TEXAS State Insurance License Exam
Questions and Answers (100% Correct
Answers) Latest Update 2026/2027 | Already
Graded A+
Q: An insurer neglects to pay a legitimate claim that is
covered under the terms of the policy. Which of the
following insurance principles has the insurer violated?
Ans: Consideration
Q: Which of the following statements regarding HIV
testing for insurance purposes is NOT true?
Ans: Insurers are barred from requesting HIV testing.
Q: Which of the following documents delivered to the
policyowner includes information about premium
amounts, cash values, surrender values and death
benefits for specific policy years?
Ans: A Policy Summary
, Q: A 60-year-old participant in a 401(k) plan takes a
distribution and rolls it over to an IRA within 60 days.
Which of the following is true?
Ans: The amount of the distribution is reduced by the
amount of a 20% withholding tax.
Q: Which of the following best describes annually
renewable term insurance?
Ans: It's Level Term Insurance
Q: Which of the following policies would be classified
as a traditional level premium contract?
Ans: Straight Life
Q: Which option is being utilized when the insurer
accumulates dividends at interest and then uses the
accumulated dividends, plus interest, and the policy
cash value to pay the policy up early?
Ans: Paid Up Option
Q: A couple owns a life insurance policy with a
Children's Term rider. Their daughter is reaching the
maximum age of dependent coverage, so she will have
to convert to permanent insurance in the near future.
Questions and Answers (100% Correct
Answers) Latest Update 2026/2027 | Already
Graded A+
Q: An insurer neglects to pay a legitimate claim that is
covered under the terms of the policy. Which of the
following insurance principles has the insurer violated?
Ans: Consideration
Q: Which of the following statements regarding HIV
testing for insurance purposes is NOT true?
Ans: Insurers are barred from requesting HIV testing.
Q: Which of the following documents delivered to the
policyowner includes information about premium
amounts, cash values, surrender values and death
benefits for specific policy years?
Ans: A Policy Summary
, Q: A 60-year-old participant in a 401(k) plan takes a
distribution and rolls it over to an IRA within 60 days.
Which of the following is true?
Ans: The amount of the distribution is reduced by the
amount of a 20% withholding tax.
Q: Which of the following best describes annually
renewable term insurance?
Ans: It's Level Term Insurance
Q: Which of the following policies would be classified
as a traditional level premium contract?
Ans: Straight Life
Q: Which option is being utilized when the insurer
accumulates dividends at interest and then uses the
accumulated dividends, plus interest, and the policy
cash value to pay the policy up early?
Ans: Paid Up Option
Q: A couple owns a life insurance policy with a
Children's Term rider. Their daughter is reaching the
maximum age of dependent coverage, so she will have
to convert to permanent insurance in the near future.
