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TEXAS State Insurance License Exam /
Questions & Expertly Verified
Answers, 2025 / 2026.
_____________Quiz____________? An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? -
Answer ✓✓
Consideration _____________Quiz____________? Which of the following statements regarding HIV testing for insurance purposes is NOT true?
Answer ✓✓
Insurers are barred from requesting HIV testing. _____________Quiz____________? All of the following are dividend options EXCEPT -
Answer ✓✓
Fixed period installments _____________Quiz____________?
Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years? -
Answer ✓✓
A Policy Summary _____________Quiz____________? A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? -
Answer ✓✓
The amount of the distribution is reduced by the amount of a 20% withholding tax. _____________Quiz____________? Which of the following best describes annually renewable term insurance? -
Answer ✓✓
It's Level Term Insurance _____________Quiz____________? Which of the following policies would be classified as a traditional level premium contract? -
Answer ✓✓
Straight Life _____________Quiz____________? Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early? -
Answer ✓✓
Paid Up Option
Answer ✓✓
Collateral Assignment _____________Quiz____________? Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? -
Answer ✓✓
Third Party Ownership _____________Quiz____________? What is the other term for the cash payment settlement option? -
Answer ✓✓
Lump Sum _____________Quiz____________? All of the following are Nonforfeiture options EXCEPT -
Answer ✓✓
Intrest only _____________Quiz____________? Traditional IRA contributions are -
Answer ✓✓
Tax deductible _____________Quiz____________? Which of the following is NOT the consideration in a policy? -
Answer ✓✓
The application given to a prospective insured
_____________Quiz____________? Which of the following terms means a result of calculation based on the average number of months the insured is projected to live due to medical history and mortality factors? -
Answer ✓✓
Life expectancy _____________Quiz____________? The provision which states that both the policy and a copy of the application form the contract between the policyowner and the insurer is called the -
Answer ✓✓
Entire Contract _____________Quiz____________? Which is TRUE about the cash surrender nonforfeiture option? -
Answer ✓✓
Funds exceeding the premium paid are taxable as ordinary income. _____________Quiz____________? What is the advantage of reinstating a policy instead of applying for a new one? -
Answer ✓✓
The original age is used for premium determination _____________Quiz____________? Variable Life insurance is based on what kind of premium? -
Answer ✓✓
Level Fixed
_____________Quiz____________? Which of the following types of insurance policies is most commonly used in credit life insurance? -
Answer ✓✓
Decreasing term _____________Quiz____________? The term "illustration" in a life insurance policy refers to -
Answer ✓✓
A presentation of nonguaranteed elements of a policy. _____________Quiz____________? In Texas, how is the Commissioner of Insurance placed in office? -
Answer ✓✓
Appointed by the Governor for a term of 2 years _____________Quiz____________? An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an -
Answer ✓✓
Authorized Insurer _____________Quiz____________? During replacement of life insurance, a replacing insurer must do which of the following? -
Answer ✓✓
Obtain a list of all life insurance policies that will be replaced
_____________Quiz____________? According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT -
Answer ✓✓
Reduction of premium _____________Quiz____________? Which rule would apply if an agent knows that an insured is going to cash in an old policy and use the funds to purchase new insurance? -
Answer ✓✓
Replacement _____________Quiz____________? An insurance agent wants for a client to replace her current annuities plan with another one. He presents the new one in an incomplete and dishonest way, which makes the new contract seem far more appealing than the original one. The policyowner ends up surrendering her original contract and replacing it with the new one. Which term best describes what the agent did? -
Answer ✓✓
Twisting _____________Quiz____________? Which of the following is the closest term to an authorized insurer? -
Answer ✓✓
Admitted _____________Quiz____________? All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT -
Answer ✓✓
