TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH
INSURANCE 2 (LESSON SEC:1 TO 5) LATEST VERSIONS ACTUAL
EXAM COMPLETE 500 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ LATEST
UPDATE 2026
LIFE SECTION 1
LIFE SECTION 1
1) 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
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.
,2) 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
C- Variable Annuity
D- Immediate Annuity
B- Equity Indexed Annuity
3) 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
D- Ordinary Whole Life is a type of permanent insurance
,4) 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
D- Premiums are payable throughout the insured's lifetime, and coverage continues
until the insured's death
D- Premiums are payable throughout the insured's lifetime, and coverage continues
until the insured's death
5) 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
D- Survivorship Life
, 6) 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
C- Annuity
7) 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
D- Variable/Universal Life
INSURANCE 2 (LESSON SEC:1 TO 5) LATEST VERSIONS ACTUAL
EXAM COMPLETE 500 QUESTIONS AND CORRECT DETAILED
ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ LATEST
UPDATE 2026
LIFE SECTION 1
LIFE SECTION 1
1) 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
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.
,2) 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
C- Variable Annuity
D- Immediate Annuity
B- Equity Indexed Annuity
3) 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
D- Ordinary Whole Life is a type of permanent insurance
,4) 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
D- Premiums are payable throughout the insured's lifetime, and coverage continues
until the insured's death
D- Premiums are payable throughout the insured's lifetime, and coverage continues
until the insured's death
5) 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
D- Survivorship Life
, 6) 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
C- Annuity
7) 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
D- Variable/Universal Life
