TEXAS LIFE and HEALTH INSURANCE
EXAM SIMULATOR 2026 to 200 PRACTICE
QUESTIONS ANSWERS and
COMPREHENSIVE TEST PREP
A Business Disability Buyout plan policy is designed
as an incurred expense plan
with a very short Elimination period
to pay benefits to the Corporation or other shareholders
to pay benefits to the insured's spouse - CORRECT ANSWER-to pay
benefits to the Corporation or other shareholders
Term insurance has which of the following characteristics?
Expires at the end of the policy period
Builds cash value
Has nonforfeiture options
Endows at the end of the policy period - CORRECT ANSWER-
Expires at the end of the policy period
An agent MUST do which of the following during a sales presentation for a
participating life insurance policy?
,Include a statement that dividends are NOT guaranteed
Include a statement that dividends ARE guaranteed
Explain the applicable Nonforfeiture values
Explain the surrender cost indexes for 5 and 10 years - CORRECT
ANSWER-Include a statement that dividends are NOT guaranteed
In regards to representations or warranties, which of these statements is
TRUE?
Warranties are statements considered to be true to the best of the
applicant's belief
If material to the risk, false representations will void a policy
Representations are statements guaranteed to be true in every respect
If material to the risk, false representations will NOT void a policy -
CORRECT ANSWER-If material to the risk, false representations will
void a policy
The Commissioner of Insurance may issue a temporary agent's license for a
maximum of how many days?
180
90
60
30 - CORRECT ANSWER-90
A stock insurance company is owned by it's
,directors
stockholders
agents
insureds - CORRECT ANSWER-stockholders
J chooses a monthly premium payment mode on his Whole Life insurance
policy. Which of these statements is correct?
The gross premium is higher on a monthly payment mode as compared to
being paid annually
The gross premium is lower on a monthly payment mode as compared to
being paid annually
The cash value from a life policy paid on a monthly basis builds quicker
than one paid on an annual basis
The face amount of a life policy paid on a monthly basis is higher than one
paid on an annual basis - CORRECT ANSWER-The gross premium is
higher on a monthly payment mode as compared to being paid annually
What kind of insurance policy supplies an income stream over a set period
of time that starts when the insured dies?
Family Maintenance Policy
Family Income Policy
Survivor Policy
Family Survivor Policy - CORRECT ANSWER-Family Maintenance
Policy
, Which of these actions is taken when a policyowner uses a Life Insurance
policy as collateral for a bank loan?
Revocable assignment
Beneficiary change
Irrevocable assignment
Collateral assignment - CORRECT ANSWER-Collateral assignment
Under what system do a group of doctors and hospitals in a designated area
contract with an insurer to provide services at a prearranged cost to the
insured?
HMO
PPO
EPO
PLHSO - CORRECT ANSWER-PPO
Basic Hospital and Surgical policy benefits are
lower than the actual expenses incurred
higher than the actual expenses incurred
normally subject to deductibles
normally subject to coinsurance - CORRECT ANSWER-lower than
the actual expenses incurred
EXAM SIMULATOR 2026 to 200 PRACTICE
QUESTIONS ANSWERS and
COMPREHENSIVE TEST PREP
A Business Disability Buyout plan policy is designed
as an incurred expense plan
with a very short Elimination period
to pay benefits to the Corporation or other shareholders
to pay benefits to the insured's spouse - CORRECT ANSWER-to pay
benefits to the Corporation or other shareholders
Term insurance has which of the following characteristics?
Expires at the end of the policy period
Builds cash value
Has nonforfeiture options
Endows at the end of the policy period - CORRECT ANSWER-
Expires at the end of the policy period
An agent MUST do which of the following during a sales presentation for a
participating life insurance policy?
,Include a statement that dividends are NOT guaranteed
Include a statement that dividends ARE guaranteed
Explain the applicable Nonforfeiture values
Explain the surrender cost indexes for 5 and 10 years - CORRECT
ANSWER-Include a statement that dividends are NOT guaranteed
In regards to representations or warranties, which of these statements is
TRUE?
Warranties are statements considered to be true to the best of the
applicant's belief
If material to the risk, false representations will void a policy
Representations are statements guaranteed to be true in every respect
If material to the risk, false representations will NOT void a policy -
CORRECT ANSWER-If material to the risk, false representations will
void a policy
The Commissioner of Insurance may issue a temporary agent's license for a
maximum of how many days?
180
90
60
30 - CORRECT ANSWER-90
A stock insurance company is owned by it's
,directors
stockholders
agents
insureds - CORRECT ANSWER-stockholders
J chooses a monthly premium payment mode on his Whole Life insurance
policy. Which of these statements is correct?
The gross premium is higher on a monthly payment mode as compared to
being paid annually
The gross premium is lower on a monthly payment mode as compared to
being paid annually
The cash value from a life policy paid on a monthly basis builds quicker
than one paid on an annual basis
The face amount of a life policy paid on a monthly basis is higher than one
paid on an annual basis - CORRECT ANSWER-The gross premium is
higher on a monthly payment mode as compared to being paid annually
What kind of insurance policy supplies an income stream over a set period
of time that starts when the insured dies?
Family Maintenance Policy
Family Income Policy
Survivor Policy
Family Survivor Policy - CORRECT ANSWER-Family Maintenance
Policy
, Which of these actions is taken when a policyowner uses a Life Insurance
policy as collateral for a bank loan?
Revocable assignment
Beneficiary change
Irrevocable assignment
Collateral assignment - CORRECT ANSWER-Collateral assignment
Under what system do a group of doctors and hospitals in a designated area
contract with an insurer to provide services at a prearranged cost to the
insured?
HMO
PPO
EPO
PLHSO - CORRECT ANSWER-PPO
Basic Hospital and Surgical policy benefits are
lower than the actual expenses incurred
higher than the actual expenses incurred
normally subject to deductibles
normally subject to coinsurance - CORRECT ANSWER-lower than
the actual expenses incurred
