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TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH
INSURANCE ACTUAL EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS 2025-
TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH
INSURANCE ACTUAL EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS 2025 - 2026
LIFE SECTION 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
- 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
C- Variable Annuity D- Immediate Annuity
- 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
- 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
- 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 D- Limited-Pay Life
- Which of the following individual policy conversions is usually permitted without any evidence of insurability? - ANSWER: A- Conversion to a lowerpremium 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
- 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- Modified Whole Life C- Annuity
D- Ordinary Whole Life
- If a client wants cash value life insurance with a flexible premium and an adjustable death benefit that will allow the policy owner a choice of various cash value investment options, he should buy: - ANSWER: A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
- If a person wants to invest a lump sum in an annuity that may appreciate along with market and economic conditions, they should buy a: - ANSWER: A- Flexible premium Annuity B- Fixed Annuity
C- Deferred Annuity D- Variable Annuity
- You have a client that is a real estate agent. Which of the following types of permanent protection is best for this type of client? - ANSWER: A- Variable life B- Universal life
C- Survivorship life
D- Adjustable life
- In order to sell variable life insurance you must be registered with which of the following? - ANSWER: A- The SEC
TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH
INSURANCE ACTUAL EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS 2025-
B- The State
C- The NYSE
D- The NASD
- Which of the following is an example of a Limited-Pay Life policy: - ANSWER: A- Traditional Whole Life
B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
- An insurance producer selling a Variable Annuity whose cash value depends on the performance of an underlying investment account must be registered with: - ANSWER: A- The National Association of Insurance Commissioners
B- The National Association of Life Underwriters
C- The Chartered Life Underwriters D- The Financial Industry Regulatory Authority (FINRA, formerly the NASD)
- A business owner with a fluctuating income who wants a life insurance policy that can be changed to suit economic conditions should buy: - ANSWER: A- Variable Life B- Modified Whole Life
C- Adjustable Life
D- Interest-sensitive Whole Life
TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH
INSURANCE ACTUAL EXAM COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS 2025-
B- Universal Life
C- Ordinary Life
D- Variable Life
- A life insurance policy that combines term insurance protection, a flexible premium, and cash value accumulation is: - ANSWER: A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life
- Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources? - ANSWER: A- Term B- Limited Pay policy
C- Whole Life
D- Annuity
- At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer explains that he can pay for the policy in several ways. One method is called 20Pay Life, and another, Straight Life. Tom wishes to know which plan will accumulate cash value at a faster rate in the early years of the policy. Which of the following would be the producer's most appropriate response? - ANSWER: A- "20-Pay Life will accumulate cash value faster." B- "The rate of cash-value accumulation depends on the profitability of the insurance company."
C- "Straight Life will accumulate cash value faster." D- "Both plans will accumulate cash value at the same rate."
LIFE SECTION 2
- Which of the following statements about the Reinstatement provision is true? - ANSWER: A- It provides for reinstatement of a policy regardless of the insured's health
B- It requires the policy owner to pay, with interest, all premiums that are in arrears in order for the policy to be reinstated
C- It permits reinstatement within 10 years after a policy has lapsed
D- It guarantees the reinstatement of a policy that has been surrendered for cash
- The time period covered by the Free Look provision of a Life insurance contract starts: - ANSWER: A- When the insured receives the contract and a "right to look" receipt
B- When the contract is received in the agency office and given to the producer C- When the insured receives the contract and makes the first premium payment, if needed D- When the contract is issued and mailed to the agency office from the home office of the insurance company
C- Automatic Premium Loan D- Mode of Payment
- Which of the following Settlement Options might provide payments that exceed the proceeds of the policy and the interest earned? - ANSWER: A- Interest Only B- Fixed Period
C- Life Annuity
D- Fixed Amount
- A client buys a $50,000 Whole Life policy on himself and wants to add $25, in Term coverage for his spouse. He should add which of the following riders to his policy? - ANSWER: A- Spousal Rider
B- Family Rider
C- Other Insured Rider D- Additional Insured Rider
- All of the following are considered to be owner's rights under a Life insurance policy, EXCEPT: - ANSWER: A- Changing an irrevocable beneficiary
B- Changing a dividend option C- Taking a policy loan
D- Selecting a settlement option prior to death
- If the insured dies 5 years after he bought a Life insurance policy and the insurer determines that there was material misrepresentation on his application, they will: - ANSWER: A- Pay the claim
B- Pay only a portion of the claim
C- Deny the claim
D- Deny the claim but refund the premium
- The life insurance policy provision that prevents the insurer from modifying a policy after it has been issued is the: - ANSWER: A- Incontestability Clause
B- Entire Contract Clause
C- Consideration Clause D- Insuring Clause
- Which of the following statements is true about exercising a Guaranteed Insurability option:
I. The new insurance is available at the original issue age rate
II. Evidence of insurability is not required
III. The insured can exercise the option at any time after the age of 21
IV. The maximum purchase is specified in the contract - ANSWER: A- III and IV
B- I and II C- II and IV
D- I, II, and III
D- $10,
- Grandma owns a policy on her grandchild. Which rider would kick in if
Grandma should die tomorrow? - ANSWER: A- Guaranteed Insurability Rider
B- Waiver of Premium Rider
C- Payor Benefit Rider D- Child Term Rider
- Dividend projections may be included in a proposal for Life insurance: -
ANSWER: A- When there is a clear statement that they are not guaranteed
B- Only upon the request of the applicant C- When they are required to be applied to future premiums due
D- When past results are used as the basis for future projections
- What Life insurance policy provision applies if a policy lapsed last year and the insured wants it back? - ANSWER: A- Assignment B- Reinstatement
C- Non-forfeiture
D- Grace Period
- A customer buys a $25,000 Life insurance policy with a $25,000 Accidental Death Benefit rider attached. If he dies of cancer, how much will his policy pay? -
ANSWER: A- Nothing
B- $25,
C- $50,
D- $75,
- The contingent beneficiary will receive policy proceeds when: - ANSWER: A-
No beneficiary has been designated
B- The insured pre-deceases all designated beneficiaries
C- The primary beneficiary pre-deceases the insured
D- The insured pre-deceases the primary beneficiary
- If the insured understated his age and the error is discovered after the insured's death, the insurance company will: - ANSWER: A- Deny the claim under the Incontestability clause
B- Refund all premiums paid plus accumulated interest
C- Pay the claim, less a deduction for the amount of the underpaid premium
D- Pay the amount that the premium paid would have purchased at the correct age
- The clause that states the insurer's promise to pay the policy benefits in accordance with the contract's provisions is the: - ANSWER: A- Incontestability Clause B- Insuring Clause
C- Beneficiary Clause
D- Consideration Clause
- Which of the following is true about the Insuring Clause? - ANSWER: A- It contains the insurer's enforceable promise to pay covered claims
B- It states the policy owner's rights
- Margaret May wants to name her husband as the beneficiary of her Life policy; however, she wishes to retain all of the rights of ownership. Mrs. May should name her husband as: - ANSWER: A- Revocable beneficiary
B- Irrevocable beneficiary
C- Tertiary beneficiary
D- Secondary beneficiary
- On Life insurance, the purpose of the Entire Contract Clause is to: - ANSWER: A- Limit the policy to the contract plus the application, if attached
B- Spell out the rights of the policy owner
C- Require that the insurer attach the application to the policy at issue D- Spell out the rights of the beneficiary
- The Life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the:
- ANSWER: A- Misstatement of Age clause B- Insuring clause
C- Incontestability clause
D- Reinstatement clause
- The provision in a Life insurance policy that provides protection against unintentional policy lapse is known as the: - ANSWER: A- Automatic Premium Loan provision
B- Payor clause
C- Waiver of Premium benefit
D- Reduction of Premium option
- The purpose of the Grace Period is to: - ANSWER: A- Give the beneficiary time to prove that insurable interest exists
B- Protect the policy owner against unintentional lapse C- Protect the insurer against adverse selection
D- Give the insurer time to determine the cause of death
- Jim gets married and wants to add his new spouse to his existing Life insurance policy. Which rider should he add? - ANSWER: A- Guaranteed Insurability Rider
B- Other Insured Rider
C- Payor Rider
D- Term Rider
- An insured died during the Grace Period of her Life insurance policy and had not paid the required annual premium. The insurance company is obligated to pay which of the following to the beneficiary? - ANSWER: A- The face amount of the policy less any earned premiums B- The full face amount of the policy
C- The cash value of the policy, if any D- A refund of any premiums paid
- A client buys a Life insurance policy on July 1st and dies by suicide 6 months later. The insurance company will: - ANSWER: A- Deny the claim
B- Deny the claim, but refund the premium C- Pay the claim in full
LIFE SECTION 3 - ANSWER: LIFE SECTION 3
- An insured's premium for Life insurance is based mainly upon their: -
ANSWER: A- Risk classification
B- Gender
C- Occupation D- Age
- A prospect's statements made in the application for insurance constitute a part of which of the following? - ANSWER: A- Subrogation Clause
B- Incontestability Clause C- Co-insurance Clause
D- Consideration Clause
- In the formation of a Life insurance contract, the special significance of a Conditional Receipt is that it: - ANSWER: A- Serves as proof that the producer has determined the applicant to be fully insurable for coverage by the insurance company
B- Is intended to provide coverage on a date earlier than the date of the issuance of the policy
C- Is given by the producer only to applicants who fully prepay all scheduled premiums in advance of policy issue
D- Guarantees the applicant that a policy will be issued in the amount applied for in the application
- Life insurance becomes effective when: - ANSWER: A- When the insurer receives the application at their home office B- When the conditions in the conditional receipt are satisfied
C- The applicant writes the check and receives a conditional receipt
D- When the producer signs the application
- A producer submits a completed and signed application to the underwriter along with the first premium check. After checking the results of the physical exam, the underwriter issues a 'rated' policy. Which of the following will not be required: - ANSWER: A- A statement that the applicant's health has not changed since the physical exam
B- Additional premium to be collected at policy delivery C- A new completed and signed application
D- An explanation of the rating or premium surcharge to the client
- Insurable interest must exist: - ANSWER: A- At the time of loss
B- In order to be named as beneficiary
C- At the time of application
D- Continuously
- All of the following are a part of a Life insurance policy, EXCEPT the: -
ANSWER: A- Conditional Receipt
