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Texas Life and Health Insurance Exam Prep Document
| 2026/2027 Edition ||Verified Exam!!|| 250 Verified
Questions
E and F are business partners. Each takes out a $500,000
life insurance policy on the other, naming himself as
primary beneficiary. E and F eventually terminate their
business, and four months later E dies. Although E was
married with three children at the time of death, the
primary beneficiary is still F. However, an insurable interest
no longer exists. Where will the proceeds from E's life
insurance policy be directed to? - Answer-In this situation,
the proceeds from E's life insurance policy will go to F.
Which term defines the legally enforceable promise in an
insurance contract by the insurer? - Answer-Unilateral
Insurance contracts are known as ____ because certain
future conditions or acts must occur before any claims can
be paid. - Answer-conditional
Which of these require an offer, acceptance, and
consideration? - Answer-Contract
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Which of these is NOT considered to be an element of an
insurance contract?
the offer
acceptance
negotiating
consideration - Answer-negotiating
An agent is an individual that represents whom? - Answer-
Insurer
Which policy requires an agent to register with the
National Association of Securities Dealers (NASD) before
selling? - Answer-Variable Life
Which of the following actions require a policy owner to
provide proof of insurability in an Adjustable Life policy? -
Answer-increase face amount
When a policy owner exchanges a term policy for a whole
life policy without providing proof of good health, which of
these apply? - Answer-Conversion provision
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What type of life insurance are credit policies issued as? -
Answer-Term
How long does the coverage normally remain on a limited-
pay life policy? - Answer-age 100
All of these statements about Equity Indexed Life
Insurance are correct EXCEPT
- Cash value has a minimum rate of accumulation
- If the gain on the index goes beyond the policy's
minimum rate of return, the cash value will mirror that of
the index
-The premiums can be lowered or raised, based on
investment performance
-Tied to an equity index such as the S&P 500 - Answer-
The premiums can be lowered or raised, based on
investment performance
What type of life insurance incorporates flexible premiums
and an adjustable death benefit? - Answer-Universal Life
What type of life policy covers 2 lives and pays the face
amount after the first one dies? - Answer-Joint Life Policy
Texas Life and Health Insurance Exam Prep Document
| 2026/2027 Edition ||Verified Exam!!|| 250 Verified
Questions
E and F are business partners. Each takes out a $500,000
life insurance policy on the other, naming himself as
primary beneficiary. E and F eventually terminate their
business, and four months later E dies. Although E was
married with three children at the time of death, the
primary beneficiary is still F. However, an insurable interest
no longer exists. Where will the proceeds from E's life
insurance policy be directed to? - Answer-In this situation,
the proceeds from E's life insurance policy will go to F.
Which term defines the legally enforceable promise in an
insurance contract by the insurer? - Answer-Unilateral
Insurance contracts are known as ____ because certain
future conditions or acts must occur before any claims can
be paid. - Answer-conditional
Which of these require an offer, acceptance, and
consideration? - Answer-Contract
,2|Page
Which of these is NOT considered to be an element of an
insurance contract?
the offer
acceptance
negotiating
consideration - Answer-negotiating
An agent is an individual that represents whom? - Answer-
Insurer
Which policy requires an agent to register with the
National Association of Securities Dealers (NASD) before
selling? - Answer-Variable Life
Which of the following actions require a policy owner to
provide proof of insurability in an Adjustable Life policy? -
Answer-increase face amount
When a policy owner exchanges a term policy for a whole
life policy without providing proof of good health, which of
these apply? - Answer-Conversion provision
, 3|Page
What type of life insurance are credit policies issued as? -
Answer-Term
How long does the coverage normally remain on a limited-
pay life policy? - Answer-age 100
All of these statements about Equity Indexed Life
Insurance are correct EXCEPT
- Cash value has a minimum rate of accumulation
- If the gain on the index goes beyond the policy's
minimum rate of return, the cash value will mirror that of
the index
-The premiums can be lowered or raised, based on
investment performance
-Tied to an equity index such as the S&P 500 - Answer-
The premiums can be lowered or raised, based on
investment performance
What type of life insurance incorporates flexible premiums
and an adjustable death benefit? - Answer-Universal Life
What type of life policy covers 2 lives and pays the face
amount after the first one dies? - Answer-Joint Life Policy
