TEXAS INSURANCE LICENSE EXAM 3 LATEST VERSIONS (VERSION A
B AND C) 2024-2025 ACTUAL EXAM COMPLETE 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
Study online at https://quizlet.com/_fphvq6
1. All of the following are considered to be typical char- Bilateral
acteristics describing the nature of an insurance con-
tract, EXCEPT
2. A domestic insurance company in Texas is consid- is incorporated
ered a company that? and formed in
Texas
3. A certificate of authority
permits an insurance company to transact business
in Texas.
4. Which of the following BEST describes how a Pre- More physicians
ferred Provider Organization (PPO) is less restrictive to choose from
than a Health Maintenance Organization (HMO)?
5. What type of annuity has a cash value that is based variable
upon the performance of it's underlying investment
funds?
6. When an insured changes to a more hazardous oc- Change of occu-
cupation, which disability policy provision allows an pation provision
insurer to adjust policy benefits and rates?
7. A plan through the Marketplace may be purchased by Any legal resident
(except those im-
prisoned)
8. A license may be denied, suspended, or revoked if the is found guilty
licensee? of misrepresenta-
tion in obtaining
the license
9. A Business Overhead Expense policy covers business
expenses such as
rent and utilities
10.
, TEXAS INSURANCE LICENSE EXAM 3 LATEST VERSIONS (VERSION A
B AND C) 2024-2025 ACTUAL EXAM COMPLETE 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
Study online at https://quizlet.com/_fphvq6
The policy provision that entitles the insurer to estab- Time Limit on Cer-
lish conditions the insured must meet while a claim tain Defenses
is pending is
11. T is the policyowner for a Life Insurance policy with beneficiary
an Irrevocable beneficiary designation, If T wishes
to change the beneficiary, T must obtain permission
from the
12. The individual Health Insurance policy that offers the major medical
broadest protection is a(n)
policy
13. When an insurance application is taken by a produc- Any changes
er, which of these statements is true? made on the appli-
cation require the
applicant's initials
14. Term Life Policies that have the ability to be converted varies according
to permanent coverage may do so during a specific to the contract
time period. This conversion period
15. A Disability Income policy that only the policyowner noncancellable
can terminate and which the rates will never go up is
considered to be
16. An example of false advertising would be An insurer exag-
gerating its divi-
dends in a mag-
azine advertise-
ment
17. B has a $100,000 Accidental Death and Dismember- $300,000
ment policy that pays triple indemnity for common
carrier death. If B is killed from an accident on a
commercial flight, what will the policy pay B's bene-
ficiary?
, TEXAS INSURANCE LICENSE EXAM 3 LATEST VERSIONS (VERSION A
B AND C) 2024-2025 ACTUAL EXAM COMPLETE 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
Study online at https://quizlet.com/_fphvq6
18. Which of the following is an example of a nonforfei- reduced paid-up
ture option? option
19. An applicant MUST receive an Outline of Coverage Medicare Supple-
when an application is taken for a(n) ment policy
20. Which mode of payment is NOT used by health insur- Single Premium
ance policies?
21. What type of life policy covers two people and pays survivorship
upon the death of the last insured?
22. During a sales presentation for a participating life make a prospect
insurance policy, an agent MUST understand that
dividends are
NOT guaranteed
23. What is the elimination period of an individual disabil- Time period a dis-
ity policy? abled person must
wait before bene-
fits are paid
24. When is the face amount of a Whole Life policy paid? When the in-
sured dies or at
the policy's matu-
rity date, whichev-
er happens first
25. Which of the following statements BEST describes An insured must
what the Legal Actions provision of an Accident and wait at least 60
Health policy requires? days after Proof
of Loss has been
submitted before
a lawsuit can be
filed
26. Medicare is intended for all of the following groups, Those enrolled as
EXCEPT: a full-time student
B AND C) 2024-2025 ACTUAL EXAM COMPLETE 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
Study online at https://quizlet.com/_fphvq6
1. All of the following are considered to be typical char- Bilateral
acteristics describing the nature of an insurance con-
tract, EXCEPT
2. A domestic insurance company in Texas is consid- is incorporated
ered a company that? and formed in
Texas
3. A certificate of authority
permits an insurance company to transact business
in Texas.
4. Which of the following BEST describes how a Pre- More physicians
ferred Provider Organization (PPO) is less restrictive to choose from
than a Health Maintenance Organization (HMO)?
5. What type of annuity has a cash value that is based variable
upon the performance of it's underlying investment
funds?
6. When an insured changes to a more hazardous oc- Change of occu-
cupation, which disability policy provision allows an pation provision
insurer to adjust policy benefits and rates?
7. A plan through the Marketplace may be purchased by Any legal resident
(except those im-
prisoned)
8. A license may be denied, suspended, or revoked if the is found guilty
licensee? of misrepresenta-
tion in obtaining
the license
9. A Business Overhead Expense policy covers business
expenses such as
rent and utilities
10.
, TEXAS INSURANCE LICENSE EXAM 3 LATEST VERSIONS (VERSION A
B AND C) 2024-2025 ACTUAL EXAM COMPLETE 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
Study online at https://quizlet.com/_fphvq6
The policy provision that entitles the insurer to estab- Time Limit on Cer-
lish conditions the insured must meet while a claim tain Defenses
is pending is
11. T is the policyowner for a Life Insurance policy with beneficiary
an Irrevocable beneficiary designation, If T wishes
to change the beneficiary, T must obtain permission
from the
12. The individual Health Insurance policy that offers the major medical
broadest protection is a(n)
policy
13. When an insurance application is taken by a produc- Any changes
er, which of these statements is true? made on the appli-
cation require the
applicant's initials
14. Term Life Policies that have the ability to be converted varies according
to permanent coverage may do so during a specific to the contract
time period. This conversion period
15. A Disability Income policy that only the policyowner noncancellable
can terminate and which the rates will never go up is
considered to be
16. An example of false advertising would be An insurer exag-
gerating its divi-
dends in a mag-
azine advertise-
ment
17. B has a $100,000 Accidental Death and Dismember- $300,000
ment policy that pays triple indemnity for common
carrier death. If B is killed from an accident on a
commercial flight, what will the policy pay B's bene-
ficiary?
, TEXAS INSURANCE LICENSE EXAM 3 LATEST VERSIONS (VERSION A
B AND C) 2024-2025 ACTUAL EXAM COMPLETE 400 QUESTIONS AND
CORRECT DETAILED ANSWERS
Study online at https://quizlet.com/_fphvq6
18. Which of the following is an example of a nonforfei- reduced paid-up
ture option? option
19. An applicant MUST receive an Outline of Coverage Medicare Supple-
when an application is taken for a(n) ment policy
20. Which mode of payment is NOT used by health insur- Single Premium
ance policies?
21. What type of life policy covers two people and pays survivorship
upon the death of the last insured?
22. During a sales presentation for a participating life make a prospect
insurance policy, an agent MUST understand that
dividends are
NOT guaranteed
23. What is the elimination period of an individual disabil- Time period a dis-
ity policy? abled person must
wait before bene-
fits are paid
24. When is the face amount of a Whole Life policy paid? When the in-
sured dies or at
the policy's matu-
rity date, whichev-
er happens first
25. Which of the following statements BEST describes An insured must
what the Legal Actions provision of an Accident and wait at least 60
Health policy requires? days after Proof
of Loss has been
submitted before
a lawsuit can be
filed
26. Medicare is intended for all of the following groups, Those enrolled as
EXCEPT: a full-time student
