Texas General Lines Life, Accident and
Health Insurance Exam – Actual Exam
Latest 2 Versions with 130+ Verified
Questions and Answers (Graded A+)
Life Insurance Policies and Contracts (Questions 1-40)
1. Question: Which is NOT a feature of an Ordinary Whole Life policy? Answer: Cash
value remains constant. Rationale: Cash value grows over time in whole life, not stays
constant.
2. Question: What policy best covers a 15-year mortgage for a 30-year-old? Answer: 15-
Year Decreasing Term. Rationale: Matches declining mortgage balance, minimizing
premiums.
3. Question: A policy paying on the second death of two insureds is: Answer: Survivorship
Life. Rationale: Used for estate planning, pays after both insureds die.
4. Question: Which rider allows increasing coverage without proof of insurability?
Answer: Guaranteed Insurability. Rationale: Permits future increases at specified
intervals.
5. Question: If a term policy lapses but the insured dies during the grace period, what
happens? Answer: Full benefit paid. Rationale: Grace period (31 days in Texas)
maintains coverage.
6. Question: Which policy offers flexible premiums and investment options? Answer:
Variable Universal Life. Rationale: Combines universal flexibility with market-linked
returns.
, 7. Question: A 20-Pay Life policy purchased at age 40 will be paid up at: Answer: Age 60.
Rationale: Premiums paid for 20 years (40 + 20 = 60).
8. Question: What is the insuring agreement in a life policy? Answer: Promise to pay upon
death. Rationale: Core contractual obligation of the insurer.
9. Question: Which policy has no cash value? Answer: Term Life. Rationale: Provides
pure death benefit, no savings component.
10. Question: What is the incontestability period in Texas for life policies? Answer: 2 years.
Rationale: Misstatements cannot void policy after 2 years, except fraud.
11. Question: Who needs an insurable interest at policy issuance? Answer: Policyowner.
Rationale: Prevents wagering; required at issuance.
12. Question: A Limited-Pay Life policy is characterized by: Answer: Premiums paid for a
set period. Rationale: E.g., 10-Pay Life ends premiums early, coverage continues.
13. Question: Best permanent coverage for low initial premium? Answer: Universal Life.
Rationale: Flexible premiums allow lower initial costs.
14. Question: Purpose of the grace period? Answer: Allow late premium payment without
lapse. Rationale: 31 days in Texas to maintain coverage.
15. Question: Which policy requires SEC registration? Answer: Variable Life. Rationale:
Investment component is a security, under FINRA/SEC.
Health Insurance Exam – Actual Exam
Latest 2 Versions with 130+ Verified
Questions and Answers (Graded A+)
Life Insurance Policies and Contracts (Questions 1-40)
1. Question: Which is NOT a feature of an Ordinary Whole Life policy? Answer: Cash
value remains constant. Rationale: Cash value grows over time in whole life, not stays
constant.
2. Question: What policy best covers a 15-year mortgage for a 30-year-old? Answer: 15-
Year Decreasing Term. Rationale: Matches declining mortgage balance, minimizing
premiums.
3. Question: A policy paying on the second death of two insureds is: Answer: Survivorship
Life. Rationale: Used for estate planning, pays after both insureds die.
4. Question: Which rider allows increasing coverage without proof of insurability?
Answer: Guaranteed Insurability. Rationale: Permits future increases at specified
intervals.
5. Question: If a term policy lapses but the insured dies during the grace period, what
happens? Answer: Full benefit paid. Rationale: Grace period (31 days in Texas)
maintains coverage.
6. Question: Which policy offers flexible premiums and investment options? Answer:
Variable Universal Life. Rationale: Combines universal flexibility with market-linked
returns.
, 7. Question: A 20-Pay Life policy purchased at age 40 will be paid up at: Answer: Age 60.
Rationale: Premiums paid for 20 years (40 + 20 = 60).
8. Question: What is the insuring agreement in a life policy? Answer: Promise to pay upon
death. Rationale: Core contractual obligation of the insurer.
9. Question: Which policy has no cash value? Answer: Term Life. Rationale: Provides
pure death benefit, no savings component.
10. Question: What is the incontestability period in Texas for life policies? Answer: 2 years.
Rationale: Misstatements cannot void policy after 2 years, except fraud.
11. Question: Who needs an insurable interest at policy issuance? Answer: Policyowner.
Rationale: Prevents wagering; required at issuance.
12. Question: A Limited-Pay Life policy is characterized by: Answer: Premiums paid for a
set period. Rationale: E.g., 10-Pay Life ends premiums early, coverage continues.
13. Question: Best permanent coverage for low initial premium? Answer: Universal Life.
Rationale: Flexible premiums allow lower initial costs.
14. Question: Purpose of the grace period? Answer: Allow late premium payment without
lapse. Rationale: 31 days in Texas to maintain coverage.
15. Question: Which policy requires SEC registration? Answer: Variable Life. Rationale:
Investment component is a security, under FINRA/SEC.
