TEXAS GENERAL LINES LIFE, ACCIDENT &
HEALTH INSURANCE EXAM PRACTICE
QUESTIONS & ANSWERS 2026–2027 |
COMPLETE TEXAS LIFE & HEALTH
INSURANCE LICENSING STUDY GUIDE |
VERIFIED QUESTIONS WITH DETAILED
RATIONALES, LIFE INSURANCE POLICIES,
HEALTH INSURANCE CONCEPTS &
UNDERWRITING PRINCIPLES
• This study guide contains 200 practice questions designed to mirror the real Texas
General Lines Life, Accident & Health Insurance licensing exam — use it by working
through each question independently before checking the highlighted correct
answer and EXPERT RATIONALE below it.
• Each question features five answer choices (A–E), a clearly marked correct answer
in bold, and a detailed EXPERT RATIONALE — making it ideal for active recall
practice, weak-area identification, and final exam preparation.
1. What is the primary purpose of life insurance?
A. To accumulate wealth for retirement
B. To provide tax-free income to the insured
C. To fund college education expenses
D. To pay estate taxes automatically
E. To protect dependents from financial hardship caused by the insured's death
CORRECT ANSWER: E. To protect dependents from financial hardship
caused by the insured's death
EXPERT RATIONALE: The fundamental purpose of life insurance is to replace lost
income and provide financial security to dependents or beneficiaries upon the
death of the insured. While life insurance can serve secondary purposes, this
remains its primary function.
,2. Under a term life insurance policy, the death benefit is paid only if:
A. The insured survives to the end of the policy term
B. The insured dies within the policy term while the policy is in force
C. The policy has accumulated sufficient cash value
D. The beneficiary files a claim within 30 days of death
E. The insured is permanently disabled at the time of death
CORRECT ANSWER: B. The insured dies within the policy term while the
policy is in force
EXPERT RATIONALE: Term life insurance provides a death benefit only if the
insured dies during the specified coverage period and premiums are current. It has
no cash value and expires if the insured outlives the term.
3. Which type of life insurance policy provides permanent coverage and builds
cash value?
A. Level term insurance
B. Decreasing term insurance
C. Whole life insurance
D. Renewable term insurance
E. Group term insurance
CORRECT ANSWER: C. Whole life insurance
EXPERT RATIONALE: Whole life insurance provides lifetime (permanent) coverage
and accumulates a guaranteed cash value over time. Unlike term policies, it does
not expire as long as premiums are paid.
4. What does the term "face amount" refer to in a life insurance policy?
,A. The total premiums paid over the life of the policy
B. The current cash surrender value
C. The amount the insurer will pay upon the insured's death
D. The annual dividend credited to the policy
E. The policy's loan value at maturity
CORRECT ANSWER: C. The amount the insurer will pay upon the insured's
death
EXPERT RATIONALE: The face amount, also called the death benefit or face value,
is the stated amount the insurer agrees to pay the beneficiary when the insured
dies, assuming the policy is in force.
5. A policy that allows the insured to adjust the premium, death benefit, and
savings component is called:
A. Whole life insurance
B. Variable life insurance
C. Universal life insurance
D. Endowment insurance
E. Modified premium life insurance
CORRECT ANSWER: C. Universal life insurance
EXPERT RATIONALE: Universal life insurance offers flexibility by allowing
policyholders to adjust premium payments, the death benefit amount, and the
allocation between protection and savings within certain limits.
6. In Texas, the free-look period for a life insurance policy is:
A. 5 days
B. 10 days
, C. 15 days
D. 20 days
E. 30 days
CORRECT ANSWER: B. 10 days
EXPERT RATIONALE: Texas law grants policyholders a 10-day free-look period
during which they may return the policy for a full premium refund if not satisfied.
Some policies, such as Medicare supplement plans, have a 30-day free-look period.
7. Which of the following best describes a "beneficiary" in a life insurance
policy?
A. The person whose life is insured under the policy
B. The insurance company that issues the policy
C. The agent who sold the policy
D. The person or entity designated to receive the death benefit
E. The employer who sponsors the group policy
CORRECT ANSWER: D. The person or entity designated to receive the death
benefit
EXPERT RATIONALE: A beneficiary is the individual, trust, estate, or organization
named by the policyowner to receive the proceeds of the policy upon the insured's
death.
8. What is an "insurable interest" requirement in life insurance?
A. The insured must have a financial interest in the insurance company
B. The applicant must have a legitimate financial or emotional interest in the
continued life of the insured
C. The policy must insure property of equal value
HEALTH INSURANCE EXAM PRACTICE
QUESTIONS & ANSWERS 2026–2027 |
COMPLETE TEXAS LIFE & HEALTH
INSURANCE LICENSING STUDY GUIDE |
VERIFIED QUESTIONS WITH DETAILED
RATIONALES, LIFE INSURANCE POLICIES,
HEALTH INSURANCE CONCEPTS &
UNDERWRITING PRINCIPLES
• This study guide contains 200 practice questions designed to mirror the real Texas
General Lines Life, Accident & Health Insurance licensing exam — use it by working
through each question independently before checking the highlighted correct
answer and EXPERT RATIONALE below it.
• Each question features five answer choices (A–E), a clearly marked correct answer
in bold, and a detailed EXPERT RATIONALE — making it ideal for active recall
practice, weak-area identification, and final exam preparation.
1. What is the primary purpose of life insurance?
A. To accumulate wealth for retirement
B. To provide tax-free income to the insured
C. To fund college education expenses
D. To pay estate taxes automatically
E. To protect dependents from financial hardship caused by the insured's death
CORRECT ANSWER: E. To protect dependents from financial hardship
caused by the insured's death
EXPERT RATIONALE: The fundamental purpose of life insurance is to replace lost
income and provide financial security to dependents or beneficiaries upon the
death of the insured. While life insurance can serve secondary purposes, this
remains its primary function.
,2. Under a term life insurance policy, the death benefit is paid only if:
A. The insured survives to the end of the policy term
B. The insured dies within the policy term while the policy is in force
C. The policy has accumulated sufficient cash value
D. The beneficiary files a claim within 30 days of death
E. The insured is permanently disabled at the time of death
CORRECT ANSWER: B. The insured dies within the policy term while the
policy is in force
EXPERT RATIONALE: Term life insurance provides a death benefit only if the
insured dies during the specified coverage period and premiums are current. It has
no cash value and expires if the insured outlives the term.
3. Which type of life insurance policy provides permanent coverage and builds
cash value?
A. Level term insurance
B. Decreasing term insurance
C. Whole life insurance
D. Renewable term insurance
E. Group term insurance
CORRECT ANSWER: C. Whole life insurance
EXPERT RATIONALE: Whole life insurance provides lifetime (permanent) coverage
and accumulates a guaranteed cash value over time. Unlike term policies, it does
not expire as long as premiums are paid.
4. What does the term "face amount" refer to in a life insurance policy?
,A. The total premiums paid over the life of the policy
B. The current cash surrender value
C. The amount the insurer will pay upon the insured's death
D. The annual dividend credited to the policy
E. The policy's loan value at maturity
CORRECT ANSWER: C. The amount the insurer will pay upon the insured's
death
EXPERT RATIONALE: The face amount, also called the death benefit or face value,
is the stated amount the insurer agrees to pay the beneficiary when the insured
dies, assuming the policy is in force.
5. A policy that allows the insured to adjust the premium, death benefit, and
savings component is called:
A. Whole life insurance
B. Variable life insurance
C. Universal life insurance
D. Endowment insurance
E. Modified premium life insurance
CORRECT ANSWER: C. Universal life insurance
EXPERT RATIONALE: Universal life insurance offers flexibility by allowing
policyholders to adjust premium payments, the death benefit amount, and the
allocation between protection and savings within certain limits.
6. In Texas, the free-look period for a life insurance policy is:
A. 5 days
B. 10 days
, C. 15 days
D. 20 days
E. 30 days
CORRECT ANSWER: B. 10 days
EXPERT RATIONALE: Texas law grants policyholders a 10-day free-look period
during which they may return the policy for a full premium refund if not satisfied.
Some policies, such as Medicare supplement plans, have a 30-day free-look period.
7. Which of the following best describes a "beneficiary" in a life insurance
policy?
A. The person whose life is insured under the policy
B. The insurance company that issues the policy
C. The agent who sold the policy
D. The person or entity designated to receive the death benefit
E. The employer who sponsors the group policy
CORRECT ANSWER: D. The person or entity designated to receive the death
benefit
EXPERT RATIONALE: A beneficiary is the individual, trust, estate, or organization
named by the policyowner to receive the proceeds of the policy upon the insured's
death.
8. What is an "insurable interest" requirement in life insurance?
A. The insured must have a financial interest in the insurance company
B. The applicant must have a legitimate financial or emotional interest in the
continued life of the insured
C. The policy must insure property of equal value
