TEXAS LIFE AND HEALTH EVALUATION EXAMS 2025/2026
QUESTIONS AND SOLUTIONS GRADED A+
✔✔If a business owner becomes disabled, a Business Overhead Expense policy would
cover - ✔✔office rent and telephone bills
✔✔Under federal law a tax exempt Health Savings Account can only be opened for an
individual who is enrolled in which type of plan? - ✔✔High deductible health plan
✔✔A retirement plan that may be established by an employee, regardless of any other
retirement plan is called a(n) - ✔✔Individual Retirement Account (IRA)
✔✔Q and H are co-primary beneficiaries on the $100,000 Accidental Death and
Dismemberment policy insuring their mother. Their father is the contingent beneficiary.
If Q dies of cancer and the mother is killed in an auto accident two months later, the
father will receive a MAXIMUM of - ✔✔0$
✔✔Under the Claims Forms provision of a health policy, if the insurance company fails
to send out the claim forms within the time period required by the provision, the insured
should - ✔✔submit the claim in any form, which must be accepted by the company as
adequate proof of loss
✔✔Which of the following statements about a five-year old Whole Life policy is
CORRECT - ✔✔If a policyowner stops paying premiums, the policyowner may elect a
Nonforfeiture option
✔✔Which of the following sections of a life insurance contract states that the application
is part of the contract - ✔✔Entire Contract provision
✔✔The policy feature that permits the policyowner to select the timing of premium
payments is - ✔✔Premium Mode
✔✔Which of the following provisions can an insured use to put a policy in force that has
lapsed as a result of nonpayment of premium? - ✔✔Reinstatement
✔✔An injured insured receives Disability income benefits for two months and then
returns to work. Three months later, the insured is not able to continue because of the
same condition. In this situation, the insurer may regard the second period of disability
as a continuation of the first and pay benefits on the basis of which of the following
provisions? - ✔✔Recurrent Disability
✔✔Changes made on an insurance application should be signed or initialed by which of
the following parties - ✔✔The applicant
, ✔✔Which of the following policies guarantees to pay the face value either to the
beneficiary when the insured dies or to the insured when age 100 is attained? -
✔✔Whole Life
✔✔Which of the following persons has the right to change the beneficiary designation
on a life insurance policy? - ✔✔The policyowner
✔✔Which of the following statements about the Waiver of Premium provision is
INCORRECT? - ✔✔The insured must receive Social Security disability benefits before
the waiver claim becomes valid
✔✔Which of the following statements about a group accident & health policy issued to
an employer is CORRECT? - ✔✔A policy must be issued to the employer and a
certificate must be issued to each employee
✔✔All of the following provisions are required in a group life policy EXCEPT - ✔✔an
Accidental Death and Dismemberment provision
✔✔Credit policies MUST be issued in which of the following forms? - ✔✔Term
✔✔Which of the following statements is CORRECT about accelerated death benefits? -
✔✔Only available to the terminally ill with a restricted life expectancy
✔✔Which of the following statements is CORRECT about a Variable insurance
contract? - ✔✔It does not guarantee a return on investment accounts
✔✔If a life policyowner wants to take out a bank loan and the bank insists on collateral,
the insured may - ✔✔assign the policy to the bank
✔✔All of the following persons must sign an application for life insurance EXCEPT the -
✔✔revocable beneficiary
✔✔A producer who discovers that answers to a series of questions on a life insurance
application were omitted should take which of the following actions? - ✔✔Schedule
another appointment with the applicant to complete the unanswered questions
✔✔L purchased a life insurance contract on July 16, 2004. L became severely
depressed and on November 1, 2004 took his own life. Which of the following
statements best describes how the insurance company settled the claim with L's
beneficiaries? - ✔✔The claim was denied under the Suicide clause of the policy
QUESTIONS AND SOLUTIONS GRADED A+
✔✔If a business owner becomes disabled, a Business Overhead Expense policy would
cover - ✔✔office rent and telephone bills
✔✔Under federal law a tax exempt Health Savings Account can only be opened for an
individual who is enrolled in which type of plan? - ✔✔High deductible health plan
✔✔A retirement plan that may be established by an employee, regardless of any other
retirement plan is called a(n) - ✔✔Individual Retirement Account (IRA)
✔✔Q and H are co-primary beneficiaries on the $100,000 Accidental Death and
Dismemberment policy insuring their mother. Their father is the contingent beneficiary.
If Q dies of cancer and the mother is killed in an auto accident two months later, the
father will receive a MAXIMUM of - ✔✔0$
✔✔Under the Claims Forms provision of a health policy, if the insurance company fails
to send out the claim forms within the time period required by the provision, the insured
should - ✔✔submit the claim in any form, which must be accepted by the company as
adequate proof of loss
✔✔Which of the following statements about a five-year old Whole Life policy is
CORRECT - ✔✔If a policyowner stops paying premiums, the policyowner may elect a
Nonforfeiture option
✔✔Which of the following sections of a life insurance contract states that the application
is part of the contract - ✔✔Entire Contract provision
✔✔The policy feature that permits the policyowner to select the timing of premium
payments is - ✔✔Premium Mode
✔✔Which of the following provisions can an insured use to put a policy in force that has
lapsed as a result of nonpayment of premium? - ✔✔Reinstatement
✔✔An injured insured receives Disability income benefits for two months and then
returns to work. Three months later, the insured is not able to continue because of the
same condition. In this situation, the insurer may regard the second period of disability
as a continuation of the first and pay benefits on the basis of which of the following
provisions? - ✔✔Recurrent Disability
✔✔Changes made on an insurance application should be signed or initialed by which of
the following parties - ✔✔The applicant
, ✔✔Which of the following policies guarantees to pay the face value either to the
beneficiary when the insured dies or to the insured when age 100 is attained? -
✔✔Whole Life
✔✔Which of the following persons has the right to change the beneficiary designation
on a life insurance policy? - ✔✔The policyowner
✔✔Which of the following statements about the Waiver of Premium provision is
INCORRECT? - ✔✔The insured must receive Social Security disability benefits before
the waiver claim becomes valid
✔✔Which of the following statements about a group accident & health policy issued to
an employer is CORRECT? - ✔✔A policy must be issued to the employer and a
certificate must be issued to each employee
✔✔All of the following provisions are required in a group life policy EXCEPT - ✔✔an
Accidental Death and Dismemberment provision
✔✔Credit policies MUST be issued in which of the following forms? - ✔✔Term
✔✔Which of the following statements is CORRECT about accelerated death benefits? -
✔✔Only available to the terminally ill with a restricted life expectancy
✔✔Which of the following statements is CORRECT about a Variable insurance
contract? - ✔✔It does not guarantee a return on investment accounts
✔✔If a life policyowner wants to take out a bank loan and the bank insists on collateral,
the insured may - ✔✔assign the policy to the bank
✔✔All of the following persons must sign an application for life insurance EXCEPT the -
✔✔revocable beneficiary
✔✔A producer who discovers that answers to a series of questions on a life insurance
application were omitted should take which of the following actions? - ✔✔Schedule
another appointment with the applicant to complete the unanswered questions
✔✔L purchased a life insurance contract on July 16, 2004. L became severely
depressed and on November 1, 2004 took his own life. Which of the following
statements best describes how the insurance company settled the claim with L's
beneficiaries? - ✔✔The claim was denied under the Suicide clause of the policy
