TEXAS LIFE AND HEALTH PRACTICE EXAMS 2025/2026
QUESTIONS AND SOLUTIONS GRADED A+
✔✔What is the probationary period? - ✔✔Period of time after a policy is in effect before
claims arising out of an illness are covered.
✔✔Who sets the annual contribution limit of a Dependent Care FSA? - ✔✔The IRS
✔✔Husband and wife incur expenses that are attributed to a single Major Medical
Insurance Deductible, what kind of policy do they have? - ✔✔Family
✔✔Who is responsible if an applicant does not receive his/her policy? - ✔✔Agent
✔✔In insurance, an offer is usually made when? - ✔✔When the application is submitted
✔✔A new employee who meets HIPAA eligibility requirements must be issued health
coverage on what basis? - ✔✔Guaranteed
✔✔What are nonforfeiture options? - ✔✔Cash surrender, extended term, and reduced
paid up
✔✔Which provision states the insurer's right to change premium amounts? -
✔✔Continuation provision
✔✔Within how many days must an insured notify the insurer of a child's birth? - ✔✔31
days
✔✔How many hours must an agent complete every renewal period? - ✔✔30 hours
✔✔Within what number of days must a hearing be held for a request for a review of a
cease and desist order? - ✔✔10 days after receiving a request
✔✔What is the insuring clause? - ✔✔Lists the insured, insurance company, what kind of
losses are covered, and how much the losses would be compensated
✔✔What will be assumed according to the "Common Disaster Clause"? - ✔✔It will be
assumed that the primary beneficiary died first
✔✔Who must participate in a noncontributory group policy? - ✔✔100% of eligible
employees must participate
✔✔How many does should a Medicare supplement 'free-look' provision be? - ✔✔30
days
, ✔✔How are benefits of Medical Expense Insurance received (tax) - ✔✔Received
income tax free
✔✔When an insured terminates membership in insured group, can convert to: -
✔✔Whole life without proof of insurability
✔✔How are group medical and dental benefits received (taxed) by the employee? -
✔✔Income tax free
✔✔The reduction of premium option uses the dividend to reduce what? - ✔✔Next year's
premium
✔✔Are Flexible Spending Accounts eligible for carry over? - ✔✔No
✔✔Of the 30 hours of CE, how many must cover ethics and/or consumer protection? -
✔✔2
✔✔What label must be present on an illustration of a life insurance policy? - ✔✔Life
insurance illustration
✔✔What does the application of 'Contract of Adhesion' mean? - ✔✔Since the insured
doesn't participate in preparing the contract, any ambiguities would be resolved in favor
of the insured
✔✔Which of the following is NOT correct concerning taxation of disability income
benefits? - ✔✔If paid by individual, premiums are tax deductible
✔✔Insurance contracts are unilateral in nature, what does that mean? - ✔✔Only one
party makes a promise
✔✔If an applicant submits initial premium w/ an app, which constitutes acceptance? -
✔✔Underwriter approves the application
✔✔An insurer can decide not to renew an Optionally Renewable policy when? - ✔✔On
premium due dates
✔✔What can the agent give an applicant if they are given a complete app and initial
premium? - ✔✔Conditional receipt
✔✔With adjustable life, the owner can change all but what? - ✔✔The insured
QUESTIONS AND SOLUTIONS GRADED A+
✔✔What is the probationary period? - ✔✔Period of time after a policy is in effect before
claims arising out of an illness are covered.
✔✔Who sets the annual contribution limit of a Dependent Care FSA? - ✔✔The IRS
✔✔Husband and wife incur expenses that are attributed to a single Major Medical
Insurance Deductible, what kind of policy do they have? - ✔✔Family
✔✔Who is responsible if an applicant does not receive his/her policy? - ✔✔Agent
✔✔In insurance, an offer is usually made when? - ✔✔When the application is submitted
✔✔A new employee who meets HIPAA eligibility requirements must be issued health
coverage on what basis? - ✔✔Guaranteed
✔✔What are nonforfeiture options? - ✔✔Cash surrender, extended term, and reduced
paid up
✔✔Which provision states the insurer's right to change premium amounts? -
✔✔Continuation provision
✔✔Within how many days must an insured notify the insurer of a child's birth? - ✔✔31
days
✔✔How many hours must an agent complete every renewal period? - ✔✔30 hours
✔✔Within what number of days must a hearing be held for a request for a review of a
cease and desist order? - ✔✔10 days after receiving a request
✔✔What is the insuring clause? - ✔✔Lists the insured, insurance company, what kind of
losses are covered, and how much the losses would be compensated
✔✔What will be assumed according to the "Common Disaster Clause"? - ✔✔It will be
assumed that the primary beneficiary died first
✔✔Who must participate in a noncontributory group policy? - ✔✔100% of eligible
employees must participate
✔✔How many does should a Medicare supplement 'free-look' provision be? - ✔✔30
days
, ✔✔How are benefits of Medical Expense Insurance received (tax) - ✔✔Received
income tax free
✔✔When an insured terminates membership in insured group, can convert to: -
✔✔Whole life without proof of insurability
✔✔How are group medical and dental benefits received (taxed) by the employee? -
✔✔Income tax free
✔✔The reduction of premium option uses the dividend to reduce what? - ✔✔Next year's
premium
✔✔Are Flexible Spending Accounts eligible for carry over? - ✔✔No
✔✔Of the 30 hours of CE, how many must cover ethics and/or consumer protection? -
✔✔2
✔✔What label must be present on an illustration of a life insurance policy? - ✔✔Life
insurance illustration
✔✔What does the application of 'Contract of Adhesion' mean? - ✔✔Since the insured
doesn't participate in preparing the contract, any ambiguities would be resolved in favor
of the insured
✔✔Which of the following is NOT correct concerning taxation of disability income
benefits? - ✔✔If paid by individual, premiums are tax deductible
✔✔Insurance contracts are unilateral in nature, what does that mean? - ✔✔Only one
party makes a promise
✔✔If an applicant submits initial premium w/ an app, which constitutes acceptance? -
✔✔Underwriter approves the application
✔✔An insurer can decide not to renew an Optionally Renewable policy when? - ✔✔On
premium due dates
✔✔What can the agent give an applicant if they are given a complete app and initial
premium? - ✔✔Conditional receipt
✔✔With adjustable life, the owner can change all but what? - ✔✔The insured
