TEXAS GENERAL LINES - LIFE,
ACCIDENT AND HEALTH INSURANCE
PRACTICE EXAM 2026/2027 WITH 340
QUESTIONS AND EXPERT-VERIFIED
CORRECT ANSWERS | ALREADY
GRADED A+ | GUARANTEED SUCCESS
1) Which of the following statements about the Reinstatement provision is true?
A- It provides for reinstatement of a policy regardless of the insured's health
B- It requires the policy owner to pay, with interest, all premiums that are in
arrears in order for the policy to be reinstated
C- It permits reinstatement within 10 years after a policy has lapsed
D- It guarantees the reinstatement of a policy that has been surrendered for cash -
ANSWER-B- It requires the policy owner to pay, with interest, all premiums that
are in arrears in order for the policy to be reinstated
,2) The time period covered by the Free Look provision of a Life insurance contract
starts:
A- When the insured receives the contract and a "right to look" receipt
B- When the contract is received in the agency office and given to the producer
C- When the insured receives the contract and makes the first premium payment, if
needed
D- When the contract is issued and mailed to the agency office from the home
office of the insurance company - ANSWER-C- When the insured receives the
contract and makes the first premium payment, if needed
3) Dividend projections may be included in a proposal for Life insurance when
which of the following is true?
A- There is a clear statement that payment of future dividends is not guaranteed
B- The applicant has requested that they be included
C- The projected amounts do not exceed the dividends previously paid by the same
insurance company
D- The projected amounts are calculated on the basis of the Commissioners
Standard Ordinary Mortality Tables - ANSWER-A- There is a clear statement that
payment of future dividends is not guaranteed
4) The Life insurance rider that will pay the insured's premium after a period of
disability due to accident or sickness is:
A- Guaranteed Insurability
B- Accidental Death and Dismemberment
C- Waiver of Premium
D- Automatic Premium Loan - ANSWER-C- Waiver of Premium
,5) Which of the following is a Non-forfeiture Option that provides continuing cash
value buildup?
A- Extended Term
B- Deferred Annuity
C- Reduced Paid-Up
D- Cash Surrender - ANSWER-C- Reduced Paid-Up
6) A rider that keeps a policy from lapsing due to non-payment of premium by
borrowing from the cash value is:
A- Reduced Paid-Up Option
B- Extended Term Option
C- Automatic Premium Loan
D- Mode of Payment - ANSWER-C- Automatic Premium Loan
7) Which of the following Settlement Options might provide payments that exceed
the proceeds of the policy and the interest earned?
A- Interest Only
B- Fixed Period
C- Life Annuity
D- Fixed Amount - ANSWER-C- Life Annuity
8) A client buys a $50,000 Whole Life policy on himself and wants to add $25,000
in Term coverage for his spouse. He should add which of the following riders to
his policy? - ANSWER-A- Spousal Rider
B- Family Rider
C- Other Insured Rider
D- Additional Insured Rider
, 9) All of the following are considered to be owner's rights under a Life insurance
policy, EXCEPT: - ANSWER-A- Changing an irrevocable beneficiary
B- Changing a dividend option
C- Taking a policy loan
D- Selecting a settlement option prior to death
10) If the insured dies 5 years after he bought a Life insurance policy and the
insurer determines that there was material misrepresentation on his application,
they will: - ANSWER-A- Pay the claim
B- Pay only a portion of the claim
C- Deny the claim
D- Deny the claim but refund the premium
11) The life insurance policy provision that prevents the insurer from modifying a
policy after it has been issued is the: - ANSWER-A- Incontestability Clause
B- Entire Contract Clause
C- Consideration Clause
D- Insuring Clause
12) Which of the following statements is true about exercising a Guaranteed
Insurability option:
I. The new insurance is available at the original issue age rate
II. Evidence of insurability is not required
III. The insured can exercise the option at any time after the age of 21
IV. The maximum purchase is specified in the contract - ANSWER-A- III and IV
ACCIDENT AND HEALTH INSURANCE
PRACTICE EXAM 2026/2027 WITH 340
QUESTIONS AND EXPERT-VERIFIED
CORRECT ANSWERS | ALREADY
GRADED A+ | GUARANTEED SUCCESS
1) Which of the following statements about the Reinstatement provision is true?
A- It provides for reinstatement of a policy regardless of the insured's health
B- It requires the policy owner to pay, with interest, all premiums that are in
arrears in order for the policy to be reinstated
C- It permits reinstatement within 10 years after a policy has lapsed
D- It guarantees the reinstatement of a policy that has been surrendered for cash -
ANSWER-B- It requires the policy owner to pay, with interest, all premiums that
are in arrears in order for the policy to be reinstated
,2) The time period covered by the Free Look provision of a Life insurance contract
starts:
A- When the insured receives the contract and a "right to look" receipt
B- When the contract is received in the agency office and given to the producer
C- When the insured receives the contract and makes the first premium payment, if
needed
D- When the contract is issued and mailed to the agency office from the home
office of the insurance company - ANSWER-C- When the insured receives the
contract and makes the first premium payment, if needed
3) Dividend projections may be included in a proposal for Life insurance when
which of the following is true?
A- There is a clear statement that payment of future dividends is not guaranteed
B- The applicant has requested that they be included
C- The projected amounts do not exceed the dividends previously paid by the same
insurance company
D- The projected amounts are calculated on the basis of the Commissioners
Standard Ordinary Mortality Tables - ANSWER-A- There is a clear statement that
payment of future dividends is not guaranteed
4) The Life insurance rider that will pay the insured's premium after a period of
disability due to accident or sickness is:
A- Guaranteed Insurability
B- Accidental Death and Dismemberment
C- Waiver of Premium
D- Automatic Premium Loan - ANSWER-C- Waiver of Premium
,5) Which of the following is a Non-forfeiture Option that provides continuing cash
value buildup?
A- Extended Term
B- Deferred Annuity
C- Reduced Paid-Up
D- Cash Surrender - ANSWER-C- Reduced Paid-Up
6) A rider that keeps a policy from lapsing due to non-payment of premium by
borrowing from the cash value is:
A- Reduced Paid-Up Option
B- Extended Term Option
C- Automatic Premium Loan
D- Mode of Payment - ANSWER-C- Automatic Premium Loan
7) Which of the following Settlement Options might provide payments that exceed
the proceeds of the policy and the interest earned?
A- Interest Only
B- Fixed Period
C- Life Annuity
D- Fixed Amount - ANSWER-C- Life Annuity
8) A client buys a $50,000 Whole Life policy on himself and wants to add $25,000
in Term coverage for his spouse. He should add which of the following riders to
his policy? - ANSWER-A- Spousal Rider
B- Family Rider
C- Other Insured Rider
D- Additional Insured Rider
, 9) All of the following are considered to be owner's rights under a Life insurance
policy, EXCEPT: - ANSWER-A- Changing an irrevocable beneficiary
B- Changing a dividend option
C- Taking a policy loan
D- Selecting a settlement option prior to death
10) If the insured dies 5 years after he bought a Life insurance policy and the
insurer determines that there was material misrepresentation on his application,
they will: - ANSWER-A- Pay the claim
B- Pay only a portion of the claim
C- Deny the claim
D- Deny the claim but refund the premium
11) The life insurance policy provision that prevents the insurer from modifying a
policy after it has been issued is the: - ANSWER-A- Incontestability Clause
B- Entire Contract Clause
C- Consideration Clause
D- Insuring Clause
12) Which of the following statements is true about exercising a Guaranteed
Insurability option:
I. The new insurance is available at the original issue age rate
II. Evidence of insurability is not required
III. The insured can exercise the option at any time after the age of 21
IV. The maximum purchase is specified in the contract - ANSWER-A- III and IV
