TEXAS LIFE AND HEALTH REVISION EXAMS 2025/2026
QUESTIONS AND SOLUTIONS GRADED A+
✔✔A variable insurance policy: - ✔✔Does not guarantee a return on investment
accounts.
✔✔Common exclusions to the continuation of group coverage include: -
✔✔Dental/Vision/Other Prescription Drugs
✔✔The Consideration clause of an insurance contract includes: - ✔✔The schedule and
amount of premium payments for Life and Health policies
✔✔S wants to open a tax-exempt Health Savings Account. To qualify for this type of
account, Federal law dictates that S must be enrolled in a: - ✔✔High-Deductible health
plan (HDHP)
✔✔All of the following statements about Major Medical benefits are true, Except: -
✔✔Benefits have no maximum limit
✔✔A promotional advertising item is not considered a rebate unless it has a value equal
to or less than what amount? - ✔✔$25
✔✔In the event of an illness, a(n) _________ ______ policy would reimburse an
insured for loss of earnings. - ✔✔Disability Income
✔✔Who owns a stock insurance company? - ✔✔Stockholders / Shareholders
✔✔Which of these is INCORRECT regarding the federal income tax treatment of life
insurance? - ✔✔Entire cash surrender value is taxable
✔✔XYZ Company pays the entire premium for its group health plan. The MINIMUM
percentage of eligible employees that must be covered is: - ✔✔100%
✔✔When can a policy-owner change a revocable beneficiary? - ✔✔With a revocable
beneficiary designation, the policy owner may change the beneficiary at any time
without notifying or getting permission from the beneficiary.
✔✔Which of the following services is NOT included under hospitalization expense
coverage? - ✔✔Surgical Fees
✔✔Who is NOT required to sign a life insurance application? - ✔✔The Beneficiary
,✔✔A 66 year-old is covered under a group health plan while employed with a business
that has 40 employees. If she injures herself while walking in the park, what coverage
would be considered primary? - ✔✔Her group health plan
✔✔A Medicare Supplent policy may be cancelled for which of the following reasons? -
✔✔Premiums has not been paid by the insured
✔✔How does an indexed annuity differ from a fixed annuity? - ✔✔An indexed annuity
differs from a fixed annuity in the indexed annuity owners may receive credited interest
tied to the fluctuation of the linked index.
✔✔S, age 40, is looking to buy a Life Insurance policy that will allow for increases or
decreases in coverage as his needs change. The policy best suited for S would be -
✔✔Universal Life insurance is characterized by flexible premiums and an adjustable
death benefit.
✔✔Which of the following groups may NOT be insured by a group life insurance policy?
- ✔✔Individuals who are related by Blood/Marriage or Legal Adoption
✔✔Which of the following is a requirement for obtaining a Texas insurance agent's
license? - ✔✔Be Honest, trustworthy, and reliable.
✔✔What kind of life policy either pays the face value upon the death of the insured of
when the insured reaches age 100? - ✔✔Whole life Insurance is designed to mature at
age 100.
✔✔If an individual is covered under an accidental Death Policy and dies, an autopsy
can be performed in all these situations, EXCEPT: - ✔✔Applicable state laws that
prevent an autopsy take precedence.
✔✔At what point does a Whole Life Insurance policy endow? - ✔✔When the cash value
equals the death benefit
✔✔A license may be denied, suspended, or revoked if the licensee? - ✔✔Is found guilty
of misrepresentation in obtaining the license
✔✔On August 6, D submitted an application for a 50,000 Life Insurance policy and did
not pay the initial premium. On August 18, D went to his doctor complaining of chest
pains and some tests were given by the doctor. The life policy was delivered by the
producer on August 20 and D explains what had recently taken place with the doctor.
What action should the producer then take? - ✔✔Collect initial premium along with
signed health statement
, ✔✔A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? - ✔✔Aviation Exclusion
✔✔Agent J takes an application and initial premium from an applicant and sends the
application and premium check to the insurance company. The insurance company
returns the check back to J because the check is made out to J instead of the insurance
company. What action should J take? - ✔✔Return to the customer, collect a new check
made out to the insurance company, and send the new check out to the insurance
company
✔✔Stranger Originated Life Insurance (STOLI) has been found to be in violation of
which of the following contractual elements? - ✔✔Legal Purpose (Insurable Interest)
✔✔What is the primary factor that determines the benefits paid under a disability
income policy? - ✔✔Wages
✔✔The underwriting process involves all these, except for: - ✔✔A Policy Loan is not a
factor
✔✔A certificate of __________ permits an insurance company to transact business in
Texas. - ✔✔Authority
✔✔T was insured under an individual Disability Income policy and was severely burned
in a fire. As a result, T became totally disabled. The insured began making monthly
benefit payments, but later discovered that the fire was set by T in what was described
as arson. What actions will the insured take? - ✔✔The insurer will rescind the policy,
deny the claim, and recover all payments made
✔✔Which of these is NOT considered to be a right given to a policy-owner? - ✔✔Modify
a provision in the insurance contract
✔✔An Example of an unfair claims settlement practice is - ✔✔turning down a claim
without providing the basis of denial
✔✔Which of the following BEST describes a short-term medical expense policy? -
✔✔Nonrenewable
✔✔An employee is covered under a company group life plan with a $50,000 death
benefit. What is the MAXIMUM amount a spouse may be insured for under this
program? - ✔✔25,000
✔✔What action can a policyowner take if an application for a bank loan requires
collateral? - ✔✔Assign policy ownership to the bank
QUESTIONS AND SOLUTIONS GRADED A+
✔✔A variable insurance policy: - ✔✔Does not guarantee a return on investment
accounts.
✔✔Common exclusions to the continuation of group coverage include: -
✔✔Dental/Vision/Other Prescription Drugs
✔✔The Consideration clause of an insurance contract includes: - ✔✔The schedule and
amount of premium payments for Life and Health policies
✔✔S wants to open a tax-exempt Health Savings Account. To qualify for this type of
account, Federal law dictates that S must be enrolled in a: - ✔✔High-Deductible health
plan (HDHP)
✔✔All of the following statements about Major Medical benefits are true, Except: -
✔✔Benefits have no maximum limit
✔✔A promotional advertising item is not considered a rebate unless it has a value equal
to or less than what amount? - ✔✔$25
✔✔In the event of an illness, a(n) _________ ______ policy would reimburse an
insured for loss of earnings. - ✔✔Disability Income
✔✔Who owns a stock insurance company? - ✔✔Stockholders / Shareholders
✔✔Which of these is INCORRECT regarding the federal income tax treatment of life
insurance? - ✔✔Entire cash surrender value is taxable
✔✔XYZ Company pays the entire premium for its group health plan. The MINIMUM
percentage of eligible employees that must be covered is: - ✔✔100%
✔✔When can a policy-owner change a revocable beneficiary? - ✔✔With a revocable
beneficiary designation, the policy owner may change the beneficiary at any time
without notifying or getting permission from the beneficiary.
✔✔Which of the following services is NOT included under hospitalization expense
coverage? - ✔✔Surgical Fees
✔✔Who is NOT required to sign a life insurance application? - ✔✔The Beneficiary
,✔✔A 66 year-old is covered under a group health plan while employed with a business
that has 40 employees. If she injures herself while walking in the park, what coverage
would be considered primary? - ✔✔Her group health plan
✔✔A Medicare Supplent policy may be cancelled for which of the following reasons? -
✔✔Premiums has not been paid by the insured
✔✔How does an indexed annuity differ from a fixed annuity? - ✔✔An indexed annuity
differs from a fixed annuity in the indexed annuity owners may receive credited interest
tied to the fluctuation of the linked index.
✔✔S, age 40, is looking to buy a Life Insurance policy that will allow for increases or
decreases in coverage as his needs change. The policy best suited for S would be -
✔✔Universal Life insurance is characterized by flexible premiums and an adjustable
death benefit.
✔✔Which of the following groups may NOT be insured by a group life insurance policy?
- ✔✔Individuals who are related by Blood/Marriage or Legal Adoption
✔✔Which of the following is a requirement for obtaining a Texas insurance agent's
license? - ✔✔Be Honest, trustworthy, and reliable.
✔✔What kind of life policy either pays the face value upon the death of the insured of
when the insured reaches age 100? - ✔✔Whole life Insurance is designed to mature at
age 100.
✔✔If an individual is covered under an accidental Death Policy and dies, an autopsy
can be performed in all these situations, EXCEPT: - ✔✔Applicable state laws that
prevent an autopsy take precedence.
✔✔At what point does a Whole Life Insurance policy endow? - ✔✔When the cash value
equals the death benefit
✔✔A license may be denied, suspended, or revoked if the licensee? - ✔✔Is found guilty
of misrepresentation in obtaining the license
✔✔On August 6, D submitted an application for a 50,000 Life Insurance policy and did
not pay the initial premium. On August 18, D went to his doctor complaining of chest
pains and some tests were given by the doctor. The life policy was delivered by the
producer on August 20 and D explains what had recently taken place with the doctor.
What action should the producer then take? - ✔✔Collect initial premium along with
signed health statement
, ✔✔A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? - ✔✔Aviation Exclusion
✔✔Agent J takes an application and initial premium from an applicant and sends the
application and premium check to the insurance company. The insurance company
returns the check back to J because the check is made out to J instead of the insurance
company. What action should J take? - ✔✔Return to the customer, collect a new check
made out to the insurance company, and send the new check out to the insurance
company
✔✔Stranger Originated Life Insurance (STOLI) has been found to be in violation of
which of the following contractual elements? - ✔✔Legal Purpose (Insurable Interest)
✔✔What is the primary factor that determines the benefits paid under a disability
income policy? - ✔✔Wages
✔✔The underwriting process involves all these, except for: - ✔✔A Policy Loan is not a
factor
✔✔A certificate of __________ permits an insurance company to transact business in
Texas. - ✔✔Authority
✔✔T was insured under an individual Disability Income policy and was severely burned
in a fire. As a result, T became totally disabled. The insured began making monthly
benefit payments, but later discovered that the fire was set by T in what was described
as arson. What actions will the insured take? - ✔✔The insurer will rescind the policy,
deny the claim, and recover all payments made
✔✔Which of these is NOT considered to be a right given to a policy-owner? - ✔✔Modify
a provision in the insurance contract
✔✔An Example of an unfair claims settlement practice is - ✔✔turning down a claim
without providing the basis of denial
✔✔Which of the following BEST describes a short-term medical expense policy? -
✔✔Nonrenewable
✔✔An employee is covered under a company group life plan with a $50,000 death
benefit. What is the MAXIMUM amount a spouse may be insured for under this
program? - ✔✔25,000
✔✔What action can a policyowner take if an application for a bank loan requires
collateral? - ✔✔Assign policy ownership to the bank
