TEXAS LIFE AND HEALTH TEST PAPER 2025/2026
QUESTIONS AND SOLUTIONS GRADED A+
✔✔A license may be denied, suspended, or revoked if the licensee - ✔✔is found guilty
of misrepresentation in obtaining the license
✔✔Which Unfair Trade Practice involves an agent telling a prospective client that a
policy's dividends are guaranteed? - ✔✔Misrepresentation
✔✔K's whole life insurance policy lapsed two months ago due to nonpayment. She
would now like to reinstate the policy. All of these statements are correct about the
policy's reinstatement EXCEPT - ✔✔K will forfeit the right to use the automatic loan
provision upon reinstatement
✔✔When a policy pays dividends to its policyholders, it is said to be - ✔✔participating
✔✔What is the basic function of an annuity? - ✔✔The systematic liquidation of
accumulated funds
✔✔Which of the following statements about health coverage for newborns is NOT true?
- ✔✔Coverage is limited to only congenital defects
✔✔Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? -
✔✔policyowner
✔✔A(n) _________ rider may be used to include coverage for children under their
parents' life insurance policy. - ✔✔Term
✔✔Medicare Part C is: - ✔✔available to those who are enrolled in Medicare Part A and
Part B
✔✔Bryce purchased a disability income policy with a rider that guarantees him the
option of purchasing additional amounts of coverage at predetermined times without
requiring to provide evidence of insurability. What kind of rider is this? - ✔✔Guaranteed
insurability rider
✔✔Which statement is true regarding a minor beneficiary? - ✔✔Normally, a guardian is
required to be appointed in the beneficiary clause of the contract
✔✔What is required for an agent whose license has been revoked? - ✔✔Wait at least
five years before applying for a new license.
, ✔✔Which of these provisions is NOT required in life insurance policies? - ✔✔Extended
Term
✔✔Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement
is funded with individual life insurance. How many total life policies are needed for this
agreement? - ✔✔6
✔✔What is the MINIMUM benefit period that must be offered by a Long-Term Care
policy? - ✔✔12 months
✔✔What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary
requires his/her consent when a change of beneficiary is made? - ✔✔Irrevocable
beneficiary
✔✔Which settlement option pays a stated amount to an annuitant, but no residual value
to a beneficiary? - ✔✔Life Income
✔✔Major Medical policies typically: - ✔✔contain a deductible and coinsurance
✔✔A Disability Income policyowner recently submitted a claim for a chronic neck
problem that has now resulted in total disability. The original neck injury occurred before
the application was taken 5 years prior. The neck injury was never disclosed to the
insurer at the time of application. How will the insurer handle this claim? - ✔✔Claim will
be paid and coverage will remain in force
✔✔Which of these is NOT an example of doing insurance business? - ✔✔Selling
shares of stock
✔✔How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy? - ✔✔If the primary beneficiary dies before
the insured
✔✔ABC Insurance Company is actively engaging in boycott, coercion, and intimidation
that results in the unreasonable restraint of trade. ABC is committing a prohibited act
under Texas insurance laws covering - ✔✔Unfair methods of competition
✔✔P is a producer who notices 5 questions on a life application were not answered.
What actions should P take? - ✔✔Set up a meeting with the applicant to answer the
remaining questions.
✔✔N is a student pilot with a large life insurance policy. Which of these features would
limit the insurer's obligation in the event N was killed while flying as a student pilot? -
✔✔Exclusion
QUESTIONS AND SOLUTIONS GRADED A+
✔✔A license may be denied, suspended, or revoked if the licensee - ✔✔is found guilty
of misrepresentation in obtaining the license
✔✔Which Unfair Trade Practice involves an agent telling a prospective client that a
policy's dividends are guaranteed? - ✔✔Misrepresentation
✔✔K's whole life insurance policy lapsed two months ago due to nonpayment. She
would now like to reinstate the policy. All of these statements are correct about the
policy's reinstatement EXCEPT - ✔✔K will forfeit the right to use the automatic loan
provision upon reinstatement
✔✔When a policy pays dividends to its policyholders, it is said to be - ✔✔participating
✔✔What is the basic function of an annuity? - ✔✔The systematic liquidation of
accumulated funds
✔✔Which of the following statements about health coverage for newborns is NOT true?
- ✔✔Coverage is limited to only congenital defects
✔✔Who benefits in Investor-Originated Life Insurance (IOLI) when the insured dies? -
✔✔policyowner
✔✔A(n) _________ rider may be used to include coverage for children under their
parents' life insurance policy. - ✔✔Term
✔✔Medicare Part C is: - ✔✔available to those who are enrolled in Medicare Part A and
Part B
✔✔Bryce purchased a disability income policy with a rider that guarantees him the
option of purchasing additional amounts of coverage at predetermined times without
requiring to provide evidence of insurability. What kind of rider is this? - ✔✔Guaranteed
insurability rider
✔✔Which statement is true regarding a minor beneficiary? - ✔✔Normally, a guardian is
required to be appointed in the beneficiary clause of the contract
✔✔What is required for an agent whose license has been revoked? - ✔✔Wait at least
five years before applying for a new license.
, ✔✔Which of these provisions is NOT required in life insurance policies? - ✔✔Extended
Term
✔✔Three law partners form a Cross-Purchase Buy and Sell agreement. This agreement
is funded with individual life insurance. How many total life policies are needed for this
agreement? - ✔✔6
✔✔What is the MINIMUM benefit period that must be offered by a Long-Term Care
policy? - ✔✔12 months
✔✔What kind of Accidental Death and Dismemberment (AD&D) insurance beneficiary
requires his/her consent when a change of beneficiary is made? - ✔✔Irrevocable
beneficiary
✔✔Which settlement option pays a stated amount to an annuitant, but no residual value
to a beneficiary? - ✔✔Life Income
✔✔Major Medical policies typically: - ✔✔contain a deductible and coinsurance
✔✔A Disability Income policyowner recently submitted a claim for a chronic neck
problem that has now resulted in total disability. The original neck injury occurred before
the application was taken 5 years prior. The neck injury was never disclosed to the
insurer at the time of application. How will the insurer handle this claim? - ✔✔Claim will
be paid and coverage will remain in force
✔✔Which of these is NOT an example of doing insurance business? - ✔✔Selling
shares of stock
✔✔How would a contingent beneficiary receive the policy proceeds in an Accidental
Death and Dismemberment (AD&D) policy? - ✔✔If the primary beneficiary dies before
the insured
✔✔ABC Insurance Company is actively engaging in boycott, coercion, and intimidation
that results in the unreasonable restraint of trade. ABC is committing a prohibited act
under Texas insurance laws covering - ✔✔Unfair methods of competition
✔✔P is a producer who notices 5 questions on a life application were not answered.
What actions should P take? - ✔✔Set up a meeting with the applicant to answer the
remaining questions.
✔✔N is a student pilot with a large life insurance policy. Which of these features would
limit the insurer's obligation in the event N was killed while flying as a student pilot? -
✔✔Exclusion
