Texas health, and insurance
Exam Questions and Answers
100% PASS
Level term life insurance - CORRECT ANSWER-Provides a level death benefit
for a specified term and builds no cash value.
Policy loan feature - CORRECT ANSWER-Allows the policyowner to take
partial withdrawals or borrow from a policy's cash value.
Immediate annuity - CORRECT ANSWER-An annuity that begins payments
immediately after a single premium.
Variable universal life - CORRECT ANSWER-Life insurance whose cash
values are tied to subaccount (market) performance.
Term conversion privilege - CORRECT ANSWER-Allows conversion to
permanent coverage without evidence of insurability.
Accelerated death benefit - CORRECT ANSWER-Allows a terminally or
chronically ill insured to receive part of the death benefit early.
Reduced paid-up nonforfeiture - CORRECT ANSWER-Uses cash value to
purchase a smaller, paid-up policy.
, Incontestability period - CORRECT ANSWER-After 2 years, insurer generally
cannot contest the policy.
Waiver of premium rider - CORRECT ANSWER-Waives premiums if the
insured becomes totally disabled.
Return of premium term - CORRECT ANSWER-Returns premiums paid if
the insured survives the term.
Entire contract provision - CORRECT ANSWER-Includes the policy,
endorsements/riders, and the application.
Texas life insurance free look - CORRECT ANSWER-10-day free look period
for individual life policies.
Life insurance grace period - CORRECT ANSWER-31 days to pay premiums
before lapse.
Incontestability provision purpose - CORRECT ANSWER-Prevents contesting
application statements after 2 years.
Automatic premium loan - CORRECT ANSWER-Pays overdue premiums by
borrowing from cash value.
Misstatement of age - CORRECT ANSWER-Benefits are adjusted to reflect
the correct age.
Fixed period settlement option - CORRECT ANSWER-Pays proceeds in
installments over a specified time.
Consideration - CORRECT ANSWER-Exchange of value: premium and
truthful statements for insurer's promise.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
Exam Questions and Answers
100% PASS
Level term life insurance - CORRECT ANSWER-Provides a level death benefit
for a specified term and builds no cash value.
Policy loan feature - CORRECT ANSWER-Allows the policyowner to take
partial withdrawals or borrow from a policy's cash value.
Immediate annuity - CORRECT ANSWER-An annuity that begins payments
immediately after a single premium.
Variable universal life - CORRECT ANSWER-Life insurance whose cash
values are tied to subaccount (market) performance.
Term conversion privilege - CORRECT ANSWER-Allows conversion to
permanent coverage without evidence of insurability.
Accelerated death benefit - CORRECT ANSWER-Allows a terminally or
chronically ill insured to receive part of the death benefit early.
Reduced paid-up nonforfeiture - CORRECT ANSWER-Uses cash value to
purchase a smaller, paid-up policy.
, Incontestability period - CORRECT ANSWER-After 2 years, insurer generally
cannot contest the policy.
Waiver of premium rider - CORRECT ANSWER-Waives premiums if the
insured becomes totally disabled.
Return of premium term - CORRECT ANSWER-Returns premiums paid if
the insured survives the term.
Entire contract provision - CORRECT ANSWER-Includes the policy,
endorsements/riders, and the application.
Texas life insurance free look - CORRECT ANSWER-10-day free look period
for individual life policies.
Life insurance grace period - CORRECT ANSWER-31 days to pay premiums
before lapse.
Incontestability provision purpose - CORRECT ANSWER-Prevents contesting
application statements after 2 years.
Automatic premium loan - CORRECT ANSWER-Pays overdue premiums by
borrowing from cash value.
Misstatement of age - CORRECT ANSWER-Benefits are adjusted to reflect
the correct age.
Fixed period settlement option - CORRECT ANSWER-Pays proceeds in
installments over a specified time.
Consideration - CORRECT ANSWER-Exchange of value: premium and
truthful statements for insurer's promise.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
