PEARSON VUE TEXAS STATE LIFE AND HEALTH
INSURANCE EXAM 2026 EXAM Q&A STUDY
GUIDE
◉ Which of these is NOT considered to be an element of an
insurance contract?
the offer
acceptance
negotiating
consideration Answer: negotiating
◉ An agent is an individual that represents whom? Answer: Insurer
◉ Insurable interest must exist at what time? Answer: at the time of
application
◉ Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling? Answer:
Variable Life
◉ Which of the following actions require a policy owner to provide
proof of insurability in an Adjustable Life policy? Answer: increase
face amount
,◉ When a policy owner exchanges a term policy for a whole life
policy without providing proof of good health, which of these apply?
Answer: Conversion provision
◉ What type of life insurance are credit policies issued as? Answer:
Term
◉ How long does the coverage normally remain on a limited-pay life
policy? Answer: age 100
◉ All of these statements about Equity Indexed Life Insurance are
correct EXCEPT
Cash value has a minimum rate of accumulation
If the gain on the index goes beyond the policy's minimum rate of
return, the cash value will mirror that of the index
The premiums can be lowered or raised, based on investment
performance
Tied to an equity index such as the S&P 500 Answer: The premiums
can be lowered or raised, based on investment performance
◉ Which of these is an element of a Variable Life policy? Answer: A
fixed, level premium
,◉ What type of life insurance incorporates flexible premiums and an
adjustable death benefit? Answer: Universal Life
◉ T would like to be assured $10,000 is available in 10 years to
replace a roof on his house. What kind of $10,000 policy should T
purchase? Answer: Ten-Year Endowment
◉ What type of life policy covers 2 lives and pays the face amount
after the first one dies? Answer: Joint Life Policy
◉ Life insurance that covers an insured's whole life with level
premiums paid over a limited time is called Answer: Limited-Pay
Life
◉ What kind of life insurance product covers children under their
parent's policy? Answer: Term rider
◉ Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the
amount of the premium payment
Policyowner has no say where the investment will go but can
choose the premium mode
The investment vehicle for this type of policy is held in the insurer's
general portfolio
, The death benefit can vary but the policyowner has no say in the
premium amount paid Answer: Policyowner controls where the
investment will go and selects the amount of the premium payment
◉ P is looking to purchase a life insurance policy that will pay a
stated monthly income to his beneficiaries for 20 years after he dies
and a lump sum of $20,000 at the end of that 20 year period. What
type of policy should P purchase? Answer: Family Maintenance
policy
◉ Which of the following statements about a Variable Whole Life
policy is CORRECT?
It provides a minimum guaranteed Death benefit
It is a combination of a Limited Period Endowment and a
Decreasing Term policy
Its premiums and benefits are variable
It has a guaranteed rate of return Answer: It provides a minimum
guaranteed Death benefit
◉ Credit Life insurance is Answer: issued in an amount not to exceed
the amount of the loan
◉ The amount of coverage on a group credit life policy is limited to
Answer: the insured's total loan value
INSURANCE EXAM 2026 EXAM Q&A STUDY
GUIDE
◉ Which of these is NOT considered to be an element of an
insurance contract?
the offer
acceptance
negotiating
consideration Answer: negotiating
◉ An agent is an individual that represents whom? Answer: Insurer
◉ Insurable interest must exist at what time? Answer: at the time of
application
◉ Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling? Answer:
Variable Life
◉ Which of the following actions require a policy owner to provide
proof of insurability in an Adjustable Life policy? Answer: increase
face amount
,◉ When a policy owner exchanges a term policy for a whole life
policy without providing proof of good health, which of these apply?
Answer: Conversion provision
◉ What type of life insurance are credit policies issued as? Answer:
Term
◉ How long does the coverage normally remain on a limited-pay life
policy? Answer: age 100
◉ All of these statements about Equity Indexed Life Insurance are
correct EXCEPT
Cash value has a minimum rate of accumulation
If the gain on the index goes beyond the policy's minimum rate of
return, the cash value will mirror that of the index
The premiums can be lowered or raised, based on investment
performance
Tied to an equity index such as the S&P 500 Answer: The premiums
can be lowered or raised, based on investment performance
◉ Which of these is an element of a Variable Life policy? Answer: A
fixed, level premium
,◉ What type of life insurance incorporates flexible premiums and an
adjustable death benefit? Answer: Universal Life
◉ T would like to be assured $10,000 is available in 10 years to
replace a roof on his house. What kind of $10,000 policy should T
purchase? Answer: Ten-Year Endowment
◉ What type of life policy covers 2 lives and pays the face amount
after the first one dies? Answer: Joint Life Policy
◉ Life insurance that covers an insured's whole life with level
premiums paid over a limited time is called Answer: Limited-Pay
Life
◉ What kind of life insurance product covers children under their
parent's policy? Answer: Term rider
◉ Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects the
amount of the premium payment
Policyowner has no say where the investment will go but can
choose the premium mode
The investment vehicle for this type of policy is held in the insurer's
general portfolio
, The death benefit can vary but the policyowner has no say in the
premium amount paid Answer: Policyowner controls where the
investment will go and selects the amount of the premium payment
◉ P is looking to purchase a life insurance policy that will pay a
stated monthly income to his beneficiaries for 20 years after he dies
and a lump sum of $20,000 at the end of that 20 year period. What
type of policy should P purchase? Answer: Family Maintenance
policy
◉ Which of the following statements about a Variable Whole Life
policy is CORRECT?
It provides a minimum guaranteed Death benefit
It is a combination of a Limited Period Endowment and a
Decreasing Term policy
Its premiums and benefits are variable
It has a guaranteed rate of return Answer: It provides a minimum
guaranteed Death benefit
◉ Credit Life insurance is Answer: issued in an amount not to exceed
the amount of the loan
◉ The amount of coverage on a group credit life policy is limited to
Answer: the insured's total loan value
