TEXAS LIFE AND HEALTH EXAMS SET 2025/2026
QUESTIONS AND SOLUTIONS GRADED A+
✔✔admitted (authorized) insurer - ✔✔an insurance company authorized and licensed to
transact business in a particular state
✔✔adult day care - ✔✔a program for impaired adults that attempts to meet their health,
social and functional needs in a setting away from home
✔✔adverse selection - ✔✔the tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present lower
probability
✔✔agency - ✔✔an insurance sales office or company
✔✔agent - ✔✔an individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer
✔✔agents authority - ✔✔special powers granted to an agent by his or her agency
contract
✔✔aleatory - ✔✔a contract in which participating parties exchange unequal amounts.
Insurance contracts are aleatory in that the amount the insured will pay in premiums is
unequal to the amount the insurer will pay in the event of loss
✔✔alien insurer - ✔✔an insurance company from another country that is incorporated in
the united states
✔✔ancillary - ✔✔additional miscellaneous services provided by a hospital, such as x-
rays, anesthesia, and lab work, but *not* hospital and board expenses
✔✔annual statement - ✔✔detailed financial report that an insurance company must
submit every year to the insurance department of state in which it conducts its business
✔✔annuity - ✔✔contract that provides income for a specified period of years, or for life
✔✔apparent authority - ✔✔the appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the principal
created
✔✔applicant - ✔✔a person making application for, or offering himself or another to be
insured on insurance contract
, ✔✔application - ✔✔document that provides information for underwriting purposes. After
the policy is issued any unanswered questions are considered waived by the insurer
✔✔approved amount - ✔✔the amount medicare determins to be reasonable for a
service that is covered under part B of medicare
✔✔assignment (life) - ✔✔the transfer of ownership rights of a life insurance policy from
one person to another
✔✔assignment (health) - ✔✔a claim to a provider or medical supplier to receive
payments directly from medicare
✔✔attained age - ✔✔the age of the insured at a determined date
✔✔attending physicians statement (APS) - ✔✔a statement usually obtained from the
applicants doctor
✔✔authorized (admitted) insurer - ✔✔an insurance company authorized and licensed to
transact business in a particular state
✔✔avoidance - ✔✔a method of dealing with risk by deliberately keeping away from it
(e.g. if a person wants to avoid dying in a plane crash they wont fly)
✔✔Back-End Load - ✔✔a fee charged at the time of sale, transfer or withdrawal from an
annuity or a life insurance policy
✔✔basic hospital expense insurance - ✔✔coverage that provides benefits for room,
board and misc. hospital expenses for a certain number of days during a hospital stay
✔✔basic illustration - ✔✔a ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements
✔✔basic medical expense insurance - ✔✔coverage for doctor visits, xrays, and lab test,
and emergency room visits. Benefits however are limited to specified dollar amounts
✔✔beneficiary - ✔✔the person who receives the proceeds from the policy when the
insured dies
✔✔benefit period - ✔✔the length of time over which the insurance benefits will be paid
for each illness, disability or hospital stay
✔✔binder (binding receipt) - ✔✔a temporary contract that puts an insurance policy into
force before the premium has been paid
QUESTIONS AND SOLUTIONS GRADED A+
✔✔admitted (authorized) insurer - ✔✔an insurance company authorized and licensed to
transact business in a particular state
✔✔adult day care - ✔✔a program for impaired adults that attempts to meet their health,
social and functional needs in a setting away from home
✔✔adverse selection - ✔✔the tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present lower
probability
✔✔agency - ✔✔an insurance sales office or company
✔✔agent - ✔✔an individual who is licensed to sell, negotiate, or effect insurance
contracts on behalf of an insurer
✔✔agents authority - ✔✔special powers granted to an agent by his or her agency
contract
✔✔aleatory - ✔✔a contract in which participating parties exchange unequal amounts.
Insurance contracts are aleatory in that the amount the insured will pay in premiums is
unequal to the amount the insurer will pay in the event of loss
✔✔alien insurer - ✔✔an insurance company from another country that is incorporated in
the united states
✔✔ancillary - ✔✔additional miscellaneous services provided by a hospital, such as x-
rays, anesthesia, and lab work, but *not* hospital and board expenses
✔✔annual statement - ✔✔detailed financial report that an insurance company must
submit every year to the insurance department of state in which it conducts its business
✔✔annuity - ✔✔contract that provides income for a specified period of years, or for life
✔✔apparent authority - ✔✔the appearance or the assumption of authority based on the
actions, words, or deeds of the principal or because of circumstances the principal
created
✔✔applicant - ✔✔a person making application for, or offering himself or another to be
insured on insurance contract
, ✔✔application - ✔✔document that provides information for underwriting purposes. After
the policy is issued any unanswered questions are considered waived by the insurer
✔✔approved amount - ✔✔the amount medicare determins to be reasonable for a
service that is covered under part B of medicare
✔✔assignment (life) - ✔✔the transfer of ownership rights of a life insurance policy from
one person to another
✔✔assignment (health) - ✔✔a claim to a provider or medical supplier to receive
payments directly from medicare
✔✔attained age - ✔✔the age of the insured at a determined date
✔✔attending physicians statement (APS) - ✔✔a statement usually obtained from the
applicants doctor
✔✔authorized (admitted) insurer - ✔✔an insurance company authorized and licensed to
transact business in a particular state
✔✔avoidance - ✔✔a method of dealing with risk by deliberately keeping away from it
(e.g. if a person wants to avoid dying in a plane crash they wont fly)
✔✔Back-End Load - ✔✔a fee charged at the time of sale, transfer or withdrawal from an
annuity or a life insurance policy
✔✔basic hospital expense insurance - ✔✔coverage that provides benefits for room,
board and misc. hospital expenses for a certain number of days during a hospital stay
✔✔basic illustration - ✔✔a ledger or proposal used in the sale of a life insurance policy
that shows both guaranteed and nonguaranteed elements
✔✔basic medical expense insurance - ✔✔coverage for doctor visits, xrays, and lab test,
and emergency room visits. Benefits however are limited to specified dollar amounts
✔✔beneficiary - ✔✔the person who receives the proceeds from the policy when the
insured dies
✔✔benefit period - ✔✔the length of time over which the insurance benefits will be paid
for each illness, disability or hospital stay
✔✔binder (binding receipt) - ✔✔a temporary contract that puts an insurance policy into
force before the premium has been paid
