Texas Life and Health Exam 2026
Questions and Answers
An applicant MUST receive an Outline of Coverage when an application is taken
for a(n) A) Annuity B) Universal life policy C) Medicare Supplement policy D)
Endowment - Correct answer-Correct Answer: C) Medicare Supplement policy
A Hospital/Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles
per calendar year. Two claims were paid in September 2013, each incurring
medical expenses in excess of the deductible. Two additional claims were filed in
2014, each in excess of the deductible amount as well. What would be this family's
out-of-pocket medical expenses for 2013? A) $2,000 B) $1,500 C) $500 D) $1,000
- Correct answer-Correct Answer: D) $1,000
Comprehensive Major Medical policies usually combine: A) Major Medical with
Basic Hospital/Surgical coverage B) Basic Hospital/Surgical with Accidental
coverage C) Basic Hospital/Surgical with Disability Income coverage D) Major
Medical with Disability Income coverage - Correct answer-Correct Answer: A)
Major Medical with Basic Hospital/Surgical coverage
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,All of the following statements about Major Medical benefits are true, EXCEPT:
A) The deductible can be expressed as a fixed dollar amount B) Benefits have no
maximum limit C) Benefits are generally expressed as a percentage of eligible
expenses D) The benefit period begins only after a specified amount of expenses
have accrued - Correct answer-Correct Answer: B) Benefits have no maximum
limit
M completes an application for life insurance but does not pay the initial premium.
All of these actions must occur before M's policy goes into effect, EXCEPT: A)
Free-look period has expired B) Initial premium is collected C) Insurance company
issues policy D) Policy is delivered - Correct answer-Correct Answer: A) Free-look
period has expired
Which of these characteristics is consistent with a Straight Life policy? A)
Premiums are lower for the first five years, increase the sixth year, then levels off
for the remaining length of the contract B) Owner can adjust both premium and
death benefit C) Premiums are payable for as long as there is insurance coverage in
force D) Owner has the option of converting to term insurance - Correct answer-
Correct Answer: C) Premiums are payable for as long as there is insurance
coverage in force
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,The first portion of a covered Major Medical insurance expense that the insured is
required to pay is called the: A) Initial deductible B) Coinsurance deductible C)
Corridor deductible D) Stop-loss deductible - Correct answer-Correct Answer: A)
Initial deductible
Whole Life insurance policies are contractually guaranteed to provide each of the
following, EXCEPT: A) Premiums that remain fixed for the life of the policy B)
Nonforfeiture benefit options C) Cash value that will ultimately replace the death
benefit D) Partial withdrawal features beyond a surrender charge period - Correct
answer-Correct Answer: D) Partial withdrawal features beyond a surrender charge
period
The underwriting process involves all of these, EXCEPT for: A) Policy loan B)
Application C) Risk classification D) Credit report - Correct answer-Correct
Answer: A) Policy loan
Which of the following is NOT a limited benefit plan? A) Dental policy B) Life
insurance policy C) Cancer policy D) Critical illness policy - Correct answer-
Correct Answer: B) Life insurance policy
In an individual retirement account (IRA), rollover contributions are: A) Subject to
ordinary income tax B) Partially limited by dollar amount C) Subject to capital
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, gains tax D) Not limited by dollar amount - Correct answer-Correct Answer: D)
Not limited by dollar amount
Which type of life policy contains a monthly mortality charge as well as self-
directed investment choices? A) Adjustable Life B) Universal Life C) Variable
Universal Life D) Joint Life - Correct answer-Correct Answer: C) Variable
Universal Life
Which of the following policy features allows an insured to defer current health
charges to the following year's deductible instead of the current year's deductible?
A) Deferral provision B) Corridor provision C) Stop Loss provision D) Carryover
provision - Correct answer-Correct Answer: D) Carryover provision
A Cost of Living rider gives the insured: A) Decreasing premiums B) Tax
incentives C) Monthly income D) Additional death benefits - Correct answer-
Correct Answer: D) Additional death benefits
An agent gives a conditional receipt to a client for an insurance policy after
collecting the initial premium. When will the policy become effective? A) When
the conditions of the receipt are met B) The date the sales appointment was set C)
When the policy is issued D) The date of policy delivery - Correct answer-Correct
Answer: A) When the conditions of the receipt are met
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Questions and Answers
An applicant MUST receive an Outline of Coverage when an application is taken
for a(n) A) Annuity B) Universal life policy C) Medicare Supplement policy D)
Endowment - Correct answer-Correct Answer: C) Medicare Supplement policy
A Hospital/Surgical Expense policy was purchased for a family of four in March of
2013. The policy was issued with a $500 deductible and a limit of four deductibles
per calendar year. Two claims were paid in September 2013, each incurring
medical expenses in excess of the deductible. Two additional claims were filed in
2014, each in excess of the deductible amount as well. What would be this family's
out-of-pocket medical expenses for 2013? A) $2,000 B) $1,500 C) $500 D) $1,000
- Correct answer-Correct Answer: D) $1,000
Comprehensive Major Medical policies usually combine: A) Major Medical with
Basic Hospital/Surgical coverage B) Basic Hospital/Surgical with Accidental
coverage C) Basic Hospital/Surgical with Disability Income coverage D) Major
Medical with Disability Income coverage - Correct answer-Correct Answer: A)
Major Medical with Basic Hospital/Surgical coverage
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,All of the following statements about Major Medical benefits are true, EXCEPT:
A) The deductible can be expressed as a fixed dollar amount B) Benefits have no
maximum limit C) Benefits are generally expressed as a percentage of eligible
expenses D) The benefit period begins only after a specified amount of expenses
have accrued - Correct answer-Correct Answer: B) Benefits have no maximum
limit
M completes an application for life insurance but does not pay the initial premium.
All of these actions must occur before M's policy goes into effect, EXCEPT: A)
Free-look period has expired B) Initial premium is collected C) Insurance company
issues policy D) Policy is delivered - Correct answer-Correct Answer: A) Free-look
period has expired
Which of these characteristics is consistent with a Straight Life policy? A)
Premiums are lower for the first five years, increase the sixth year, then levels off
for the remaining length of the contract B) Owner can adjust both premium and
death benefit C) Premiums are payable for as long as there is insurance coverage in
force D) Owner has the option of converting to term insurance - Correct answer-
Correct Answer: C) Premiums are payable for as long as there is insurance
coverage in force
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,The first portion of a covered Major Medical insurance expense that the insured is
required to pay is called the: A) Initial deductible B) Coinsurance deductible C)
Corridor deductible D) Stop-loss deductible - Correct answer-Correct Answer: A)
Initial deductible
Whole Life insurance policies are contractually guaranteed to provide each of the
following, EXCEPT: A) Premiums that remain fixed for the life of the policy B)
Nonforfeiture benefit options C) Cash value that will ultimately replace the death
benefit D) Partial withdrawal features beyond a surrender charge period - Correct
answer-Correct Answer: D) Partial withdrawal features beyond a surrender charge
period
The underwriting process involves all of these, EXCEPT for: A) Policy loan B)
Application C) Risk classification D) Credit report - Correct answer-Correct
Answer: A) Policy loan
Which of the following is NOT a limited benefit plan? A) Dental policy B) Life
insurance policy C) Cancer policy D) Critical illness policy - Correct answer-
Correct Answer: B) Life insurance policy
In an individual retirement account (IRA), rollover contributions are: A) Subject to
ordinary income tax B) Partially limited by dollar amount C) Subject to capital
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, gains tax D) Not limited by dollar amount - Correct answer-Correct Answer: D)
Not limited by dollar amount
Which type of life policy contains a monthly mortality charge as well as self-
directed investment choices? A) Adjustable Life B) Universal Life C) Variable
Universal Life D) Joint Life - Correct answer-Correct Answer: C) Variable
Universal Life
Which of the following policy features allows an insured to defer current health
charges to the following year's deductible instead of the current year's deductible?
A) Deferral provision B) Corridor provision C) Stop Loss provision D) Carryover
provision - Correct answer-Correct Answer: D) Carryover provision
A Cost of Living rider gives the insured: A) Decreasing premiums B) Tax
incentives C) Monthly income D) Additional death benefits - Correct answer-
Correct Answer: D) Additional death benefits
An agent gives a conditional receipt to a client for an insurance policy after
collecting the initial premium. When will the policy become effective? A) When
the conditions of the receipt are met B) The date the sales appointment was set C)
When the policy is issued D) The date of policy delivery - Correct answer-Correct
Answer: A) When the conditions of the receipt are met
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
