Texas Life Insurance Exam Questions
and Answers | Latest Version |
2025/2026 | Correct & Verified
What is the primary purpose of life insurance under Texas law?
✔✔To provide a financial benefit to beneficiaries upon the insured’s death.
Who owns a life insurance policy unless ownership is transferred?
✔✔The policyowner.
When must insurable interest exist in a Texas life insurance policy?
✔✔At the time the policy is issued.
What happens if a Texas life insurance premium is not paid by the end of the grace period?
✔✔The policy lapses.
What is the typical grace period for life insurance premiums in Texas?
✔✔Thirty-one days.
What does the face amount of a life insurance policy represent?
✔✔The death benefit payable upon the insured’s death.
Who selects the beneficiary in a life insurance policy?
1
,✔✔The policyowner.
What type of beneficiary can be changed at any time without permission?
✔✔A revocable beneficiary.
What is a contingent beneficiary?
✔✔A secondary beneficiary who receives benefits if the primary beneficiary cannot.
What is the purpose of a free-look period in Texas life insurance policies?
✔✔To allow the policyowner to review and cancel the policy for a full refund.
How long is the Texas free-look period for life insurance policies?
✔✔At least 10 days.
What does the incontestability clause protect against?
✔✔Policy cancellation after a set time except for fraud.
When does the incontestability period usually begin?
✔✔On the policy issue date.
What is the typical incontestability period for Texas life insurance?
✔✔Two years.
2
, What is the suicide clause in a life insurance policy?
✔✔A provision limiting payment if death is by suicide within a certain period.
How long is the suicide exclusion period in Texas life insurance policies?
✔✔Two years from policy issue.
What is the purpose of a misstatement of age provision?
✔✔To adjust benefits if the insured’s age was stated incorrectly.
What happens if the insured’s age is misstated on a Texas life policy?
✔✔Benefits are adjusted to what premiums would have purchased at the correct age.
What type of life insurance provides coverage for a specific time period?
✔✔Term life insurance.
What happens at the end of a term life policy if it is not renewed?
✔✔Coverage ends.
Which type of life insurance builds guaranteed cash value?
✔✔Whole life insurance.
3
and Answers | Latest Version |
2025/2026 | Correct & Verified
What is the primary purpose of life insurance under Texas law?
✔✔To provide a financial benefit to beneficiaries upon the insured’s death.
Who owns a life insurance policy unless ownership is transferred?
✔✔The policyowner.
When must insurable interest exist in a Texas life insurance policy?
✔✔At the time the policy is issued.
What happens if a Texas life insurance premium is not paid by the end of the grace period?
✔✔The policy lapses.
What is the typical grace period for life insurance premiums in Texas?
✔✔Thirty-one days.
What does the face amount of a life insurance policy represent?
✔✔The death benefit payable upon the insured’s death.
Who selects the beneficiary in a life insurance policy?
1
,✔✔The policyowner.
What type of beneficiary can be changed at any time without permission?
✔✔A revocable beneficiary.
What is a contingent beneficiary?
✔✔A secondary beneficiary who receives benefits if the primary beneficiary cannot.
What is the purpose of a free-look period in Texas life insurance policies?
✔✔To allow the policyowner to review and cancel the policy for a full refund.
How long is the Texas free-look period for life insurance policies?
✔✔At least 10 days.
What does the incontestability clause protect against?
✔✔Policy cancellation after a set time except for fraud.
When does the incontestability period usually begin?
✔✔On the policy issue date.
What is the typical incontestability period for Texas life insurance?
✔✔Two years.
2
, What is the suicide clause in a life insurance policy?
✔✔A provision limiting payment if death is by suicide within a certain period.
How long is the suicide exclusion period in Texas life insurance policies?
✔✔Two years from policy issue.
What is the purpose of a misstatement of age provision?
✔✔To adjust benefits if the insured’s age was stated incorrectly.
What happens if the insured’s age is misstated on a Texas life policy?
✔✔Benefits are adjusted to what premiums would have purchased at the correct age.
What type of life insurance provides coverage for a specific time period?
✔✔Term life insurance.
What happens at the end of a term life policy if it is not renewed?
✔✔Coverage ends.
Which type of life insurance builds guaranteed cash value?
✔✔Whole life insurance.
3
