1
TEXAS LIFE INSURANCE EXAM LATEST
QUESTIONS WITH ANSWERS (100% CORRECT
ANSWERS)
P completes an application for a $10,000 life policy, but does not give the producer the initial
premium. P's coverage becomes effective when Answer: P receives the policy and pays the
premium
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate
cash value at a faster rate in the early years of the policy. Which of these statements made by
the producer would be carrer? Answer: 20-Pay Life accumulates cash value faster than
Straight Life
How does an indexed annuity differ from a fixed annuity ? Answer: Indexed annuity owners
receive credited interest tied to the fluctuations of the linked index
During a sales presentation for a participating life insurance policy, an agent MUST Answer:
make a prospect understand that dividends are NOT guaranteed
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an
irrevocable eneficiary. What action will the insurance company take if I requests a change of
beneficiary? Answer: request of the change will be refused
Which provision allows the policyowner to change a term life policy to a permanent one
without providing proof of good health? Answer: conversion
T has a term policy that allows him to continue the coverage after expiration of the initial
policy period What type of term coverage is this? Answer: renewable
Which of the following is NOT a required provision in group life policies? Answer: Right to
loan
The Insurance Commissioner must give how many days notice prior to holding a hearing
regarding an agent's unfair or deceptive practice? Answer: 30
© 2025 All rights reserved
, 2
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n) )
Answer: Living Benefit
In Texas, an individual life insurance policy is required to have a grace period of Answer: 31
days
Which statement is correct regarding the premium payment schedule for whole life policies?
Answer: Premiums are payable throughout the insured's lifetime/ coverage lasts until death
of the insured
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding
partners. If the agreement is funded with individual life insurance, what would it require?
Answer: Each partner must own a policy on the other partners
Why would the Insurance Commissioner examine the records of an insurance company?
Answer: To determine the solvency of the company
Which of the following features of a group Term Life policy enables an individual to leave the
group and continue his or her insurance without providing evidence of insurability? Answer:
Conversion privilege
Taking receipt of premiums and holding them for the insurance company is an example of:
Answer: fiduciary responsibility
K buys a policy where the premium stays fixed for the first 5 years. The premium then
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? Answer: Modified Whole Life
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?
Answer: Face amount plus the policy's cash value
In regards to representations or warranties, which of these statements is TRUE? Answer: If
material to the risk, false representations will void a policy
What provision in a life insurance policy states that the application is considered part of the
contract? Answer: Entire Contract provision
© 2025 All rights reserved
TEXAS LIFE INSURANCE EXAM LATEST
QUESTIONS WITH ANSWERS (100% CORRECT
ANSWERS)
P completes an application for a $10,000 life policy, but does not give the producer the initial
premium. P's coverage becomes effective when Answer: P receives the policy and pays the
premium
A potential client, age 40, would like to purchase a Whole Life policy that will accumulate
cash value at a faster rate in the early years of the policy. Which of these statements made by
the producer would be carrer? Answer: 20-Pay Life accumulates cash value faster than
Straight Life
How does an indexed annuity differ from a fixed annuity ? Answer: Indexed annuity owners
receive credited interest tied to the fluctuations of the linked index
During a sales presentation for a participating life insurance policy, an agent MUST Answer:
make a prospect understand that dividends are NOT guaranteed
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an
irrevocable eneficiary. What action will the insurance company take if I requests a change of
beneficiary? Answer: request of the change will be refused
Which provision allows the policyowner to change a term life policy to a permanent one
without providing proof of good health? Answer: conversion
T has a term policy that allows him to continue the coverage after expiration of the initial
policy period What type of term coverage is this? Answer: renewable
Which of the following is NOT a required provision in group life policies? Answer: Right to
loan
The Insurance Commissioner must give how many days notice prior to holding a hearing
regarding an agent's unfair or deceptive practice? Answer: 30
© 2025 All rights reserved
, 2
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n) )
Answer: Living Benefit
In Texas, an individual life insurance policy is required to have a grace period of Answer: 31
days
Which statement is correct regarding the premium payment schedule for whole life policies?
Answer: Premiums are payable throughout the insured's lifetime/ coverage lasts until death
of the insured
Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding
partners. If the agreement is funded with individual life insurance, what would it require?
Answer: Each partner must own a policy on the other partners
Why would the Insurance Commissioner examine the records of an insurance company?
Answer: To determine the solvency of the company
Which of the following features of a group Term Life policy enables an individual to leave the
group and continue his or her insurance without providing evidence of insurability? Answer:
Conversion privilege
Taking receipt of premiums and holding them for the insurance company is an example of:
Answer: fiduciary responsibility
K buys a policy where the premium stays fixed for the first 5 years. The premium then
increases in year 6 and stays level thereafter, all the while the death benefit remains the
same. What kind of policy is this? Answer: Modified Whole Life
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death?
Answer: Face amount plus the policy's cash value
In regards to representations or warranties, which of these statements is TRUE? Answer: If
material to the risk, false representations will void a policy
What provision in a life insurance policy states that the application is considered part of the
contract? Answer: Entire Contract provision
© 2025 All rights reserved
