Life insurance foundations
Review how term life, whole life, universal life, beneficiaries, settlement options, and cash value features work together. Focus on who owns the policy, who is insured, and who receives proceeds.
Practice
Free Texas exam prep practice
Texas Life & Health Insurance Practice
Practice selected Life & Health Insurance questions, check your answers instantly, and review clear explanations before test day.
Industry
Insurance
Practice content for insurance licensing exams, starting with state-specific Life & Health Insurance prep.
Exam
Life & Health Insurance
Sample practice materials for life, health, policy provisions, underwriting, and beneficiary concepts.
State practice
Texas
These questions are original practice material for study and review only.
Practice question
Question 1 of 50
Texas · Life & Health Insurance
beneficiarieslife-insurance-basics
A life insurance policy names a primary beneficiary and a contingent beneficiary. When does the contingent beneficiary usually receive the death benefit?
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Study guide
Texas Life & Health Insurance study guide
Use this guide with the practice flow above. The goal is not to memorize answers, but to recognize how common Life & Health Insurance, policy, underwriting, and Texas regulation concepts appear in question form.
Policy provisions and riders
Pay attention to grace periods, free-look rights, incontestability, suicide clauses, waiver of premium, and accidental death riders. These provisions explain how coverage behaves after a policy is issued.
Health insurance cost sharing
Know the difference between deductibles, copayments, coinsurance, exclusions, coordination of benefits, and out-of-pocket maximums. Many health questions test whether you can identify who pays and when.
Disability and supplemental health
Disability income, elimination periods, benefit periods, long-term care, and Medicare supplement concepts all focus on specific coverage needs. Read the wording carefully to identify the type of risk being covered.
Applications and underwriting
Applications, representations, insurable interest, conditional receipts, and producer responsibilities are closely connected. A strong answer usually protects accurate disclosure and fair underwriting.
Texas regulation and ethics
Texas-focused review should include state insurance regulation, unfair trade practices, replacement, advertising, premium handling, privacy, and consumer protection.
Sample questions
Try these Texas Life & Health Insurance sample questions
Use these sample questions to check your readiness. Each one includes the correct answer and a short explanation. Start the interactive practice above to work through the full 50-question set with answer feedback and optional AI help.
1. A life insurance policy names a primary beneficiary and a contingent beneficiary. When does the contingent beneficiary usually receive the death benefit?+
A.When the insured changes the premium mode
B.When the primary beneficiary dies before the insured or cannot receive the proceeds
C.Whenever the policy has a cash value balance
D.Only after the insurer contests the policy
Correct answer: B. When the primary beneficiary dies before the insured or cannot receive the proceeds
Explanation: A contingent beneficiary is next in line if the primary beneficiary cannot receive the proceeds, such as when the primary beneficiary dies before the insured.
2. Which statement best describes underwriting in an insurance application?+
A.The process of paying a claim after a loss
B.The process of changing a beneficiary after issue
C.The process of surrendering a policy for cash value
D.The process of evaluating risk before issuing coverage
Correct answer: D. The process of evaluating risk before issuing coverage
Explanation: Underwriting is the insurer's review of risk information to decide whether to issue coverage and on what terms.
3. A health insurance deductible is best described as which cost?+
A.The amount the insured pays before the plan begins paying covered expenses, subject to policy terms
B.The amount the insurer pays before the insured has any responsibility
C.The commission paid to the producer
D.The policy's death benefit
Correct answer: A. The amount the insured pays before the plan begins paying covered expenses, subject to policy terms
Explanation: A deductible is the insured's initial cost-sharing amount for covered expenses before plan benefits apply under the policy terms.
4. What is the main purpose of a free-look provision in an insurance policy?+
A.To let the applicant skip underwriting
B.To guarantee the policy will never lapse
C.To let the policyowner review the policy for a limited period and return it according to the policy terms
D.To remove all exclusions from the contract
Correct answer: C. To let the policyowner review the policy for a limited period and return it according to the policy terms
Explanation: A free-look provision gives the policyowner a limited review period after delivery. If returned as allowed by the policy, premiums are typically refunded according to the terms.
5. Which party is responsible for making truthful and complete statements on an insurance application?+
A.The applicant, with the producer responsible for accurately recording information provided
B.Only the insurer's claims department
C.Only the beneficiary
D.Only the reinsurer
Correct answer: A. The applicant, with the producer responsible for accurately recording information provided
Explanation: The applicant is responsible for truthful application answers, and the producer must accurately record and submit the information provided during the application process.
6. Which life insurance product is designed to provide coverage for a specified period, such as 10, 20, or 30 years?+
A.Whole life insurance
B.Variable annuity
C.Term life insurance
D.Medicare supplement insurance
Correct answer: C. Term life insurance
Explanation: Term life insurance provides death benefit protection for a defined term. It generally does not build cash value and is often used for temporary coverage needs.
7. What feature is most closely associated with whole life insurance?+
A.Coverage that automatically ends after one year
B.Coverage only for hospital expenses
C.A policy that cannot name a beneficiary
D.Permanent coverage with a cash value component, subject to policy terms
Correct answer: D. Permanent coverage with a cash value component, subject to policy terms
Explanation: Whole life is a form of permanent life insurance. It typically provides lifetime coverage if premiums are paid and includes a cash value component under the contract terms.
8. A policyowner wants flexible premiums and adjustable death benefit options within policy limits. Which type of life insurance is most likely being described?+
A.Accidental death and dismemberment only
B.Universal life insurance
C.Short-term disability income
D.A fixed hospital indemnity policy
Correct answer: B. Universal life insurance
Explanation: Universal life insurance is generally known for flexible premium payments and adjustable death benefit features, subject to policy requirements and sufficient values.
9. What does cash value in a permanent life insurance policy generally represent?+
A.The producer's commission account
B.The amount the insurer pays only to a contingent beneficiary
C.A policy value that may be accessed through loans or withdrawals, subject to policy terms
D.The deductible applied to medical claims
Correct answer: C. A policy value that may be accessed through loans or withdrawals, subject to policy terms
Explanation: Cash value is a feature of many permanent life policies. It may be available through policy loans, withdrawals, or surrender, depending on the contract and possible tax or benefit consequences.
10. A settlement option in a life insurance policy primarily addresses which issue?+
A.How a producer renews a license
B.How policy proceeds may be paid to a beneficiary
C.How a deductible is calculated
D.How a policy avoids underwriting
Correct answer: B. How policy proceeds may be paid to a beneficiary
Explanation: Settlement options describe ways life insurance proceeds may be paid, such as a lump sum or installment arrangement, depending on policy terms and available options.
Common questions
Texas Life & Health Insurance FAQ
Are these Texas licensing exam items?+
No. They are original practice questions designed to review common life, health, and Texas insurance concepts.
Do I need to log in to practice?+
No. The MVP keeps basic practice available without login.