TEXAS LIFE HEALTH INSURANCE EXAM QUESTIONS AND
CORRECT ANSWERS|ACCURATE ACTUAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND STUDY GUIDE|500+
QUESTIONS|ALREADY GRADED A+|GUARANTEED
PASS|LATEST UPDATE 2025.
which of the following is a primary source of information used for insurance underwriting?
a. application
b. applicant interviews
c. medical records.
d. private investigations - CORRECT ANSWER A. application
the application contains most of the information used for underwriting purposes. this is why its
completeness and accurarcy are so critical
which of the following is the best reason to purchase life insurance rather than annuities?
a. to liquidate a sum of money over a period of year
b. to create regular income payments
c. to liquidate a sum money over a lifetime
d. to create an estate - CORRECT ANSWER D. to create an estate
with insurance, the death creates an immediate estate should the insured die
a producer is helping a married couple determine the financial needs of their children in the event
of one or both should die prematurely. This is a personal use of life insurance known as
a. survivorship insurance
b. juvenile protection provision
c. survivorship protection
d. life planning - CORRECT ANSWER C. survivorship protection
life insurance can provide the funds necessary for the survivors of the insured to be able to
maintain their lifestyle in the event of the insured's death. This is known as survivor protection
a producer agent must do all of the following when delivering a new policy to the insured
EXCEPT
a. disclose commissions earned from the sale of the policy
b. explain the policy provisions, riders, and exclusions
c. collect any premium due
d. explain the rating procedures if the policy is rated differently than applied for - CORRECT
ANSWER A. disclose commissions earned fro the sale of the policy
,a producer must explain policy provisions, exclusions, and riders at the time of the delivery, as
well as the rating procedures especially if the policy is rated differently than applied for. The
producer must also collect any due premium and have the insured sign the statement go
continued good health
if an applicant for a life insurance policy and person to be insured by the policy are two different
people, the underwriter would be concerned about
a. which individual will pay the premium
b. whether an insurable interest exists between the individuals
c. the gender of applicant
d. the type of policy requested - CORRECT ANSWER B. whether an insurable interest exists
between the individuals
an insurable interest must exist at the time of the policy is issued. Some relationships are
automatically presumed to qualify as an insurable interest. ex: spouses, parents, children, and
certain business relationships
When J. applied for a life insurance policy, the agent informed him that a medical exam would
be required. The exam may be completed by
a. a physician of the applicant's choice and at his expense
b. a home office underwriter
c. a paramedic or examining physician at the insurer's expense
d. the agent - CORRECT ANSWER C. a paramedic or examining physician at the insurer's
expense
the applicant may be allowed to select the physician or paramedic facility to perform the
examination. The insurer pays the cost of such an examination
The factor added to the net premium to cover the costs of the insurer in obtaining and
maintaining the business is called
a. expenses
b. legal reserve
c. dividend accumulation
d. premium tax - CORRECT ANSWER A. expenses
loading is another term for expenses. Net premium (mortality minus interest earned) plus
expenses (or loading) equal the gross premium
which of the following methods of calculating the amount of life insurance needed takes into
account the insured's wages, years until retirement, and inflation?
a. needs approach
b. blackout approach
,c. lump-sum approach
d. human life value approach - CORRECT ANSWER D. human life value approach
human life value approach is determined by the loss of the income that would result with the
death of the insured, after making adjustments for expenses, inflation, etc.
which of the following is NOT required for a producer to tell a prospect?
a. how the insurer would use any outside information regarding the applicant
b. an explanation of products that the insurer is selling
c. what requirements the producer needed to meet to obtain the insurance license
d. from what outside sources the insurer would seek information, regarding the insured -
CORRECT ANSWER C. what requirements the producer needed to meet to obtain the insurance
license
agents are required to inform prospects of the products they are selling, as well as their
information collecting practices
which of the following statements concerning buy-sell agreements is true?
a. premium paid are deductible as a business expense
b. benefits received are considered income taxable
c. buy-sell agreements pay in the event of a medical emergency
d. buy-sell agreements are normally funded with a life insurance expectancy - CORRECT
ANSWER D. buy-sell agreements are normally funded with life insurance expectancy
a buy-sell agreements is simply a contract that establishes what willl be done with a business in
the event that an owner dies. Buy-sell agreements are normally funded with a life insurance
policy
Who may complete a paramedical report?
a. an underwriter
b. a nursing assistant
c. a registered nurse
d. a spouse - CORRECT ANSWER C. a registered nurse
paramedical reports are completed by paramedics or registered nurses. Full medical expectations
are reserved for those wanting higher coverage or for those who have more complex medical
history
the term "illustrations" in a life insurance policy refers to
a. a presentation of non guaranteed elements of a policy
b. a depiction of policy benefits and guarantees
c. pictures accompanying a policy
, d. charts and graphs - CORRECT ANSWER A. a presentation of non guaranteed elements of a
policy
the term "illustrations" means presentation of depiction that includes non guaranteed elements of
a policy of individual of group life insurance over a period of years
which is generally true regarding insureds who have been classified as preferred risks?
a. they can borrow higher amounts off of their policies
b. they can decide when to pay their monthly premiums
c. they keep a higher percentage of any interest earned on their policies
d. their premiums are lower - CORRECT ANSWER D. their premiums are lower
the preferred risk classification indicates that an insured is in excellent physical condition and
employs healthy lifestyles and habits. These individuals qualify to lower premiums than those in
other categories
all of the following are requirements for life insurance illustrations EXCEPT?
a. they may only be used as approved
b. they must identify non guaranteed values
c. they must differentiate between guaranteed and projected amounts
d. they must be part of the contract - CORRECT ANSWER D. they must be part of the contract
an illustration may not be altered by an agent and must clearly state that it is not part of the
contract. It is legal to list non guaranteed values in the contract, but they must be specifically
labeled as projected, not guaranteed values
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that
should one of them die prematurely, the other would be financially able to buy the interest of the
deceased partner. What type of insurance policy may be used to fund this agreement?
a. term insurance only
b. permanent insurance only
c. universal life insurance only
d. any form of life insurance - CORRECT ANSWER D.any form of life insurance
any form of life insurance may be used to fund a buy-sell agreement
an insurance policy that only requires a payment of premium at its inception, provides insurance
protection for the life of the insured and matures at the insured's age 100 is called?
a. Modified Endowment Contract (MEG)
b. level term life
c. graded premium whole life
d. single premium whole life - CORRECT ANSWER D. single premium whole life
CORRECT ANSWERS|ACCURATE ACTUAL EXAM WITH
FREQUENTLY TESTED QUESTIONS AND STUDY GUIDE|500+
QUESTIONS|ALREADY GRADED A+|GUARANTEED
PASS|LATEST UPDATE 2025.
which of the following is a primary source of information used for insurance underwriting?
a. application
b. applicant interviews
c. medical records.
d. private investigations - CORRECT ANSWER A. application
the application contains most of the information used for underwriting purposes. this is why its
completeness and accurarcy are so critical
which of the following is the best reason to purchase life insurance rather than annuities?
a. to liquidate a sum of money over a period of year
b. to create regular income payments
c. to liquidate a sum money over a lifetime
d. to create an estate - CORRECT ANSWER D. to create an estate
with insurance, the death creates an immediate estate should the insured die
a producer is helping a married couple determine the financial needs of their children in the event
of one or both should die prematurely. This is a personal use of life insurance known as
a. survivorship insurance
b. juvenile protection provision
c. survivorship protection
d. life planning - CORRECT ANSWER C. survivorship protection
life insurance can provide the funds necessary for the survivors of the insured to be able to
maintain their lifestyle in the event of the insured's death. This is known as survivor protection
a producer agent must do all of the following when delivering a new policy to the insured
EXCEPT
a. disclose commissions earned from the sale of the policy
b. explain the policy provisions, riders, and exclusions
c. collect any premium due
d. explain the rating procedures if the policy is rated differently than applied for - CORRECT
ANSWER A. disclose commissions earned fro the sale of the policy
,a producer must explain policy provisions, exclusions, and riders at the time of the delivery, as
well as the rating procedures especially if the policy is rated differently than applied for. The
producer must also collect any due premium and have the insured sign the statement go
continued good health
if an applicant for a life insurance policy and person to be insured by the policy are two different
people, the underwriter would be concerned about
a. which individual will pay the premium
b. whether an insurable interest exists between the individuals
c. the gender of applicant
d. the type of policy requested - CORRECT ANSWER B. whether an insurable interest exists
between the individuals
an insurable interest must exist at the time of the policy is issued. Some relationships are
automatically presumed to qualify as an insurable interest. ex: spouses, parents, children, and
certain business relationships
When J. applied for a life insurance policy, the agent informed him that a medical exam would
be required. The exam may be completed by
a. a physician of the applicant's choice and at his expense
b. a home office underwriter
c. a paramedic or examining physician at the insurer's expense
d. the agent - CORRECT ANSWER C. a paramedic or examining physician at the insurer's
expense
the applicant may be allowed to select the physician or paramedic facility to perform the
examination. The insurer pays the cost of such an examination
The factor added to the net premium to cover the costs of the insurer in obtaining and
maintaining the business is called
a. expenses
b. legal reserve
c. dividend accumulation
d. premium tax - CORRECT ANSWER A. expenses
loading is another term for expenses. Net premium (mortality minus interest earned) plus
expenses (or loading) equal the gross premium
which of the following methods of calculating the amount of life insurance needed takes into
account the insured's wages, years until retirement, and inflation?
a. needs approach
b. blackout approach
,c. lump-sum approach
d. human life value approach - CORRECT ANSWER D. human life value approach
human life value approach is determined by the loss of the income that would result with the
death of the insured, after making adjustments for expenses, inflation, etc.
which of the following is NOT required for a producer to tell a prospect?
a. how the insurer would use any outside information regarding the applicant
b. an explanation of products that the insurer is selling
c. what requirements the producer needed to meet to obtain the insurance license
d. from what outside sources the insurer would seek information, regarding the insured -
CORRECT ANSWER C. what requirements the producer needed to meet to obtain the insurance
license
agents are required to inform prospects of the products they are selling, as well as their
information collecting practices
which of the following statements concerning buy-sell agreements is true?
a. premium paid are deductible as a business expense
b. benefits received are considered income taxable
c. buy-sell agreements pay in the event of a medical emergency
d. buy-sell agreements are normally funded with a life insurance expectancy - CORRECT
ANSWER D. buy-sell agreements are normally funded with life insurance expectancy
a buy-sell agreements is simply a contract that establishes what willl be done with a business in
the event that an owner dies. Buy-sell agreements are normally funded with a life insurance
policy
Who may complete a paramedical report?
a. an underwriter
b. a nursing assistant
c. a registered nurse
d. a spouse - CORRECT ANSWER C. a registered nurse
paramedical reports are completed by paramedics or registered nurses. Full medical expectations
are reserved for those wanting higher coverage or for those who have more complex medical
history
the term "illustrations" in a life insurance policy refers to
a. a presentation of non guaranteed elements of a policy
b. a depiction of policy benefits and guarantees
c. pictures accompanying a policy
, d. charts and graphs - CORRECT ANSWER A. a presentation of non guaranteed elements of a
policy
the term "illustrations" means presentation of depiction that includes non guaranteed elements of
a policy of individual of group life insurance over a period of years
which is generally true regarding insureds who have been classified as preferred risks?
a. they can borrow higher amounts off of their policies
b. they can decide when to pay their monthly premiums
c. they keep a higher percentage of any interest earned on their policies
d. their premiums are lower - CORRECT ANSWER D. their premiums are lower
the preferred risk classification indicates that an insured is in excellent physical condition and
employs healthy lifestyles and habits. These individuals qualify to lower premiums than those in
other categories
all of the following are requirements for life insurance illustrations EXCEPT?
a. they may only be used as approved
b. they must identify non guaranteed values
c. they must differentiate between guaranteed and projected amounts
d. they must be part of the contract - CORRECT ANSWER D. they must be part of the contract
an illustration may not be altered by an agent and must clearly state that it is not part of the
contract. It is legal to list non guaranteed values in the contract, but they must be specifically
labeled as projected, not guaranteed values
Partners in a business enter into a buy-sell agreement to purchase life insurance, which states that
should one of them die prematurely, the other would be financially able to buy the interest of the
deceased partner. What type of insurance policy may be used to fund this agreement?
a. term insurance only
b. permanent insurance only
c. universal life insurance only
d. any form of life insurance - CORRECT ANSWER D.any form of life insurance
any form of life insurance may be used to fund a buy-sell agreement
an insurance policy that only requires a payment of premium at its inception, provides insurance
protection for the life of the insured and matures at the insured's age 100 is called?
a. Modified Endowment Contract (MEG)
b. level term life
c. graded premium whole life
d. single premium whole life - CORRECT ANSWER D. single premium whole life
