Texas Life and Health Insurance Exam
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Answers,Plus Rationales/Expert
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1. Which type of insurance provides a death benefit only?
a) Whole Life
b) Endowment
c) Term Life
d) Universal Life
c) Term Life
Term life insurance provides coverage for a specified period and pays a death
benefit if the insured dies during that term. It does not accumulate cash
value.
2. In life insurance, the primary purpose of the insurable interest
requirement is to:
a) Determine policy premium
b) Prevent gambling on human life
c) Ensure the beneficiary is financially responsible
d) Avoid taxation
b) Prevent gambling on human life
Insurable interest ensures the policyowner has a legitimate financial stake in
the continued life of the insured.
, 3. Which of the following is a nonforfeiture option in a whole life policy?
a) Reduced Paid-Up
b) Premium Waiver
c) Double Indemnity
d) Accelerated Death Benefit
a) Reduced Paid-Up
Nonforfeiture options allow the policyholder to retain some value if they stop
paying premiums. Reduced Paid-Up converts the policy to a paid-up policy
with a reduced death benefit.
4. The grace period for life insurance premiums in Texas is:
a) 15 days
b) 30 days
c) 31 days
d) 45 days
c) 31 days
Texas law requires a 31-day grace period for most life insurance policies to
prevent lapse due to a late premium payment.
5. Which clause prevents a beneficiary from changing the beneficiary
designation without the insured’s consent?
a) Entire Contract Clause
b) Spendthrift Clause
c) Suicide Clause
d) Insuring Clause
b) Spendthrift Clause
The spendthrift clause protects the death benefit from creditors and ensures
the beneficiary cannot assign or change it without consent.
6. Which type of policy accumulates cash value based on a credited interest
rate and allows flexible premiums?
a) Whole Life
b) Universal Life
c) Term Life
d) Variable Life
, b) Universal Life
Universal Life policies offer flexibility in premium payments and accumulate
cash value based on current interest rates.
7. What is the primary purpose of health insurance?
a) Investment growth
b) Protection against financial loss due to illness or injury
c) To cover life insurance premiums
d) To generate tax deductions
b) Protection against financial loss due to illness or injury
Health insurance reimburses or pays for medical expenses incurred from
sickness or injury.
8. In health insurance, coinsurance refers to:
a) The total premium paid
b) The percentage of expenses the insured shares with the insurer
c) The deductible amount
d) A type of rider
b) The percentage of expenses the insured shares with the insurer
Coinsurance requires the insured to pay a portion of covered expenses,
usually after the deductible has been met.
9. In Texas, the incontestability period for life insurance is:
a) 1 year
b) 2 years
c) 3 years
d) 5 years
b) 2 years
After two years, the insurer cannot contest statements in the application
except for fraud.
10.Which type of health insurance policy covers specified illnesses such as
cancer or heart disease?
a) Disability Income
b) Major Medical
With Actual Questions & Verified
Answers,Plus Rationales/Expert
Verified For Guaranteed Pass Graded
A+/2026 /Latest Update/Instant
Download Pdf
1. Which type of insurance provides a death benefit only?
a) Whole Life
b) Endowment
c) Term Life
d) Universal Life
c) Term Life
Term life insurance provides coverage for a specified period and pays a death
benefit if the insured dies during that term. It does not accumulate cash
value.
2. In life insurance, the primary purpose of the insurable interest
requirement is to:
a) Determine policy premium
b) Prevent gambling on human life
c) Ensure the beneficiary is financially responsible
d) Avoid taxation
b) Prevent gambling on human life
Insurable interest ensures the policyowner has a legitimate financial stake in
the continued life of the insured.
, 3. Which of the following is a nonforfeiture option in a whole life policy?
a) Reduced Paid-Up
b) Premium Waiver
c) Double Indemnity
d) Accelerated Death Benefit
a) Reduced Paid-Up
Nonforfeiture options allow the policyholder to retain some value if they stop
paying premiums. Reduced Paid-Up converts the policy to a paid-up policy
with a reduced death benefit.
4. The grace period for life insurance premiums in Texas is:
a) 15 days
b) 30 days
c) 31 days
d) 45 days
c) 31 days
Texas law requires a 31-day grace period for most life insurance policies to
prevent lapse due to a late premium payment.
5. Which clause prevents a beneficiary from changing the beneficiary
designation without the insured’s consent?
a) Entire Contract Clause
b) Spendthrift Clause
c) Suicide Clause
d) Insuring Clause
b) Spendthrift Clause
The spendthrift clause protects the death benefit from creditors and ensures
the beneficiary cannot assign or change it without consent.
6. Which type of policy accumulates cash value based on a credited interest
rate and allows flexible premiums?
a) Whole Life
b) Universal Life
c) Term Life
d) Variable Life
, b) Universal Life
Universal Life policies offer flexibility in premium payments and accumulate
cash value based on current interest rates.
7. What is the primary purpose of health insurance?
a) Investment growth
b) Protection against financial loss due to illness or injury
c) To cover life insurance premiums
d) To generate tax deductions
b) Protection against financial loss due to illness or injury
Health insurance reimburses or pays for medical expenses incurred from
sickness or injury.
8. In health insurance, coinsurance refers to:
a) The total premium paid
b) The percentage of expenses the insured shares with the insurer
c) The deductible amount
d) A type of rider
b) The percentage of expenses the insured shares with the insurer
Coinsurance requires the insured to pay a portion of covered expenses,
usually after the deductible has been met.
9. In Texas, the incontestability period for life insurance is:
a) 1 year
b) 2 years
c) 3 years
d) 5 years
b) 2 years
After two years, the insurer cannot contest statements in the application
except for fraud.
10.Which type of health insurance policy covers specified illnesses such as
cancer or heart disease?
a) Disability Income
b) Major Medical
