TEXAS LIFE AND HEALTH
INSURANCE PRACTICE TEST / 300
+ ACTUAL QUESTIONS AND
CORRECT ANSWERS 2025/2026
GRADED A+.
,1. T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous
occupation. Under the Change of Occu- pation provision, which of the following actions may her insurance
company take? ANSWER Increase her policy's coverage amount
2. When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) ANSWER
Exclusion
3. 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..? ANSWER Coercion
4. What does the insuring agreement in a Life insurance contract establish?-
ANSWER An insurer's basic promise
5. The first portion of a covered Major Medical insurance expense that the insured is required to pay is
called the..? ANSWER Initial deductible
6. A "reimbursement policy" pays what amount of covered Long-Term Care expenses? ANSWER Actual
covered expenses up to the daily maximum
7. 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) ANSWER Insuring agreement
8. 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) ANSWER Immediate annuity
9. Which of these are NOT an example of a Nonforfeiture option? ANSWER Life Income
10. 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..?
ANSWER November 1
11. An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the
following reasons? ANSWER Failure to pay for coverage
12. An agent who tells a client that dividends are guaranteed may be guilty of..? ANSWER misrepresentation
13. On delivery of a policy, a signed statement of good health is typically requested if..? ANSWER The
application was submitted without the initial premium.
14. One becomes eligible for Social Security disability benefits after having been disabled for..? ANSWER 5
mo.
15. M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What
determines the claim M is eligible for? ANSWER Deter- mined by the terms of the policy
16. When an insurance application is taken by a producer, which of these statements is true? ANSWER Any
changes made on the application require the applicant's initials
, 17. Which of the following statements BEST describes the intent of a Coin- surance clause in a Major Medical
policy? ANSWER Discourages over utilization of the insurance coverage
18. Health insurance benefits NOT covered due to an act of war are..? ANSWER excluded by the insurer in the
contract provisions
19. 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 ANSWER ANSWER 25,000 (or 1/2 of the death benefit)
20. An agent MUST give a prospective insured an Outline of Coverage when taking an application for a..?
ANSWER Medicare Supplement policy
21. 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? 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)
22. A policyowner's rights are limited under which beneficiary designation? ANSWER -
Irrevocable
23. An agent whose license has been revoked is required to..? ANSWER wait at least five years before applying for a
new license
24. An agent may legally share commissions only with ANSWER another agent who is licensed in the same line
of insurance
25. Who can purchase a plan through the Marketplace? ANSWER Any legal resident except those
incarcerated
26. Which of the following circumstances would cause a Medicare Supplement policy to be cancelled? ANSWER
The insured fails to pay the premium
27. InTexas, a domestic insurance company is defined as a company that..? ANSWER is incorporated and formed in
Texas
28. All of the following provisions must be included in life insurance policies EXCEPT ANSWER Extended
Term
29. The Insurance Commissioner may examine the records of an insurance company in order to ANSWER
determine the solvency of the company
30. Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner
MUST give how many days notice? ANSWER 30
31. Boycott, coercion, and intimidation that result in the unreasonable re- straint of trade are prohibited under
the Texas Insurance Code covering ANSWER unfair methods of competition
INSURANCE PRACTICE TEST / 300
+ ACTUAL QUESTIONS AND
CORRECT ANSWERS 2025/2026
GRADED A+.
,1. T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous
occupation. Under the Change of Occu- pation provision, which of the following actions may her insurance
company take? ANSWER Increase her policy's coverage amount
2. When an insurer issues a policy that refuses to cover certain risks, this is referred to as a(n) ANSWER
Exclusion
3. 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..? ANSWER Coercion
4. What does the insuring agreement in a Life insurance contract establish?-
ANSWER An insurer's basic promise
5. The first portion of a covered Major Medical insurance expense that the insured is required to pay is
called the..? ANSWER Initial deductible
6. A "reimbursement policy" pays what amount of covered Long-Term Care expenses? ANSWER Actual
covered expenses up to the daily maximum
7. 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) ANSWER Insuring agreement
8. 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) ANSWER Immediate annuity
9. Which of these are NOT an example of a Nonforfeiture option? ANSWER Life Income
10. 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..?
ANSWER November 1
11. An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the
following reasons? ANSWER Failure to pay for coverage
12. An agent who tells a client that dividends are guaranteed may be guilty of..? ANSWER misrepresentation
13. On delivery of a policy, a signed statement of good health is typically requested if..? ANSWER The
application was submitted without the initial premium.
14. One becomes eligible for Social Security disability benefits after having been disabled for..? ANSWER 5
mo.
15. M is insured under a basic Hospital/Surgical Expense policy. A physician performs surgery on M. What
determines the claim M is eligible for? ANSWER Deter- mined by the terms of the policy
16. When an insurance application is taken by a producer, which of these statements is true? ANSWER Any
changes made on the application require the applicant's initials
, 17. Which of the following statements BEST describes the intent of a Coin- surance clause in a Major Medical
policy? ANSWER Discourages over utilization of the insurance coverage
18. Health insurance benefits NOT covered due to an act of war are..? ANSWER excluded by the insurer in the
contract provisions
19. 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 ANSWER ANSWER 25,000 (or 1/2 of the death benefit)
20. An agent MUST give a prospective insured an Outline of Coverage when taking an application for a..?
ANSWER Medicare Supplement policy
21. 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? 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)
22. A policyowner's rights are limited under which beneficiary designation? ANSWER -
Irrevocable
23. An agent whose license has been revoked is required to..? ANSWER wait at least five years before applying for a
new license
24. An agent may legally share commissions only with ANSWER another agent who is licensed in the same line
of insurance
25. Who can purchase a plan through the Marketplace? ANSWER Any legal resident except those
incarcerated
26. Which of the following circumstances would cause a Medicare Supplement policy to be cancelled? ANSWER
The insured fails to pay the premium
27. InTexas, a domestic insurance company is defined as a company that..? ANSWER is incorporated and formed in
Texas
28. All of the following provisions must be included in life insurance policies EXCEPT ANSWER Extended
Term
29. The Insurance Commissioner may examine the records of an insurance company in order to ANSWER
determine the solvency of the company
30. Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner
MUST give how many days notice? ANSWER 30
31. Boycott, coercion, and intimidation that result in the unreasonable re- straint of trade are prohibited under
the Texas Insurance Code covering ANSWER unfair methods of competition
