Texas Life and Health Insurance Final Exam 2026 |
Complete Latest Updated Actual Exam with Questions,
Correct Solutions & Expert Explanations | Already
Graded A+
Question 1
D is an architect receiving Disability Income benefits who is not able to return to work
full time, but can work on a part-time basis. Which of these features would allow D to
continue receiving benefits?
A. Residual Benefit clause
B. Waiver Benefit clause
C. Concurrent Benefit clause
D. Guaranteed Benefit clause
Correct Answer: A
Explanation: A Residual Benefit clause allows a partially disabled insured to receive
benefits based on the percentage of income loss.
Question 2
The individual who provides general medical care for a patient as well as the referral for
specialized care is known as a:
A. Physician's assistant
B. Primary Care Physician
C. Secondary Care Physician
D. Third Party Administrator
Correct Answer: B
Explanation: A Primary Care Physician (PCP) provides general medical care and
referrals to specialists.
Question 3
If an insured sustains a loss on a policy sold by an agent through an insurance company
that is not authorized to do business in Texas, which of the following would be liable?
pg. 1
,A. The agent only
B. The company only
C. The agent and the company
D. The Life, Accident, Health and Hospital Insurance Guaranty Association
Correct Answer: C
Explanation: Both the agent and the company are liable when an agent sells a policy
from an unauthorized insurer.
Question 4
Who can purchase a plan through the Marketplace?
A. Anyone
B. Any legal resident except those incarcerated
C. Only those who do not have access to employer-sponsored coverage
D. Only those who might be eligible for tax credits
Correct Answer: B
Explanation: Any legal resident except incarcerated individuals can purchase a plan
through the Marketplace.
Question 5
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are
prohibited under the Texas Insurance Code covering:
A. Rebating
B. False advertising
C. Discrimination
D. Unfair methods of competition
Correct Answer: D
Explanation: Boycott, coercion, and intimidation are prohibited under unfair methods
of competition.
Question 6
An insurance agent does NOT have fiduciary responsibilities to:
pg. 2
,A. Insurance companies
B. Insureds
C. Applicants
D. Other agents
Correct Answer: D
Explanation: An agent has fiduciary responsibility to insurers, insureds, and
applicants, but not to other agents.
Question 7
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of
a contributory group Term Life plan to all its eligible employees?
A. Portion of the premiums paid for by the employer may be a tax deduction
B. Portion of the premiums paid for by the employee may be a tax deduction
C. Portion of the death proceeds are taxable to the beneficiary
D. Portion of the death proceeds are taxable to the estate
Correct Answer: A
Explanation: Employer-paid premiums for group term life insurance are tax-
deductible to the employer.
Question 8
When applied to Whole Life insurance, the word "straight" denotes:
A. The absence of dividends
B. Options to reduce or withhold premium payments
C. The mode of premium payments
D. The duration of premium payments
Correct Answer: D
Explanation: "Straight" refers to the duration of premium payments (premiums paid
for life).
Question 9
If an individual has an Accidental Death and Dismemberment policy and dies, an
autopsy can be performed in all these situations, EXCEPT:
pg. 3
, A. When the cause of death is unknown
B. When the state prohibits this by law
C. When consent for the autopsy is not obtained
D. When foul play was a contributing factor
Correct Answer: B
Explanation: An autopsy cannot be performed when state law prohibits it.
Question 10
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used?
A. Irrevocable
B. Contingent
C. Primary
D. Revocable
Correct Answer: D
Explanation: A revocable beneficiary designation allows the policyowner to change
beneficiaries at any time.
Question 11
What percent of personal life insurance premiums is usually deductible for federal
income tax purposes?
A. 100%
B. 75%
C. 50%
D. 0%
Correct Answer: D
Explanation: Personal life insurance premiums are not tax-deductible (0%).
Question 12
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed?
pg. 4
Complete Latest Updated Actual Exam with Questions,
Correct Solutions & Expert Explanations | Already
Graded A+
Question 1
D is an architect receiving Disability Income benefits who is not able to return to work
full time, but can work on a part-time basis. Which of these features would allow D to
continue receiving benefits?
A. Residual Benefit clause
B. Waiver Benefit clause
C. Concurrent Benefit clause
D. Guaranteed Benefit clause
Correct Answer: A
Explanation: A Residual Benefit clause allows a partially disabled insured to receive
benefits based on the percentage of income loss.
Question 2
The individual who provides general medical care for a patient as well as the referral for
specialized care is known as a:
A. Physician's assistant
B. Primary Care Physician
C. Secondary Care Physician
D. Third Party Administrator
Correct Answer: B
Explanation: A Primary Care Physician (PCP) provides general medical care and
referrals to specialists.
Question 3
If an insured sustains a loss on a policy sold by an agent through an insurance company
that is not authorized to do business in Texas, which of the following would be liable?
pg. 1
,A. The agent only
B. The company only
C. The agent and the company
D. The Life, Accident, Health and Hospital Insurance Guaranty Association
Correct Answer: C
Explanation: Both the agent and the company are liable when an agent sells a policy
from an unauthorized insurer.
Question 4
Who can purchase a plan through the Marketplace?
A. Anyone
B. Any legal resident except those incarcerated
C. Only those who do not have access to employer-sponsored coverage
D. Only those who might be eligible for tax credits
Correct Answer: B
Explanation: Any legal resident except incarcerated individuals can purchase a plan
through the Marketplace.
Question 5
Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are
prohibited under the Texas Insurance Code covering:
A. Rebating
B. False advertising
C. Discrimination
D. Unfair methods of competition
Correct Answer: D
Explanation: Boycott, coercion, and intimidation are prohibited under unfair methods
of competition.
Question 6
An insurance agent does NOT have fiduciary responsibilities to:
pg. 2
,A. Insurance companies
B. Insureds
C. Applicants
D. Other agents
Correct Answer: D
Explanation: An agent has fiduciary responsibility to insurers, insureds, and
applicants, but not to other agents.
Question 7
Under federal tax laws, what is the tax treatment for an employer providing $50,000 of
a contributory group Term Life plan to all its eligible employees?
A. Portion of the premiums paid for by the employer may be a tax deduction
B. Portion of the premiums paid for by the employee may be a tax deduction
C. Portion of the death proceeds are taxable to the beneficiary
D. Portion of the death proceeds are taxable to the estate
Correct Answer: A
Explanation: Employer-paid premiums for group term life insurance are tax-
deductible to the employer.
Question 8
When applied to Whole Life insurance, the word "straight" denotes:
A. The absence of dividends
B. Options to reduce or withhold premium payments
C. The mode of premium payments
D. The duration of premium payments
Correct Answer: D
Explanation: "Straight" refers to the duration of premium payments (premiums paid
for life).
Question 9
If an individual has an Accidental Death and Dismemberment policy and dies, an
autopsy can be performed in all these situations, EXCEPT:
pg. 3
, A. When the cause of death is unknown
B. When the state prohibits this by law
C. When consent for the autopsy is not obtained
D. When foul play was a contributing factor
Correct Answer: B
Explanation: An autopsy cannot be performed when state law prohibits it.
Question 10
J would like to maintain the right to change beneficiaries. Which beneficiary designation
should be used?
A. Irrevocable
B. Contingent
C. Primary
D. Revocable
Correct Answer: D
Explanation: A revocable beneficiary designation allows the policyowner to change
beneficiaries at any time.
Question 11
What percent of personal life insurance premiums is usually deductible for federal
income tax purposes?
A. 100%
B. 75%
C. 50%
D. 0%
Correct Answer: D
Explanation: Personal life insurance premiums are not tax-deductible (0%).
Question 12
F needs life insurance that provides coverage for only a limited amount of time with a
death benefit that changes regularly according to a schedule. What kind of policy is
needed?
pg. 4
