PRACTICE EXAM OF TEXAS LIFE &
HEALTH INSURANCE QUESTIONS AND
ANSWERS
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 Renewable, decreases over life of
policy at pre-determined rate. - ANSWER-D- $50,000 Decreasing Term policy for 20
years Renewable, decreases over life of policy at pre-determined rate.
A 45-year-old customer who is seeking to supplement his retirement income at age 65
would not buy a: - ANSWER-D- Immediate Annuity Lump Sum, Specified period of time.
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: - ANSWER-
C- 100
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 - ANSWER-C- Life Paid-Up at Age 65
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 - ANSWER-B- Whole Life
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
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance - ANSWER-C- Conversion from a Term
policy to a Whole Life policy
Which of the following is NOT correct regarding Ordinary Whole Life policies?
HEALTH INSURANCE QUESTIONS AND
ANSWERS
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 Renewable, decreases over life of
policy at pre-determined rate. - ANSWER-D- $50,000 Decreasing Term policy for 20
years Renewable, decreases over life of policy at pre-determined rate.
A 45-year-old customer who is seeking to supplement his retirement income at age 65
would not buy a: - ANSWER-D- Immediate Annuity Lump Sum, Specified period of time.
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: - ANSWER-
C- 100
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 - ANSWER-C- Life Paid-Up at Age 65
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 - ANSWER-B- Whole Life
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
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance - ANSWER-C- Conversion from a Term
policy to a Whole Life policy
Which of the following is NOT correct regarding Ordinary Whole Life policies?
