Texas State Exam Simulator - Life and Health Insurance (200
Questions Practice Exam) Questions with Answers (100%
Correct Answers)
An annuity promises that, if the annuitant dies before receiving payments equal to the correct
value, the payments will be continued to a beneficiary until an amount equal to the contract
value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity —Answer: An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been disabled for
3 months
5 months
6 months
12 months —Answer: 5 months
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 correct?
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, Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial
rating
20-Pay Life and Straight Life accumulate cash value at the same rate —Answer: 20-Pay Life
accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant —Answer: Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's consideration
consists of a completed application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions —Answer: the initial premium
© 2025 All rights reserved
Questions Practice Exam) Questions with Answers (100%
Correct Answers)
An annuity promises that, if the annuitant dies before receiving payments equal to the correct
value, the payments will be continued to a beneficiary until an amount equal to the contract
value has been paid. This type of annuity is called
An installment Refund annuity
A Straight Life annuity
A Cash Refund annuity
A Joint Life annuity —Answer: An installment Refund annuity
One becomes eligible for Social Security disability benefits after having been disabled for
3 months
5 months
6 months
12 months —Answer: 5 months
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 correct?
© 2025 All rights reserved
, Straight life accumulates faster than Limited-pay Life
20-Pay Life accumulates cash value faster than Straight Life
Cash value accumulation of both 20-Pay Life and Straight Life depend on the insurer's financial
rating
20-Pay Life and Straight Life accumulate cash value at the same rate —Answer: 20-Pay Life
accumulates cash value faster than Straight Life
Who makes the legally enforceable promises in a unilateral insurance policy?
Beneficiary
Insurance company
Insured
Applicant —Answer: Insurance company
The Consideration clause in a life insurance policy indicates that a policyowner's consideration
consists of a completed application and
the initial premium
agreeing to a physical examination
delivery of policy
disclosure of any medical conditions —Answer: the initial premium
© 2025 All rights reserved
