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TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE LATEST VERSIONS ACTUAL
EXAM COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A
LIFE SECTION 1 - .....ANSWER ...✔✔ LIFE SECTION 1
1) Sandra Timms, age 27, is advised by her producer to
purchase Life insurance to cover a 20-year-amortized
$50,000 business-improvement loan. Which of the
following plans would adequately protect Ms. Timms at
the minimum premium outlay? - .....ANSWER ...✔✔ A-
$50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
2) A 45-year old customer who is seeking to supplement
his retirement income at age 65 would not buy a: -
.....ANSWER ...✔✔ A- Deferred Annuity
B- Equity Indexed Annuity
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C- Variable Annuity
D- Immediate Annuity
3) John Livingston owns a 30-Pay Life policy that he
purchased at the age of 30. The cash value will equal
the face amount of the policy when he reaches the age
of: - .....ANSWER ...✔✔ A- 60
B- 70
C- 100
D- 30
4) Which of the following is an example of a Limited-
Pay Life policy? - .....ANSWER ...✔✔ A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
5) Which of the following policies provides the greatest
amount of protection for an insured's premium dollar as
well as some cash accumulation? - .....ANSWER ...✔✔
A- Annuity
B- Whole Life
C- Term
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D- Limited-Pay Life
6) Which of the following individual policy conversions is
usually permitted without any evidence of insurability? -
.....ANSWER ...✔✔ A- Conversion to a lower-premium
plan
B- Conversion from a Whole Life policy to a Term policy
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance
7) Which of the following is NOT correct regarding
Ordinary Whole Life policies? - .....ANSWER ...✔✔ A-
The premiums payments are owed annually until you die
or reach age 100
B- The cash value grows more quickly in the beginning
years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent
insurance
8) Which of the following statements is true about the
premium payment schedule for a Whole Life policy? -
.....ANSWER ...✔✔ A- Premiums are payable for a
designated period of time only, after which coverage is
no longer provided
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B- Premiums are payable until the insured's retirement
only, after which coverage is continued automatically
until the insured's death
C- One premium, in the amount of the insured's choice, is
payable at the time of application, and the balance of
the premiums is deducted from the face amount of the
policy at the time of the insured's death
D- Premiums are payable throughout the insured's
lifetime, and coverage continues until the insured's death
9) A life insurance policy that covers two parties, but
only pays when the last party dies is known as: -
.....ANSWER ...✔✔ A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
10) Which of the following contracts requires that a
series of benefit payments be made at specified
intervals? - .....ANSWER ...✔✔ A- 20-Pay Life
B- Modified Whole Life
TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE LATEST VERSIONS ACTUAL
EXAM COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A
LIFE SECTION 1 - .....ANSWER ...✔✔ LIFE SECTION 1
1) Sandra Timms, age 27, is advised by her producer to
purchase Life insurance to cover a 20-year-amortized
$50,000 business-improvement loan. Which of the
following plans would adequately protect Ms. Timms at
the minimum premium outlay? - .....ANSWER ...✔✔ A-
$50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
C- $50,000 20 Pay Life policy
D- $50,000 Decreasing Term policy for 20 years
2) A 45-year old customer who is seeking to supplement
his retirement income at age 65 would not buy a: -
.....ANSWER ...✔✔ A- Deferred Annuity
B- Equity Indexed Annuity
,2|Page
C- Variable Annuity
D- Immediate Annuity
3) John Livingston owns a 30-Pay Life policy that he
purchased at the age of 30. The cash value will equal
the face amount of the policy when he reaches the age
of: - .....ANSWER ...✔✔ A- 60
B- 70
C- 100
D- 30
4) Which of the following is an example of a Limited-
Pay Life policy? - .....ANSWER ...✔✔ A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
5) Which of the following policies provides the greatest
amount of protection for an insured's premium dollar as
well as some cash accumulation? - .....ANSWER ...✔✔
A- Annuity
B- Whole Life
C- Term
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D- Limited-Pay Life
6) Which of the following individual policy conversions is
usually permitted without any evidence of insurability? -
.....ANSWER ...✔✔ A- Conversion to a lower-premium
plan
B- Conversion from a Whole Life policy to a Term policy
C- Conversion from a Term policy to a Whole Life policy
D- Conversion to a larger amount of insurance
7) Which of the following is NOT correct regarding
Ordinary Whole Life policies? - .....ANSWER ...✔✔ A-
The premiums payments are owed annually until you die
or reach age 100
B- The cash value grows more quickly in the beginning
years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent
insurance
8) Which of the following statements is true about the
premium payment schedule for a Whole Life policy? -
.....ANSWER ...✔✔ A- Premiums are payable for a
designated period of time only, after which coverage is
no longer provided
, 4|Page
B- Premiums are payable until the insured's retirement
only, after which coverage is continued automatically
until the insured's death
C- One premium, in the amount of the insured's choice, is
payable at the time of application, and the balance of
the premiums is deducted from the face amount of the
policy at the time of the insured's death
D- Premiums are payable throughout the insured's
lifetime, and coverage continues until the insured's death
9) A life insurance policy that covers two parties, but
only pays when the last party dies is known as: -
.....ANSWER ...✔✔ A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
10) Which of the following contracts requires that a
series of benefit payments be made at specified
intervals? - .....ANSWER ...✔✔ A- 20-Pay Life
B- Modified Whole Life
