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TX Health and Life Insurance Exam
Questions and Correct Answers/ Latest
Update / Already Graded
Which provision allows the policyowner to change a term life policy to
a permanent one without providing proof of good health?
Ans: Conversion
Which of these characteristics is consistent with a Straight Life policy?
Ans: Premiums are payable for as long as there is insura nce
coverage in force.
N is a 40-year old applicant who would like to retire at age 70. He is
looking to buy a life insurance policy with level premiums, permanent
protection, and be paid-up at retirement. Which of these should N
purchase?
Ans: 30 Pay Life
K pays on a $20,000 20-Year Endowment policy for 10 years and dies
from an automobile accident. How much will the insurance company
pay the beneficiary?
Ans: $20,000 death benefit
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Whole Life insurance is sometimes referred to as "Straight Life." What
does the word "Straight" indicate when using this phrase?
Ans: The duration of premium payments.
S is close to retiring and would like to purchase a policy that will yield
greater gains than bonds, but will still protect the principal with a
minimum level or risk. Which product would S be advised to purchase?
Ans: Equity index insurance.
K is shopping for a permanent life insurance policy that will offer her
the MOST protection per dollar of annual premium. Which of these
policies best fits her needs?
Ans: Straight life
Who has the option to renew a Renewable Term policy?
Ans: Insured
A life policy with a death benefit and cash value that can fluctuate
according to the performance of its underlying investment portfolio is
referred to as:
All rights reserved © 2025/ 2026 |
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Ans: Variable Life
A term life insurance policy matures:
Ans: upon the insured's death during the term of the policy.
Equity Indexed Life insurance premiums
Ans: Cannot be lowered or raised, based on investment
performance.
Which of the following actions require a policy owner to provide proof
of insurance unity in an Adjustable Life policy?
Ans: Increase face amount.
What type of life policy offers the owner investment in products such
as money-market funds, long-term bonds and equities?
Ans: Variable
Life insurance that covers an insured's whole life with level premiums
paid over a limited time is called:
Ans: Limited Pay Life
All rights reserved © 2025/ 2026 |
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J is issued a Life Insurance policy with a death benefit of $100,000. She
pays $600 per year in premium for the first 5 years. The premium then
increases to $900 per year in the sixth year, and remains level
thereafter. The policy's death benefit also remains at $100,000. Which
type of Life Insurance policy is this?
Ans: Modified Premium Life
K is looking to purchase Renewable Term insurance. Which of these
types of Term insurance may be renewable?
Ans: Level
An architecture firm would stand to lose a lot of money in the event of
the death of its project manager. Which type of policy should the firm
purchase on its project manager?
Ans: Key Person Insurance
S is covered by a whole life policy. Which insurance product can cover
his children?
Ans: Child term rider
What advantage does the renewability feature give to a term policy?
All rights reserved © 2025/ 2026 |
TX Health and Life Insurance Exam
Questions and Correct Answers/ Latest
Update / Already Graded
Which provision allows the policyowner to change a term life policy to
a permanent one without providing proof of good health?
Ans: Conversion
Which of these characteristics is consistent with a Straight Life policy?
Ans: Premiums are payable for as long as there is insura nce
coverage in force.
N is a 40-year old applicant who would like to retire at age 70. He is
looking to buy a life insurance policy with level premiums, permanent
protection, and be paid-up at retirement. Which of these should N
purchase?
Ans: 30 Pay Life
K pays on a $20,000 20-Year Endowment policy for 10 years and dies
from an automobile accident. How much will the insurance company
pay the beneficiary?
Ans: $20,000 death benefit
All rights reserved © 2025/ 2026 |
, Page |2
Whole Life insurance is sometimes referred to as "Straight Life." What
does the word "Straight" indicate when using this phrase?
Ans: The duration of premium payments.
S is close to retiring and would like to purchase a policy that will yield
greater gains than bonds, but will still protect the principal with a
minimum level or risk. Which product would S be advised to purchase?
Ans: Equity index insurance.
K is shopping for a permanent life insurance policy that will offer her
the MOST protection per dollar of annual premium. Which of these
policies best fits her needs?
Ans: Straight life
Who has the option to renew a Renewable Term policy?
Ans: Insured
A life policy with a death benefit and cash value that can fluctuate
according to the performance of its underlying investment portfolio is
referred to as:
All rights reserved © 2025/ 2026 |
, Page |3
Ans: Variable Life
A term life insurance policy matures:
Ans: upon the insured's death during the term of the policy.
Equity Indexed Life insurance premiums
Ans: Cannot be lowered or raised, based on investment
performance.
Which of the following actions require a policy owner to provide proof
of insurance unity in an Adjustable Life policy?
Ans: Increase face amount.
What type of life policy offers the owner investment in products such
as money-market funds, long-term bonds and equities?
Ans: Variable
Life insurance that covers an insured's whole life with level premiums
paid over a limited time is called:
Ans: Limited Pay Life
All rights reserved © 2025/ 2026 |
, Page |4
J is issued a Life Insurance policy with a death benefit of $100,000. She
pays $600 per year in premium for the first 5 years. The premium then
increases to $900 per year in the sixth year, and remains level
thereafter. The policy's death benefit also remains at $100,000. Which
type of Life Insurance policy is this?
Ans: Modified Premium Life
K is looking to purchase Renewable Term insurance. Which of these
types of Term insurance may be renewable?
Ans: Level
An architecture firm would stand to lose a lot of money in the event of
the death of its project manager. Which type of policy should the firm
purchase on its project manager?
Ans: Key Person Insurance
S is covered by a whole life policy. Which insurance product can cover
his children?
Ans: Child term rider
What advantage does the renewability feature give to a term policy?
All rights reserved © 2025/ 2026 |
