INS TX LAH05 General Lines Life, Accident & Health Insurance
Exam | Complete Questions, Verified Correct Answers &
Explanations – Latest Update 2026/2027
Question 1
The primary purpose of life insurance is to:
A. Provide financial protection against loss of income due to death
B. Guarantee investment profits
C. Eliminate all personal expenses
D. Replace retirement accounts completely
Correct Answer: A. Provide financial protection against loss of income
due to death
Explanation:
Life insurance provides a financial benefit to beneficiaries when the insured
dies. It helps replace lost income, pay debts, cover funeral costs, and provide
financial security for dependents.
Question 2
The person who owns a life insurance policy is called the:
A. Policyowner
B. Beneficiary
C. Insured
D. Agent
Correct Answer: A. Policyowner
Explanation:
The policyowner has contractual rights, including the ability to change
beneficiaries, borrow against cash value, and make policy changes.
1
,Question 3
The person whose life is covered under a life insurance policy is the:
A. Insured
B. Beneficiary
C. Producer
D. Underwriter
Correct Answer: A. Insured
Explanation:
The insured is the individual whose death triggers payment of the policy
benefit.
Question 4
The beneficiary of a life insurance policy is:
A. The person or entity receiving the death benefit
B. The person who sells the policy
C. The insurance company
D. The person completing the application
Correct Answer: A. The person or entity receiving the death benefit
Explanation:
A beneficiary receives the policy proceeds after the insured’s death according
to the policy terms.
Question 5
The principle of insurable interest requires that:
A. The policyowner would experience financial or emotional loss if the insured
dies
B. Everyone must own life insurance
2
,C. Only insurance companies can buy policies
D. Policies must always be investments
Correct Answer: A. The policyowner would experience financial or
emotional loss if the insured dies
Explanation:
Insurable interest prevents people from purchasing insurance on strangers
purely for financial gain.
Question 6
A term life insurance policy provides:
A. Protection for a specific period of time
B. Lifetime coverage with cash accumulation
C. Guaranteed investment returns
D. Medical coverage only
Correct Answer: A. Protection for a specific period of time
Explanation:
Term life insurance provides temporary protection, usually for periods such
as 10, 20, or 30 years, and generally has no cash value.
Question 7
Whole life insurance is characterized by:
A. Lifetime protection and cash value accumulation
B. Coverage only for one year
C. No death benefit
D. Coverage without premiums
Correct Answer: A. Lifetime protection and cash value accumulation
3
, Explanation:
Whole life insurance provides permanent coverage and builds guaranteed
cash value over time.
Question 8
Universal life insurance is known for:
A. Flexible premiums and adjustable death benefits
B. Fixed short-term coverage only
C. No savings component
D. Mandatory annual renewal
Correct Answer: A. Flexible premiums and adjustable death benefits
Explanation:
Universal life allows policyowners flexibility in premium payments and death
benefit options.
Question 9
The death benefit is:
A. The amount paid to beneficiaries after the insured’s death
B. The premium paid by the owner
C. The agent’s commission
D. The policy application fee
Correct Answer: A. The amount paid to beneficiaries after the insured’s
death
Explanation:
The death benefit is the primary protection provided by life insurance.
Question 10
4
Exam | Complete Questions, Verified Correct Answers &
Explanations – Latest Update 2026/2027
Question 1
The primary purpose of life insurance is to:
A. Provide financial protection against loss of income due to death
B. Guarantee investment profits
C. Eliminate all personal expenses
D. Replace retirement accounts completely
Correct Answer: A. Provide financial protection against loss of income
due to death
Explanation:
Life insurance provides a financial benefit to beneficiaries when the insured
dies. It helps replace lost income, pay debts, cover funeral costs, and provide
financial security for dependents.
Question 2
The person who owns a life insurance policy is called the:
A. Policyowner
B. Beneficiary
C. Insured
D. Agent
Correct Answer: A. Policyowner
Explanation:
The policyowner has contractual rights, including the ability to change
beneficiaries, borrow against cash value, and make policy changes.
1
,Question 3
The person whose life is covered under a life insurance policy is the:
A. Insured
B. Beneficiary
C. Producer
D. Underwriter
Correct Answer: A. Insured
Explanation:
The insured is the individual whose death triggers payment of the policy
benefit.
Question 4
The beneficiary of a life insurance policy is:
A. The person or entity receiving the death benefit
B. The person who sells the policy
C. The insurance company
D. The person completing the application
Correct Answer: A. The person or entity receiving the death benefit
Explanation:
A beneficiary receives the policy proceeds after the insured’s death according
to the policy terms.
Question 5
The principle of insurable interest requires that:
A. The policyowner would experience financial or emotional loss if the insured
dies
B. Everyone must own life insurance
2
,C. Only insurance companies can buy policies
D. Policies must always be investments
Correct Answer: A. The policyowner would experience financial or
emotional loss if the insured dies
Explanation:
Insurable interest prevents people from purchasing insurance on strangers
purely for financial gain.
Question 6
A term life insurance policy provides:
A. Protection for a specific period of time
B. Lifetime coverage with cash accumulation
C. Guaranteed investment returns
D. Medical coverage only
Correct Answer: A. Protection for a specific period of time
Explanation:
Term life insurance provides temporary protection, usually for periods such
as 10, 20, or 30 years, and generally has no cash value.
Question 7
Whole life insurance is characterized by:
A. Lifetime protection and cash value accumulation
B. Coverage only for one year
C. No death benefit
D. Coverage without premiums
Correct Answer: A. Lifetime protection and cash value accumulation
3
, Explanation:
Whole life insurance provides permanent coverage and builds guaranteed
cash value over time.
Question 8
Universal life insurance is known for:
A. Flexible premiums and adjustable death benefits
B. Fixed short-term coverage only
C. No savings component
D. Mandatory annual renewal
Correct Answer: A. Flexible premiums and adjustable death benefits
Explanation:
Universal life allows policyowners flexibility in premium payments and death
benefit options.
Question 9
The death benefit is:
A. The amount paid to beneficiaries after the insured’s death
B. The premium paid by the owner
C. The agent’s commission
D. The policy application fee
Correct Answer: A. The amount paid to beneficiaries after the insured’s
death
Explanation:
The death benefit is the primary protection provided by life insurance.
Question 10
4
