TEXAS LIFE AND HEALTH EXAM 150 QUESTIONS &
CORRECT ANSWERS LATEST 2026
Which of the following statements about Equity Indexed Life Insurance is
INCORRECT? - ANSWER-If the actual investment differs from what was
expected, the premiums will be either lowered or raised
All of the following groups of people are eligible for Medicare EXCEPT -
ANSWER-full-time college students
Under an Accidental Death and Dismemberment policy, the contingent beneficiary
will receive - ANSWER-the policy proceeds if the primary beneficiary dies before
the insured's death
A beneficiary who must consent to a change in the beneficiary designation in a life
insurance policy is referred to as - ANSWER-an irrevocable beneficiary
The Old Age and Survivors Disability Health Insurance (OASDHI) system is
COMMONLY referred to as - ANSWER-Social Security
The policy provision that prevents an insurance company from altering its
agreement with a policyowner by referring to documents or other items not
contained in the policy is called the - ANSWER-Entire Contract provision
Which of the following provisions states to whom claims will be paid? -
ANSWER-Payment of Claims
,Which of the following clauses of an insurance contract states that a specified
amount of money will be paid to a designated person on the death of an insured? -
ANSWER-Insuring Agreement
Which of the following statements is CORRECT about third-party ownership of a
life insurance policy? - ANSWER-It is widely used in business insurance and
estate-planning situations
A policy that is overfunded, according to IRS tables, is classified as which of the
following types of policies? - ANSWER-Modified Endowment Contract
Which of the following policy provisions gives an insurance company the right to
set requirements that an insured must meet while a claim is pending? - ANSWER-
Time Limit on Certain Defenses
In a life insurance policy, the Consideration clause states that the policyowner's
consideration consists of completing the application and - ANSWER-paying the
initial premium
The Time Payment of Claims provision requires that an insurance company pay
Disability Income benefits no less frequently than - ANSWER-monthly
A producer takes an application for individual insurance and accepts a check from
the client. The producer mails the check and application to the insurance company.
A member of the company's underwriting department notices that the application is
signed but the check is not. In this situation, if the applicant is approved by the
insurance company, coverage will be effective as of which of the following dates?
- ANSWER-The date the producer delivered the policy collected the initial
premium and obtained a statement indicating that there is no change in the
insured's health
, Which of the following items may be used to include coverage for children under
their parent's insurance policy? - ANSWER-A Term rider
An underwriter's evaluation of information on a life insurance application is also
known as - ANSWER-risk classification
A 64-year old widow recently received a $100,000 death benefit from her
husband's life policy. If she wants to purchase an annuity that will provide her an
immediate, guaranteed income for life, which of the following types of annuity
BEST suits her needs? - ANSWER-Single Premium
Which of the following elements of a contract is necessary before a life policy will
be issued? - ANSWER-A prospect's signature on an application
A policyowner decides to use dividends from a life insurance policy to purchase
paid-up additions. The policyowner asks a producer to explain how the amount of
the paid-up addition that is purchased each year will be determined. The producer's
explanation includes all of the following facts EXCEPT - ANSWER-the age of the
beneficiary
A prehospitalization authorization program (pre-certification) is a good example of
- ANSWER-managed care
A policyowner may change a revocable beneficiary at which of the following
times? - ANSWER-At any time
When submitting an application for an individual policy to an insurance company,
a producer should take which of the following actions? - ANSWER-Advise the
company of any other relevant information not contained in the application
CORRECT ANSWERS LATEST 2026
Which of the following statements about Equity Indexed Life Insurance is
INCORRECT? - ANSWER-If the actual investment differs from what was
expected, the premiums will be either lowered or raised
All of the following groups of people are eligible for Medicare EXCEPT -
ANSWER-full-time college students
Under an Accidental Death and Dismemberment policy, the contingent beneficiary
will receive - ANSWER-the policy proceeds if the primary beneficiary dies before
the insured's death
A beneficiary who must consent to a change in the beneficiary designation in a life
insurance policy is referred to as - ANSWER-an irrevocable beneficiary
The Old Age and Survivors Disability Health Insurance (OASDHI) system is
COMMONLY referred to as - ANSWER-Social Security
The policy provision that prevents an insurance company from altering its
agreement with a policyowner by referring to documents or other items not
contained in the policy is called the - ANSWER-Entire Contract provision
Which of the following provisions states to whom claims will be paid? -
ANSWER-Payment of Claims
,Which of the following clauses of an insurance contract states that a specified
amount of money will be paid to a designated person on the death of an insured? -
ANSWER-Insuring Agreement
Which of the following statements is CORRECT about third-party ownership of a
life insurance policy? - ANSWER-It is widely used in business insurance and
estate-planning situations
A policy that is overfunded, according to IRS tables, is classified as which of the
following types of policies? - ANSWER-Modified Endowment Contract
Which of the following policy provisions gives an insurance company the right to
set requirements that an insured must meet while a claim is pending? - ANSWER-
Time Limit on Certain Defenses
In a life insurance policy, the Consideration clause states that the policyowner's
consideration consists of completing the application and - ANSWER-paying the
initial premium
The Time Payment of Claims provision requires that an insurance company pay
Disability Income benefits no less frequently than - ANSWER-monthly
A producer takes an application for individual insurance and accepts a check from
the client. The producer mails the check and application to the insurance company.
A member of the company's underwriting department notices that the application is
signed but the check is not. In this situation, if the applicant is approved by the
insurance company, coverage will be effective as of which of the following dates?
- ANSWER-The date the producer delivered the policy collected the initial
premium and obtained a statement indicating that there is no change in the
insured's health
, Which of the following items may be used to include coverage for children under
their parent's insurance policy? - ANSWER-A Term rider
An underwriter's evaluation of information on a life insurance application is also
known as - ANSWER-risk classification
A 64-year old widow recently received a $100,000 death benefit from her
husband's life policy. If she wants to purchase an annuity that will provide her an
immediate, guaranteed income for life, which of the following types of annuity
BEST suits her needs? - ANSWER-Single Premium
Which of the following elements of a contract is necessary before a life policy will
be issued? - ANSWER-A prospect's signature on an application
A policyowner decides to use dividends from a life insurance policy to purchase
paid-up additions. The policyowner asks a producer to explain how the amount of
the paid-up addition that is purchased each year will be determined. The producer's
explanation includes all of the following facts EXCEPT - ANSWER-the age of the
beneficiary
A prehospitalization authorization program (pre-certification) is a good example of
- ANSWER-managed care
A policyowner may change a revocable beneficiary at which of the following
times? - ANSWER-At any time
When submitting an application for an individual policy to an insurance company,
a producer should take which of the following actions? - ANSWER-Advise the
company of any other relevant information not contained in the application
