1
TEXAS HEALTH AND LIFE INSURANCE EXAM
QUESTIONS
WITH COMPLETE SOLUTIONS GUARANTEED PASS
BRAND NEW 2025/2026
When the insurer cannot contest a claim after 2
years, that is called? a) suicide clause
b) incontestability clause
c) entire contract
d) consideration clause - - ANSWER - >B
Incontestability clause
Misstatement of age or gender on the application will result in? a)
the policy being considered void or cancelled
b) return of premiums
c) death benefit paid adjusted to fit true age and gender
d) full death benefit regardless - - ANSWER - >C
Death benefit paid adjusted to fit true age and gender.
,2
What happens if a person returns a policy during the free look period?
a) the insured may apply for another policy without a medical exam
b) the policy is immediately terminated; the insurer retains the
premium
for the underwriting costs
c) a refund of premiums minus the number of days the policy was in
effect
,3
d)
a full refund of all premiums paid is returned - - ANSWER - >D A
full refund of all premiums paid is returned.
An applicant did not disclose a medial condition on a life insurance
application 5 years later that person died due to the non disclosed
condition. The insurer will?
a) keep all premiums and void the policy
b) refund all premiums and void the policy
c) pay the whole amount of the policy to the beneficiary
d) pay half of the policy to the beneficiary - - ANSWER - >C Pay the
whole amount of the policy to the beneficiary
An applicant lied about their age for a universal life policy. The insurer
found out the truth at the time of death. The insurer will?
a) request the beneficiary to pay back the premiums for the correct age
before paying the death benefit b) refund all premiums and void the
policy
c) pay the policy death benefit to reflect the correct age
d) pay the policy as it was issued - - ANSWER - >C
Pay the policy death benefit to reflect the correct age
, 4
A policy owner/insured takes a loan of 1/2 the cash value. The owner
doesn't pay any interest that accumulates on the loan. which of these
would be true?
a) dividends are withheld until the loan is paid back
b) interest is added to the loan annually
c) interest is deducted from the loan annually
d) dividends and interest are both withheld until the loan is paid back - -
ANSWER - >B Interest is added to the loan annually
Which of the following is NOT a non forfeiture option?
a) reduced paid up
b) extended term
c) cash surrender
d) life income - - ANSWER - >D
Life income
When an insured die with an outstanding loan on the policy which of
the following applies?
a) nothing is payable the loan voids the policy's death benefits
b) the death benefit is payable minus any outstanding loans plus
interest
on the loan
c) all of the death benefit is paid without reductions
TEXAS HEALTH AND LIFE INSURANCE EXAM
QUESTIONS
WITH COMPLETE SOLUTIONS GUARANTEED PASS
BRAND NEW 2025/2026
When the insurer cannot contest a claim after 2
years, that is called? a) suicide clause
b) incontestability clause
c) entire contract
d) consideration clause - - ANSWER - >B
Incontestability clause
Misstatement of age or gender on the application will result in? a)
the policy being considered void or cancelled
b) return of premiums
c) death benefit paid adjusted to fit true age and gender
d) full death benefit regardless - - ANSWER - >C
Death benefit paid adjusted to fit true age and gender.
,2
What happens if a person returns a policy during the free look period?
a) the insured may apply for another policy without a medical exam
b) the policy is immediately terminated; the insurer retains the
premium
for the underwriting costs
c) a refund of premiums minus the number of days the policy was in
effect
,3
d)
a full refund of all premiums paid is returned - - ANSWER - >D A
full refund of all premiums paid is returned.
An applicant did not disclose a medial condition on a life insurance
application 5 years later that person died due to the non disclosed
condition. The insurer will?
a) keep all premiums and void the policy
b) refund all premiums and void the policy
c) pay the whole amount of the policy to the beneficiary
d) pay half of the policy to the beneficiary - - ANSWER - >C Pay the
whole amount of the policy to the beneficiary
An applicant lied about their age for a universal life policy. The insurer
found out the truth at the time of death. The insurer will?
a) request the beneficiary to pay back the premiums for the correct age
before paying the death benefit b) refund all premiums and void the
policy
c) pay the policy death benefit to reflect the correct age
d) pay the policy as it was issued - - ANSWER - >C
Pay the policy death benefit to reflect the correct age
, 4
A policy owner/insured takes a loan of 1/2 the cash value. The owner
doesn't pay any interest that accumulates on the loan. which of these
would be true?
a) dividends are withheld until the loan is paid back
b) interest is added to the loan annually
c) interest is deducted from the loan annually
d) dividends and interest are both withheld until the loan is paid back - -
ANSWER - >B Interest is added to the loan annually
Which of the following is NOT a non forfeiture option?
a) reduced paid up
b) extended term
c) cash surrender
d) life income - - ANSWER - >D
Life income
When an insured die with an outstanding loan on the policy which of
the following applies?
a) nothing is payable the loan voids the policy's death benefits
b) the death benefit is payable minus any outstanding loans plus
interest
on the loan
c) all of the death benefit is paid without reductions
