Texas Life and Health Insurance
Practice Test Questions and
Answers 100% PASS
T owns an Accident & Health policy and notifies her insurance company
that she has chosen a less hazardous occupation. Under the Change of
Occupation provision, which of the following actions may her insurance
company take? - CORRECT ANSWER-Increase her policy's coverage amount
When an insurer issues a policy that refuses to cover certain risks, this is
referred to as a(n) - CORRECT ANSWER-Exclusion
An agent who tells claimants that their rights may be impaired if they fail to
complete a release form within a given period of time could be guilty of..? -
CORRECT ANSWER-Coercion
What does the insuring agreement in a Life insurance contract establish? -
CORRECT ANSWER-An insurer's basic promise
The first portion of a covered Major Medical insurance expense that the
insured is required to pay is called the..? - CORRECT ANSWER-Initial
deductible
,A "reimbursement policy" pays what amount of covered Long-Term Care
expenses? - CORRECT ANSWER-Actual covered expenses up to the daily
maximum
The agreement in a life insurance contract that states a specific sum of
money will be paid to a designated person upon an insured's death is called
a(n) - CORRECT ANSWER-Insuring agreement
W is a 39-year old female who just purchased an annuity to provide income
for life starting at age 60. All of these would be acceptable annuity choices
EXCEPT a(n) - CORRECT ANSWER-Immediate annuity
Which of these are NOT an example of a Nonforfeiture option? - CORRECT
ANSWER-Life Income
S filed a written Proof of Loss for a Disability Income claim on September 1.
The insurance company did not respond to the claim. S can take legal action
against the insurer beginning..? - CORRECT ANSWER-November 1
An enrollee of a Health Maintenance Organization (HMO) may be cancelled
or nonrenewed for which of the following reasons? - CORRECT ANSWER-
Failure to pay for coverage
An agent who tells a client that dividends are guaranteed may be guilty of..?
- CORRECT ANSWER-misrepresentation
On delivery of a policy, a signed statement of good health is typically
requested if..? - CORRECT ANSWER-The application was submitted without
the initial premium.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,One becomes eligible for Social Security disability benefits after having been
disabled for..? - CORRECT ANSWER-5 mo.
M is insured under a basic Hospital/Surgical Expense policy. A physician
performs surgery on M. What determines the claim M is eligible for? -
CORRECT ANSWER-Determined by the terms of the policy
When an insurance application is taken by a producer, which of these
statements is true? - CORRECT ANSWER-Any changes made on the
application require the applicant's initials
Which of the following statements BEST describes the intent of a
Coinsurance clause in a Major Medical policy? - CORRECT ANSWER-
Discourages over utilization of the insurance coverage
Health insurance benefits NOT covered due to an act of war are..? -
CORRECT ANSWER-excluded by the insurer in the contract provisions
Under the Texas code, the MAXIMUM for which a spouse may be insured in
a company group life program with a $50,000 death benefit is: - CORRECT
ANSWER-25,000 (or 1/2 of the death benefit)
An agent MUST give a prospective insured an Outline of Coverage when
taking an application for a..? - CORRECT ANSWER-Medicare Supplement
policy
If the insured and primary beneficiary are both killed in the same accident
and it cannot be determined who died first, where are the death proceeds to
be directed under the Uniform Simultaneous Death Act? - CORRECT
ANSWER-Insured's contingent beneficiary (policy proceeds will be paid as if
, the insured died last. In other words, the proceeds will be paid to the
secondary or contingent beneficiary)
A policyowner's rights are limited under which beneficiary designation? -
CORRECT ANSWER-Irrevocable
An agent whose license has been revoked is required to..? - CORRECT
ANSWER-wait at least five years before applying for a new license
An agent may legally share commissions only with - CORRECT ANSWER-
another agent who is licensed in the same line of insurance
Who can purchase a plan through the Marketplace? - CORRECT ANSWER-
Any legal resident except those incarcerated
Which of the following circumstances would cause a Medicare Supplement
policy to be cancelled? - CORRECT ANSWER-The insured fails to pay the
premium
In Texas, a domestic insurance company is defined as a company that..? -
CORRECT ANSWER-is incorporated and formed in Texas
All of the following provisions must be included in life insurance policies
EXCEPT - CORRECT ANSWER-Extended Term
The Insurance Commissioner may examine the records of an insurance
company in order to - CORRECT ANSWER-determine the solvency of the
company
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
Practice Test Questions and
Answers 100% PASS
T owns an Accident & Health policy and notifies her insurance company
that she has chosen a less hazardous occupation. Under the Change of
Occupation provision, which of the following actions may her insurance
company take? - CORRECT ANSWER-Increase her policy's coverage amount
When an insurer issues a policy that refuses to cover certain risks, this is
referred to as a(n) - CORRECT ANSWER-Exclusion
An agent who tells claimants that their rights may be impaired if they fail to
complete a release form within a given period of time could be guilty of..? -
CORRECT ANSWER-Coercion
What does the insuring agreement in a Life insurance contract establish? -
CORRECT ANSWER-An insurer's basic promise
The first portion of a covered Major Medical insurance expense that the
insured is required to pay is called the..? - CORRECT ANSWER-Initial
deductible
,A "reimbursement policy" pays what amount of covered Long-Term Care
expenses? - CORRECT ANSWER-Actual covered expenses up to the daily
maximum
The agreement in a life insurance contract that states a specific sum of
money will be paid to a designated person upon an insured's death is called
a(n) - CORRECT ANSWER-Insuring agreement
W is a 39-year old female who just purchased an annuity to provide income
for life starting at age 60. All of these would be acceptable annuity choices
EXCEPT a(n) - CORRECT ANSWER-Immediate annuity
Which of these are NOT an example of a Nonforfeiture option? - CORRECT
ANSWER-Life Income
S filed a written Proof of Loss for a Disability Income claim on September 1.
The insurance company did not respond to the claim. S can take legal action
against the insurer beginning..? - CORRECT ANSWER-November 1
An enrollee of a Health Maintenance Organization (HMO) may be cancelled
or nonrenewed for which of the following reasons? - CORRECT ANSWER-
Failure to pay for coverage
An agent who tells a client that dividends are guaranteed may be guilty of..?
- CORRECT ANSWER-misrepresentation
On delivery of a policy, a signed statement of good health is typically
requested if..? - CORRECT ANSWER-The application was submitted without
the initial premium.
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
,One becomes eligible for Social Security disability benefits after having been
disabled for..? - CORRECT ANSWER-5 mo.
M is insured under a basic Hospital/Surgical Expense policy. A physician
performs surgery on M. What determines the claim M is eligible for? -
CORRECT ANSWER-Determined by the terms of the policy
When an insurance application is taken by a producer, which of these
statements is true? - CORRECT ANSWER-Any changes made on the
application require the applicant's initials
Which of the following statements BEST describes the intent of a
Coinsurance clause in a Major Medical policy? - CORRECT ANSWER-
Discourages over utilization of the insurance coverage
Health insurance benefits NOT covered due to an act of war are..? -
CORRECT ANSWER-excluded by the insurer in the contract provisions
Under the Texas code, the MAXIMUM for which a spouse may be insured in
a company group life program with a $50,000 death benefit is: - CORRECT
ANSWER-25,000 (or 1/2 of the death benefit)
An agent MUST give a prospective insured an Outline of Coverage when
taking an application for a..? - CORRECT ANSWER-Medicare Supplement
policy
If the insured and primary beneficiary are both killed in the same accident
and it cannot be determined who died first, where are the death proceeds to
be directed under the Uniform Simultaneous Death Act? - CORRECT
ANSWER-Insured's contingent beneficiary (policy proceeds will be paid as if
, the insured died last. In other words, the proceeds will be paid to the
secondary or contingent beneficiary)
A policyowner's rights are limited under which beneficiary designation? -
CORRECT ANSWER-Irrevocable
An agent whose license has been revoked is required to..? - CORRECT
ANSWER-wait at least five years before applying for a new license
An agent may legally share commissions only with - CORRECT ANSWER-
another agent who is licensed in the same line of insurance
Who can purchase a plan through the Marketplace? - CORRECT ANSWER-
Any legal resident except those incarcerated
Which of the following circumstances would cause a Medicare Supplement
policy to be cancelled? - CORRECT ANSWER-The insured fails to pay the
premium
In Texas, a domestic insurance company is defined as a company that..? -
CORRECT ANSWER-is incorporated and formed in Texas
All of the following provisions must be included in life insurance policies
EXCEPT - CORRECT ANSWER-Extended Term
The Insurance Commissioner may examine the records of an insurance
company in order to - CORRECT ANSWER-determine the solvency of the
company
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
