TEXAS GENERAL LINES - LIFE, ACCIDENT AND HEALTH
INSURANCE EXAM | COMPLETE QUESTIONS WITH EXPERT
SOLUTIONS| 2026 LATEST UPDATED| A+
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 - (answer)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 - (answer)B- Equity Indexed Annuity
3) John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value
will equal the face amount of the policy when he reaches the age of:
,A- 60
B- 70
C- 100
D- 30 - (answer)C- 100
Explanation: Limited Pay Life insurance policies such as Life Paid Up at 65 or 20-Pay Life are
simply variations of Whole Life policies. The cash value will equal face amount of the policy (at
least) at the maturity of the policy, which is always age 100 on Whole Life policies. These
limited-pay policies are designed so that the insured may pay his or her premiums faster and be
"paid up" at a certain age. However, just because the premiums are paid up doesn't mean the
policy has matured.
4) Which of the following is an example of a Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70 - (answer)C- Life Paid-Up at Age 65
5) Which of the following policies provides the greatest amount of protection for an insured's
premium dollar as well as some cash accumulation?
A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life - (answer)B- Whole Life
If we had not mentioned cash accumulation, the answer would have been Term. However, Term
has no cash value, so the answer is Whole Life, which is the most inexpensive type of permanent
insurance and is required to have a cash value after the third policy year. Although Limited Pay
Life is a type of Whole Life, it is incorrect since it is usually quite expensive due to the shortened
pay-in period. Annuities have no cash value except the money the annuitant paid in. Since there
is no death benefit, no protection is offered.
,6) Which of the following individual policy conversions is usually permitted without any
evidence of insurability? - (answer)C- Conversion from a Term policy to a Whole Life policy
7) 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 - (answer)D- Ordinary Whole Life is a
type of permanent insurance
8) 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 - (answer)D- Premiums are payable throughout the insured's lifetime, and
coverage continues until the insured's death
9) 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 - (answer)D- Survivorship Life
10) 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 - (answer)C- Annuity
11) 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 - (answer)D- Variable/Universal Life
12) If a person wants to invest a lump sum in an annuity that may appreciate along with market
and economic conditions, they should buy a:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity - (answer)D- Variable Annuity
13) You have a client that is a real estate agent. Which of the following types of permanent
protection is best for this type of client?
A- Variable life
INSURANCE EXAM | COMPLETE QUESTIONS WITH EXPERT
SOLUTIONS| 2026 LATEST UPDATED| A+
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 - (answer)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 - (answer)B- Equity Indexed Annuity
3) John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value
will equal the face amount of the policy when he reaches the age of:
,A- 60
B- 70
C- 100
D- 30 - (answer)C- 100
Explanation: Limited Pay Life insurance policies such as Life Paid Up at 65 or 20-Pay Life are
simply variations of Whole Life policies. The cash value will equal face amount of the policy (at
least) at the maturity of the policy, which is always age 100 on Whole Life policies. These
limited-pay policies are designed so that the insured may pay his or her premiums faster and be
"paid up" at a certain age. However, just because the premiums are paid up doesn't mean the
policy has matured.
4) Which of the following is an example of a Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70 - (answer)C- Life Paid-Up at Age 65
5) Which of the following policies provides the greatest amount of protection for an insured's
premium dollar as well as some cash accumulation?
A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life - (answer)B- Whole Life
If we had not mentioned cash accumulation, the answer would have been Term. However, Term
has no cash value, so the answer is Whole Life, which is the most inexpensive type of permanent
insurance and is required to have a cash value after the third policy year. Although Limited Pay
Life is a type of Whole Life, it is incorrect since it is usually quite expensive due to the shortened
pay-in period. Annuities have no cash value except the money the annuitant paid in. Since there
is no death benefit, no protection is offered.
,6) Which of the following individual policy conversions is usually permitted without any
evidence of insurability? - (answer)C- Conversion from a Term policy to a Whole Life policy
7) 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 - (answer)D- Ordinary Whole Life is a
type of permanent insurance
8) 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 - (answer)D- Premiums are payable throughout the insured's lifetime, and
coverage continues until the insured's death
9) 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 - (answer)D- Survivorship Life
10) 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 - (answer)C- Annuity
11) 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 - (answer)D- Variable/Universal Life
12) If a person wants to invest a lump sum in an annuity that may appreciate along with market
and economic conditions, they should buy a:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity - (answer)D- Variable Annuity
13) You have a client that is a real estate agent. Which of the following types of permanent
protection is best for this type of client?
A- Variable life
