Texas State Exam Simulator - Life and Health
Insurance (200 Questions Practice Exam)
2026/2027 – Comprehensive A+ Graded
Practice Questions with Answers
An annuity promises that, if the annuitant dies before receiving
payments equal to the correct value, the payments will be
continued to a beneficiary until an amount equal to the
contract value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - ✔✔ANSWER ✔✔-An installment Refund
annuity
One becomes eligible for Social Security disability benefits after
having been disabled for
,3 months
5 months
6 months
12 months - ✔✔ANSWER ✔✔-5 months
A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the
early years of the policy. Which of these statements made by
the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life
depend on the insurer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same
rate - ✔✔ANSWER ✔✔-20-Pay Life accumulates cash value
faster than Straight Life
Who makes the legally enforceable promises in a unilateral
insurance policy?
,Beneficiary
Insurance company
Insured
Applicant - ✔✔ANSWER ✔✔-Insurance company
The Consideration clause in a life insurance policy indicates that
a policyowner's consideration consists of a completed
application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions - ✔✔ANSWER ✔✔-the
initial premium
Which parts of a life insurance policy are guaranteed to be
true?
Rating
Representation
Statement
, Warranty - ✔✔ANSWER ✔✔-Warranty
A comprehensive major medical health insurance policy
contains an Eligible Expenses provision which identifies the
types of health care services that are covered. All of the
following health care services are typically covered EXCEPT for
hospital charges
physician fees
experimental and investigative services
nursing services - ✔✔ANSWER ✔✔-experimental and
investigative services
If a retiree on Medicare required five hospital stays in one year,
which policy would provide the best insurance for excess
hospital expenses?
Long-term care
Indemnity
Medicare Supplement
Medicaid - ✔✔ANSWER ✔✔-Medicare Supplement
Insurance (200 Questions Practice Exam)
2026/2027 – Comprehensive A+ Graded
Practice Questions with Answers
An annuity promises that, if the annuitant dies before receiving
payments equal to the correct value, the payments will be
continued to a beneficiary until an amount equal to the
contract value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity - ✔✔ANSWER ✔✔-An installment Refund
annuity
One becomes eligible for Social Security disability benefits after
having been disabled for
,3 months
5 months
6 months
12 months - ✔✔ANSWER ✔✔-5 months
A potential client, age 40, would like to purchase a Whole Life
policy that will accumulate cash value at a faster rate in the
early years of the policy. Which of these statements made by
the producer would be correct?
Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life
depend on the insurer's financial rating
20-Pay Life and Straight Life accumulate cash value at the same
rate - ✔✔ANSWER ✔✔-20-Pay Life accumulates cash value
faster than Straight Life
Who makes the legally enforceable promises in a unilateral
insurance policy?
,Beneficiary
Insurance company
Insured
Applicant - ✔✔ANSWER ✔✔-Insurance company
The Consideration clause in a life insurance policy indicates that
a policyowner's consideration consists of a completed
application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions - ✔✔ANSWER ✔✔-the
initial premium
Which parts of a life insurance policy are guaranteed to be
true?
Rating
Representation
Statement
, Warranty - ✔✔ANSWER ✔✔-Warranty
A comprehensive major medical health insurance policy
contains an Eligible Expenses provision which identifies the
types of health care services that are covered. All of the
following health care services are typically covered EXCEPT for
hospital charges
physician fees
experimental and investigative services
nursing services - ✔✔ANSWER ✔✔-experimental and
investigative services
If a retiree on Medicare required five hospital stays in one year,
which policy would provide the best insurance for excess
hospital expenses?
Long-term care
Indemnity
Medicare Supplement
Medicaid - ✔✔ANSWER ✔✔-Medicare Supplement
