General Lines Life and Health Texas
Missed Questions EXAM WITH
ACCURATE QUESTIONS AND DETAILED
ANSWERS | GUARANTEED PASS |
GRADED A | LATEST UPDATE 2025-2026
1. Which of the following options will reduce the death benefit?
A. Extended term
B. Paid-up additions
C. Interest-only payments
D. Accelerated payment
✅ Correct Answer: D. Accelerated payment
Rationale: An accelerated payment allows the policyholder to access a portion of the
death benefit early, typically due to terminal illness. This reduces the final benefit paid
out upon death.
2. Which type of insurance has a corridor?
A. Whole life
B. Term life
C. Variable life
D. Universal life
✅ Correct Answer: D. Universal life
Rationale: Universal life insurance maintains a corridor to meet IRS definitions of life
insurance. This corridor ensures the cash value does not exceed the death benefit.
3. Which settlement option is NOT a systematic liquidation of funds?
A. Life income
B. Fixed amount
C. Interest only
D. Fixed period
✅ Correct Answer: C. Interest only
Rationale: The interest-only option pays interest on the death benefit without reducing
the principal, which remains intact.
4. An employer offers Group Term Life insurance worth $10,000 and pays $5 per
policy. Which statement is true?
A. The employee must pay tax on the coverage
B. The policy is subject to state taxation
C. No taxes need to be reported in this transaction
,D. The employer must report imputed income
✅ Correct Answer: C. No taxes need to be reported in this transaction
Rationale: Group life insurance premiums up to $50,000 are typically not taxable to the
employee.
5. An injury or illness must reoccur within what time-frame to be considered a
recurrent disability?
A. 12 months
B. 6 months
C. 24 months
D. 3 months
✅ Correct Answer: A. 12 months
Rationale: Recurrent disabilities must happen within 12 months of the original to be
considered as such for benefit continuation.
6. If an applicant purchases insurance on a spouse and names themselves
primary beneficiary and their daughter contingent, who must sign?
A. The applicant and their spouse
B. Only the spouse
C. Only the applicant
D. The agent only
✅ Correct Answer: A. The applicant and their spouse
Rationale: When insuring another person, their consent and signature are legally
required.
7. Which of the following annuities is most likely used for 401(k) retirement
plans?
A. Immediate annuity
B. Fixed annuity
C. Indexed annuity
D. Variable annuity
✅ Correct Answer: D. Variable annuity
Rationale: Variable annuities are commonly used in qualified plans like 401(k)s
because they allow investment in mutual funds and other securities.
8. The purpose of reinsurance can be best described as:
A. Catastrophic coverage
B. Eliminating all risk
C. Investment protection
D. Regulatory compliance
✅ Correct Answer: A. Catastrophic coverage
Rationale: Reinsurance helps insurers manage large losses by transferring risk.
,9. If a claims form is not furnished, what is true about Proof of Loss?
A. No claim can be made
B. Submit by any reasonable method
C. Must wait for the form
D. Wait for insurer to respond
✅ Correct Answer: B. Submit by any reasonable method
Rationale: Proof of Loss must be submitted within 90 days using any method if forms
are not provided.
10. According to the Time Payment of Claims clause on a disability policy, when
must claims be paid?
A. Within 15 days
B. Every two weeks
C. 1 month
D. 60 days
✅ Correct Answer: C. 1 month
Rationale: Disability claims are required to be paid monthly once liability is established.
11. Medicaid provides Long-Term Care in what situation?
A. Medicare qualification
B. Terminal illness
C. Financial or indigent needy persons
D. Any senior over 65
✅ Correct Answer: C. Financial or indigent needy persons
Rationale: Medicaid provides LTC benefits only for those who meet financial eligibility.
12. Why is life insurance replacement strictly regulated?
A. To increase insurer profits
B. To support agents' commissions
C. To lower premiums
D. To protect purchasers of life insurance
✅ Correct Answer: D. To protect purchasers of life insurance
Rationale: Regulation ensures consumers are not misled and understand the
implications of replacing a policy.
13. A nonmedical policy was applied for on Feb 2, no premium paid. Insured dies
before policy delivery. What happens?
A. Policy is enforced retroactively
B. No benefits will be paid
C. Partial benefit paid
D. Return of premium
✅ Correct Answer: B. No benefits will be paid
Rationale: Without premium payment, coverage never began.
, 14. Exchanging a profit-sharing plan into a Straight Life Annuity best describes
what?
A. Flexible income stream
B. A stream of income that cannot be outlived
C. A deferred annuity
D. Investment in mutual funds
✅ Correct Answer: B. A stream of income that cannot be outlived
Rationale: A Straight Life Annuity provides lifetime income with no residual to
beneficiaries.
15. Which of the following is NOT a required provision in life insurance policies?
A. Extended term
B. Grace period
C. Reinstatement
D. Incontestability
✅ Correct Answer: A. Extended term
Rationale: Extended term is a non-forfeiture option, not a required provision.
16. A policy that matures at a certain age or upon death is called:
A. Term life
B. Variable life
C. Whole life
D. Endowment contract
✅ Correct Answer: D. Endowment contract
Rationale: Endowment contracts pay out at maturity or earlier upon death.
17. All of the following are Social Security benefits EXCEPT:
A. Compensation
B. Retirement income
C. Disability benefits
D. Death benefit
✅ Correct Answer: A. Compensation
Rationale: Compensation is not a Social Security benefit.
18. What is the minimum group size to qualify for group life insurance?
A. 10
B. 5
C. 3
D. 50
✅ Correct Answer: A. 10
Rationale: Group life plans require at least 10 eligible members.
Missed Questions EXAM WITH
ACCURATE QUESTIONS AND DETAILED
ANSWERS | GUARANTEED PASS |
GRADED A | LATEST UPDATE 2025-2026
1. Which of the following options will reduce the death benefit?
A. Extended term
B. Paid-up additions
C. Interest-only payments
D. Accelerated payment
✅ Correct Answer: D. Accelerated payment
Rationale: An accelerated payment allows the policyholder to access a portion of the
death benefit early, typically due to terminal illness. This reduces the final benefit paid
out upon death.
2. Which type of insurance has a corridor?
A. Whole life
B. Term life
C. Variable life
D. Universal life
✅ Correct Answer: D. Universal life
Rationale: Universal life insurance maintains a corridor to meet IRS definitions of life
insurance. This corridor ensures the cash value does not exceed the death benefit.
3. Which settlement option is NOT a systematic liquidation of funds?
A. Life income
B. Fixed amount
C. Interest only
D. Fixed period
✅ Correct Answer: C. Interest only
Rationale: The interest-only option pays interest on the death benefit without reducing
the principal, which remains intact.
4. An employer offers Group Term Life insurance worth $10,000 and pays $5 per
policy. Which statement is true?
A. The employee must pay tax on the coverage
B. The policy is subject to state taxation
C. No taxes need to be reported in this transaction
,D. The employer must report imputed income
✅ Correct Answer: C. No taxes need to be reported in this transaction
Rationale: Group life insurance premiums up to $50,000 are typically not taxable to the
employee.
5. An injury or illness must reoccur within what time-frame to be considered a
recurrent disability?
A. 12 months
B. 6 months
C. 24 months
D. 3 months
✅ Correct Answer: A. 12 months
Rationale: Recurrent disabilities must happen within 12 months of the original to be
considered as such for benefit continuation.
6. If an applicant purchases insurance on a spouse and names themselves
primary beneficiary and their daughter contingent, who must sign?
A. The applicant and their spouse
B. Only the spouse
C. Only the applicant
D. The agent only
✅ Correct Answer: A. The applicant and their spouse
Rationale: When insuring another person, their consent and signature are legally
required.
7. Which of the following annuities is most likely used for 401(k) retirement
plans?
A. Immediate annuity
B. Fixed annuity
C. Indexed annuity
D. Variable annuity
✅ Correct Answer: D. Variable annuity
Rationale: Variable annuities are commonly used in qualified plans like 401(k)s
because they allow investment in mutual funds and other securities.
8. The purpose of reinsurance can be best described as:
A. Catastrophic coverage
B. Eliminating all risk
C. Investment protection
D. Regulatory compliance
✅ Correct Answer: A. Catastrophic coverage
Rationale: Reinsurance helps insurers manage large losses by transferring risk.
,9. If a claims form is not furnished, what is true about Proof of Loss?
A. No claim can be made
B. Submit by any reasonable method
C. Must wait for the form
D. Wait for insurer to respond
✅ Correct Answer: B. Submit by any reasonable method
Rationale: Proof of Loss must be submitted within 90 days using any method if forms
are not provided.
10. According to the Time Payment of Claims clause on a disability policy, when
must claims be paid?
A. Within 15 days
B. Every two weeks
C. 1 month
D. 60 days
✅ Correct Answer: C. 1 month
Rationale: Disability claims are required to be paid monthly once liability is established.
11. Medicaid provides Long-Term Care in what situation?
A. Medicare qualification
B. Terminal illness
C. Financial or indigent needy persons
D. Any senior over 65
✅ Correct Answer: C. Financial or indigent needy persons
Rationale: Medicaid provides LTC benefits only for those who meet financial eligibility.
12. Why is life insurance replacement strictly regulated?
A. To increase insurer profits
B. To support agents' commissions
C. To lower premiums
D. To protect purchasers of life insurance
✅ Correct Answer: D. To protect purchasers of life insurance
Rationale: Regulation ensures consumers are not misled and understand the
implications of replacing a policy.
13. A nonmedical policy was applied for on Feb 2, no premium paid. Insured dies
before policy delivery. What happens?
A. Policy is enforced retroactively
B. No benefits will be paid
C. Partial benefit paid
D. Return of premium
✅ Correct Answer: B. No benefits will be paid
Rationale: Without premium payment, coverage never began.
, 14. Exchanging a profit-sharing plan into a Straight Life Annuity best describes
what?
A. Flexible income stream
B. A stream of income that cannot be outlived
C. A deferred annuity
D. Investment in mutual funds
✅ Correct Answer: B. A stream of income that cannot be outlived
Rationale: A Straight Life Annuity provides lifetime income with no residual to
beneficiaries.
15. Which of the following is NOT a required provision in life insurance policies?
A. Extended term
B. Grace period
C. Reinstatement
D. Incontestability
✅ Correct Answer: A. Extended term
Rationale: Extended term is a non-forfeiture option, not a required provision.
16. A policy that matures at a certain age or upon death is called:
A. Term life
B. Variable life
C. Whole life
D. Endowment contract
✅ Correct Answer: D. Endowment contract
Rationale: Endowment contracts pay out at maturity or earlier upon death.
17. All of the following are Social Security benefits EXCEPT:
A. Compensation
B. Retirement income
C. Disability benefits
D. Death benefit
✅ Correct Answer: A. Compensation
Rationale: Compensation is not a Social Security benefit.
18. What is the minimum group size to qualify for group life insurance?
A. 10
B. 5
C. 3
D. 50
✅ Correct Answer: A. 10
Rationale: Group life plans require at least 10 eligible members.
