the employee
An individual who purchases a Life annuity is given protection against
inflation
the risk of dying prematurely
the risk of living longer than expected
the risk of not having enough retirement income the risk of living longer than expected
How are Roth IRA distributions normally taxed?
10% penalty tax is applied
Taxed as ordinary income
Capital gains tax is applied
Distributions are received tax-free Distributions are received tax-free
An employee of 20 years recently retired at age 59 1/2. This employee's group life contract can
be
,converted to an individual permanent policy at an individual rate
converted to an individual permanent policy at a group rate
continued at an individual rate
continued at a group rate converted to an individual permanent policy at an individual rate
A Loss-Purchase Buy and Sell agreement among three partners, funded with individual life
insurance, would require how many policies?
3
6
9
12 6
Group life policies MUST include all of the following provisions EXCEPT
Ownership
Beneficiary Designation
Conversion Privilege
Right to Loan Proceeds Right to Loan Proceeds
When can a policyowner change a revocable beneficiary?
Anytime
After the consent of the current beneficiary
Never
, Only if primary beneficiary dies Anytime
The option that provides an additional death benefit for a limited amount of time at the lowest
possible cost is called a(n)
Term rider
Accidental Death and Dismemberment rider (AD&D)
Family rider
Annuity Accidental Death and Dismemberment rider (AD&D)
Upon delivery of a rated life insurance policy, the Producer must obtain each of the following
EXCEPT
Signed HIPAA disclosure
Signed amendment
Signed statement of Good Health
The required premium Signed HIPAA disclosure
An insurance company must provide information on fraudulent claims at the request of all of
the following entities EXCEPT
local law enforcement agencies
the Commissioner of Insurance
the Attorney General
an insured an insured
At what point does an informal contract become binding?
