Texas Life and Health Insurance EXAM
STUDY GUIDE 2026/2027 COMPLETE
QUESTIONS WITH VERIFIED CORRECT
ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWER Treaty
The stated amount or percent of liquid assets that an insurer must have on hand
that will satisfy future obligations to its policyholders is called - ANSWER
reserves
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have - ANSWER insurable interest
Statements made on an insurance application that are believed to be true to the
best of the applicant's knowledge are called - ANSWER representations
What is a life insurance policy? - ANSWER A contract between an insurer and a
policyholder where the insurer pays a designated beneficiary a sum of money upon
the death of the insured.
What is health insurance? - ANSWER A type of insurance that covers the cost of
medical expenses, including hospital stays, doctor visits, and preventive care.
, What is the Texas Department of Insurance? - ANSWER The state agency
responsible for regulating the insurance industry in Texas, ensuring compliance
with state laws and protecting consumers.
What are the types of life insurance? - ANSWER The main types include term life
insurance, whole life insurance, universal life insurance, and variable life
insurance.
What is term life insurance? - ANSWER A type of life insurance that provides
coverage for a specific period, paying a benefit only if the insured dies during that
term.
What is whole life insurance? - ANSWER A type of permanent life insurance that
provides coverage for the insured's entire life and includes a savings component.
What is universal life insurance? - ANSWER A flexible permanent life insurance
policy that combines life coverage with an investment savings element.
What is variable life insurance? - ANSWER A type of permanent life insurance
that allows the policyholder to allocate cash value among various investment
options.
What is a beneficiary? - ANSWER The person or entity designated to receive the
death benefit from a life insurance policy.
What is an insurance premium? - ANSWER The amount paid by the policyholder
to the insurer for coverage, typically paid monthly or annually.
What is a deductible? - ANSWER The amount the insured must pay out-of-pocket
before the insurance company pays for covered expenses.
,What is co-insurance? - ANSWER A cost-sharing arrangement where the insured
pays a percentage of the covered expenses after the deductible is met.
What is a copayment? - ANSWER A fixed amount the insured pays for a specific
service or prescription at the time of care.
What is a pre-existing condition? - ANSWER A health issue that existed before
the start of a new health insurance policy, which may affect coverage.
What is underwriting? - ANSWER The process by which an insurer evaluates the
risk of insuring a person and determines the premium and coverage.
What is a policy exclusion? - ANSWER Specific conditions or circumstances that
are not covered by the insurance policy.
What is a rider? - ANSWER An additional provision added to an insurance policy
that modifies its terms, coverage, or benefits.
What is the grace period? - ANSWER The time frame after a premium due date
during which the policyholder can still pay the premium without losing coverage.
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
STUDY GUIDE 2026/2027 COMPLETE
QUESTIONS WITH VERIFIED CORRECT
ANSWERS || 100% GUARANTEED PASS
<NEWEST VERSION>
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - ANSWER Treaty
The stated amount or percent of liquid assets that an insurer must have on hand
that will satisfy future obligations to its policyholders is called - ANSWER
reserves
When third-party ownership is involved, applicants who also happen to be the
stated primary beneficiary are required to have - ANSWER insurable interest
Statements made on an insurance application that are believed to be true to the
best of the applicant's knowledge are called - ANSWER representations
What is a life insurance policy? - ANSWER A contract between an insurer and a
policyholder where the insurer pays a designated beneficiary a sum of money upon
the death of the insured.
What is health insurance? - ANSWER A type of insurance that covers the cost of
medical expenses, including hospital stays, doctor visits, and preventive care.
, What is the Texas Department of Insurance? - ANSWER The state agency
responsible for regulating the insurance industry in Texas, ensuring compliance
with state laws and protecting consumers.
What are the types of life insurance? - ANSWER The main types include term life
insurance, whole life insurance, universal life insurance, and variable life
insurance.
What is term life insurance? - ANSWER A type of life insurance that provides
coverage for a specific period, paying a benefit only if the insured dies during that
term.
What is whole life insurance? - ANSWER A type of permanent life insurance that
provides coverage for the insured's entire life and includes a savings component.
What is universal life insurance? - ANSWER A flexible permanent life insurance
policy that combines life coverage with an investment savings element.
What is variable life insurance? - ANSWER A type of permanent life insurance
that allows the policyholder to allocate cash value among various investment
options.
What is a beneficiary? - ANSWER The person or entity designated to receive the
death benefit from a life insurance policy.
What is an insurance premium? - ANSWER The amount paid by the policyholder
to the insurer for coverage, typically paid monthly or annually.
What is a deductible? - ANSWER The amount the insured must pay out-of-pocket
before the insurance company pays for covered expenses.
,What is co-insurance? - ANSWER A cost-sharing arrangement where the insured
pays a percentage of the covered expenses after the deductible is met.
What is a copayment? - ANSWER A fixed amount the insured pays for a specific
service or prescription at the time of care.
What is a pre-existing condition? - ANSWER A health issue that existed before
the start of a new health insurance policy, which may affect coverage.
What is underwriting? - ANSWER The process by which an insurer evaluates the
risk of insuring a person and determines the premium and coverage.
What is a policy exclusion? - ANSWER Specific conditions or circumstances that
are not covered by the insurance policy.
What is a rider? - ANSWER An additional provision added to an insurance policy
that modifies its terms, coverage, or benefits.
What is the grace period? - ANSWER The time frame after a premium due date
during which the policyholder can still pay the premium without losing coverage.
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
