TEXAS INSURANCE LICENSE QUIZ
EXAMINATION TEST 2026 QUESTIONS
WITH 100% CORRECT ANSWERS
⩥ As a condition for a loan, a bank requires the borrower to purchase
credit insurance from a specific company. What is the bank guilty of?
Answer: coercion
⩥ An employee is covered under a company group life plan with a
$50,000 death benefit. What is the maximum amount of spouse may be
insured for under this program. Answer: $25,000
⩥ A license may be denied suspended or revoked if the licensee Answer:
is found guilty of misrepresentation in obtaining the license
⩥ Which of the following is not required provision in group life policies
Answer: Right to Loan
⩥ On August 6, D submitted an application for a $50,000 Life Insurance
policy and did not pay the initial premium. On August 18, D went to his
doctor complaining of chest pains and some tests were given by the
doctor. The life policy was delivered by the producer on August 20 and
D explains what had recently taken place with the doctor. What action
should the producer then take? Answer: Collect initial premium along
with a signed health statement
,⩥ Variable whole life insurance can be described as Answer: both an
insurance and securities product
⩥ Which unfair trade practice involves an agent telling a prospective
client that a policy dividends are guaranteed Answer: Misrepresentation
⩥ An insurer is not required to provide information on fraudulent claims
if requested by Answer: an insured
⩥ How long does an insurance company appointment remain in force?
Answer: Until terminated
⩥ In Texas, which of these statements regarding the suicide clause is
true Answer: An insurer may not use suicide as a defense against
payment after the second year
⩥ A certificate of _____ permits, and insurance company to transact
business in Texas Answer: authority
⩥ Information obtained from a phone conversation to the proposed
insured can be found in which of these reports? Answer: Inspection
report
, ⩥ Before a life policy is issued, which of these contract elements is
necessary? Answer: A signed application by the prospect
⩥ A primary beneficiary has died before the insured in a life insurance
policy. A contingent beneficiary is also named in the policy. Which of
the following will occur when the insured dies? Answer: Proceeds will
go to the contingent beneficiary
⩥ Statements made on an insurance application that are believed to be
true to the best of the applicants knowledge are called: Answer:
representations
⩥ Which of these life insurance riders allows the applicant to have
excess coverage? Answer: Term rider
⩥ Under federal tax laws, what is the tax treatment for an employer
providing $50,000 of a contributory group Term Life plan to all its
eligible employees? Answer: Portion of the premiums paid for by the
employer may be a tax deduction
⩥ What type of policy would offer a 40-year-old the quickest
accumulation of cash value? Answer: 20-pay life
⩥ Which of these provisions is not required in life insurance policies?
Answer: Extended term
EXAMINATION TEST 2026 QUESTIONS
WITH 100% CORRECT ANSWERS
⩥ As a condition for a loan, a bank requires the borrower to purchase
credit insurance from a specific company. What is the bank guilty of?
Answer: coercion
⩥ An employee is covered under a company group life plan with a
$50,000 death benefit. What is the maximum amount of spouse may be
insured for under this program. Answer: $25,000
⩥ A license may be denied suspended or revoked if the licensee Answer:
is found guilty of misrepresentation in obtaining the license
⩥ Which of the following is not required provision in group life policies
Answer: Right to Loan
⩥ On August 6, D submitted an application for a $50,000 Life Insurance
policy and did not pay the initial premium. On August 18, D went to his
doctor complaining of chest pains and some tests were given by the
doctor. The life policy was delivered by the producer on August 20 and
D explains what had recently taken place with the doctor. What action
should the producer then take? Answer: Collect initial premium along
with a signed health statement
,⩥ Variable whole life insurance can be described as Answer: both an
insurance and securities product
⩥ Which unfair trade practice involves an agent telling a prospective
client that a policy dividends are guaranteed Answer: Misrepresentation
⩥ An insurer is not required to provide information on fraudulent claims
if requested by Answer: an insured
⩥ How long does an insurance company appointment remain in force?
Answer: Until terminated
⩥ In Texas, which of these statements regarding the suicide clause is
true Answer: An insurer may not use suicide as a defense against
payment after the second year
⩥ A certificate of _____ permits, and insurance company to transact
business in Texas Answer: authority
⩥ Information obtained from a phone conversation to the proposed
insured can be found in which of these reports? Answer: Inspection
report
, ⩥ Before a life policy is issued, which of these contract elements is
necessary? Answer: A signed application by the prospect
⩥ A primary beneficiary has died before the insured in a life insurance
policy. A contingent beneficiary is also named in the policy. Which of
the following will occur when the insured dies? Answer: Proceeds will
go to the contingent beneficiary
⩥ Statements made on an insurance application that are believed to be
true to the best of the applicants knowledge are called: Answer:
representations
⩥ Which of these life insurance riders allows the applicant to have
excess coverage? Answer: Term rider
⩥ Under federal tax laws, what is the tax treatment for an employer
providing $50,000 of a contributory group Term Life plan to all its
eligible employees? Answer: Portion of the premiums paid for by the
employer may be a tax deduction
⩥ What type of policy would offer a 40-year-old the quickest
accumulation of cash value? Answer: 20-pay life
⩥ Which of these provisions is not required in life insurance policies?
Answer: Extended term
