Texas General Lines - Life, accident and health insurance PRACTICE EXAM.Final Test 2026\2027.
LIFE SECTION 1
LIFE SECTION 1
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-
year-amortized $50,000 business-improvement loan. Which of the following plans would
adequately protect Ms. Timms at the minimum premium outlay?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
2) A 45-year old customer who is seeking to supplement his retirement income at age 65 would
not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
3) John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value
will equal the face amount of the policy when he reaches the age of:
A- 60
B- 70
C- 100
D- 30
4) Which of the following is an example of a Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
5) Which of the following policies provides the greatest amount of protection for an insured's
premium dollar as well as some cash accumulation?
A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life
6) Which of the following individual policy conversions is usually permitted without any evidence
of insurability?
A- Conversion to a lower-premium plan
B- Conversion from a Whole Life policy to a Term policy
,Texas General Lines - Life, accident and health insurance PRACTICE EXAM.Final Test 2026\2027.
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance
7) Which of the following is NOT correct regarding Ordinary Whole Life policies?
A- The premiums payments are owed annually until you die or reach age 100
B- The cash value grows more quickly in the beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent insurance
8) Which of the following statements is true about the premium payment schedule for a Whole Life
policy?
A- Premiums are payable for a designated period of time only, after which coverage is no longer provided
B- Premiums are payable until the insured's retirement only, after which coverage is continued
automatically until the insured's death
C- One premium, in the amount of the insured's choice, is payable at the time of application, and the
balance of the premiums is deducted from the face amount of the policy at the time of the insured's death
D- Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's
death
9) A life insurance policy that covers two parties, but only pays when the last party dies is known
as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
10) Which of the following contracts requires that a series of benefit payments be made at
specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
11) If a client wants cash value life insurance with a flexible premium and an adjustable death
benefit that will allow the policy owner a choice of various cash value investment options, he
should buy:
A- Variable Life
B- Universal Life
,Texas General Lines - Life, accident and health insurance PRACTICE EXAM.Final Test 2026\2027.
C- Adjustable Life
D- Variable/Universal Life
12) If a person wants to invest a lump sum in an annuity that may appreciate along with market
and economic conditions, they should buy a:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity
13) You have a client that is a real estate agent. Which of the following types of permanent
protection is best for this type of client?
A- Variable life
B- Universal life
C- Survivorship life
D- Adjustable life
14) In order to sell variable life insurance you must be registered with which of the following?
A- The SEC
B- The State
C- The NYSE
D- The NASD
15) Which of the following is an example of a Limited-Pay Life policy:
A- Traditional Whole Life
B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
16) An insurance producer selling a Variable Annuity whose cash value depends on the
performance of an underlying investment account must be registered with:
A- The National Association of Insurance Commissioners
B- The National Association of Life Underwriters
C- The Chartered Life Underwriters
D- The Financial Industry Regulatory Authority (FINRA, formerly the NASD)
17) A business owner with a fluctuating income who wants a life insurance policy that can be
changed to suit economic conditions should buy:
A- Variable Life
B- Modified Whole Life
C- Adjustable Life
D- Interest-sensitive Whole Life
, Texas General Lines - Life, accident and health insurance PRACTICE EXAM.Final Test 2026\2027.
18) An Annuity is designed to provide which of the following financial features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate
A- I, II, and III
B- I and II
C- I and III
D- II and III
19) Which of the following statements about a Renewable Term policy is true?
A- It is renewable at the option of the insurance company
B- It is renewable at the option of the insured
C- It is renewable at the option of the insurance company, with proof of insurability
D- It is renewable at the option of the insured, with proof of insurability
20) Most Term Life insurance:
A- Is convertible to permanent Whole Life without a physical exam
B- Has a guaranteed cash value
C- Is renewable with evidence of insurability
D- Is renewable to age 100
21) A life insurance policy whose cash value will fluctuate depending upon the performance of a
separate account is:
A- Limited-pay Life
B- Universal Life
C- Ordinary Life
D- Variable Life
22) A life insurance policy that combines term insurance protection, a flexible premium, and cash
value accumulation is:
A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life
23) Which of the following types of insurance policies would provide the greatest amount of
protection for a temporary period during which an insured will have limited financial resources?
A- Term
B- Limited Pay policy
C- Whole Life
D- Annuity
LIFE SECTION 1
LIFE SECTION 1
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-
year-amortized $50,000 business-improvement loan. Which of the following plans would
adequately protect Ms. Timms at the minimum premium outlay?
A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
2) A 45-year old customer who is seeking to supplement his retirement income at age 65 would
not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
3) John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value
will equal the face amount of the policy when he reaches the age of:
A- 60
B- 70
C- 100
D- 30
4) Which of the following is an example of a Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
5) Which of the following policies provides the greatest amount of protection for an insured's
premium dollar as well as some cash accumulation?
A- Annuity
B- Whole Life
C- Term
D- Limited-Pay Life
6) Which of the following individual policy conversions is usually permitted without any evidence
of insurability?
A- Conversion to a lower-premium plan
B- Conversion from a Whole Life policy to a Term policy
,Texas General Lines - Life, accident and health insurance PRACTICE EXAM.Final Test 2026\2027.
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance
7) Which of the following is NOT correct regarding Ordinary Whole Life policies?
A- The premiums payments are owed annually until you die or reach age 100
B- The cash value grows more quickly in the beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent insurance
8) Which of the following statements is true about the premium payment schedule for a Whole Life
policy?
A- Premiums are payable for a designated period of time only, after which coverage is no longer provided
B- Premiums are payable until the insured's retirement only, after which coverage is continued
automatically until the insured's death
C- One premium, in the amount of the insured's choice, is payable at the time of application, and the
balance of the premiums is deducted from the face amount of the policy at the time of the insured's death
D- Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's
death
9) A life insurance policy that covers two parties, but only pays when the last party dies is known
as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
10) Which of the following contracts requires that a series of benefit payments be made at
specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
11) If a client wants cash value life insurance with a flexible premium and an adjustable death
benefit that will allow the policy owner a choice of various cash value investment options, he
should buy:
A- Variable Life
B- Universal Life
,Texas General Lines - Life, accident and health insurance PRACTICE EXAM.Final Test 2026\2027.
C- Adjustable Life
D- Variable/Universal Life
12) If a person wants to invest a lump sum in an annuity that may appreciate along with market
and economic conditions, they should buy a:
A- Flexible premium Annuity
B- Fixed Annuity
C- Deferred Annuity
D- Variable Annuity
13) You have a client that is a real estate agent. Which of the following types of permanent
protection is best for this type of client?
A- Variable life
B- Universal life
C- Survivorship life
D- Adjustable life
14) In order to sell variable life insurance you must be registered with which of the following?
A- The SEC
B- The State
C- The NYSE
D- The NASD
15) Which of the following is an example of a Limited-Pay Life policy:
A- Traditional Whole Life
B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
16) An insurance producer selling a Variable Annuity whose cash value depends on the
performance of an underlying investment account must be registered with:
A- The National Association of Insurance Commissioners
B- The National Association of Life Underwriters
C- The Chartered Life Underwriters
D- The Financial Industry Regulatory Authority (FINRA, formerly the NASD)
17) A business owner with a fluctuating income who wants a life insurance policy that can be
changed to suit economic conditions should buy:
A- Variable Life
B- Modified Whole Life
C- Adjustable Life
D- Interest-sensitive Whole Life
, Texas General Lines - Life, accident and health insurance PRACTICE EXAM.Final Test 2026\2027.
18) An Annuity is designed to provide which of the following financial features?
I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate
A- I, II, and III
B- I and II
C- I and III
D- II and III
19) Which of the following statements about a Renewable Term policy is true?
A- It is renewable at the option of the insurance company
B- It is renewable at the option of the insured
C- It is renewable at the option of the insurance company, with proof of insurability
D- It is renewable at the option of the insured, with proof of insurability
20) Most Term Life insurance:
A- Is convertible to permanent Whole Life without a physical exam
B- Has a guaranteed cash value
C- Is renewable with evidence of insurability
D- Is renewable to age 100
21) A life insurance policy whose cash value will fluctuate depending upon the performance of a
separate account is:
A- Limited-pay Life
B- Universal Life
C- Ordinary Life
D- Variable Life
22) A life insurance policy that combines term insurance protection, a flexible premium, and cash
value accumulation is:
A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life
23) Which of the following types of insurance policies would provide the greatest amount of
protection for a temporary period during which an insured will have limited financial resources?
A- Term
B- Limited Pay policy
C- Whole Life
D- Annuity
