TEXAS LIFE AND HEALTH 2025
INSURANCE PRACTICE TEST
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Which type of renewability best describes a Disability Income policy that covers
an individual until the age of 65, but the insurer has the right to change the
premium rate for the overall risk class - ANSWERS-Guaranteed Renewable
QUESTION 2
How are surrender charges deducted in a life policy with a rear-end loaded
provision? - ANSWERS-Deducted when the policy is discontinued
QUESTION 3
J chooses a monthly premium payment mode on his Whole Life insurance policy.
Which of these statements is correct? - ANSWERS-The gross premium is higher
on a monthly payment mode as compared to being paid annually
END OF
PAGE 1
, TEXAS LIFE AND HEALTH 2025
INSURANCE PRACTICE TEST
QUESTION 4
Which of the following statements BEST describes dental care indemnity
coverage? - ANSWERS-Services are reimbursed after insurer receives the invoice
QUESTION 5
A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? - ANSWERS-Aviation exclusion
QUESTION 6
Which of the following actions will an insurance company most likely NOT take if
an applicant, who has diabetes, applies for a Disability Income policy? -
ANSWERS-Issue the policy with an altered Time of Payment of Claims provision
QUESTION 7
Which of the following phrases refers to the fees charged by a healthcare
professional? - ANSWERS-Usual, customary, and reasonable expenses
END OF
PAGE 2
, TEXAS LIFE AND HEALTH 2025
INSURANCE PRACTICE TEST
QUESTION 8
After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - ANSWERS-File written proof of loss
QUESTION 9
Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health? - ANSWERS-Conversion
QUESTION 10
Which of the following reimburses its insureds for covered medical expenses? -
ANSWERS-Commercial insurers
QUESTION 11
What type of life insurance incorporates flexible premiums and an adjustable death
benefit? - ANSWERS-Universal life
END OF
PAGE 3
, TEXAS LIFE AND HEALTH 2025
INSURANCE PRACTICE TEST
QUESTION 12
T was insured under an individual Disability Income policy and was severely
burned in a fire. As a result, T became totally disabled. The insurer began making
monthly benefit payments, but later discovered that the fire was set by T in what
was described as arson. What actions will the insurer take? - ANSWERS-The
insurer will rescind the policy, deny the claim, and recover all payments made
QUESTION 13
The Common Disaster clause provides that if both the insured and the named
beneficiary were to die in a common accident, which of the following is true? -
ANSWERS-The estate taxes in the beneficiary's estate may be reduce
QUESTION 14
Which of the following is the MOST important factor when deciding how much
Disability Income coverage an applicant should purchase? - ANSWERS-
Applicant's monthly income
QUESTION 15
Life and health insurance policies are - ANSWERS-unilateral (take it or leave it)
END OF
PAGE 4
INSURANCE PRACTICE TEST
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Which type of renewability best describes a Disability Income policy that covers
an individual until the age of 65, but the insurer has the right to change the
premium rate for the overall risk class - ANSWERS-Guaranteed Renewable
QUESTION 2
How are surrender charges deducted in a life policy with a rear-end loaded
provision? - ANSWERS-Deducted when the policy is discontinued
QUESTION 3
J chooses a monthly premium payment mode on his Whole Life insurance policy.
Which of these statements is correct? - ANSWERS-The gross premium is higher
on a monthly payment mode as compared to being paid annually
END OF
PAGE 1
, TEXAS LIFE AND HEALTH 2025
INSURANCE PRACTICE TEST
QUESTION 4
Which of the following statements BEST describes dental care indemnity
coverage? - ANSWERS-Services are reimbursed after insurer receives the invoice
QUESTION 5
A student pilot can pay regular premium costs for her life insurance policy with the
addition of which of the following? - ANSWERS-Aviation exclusion
QUESTION 6
Which of the following actions will an insurance company most likely NOT take if
an applicant, who has diabetes, applies for a Disability Income policy? -
ANSWERS-Issue the policy with an altered Time of Payment of Claims provision
QUESTION 7
Which of the following phrases refers to the fees charged by a healthcare
professional? - ANSWERS-Usual, customary, and reasonable expenses
END OF
PAGE 2
, TEXAS LIFE AND HEALTH 2025
INSURANCE PRACTICE TEST
QUESTION 8
After an insured gives notice of loss, what must he/she do if the insurer does not
furnish forms? - ANSWERS-File written proof of loss
QUESTION 9
Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health? - ANSWERS-Conversion
QUESTION 10
Which of the following reimburses its insureds for covered medical expenses? -
ANSWERS-Commercial insurers
QUESTION 11
What type of life insurance incorporates flexible premiums and an adjustable death
benefit? - ANSWERS-Universal life
END OF
PAGE 3
, TEXAS LIFE AND HEALTH 2025
INSURANCE PRACTICE TEST
QUESTION 12
T was insured under an individual Disability Income policy and was severely
burned in a fire. As a result, T became totally disabled. The insurer began making
monthly benefit payments, but later discovered that the fire was set by T in what
was described as arson. What actions will the insurer take? - ANSWERS-The
insurer will rescind the policy, deny the claim, and recover all payments made
QUESTION 13
The Common Disaster clause provides that if both the insured and the named
beneficiary were to die in a common accident, which of the following is true? -
ANSWERS-The estate taxes in the beneficiary's estate may be reduce
QUESTION 14
Which of the following is the MOST important factor when deciding how much
Disability Income coverage an applicant should purchase? - ANSWERS-
Applicant's monthly income
QUESTION 15
Life and health insurance policies are - ANSWERS-unilateral (take it or leave it)
END OF
PAGE 4
