TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE SECTION I EXAM
QUESTIONS AND ANSWERS TESTED AND
APPROVED GRADED A+ 2026 NEW UPDATE
1) Which of the following is NOT correct regarding Ordinary Whole Life policies?
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 --ANS--D- Ordinary Whole Life is
a type of permanent insurance
2) Which of the following statements is true about the premium payment schedule for a
Whole Life policy?
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
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,D- Premiums are payable throughout the insured's lifetime, and coverage continues until the
insured's death --ANS--D- Premiums are payable throughout the insured's lifetime, and
coverage continues until the insured's death
3) A life insurance policy that covers two parties, but only pays when the last party dies is
known as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life --ANS--D- Survivorship Life
4) Which of the following contracts requires that a series of benefit payments be made at
specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life --ANS--C- Annuity
5) 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:
A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life --ANS--D- Variable/Universal Life
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,6) 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:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity --ANS--D- Variable Annuity
7) 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?
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 --ANS--D—A $50,000 Decreasing Term
policy for 20 years
Explanation: The key here is "minimum premium". Term is the most inexpensive type of
coverage. Since Sandra's $50,000 loan will be paid off over 20 years and the loan balance
will decrease each year, Decreasing Term makes sense. Decreasing Term is not renewable.
8) A 45-year-old customer who is seeking to supplement his retirement income at age 65
would not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
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, C- Variable Annuity
D- Immediate Annuity --ANS--B- Equity Indexed Annuity
9) 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:
A- 60
B- 70
C- 100
D- 30 --ANS--C- 100
Explanation: Limited Pay Life insurance policies such as Life Paid Up at 65 or 20-Pay Life
are simply variations of Whole Life policies. The cash value will equal face amount of the
policy (at least) at the maturity of the policy, which is always age 100 on Whole Life policies.
These limited-pay policies are designed so that the insured may pay his or her premiums
faster and be "paid up" at a certain age. However, just because the premiums are paid up
doesn't mean the policy has matured.
10) Which of the following is an example of a Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70 --ANS--C- Life Paid-Up at Age 65
11) Which of the following policies provides the greatest amount of protection for an
insured's premium dollar as well as some cash accumulation?
A- Annuity
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HEALTH INSURANCE SECTION I EXAM
QUESTIONS AND ANSWERS TESTED AND
APPROVED GRADED A+ 2026 NEW UPDATE
1) Which of the following is NOT correct regarding Ordinary Whole Life policies?
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 --ANS--D- Ordinary Whole Life is
a type of permanent insurance
2) Which of the following statements is true about the premium payment schedule for a
Whole Life policy?
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
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,D- Premiums are payable throughout the insured's lifetime, and coverage continues until the
insured's death --ANS--D- Premiums are payable throughout the insured's lifetime, and
coverage continues until the insured's death
3) A life insurance policy that covers two parties, but only pays when the last party dies is
known as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life --ANS--D- Survivorship Life
4) Which of the following contracts requires that a series of benefit payments be made at
specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life --ANS--C- Annuity
5) 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:
A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life --ANS--D- Variable/Universal Life
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,6) 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:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity --ANS--D- Variable Annuity
7) 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?
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 --ANS--D—A $50,000 Decreasing Term
policy for 20 years
Explanation: The key here is "minimum premium". Term is the most inexpensive type of
coverage. Since Sandra's $50,000 loan will be paid off over 20 years and the loan balance
will decrease each year, Decreasing Term makes sense. Decreasing Term is not renewable.
8) A 45-year-old customer who is seeking to supplement his retirement income at age 65
would not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
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, C- Variable Annuity
D- Immediate Annuity --ANS--B- Equity Indexed Annuity
9) 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:
A- 60
B- 70
C- 100
D- 30 --ANS--C- 100
Explanation: Limited Pay Life insurance policies such as Life Paid Up at 65 or 20-Pay Life
are simply variations of Whole Life policies. The cash value will equal face amount of the
policy (at least) at the maturity of the policy, which is always age 100 on Whole Life policies.
These limited-pay policies are designed so that the insured may pay his or her premiums
faster and be "paid up" at a certain age. However, just because the premiums are paid up
doesn't mean the policy has matured.
10) Which of the following is an example of a Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70 --ANS--C- Life Paid-Up at Age 65
11) Which of the following policies provides the greatest amount of protection for an
insured's premium dollar as well as some cash accumulation?
A- Annuity
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