Mock paper #4

General Lines - Life, Accident and Health Agent (Texas)

A full paper drawn to the blueprint. Answers and worked explanations are at the back of this file.

Questions: 130
Time: 150minutes
Mark: - our target
Paper: #4of 5

Single-user licence. You may print this file and write on it. You may not redistribute, resell or post it. © Sitonce 2026.

Before you start

Sit this the way you will sit the real one. A mock done in pieces over three evenings measures your notes, not your recall.

Questions

130

Minutes

150

Per question

69s

Started at

Set a timer for 150 minutes and do not stop it. Running over is the commonest way a prepared candidate fails, and the only place you can find that out safely is here.
Mark one answer for each question on the answer sheet.
Answer every question. There is no penalty for a wrong answer. A blank is a guaranteed zero and a guess is not.
Flag anything you are unsure of as you go. When you mark the paper, a question you flagged and got right is worth as much of your attention as one you got wrong - you do not yet know it, you guessed it.
When the timer runs out, turn to the Answers section at the back of this file. Mark the paper against the quick-reference key first, fill in the score table, and only then read the worked explanations.

What this paper covers

Area	Questions	Share
V. Types of policies (accident and health)	16	12%
I. Types of policies (life)	15	12%
II. Policy riders, provisions, options and exclusions (life)	15	12%
VI. Policy provisions, clauses and riders (accident and health)	15	12%
TX-I. Texas statutes and rules common to life and health insurance	14	11%
III. Completing the application, underwriting and delivering the policy	12	9%
IV. Retirement and other insurance concepts	8	6%
IX. Field underwriting procedures	8	6%
TX-III. Texas statutes and rules pertinent to accident and health insurance only	7	5%
TX-II. Texas statutes and rules pertinent to life insurance only	6	5%
VII. Social insurance	6	5%
VIII. Other insurance concepts	5	4%
TX-IV. Texas statutes and rules pertinent to health maintenance organisations	3	2%
Total	130	100%

Answer sheet - paper #4

Circle one letter for each question.

1ABCD

2ABCD

3ABCD

4ABCD

5ABCD

6ABCD

7ABCD

8ABCD

9ABCD

10ABCD

11ABCD

12ABCD

13ABCD

14ABCD

15ABCD

16ABCD

17ABCD

18ABCD

19ABCD

20ABCD

21ABCD

22ABCD

23ABCD

24ABCD

25ABCD

26ABCD

27ABCD

28ABCD

29ABCD

30ABCD

31ABCD

32ABCD

33ABCD

34ABCD

35ABCD

36ABCD

37ABCD

38ABCD

39ABCD

40ABCD

41ABCD

42ABCD

43ABCD

44ABCD

45ABCD

46ABCD

47ABCD

48ABCD

49ABCD

50ABCD

51ABCD

52ABCD

53ABCD

54ABCD

55ABCD

56ABCD

57ABCD

58ABCD

59ABCD

60ABCD

61ABCD

62ABCD

63ABCD

64ABCD

65ABCD

66ABCD

67ABCD

68ABCD

69ABCD

70ABCD

71ABCD

72ABCD

73ABCD

74ABCD

75ABCD

76ABCD

77ABCD

78ABCD

79ABCD

80ABCD

81ABCD

82ABCD

83ABCD

84ABCD

85ABCD

86ABCD

87ABCD

88ABCD

89ABCD

90ABCD

91ABCD

92ABCD

93ABCD

94ABCD

95ABCD

96ABCD

97ABCD

98ABCD

99ABCD

100ABCD

101ABCD

102ABCD

103ABCD

104ABCD

105ABCD

106ABCD

107ABCD

108ABCD

109ABCD

110ABCD

111ABCD

112ABCD

113ABCD

114ABCD

115ABCD

116ABCD

117ABCD

118ABCD

119ABCD

120ABCD

121ABCD

122ABCD

123ABCD

124ABCD

125ABCD

126ABCD

127ABCD

128ABCD

129ABCD

130ABCD

Paper #4

130 questions. 150 minutes.

1

A dividend option applies the annual dividend to buy term insurance on the insured for one year at a time. What is that option usually called?

AThe extended term option
BThe paid-up additions option
CThe fifth dividend option
DThe accelerated benefit option

2

An agent selling an accident and health policy offers the client shares in an affiliated company as an inducement to sign. Is that permitted?

AYes, provided the value of the shares is disclosed to the client before the policy is issued
BYes, provided the shares are in the issuing insurer rather than in an affiliated company
CNo, giving or selling securities as an inducement to enter the contract is prohibited
DNo, unless the client is an accredited investor for the purposes of the securities laws

3

An accelerated death benefit rider is attached to a life policy. What event typically allows the owner to draw on it?

ATotal disability of the insured lasting longer than six months
BA financial hardship shown to the satisfaction of the insurer
CThe insured reaching the age at which the policy would otherwise endow
DA terminal illness certified as likely to cause death within a stated period

Worked explanations

The paper carries one for every question, at the back. These are the three above.

Q1 C Ch. 2: II. Policy riders, provisions, options and exclusions (life)

Answer: C - The fifth dividend option

Because The one-year term option is called the fifth dividend option because it sits after the four standard ones. It buys the largest amount of death benefit a dividend will purchase, often capped at the current cash value, and it is bought again each year.

Where the other options lead

A.Attaching a nonforfeiture name to a dividend option. Extended term is bought with cash value after a lapse. The one-year term option is bought with a dividend on a policy in force.
B.Confusing permanent additions with one-year term. Paid-up additions are permanent and never expire. One-year term coverage lapses each year unless the next dividend renews it.
D.Confusing a use of surplus with a living benefit. Accelerated benefits pay part of the face amount on terminal illness. They are not a dividend option.

Q2 C Ch. 10: TX-I. Texas statutes and rules common to life and health insurance

Answer: C - No, giving or selling securities as an inducement to enter the contract is prohibited

Because The accident and health rebating provision mirrors the life and annuity one. It prohibits inducements not specified in the policy, rebates of premium, and giving, selling or purchasing stocks, bonds or other securities, or dividends accrued on them, or anything of value not specified in the contract, in connection with the policy or as an inducement to enter it. TIC 1702.152

Where the other options lead

A.Assuming disclosure cures an inducement. The prohibition is on giving, selling or offering securities in connection with or as an inducement to the contract, disclosed or not.
B.Assuming the prohibition depends on whose securities they are. The prohibition covers securities of an insurer or of any other corporation, association or partnership.
D.Importing a securities law concept. Whether the client could lawfully buy the shares elsewhere is beside the point. The inducement is prohibited.

Q3 D Ch. 2: II. Policy riders, provisions, options and exclusions (life)

Answer: D - A terminal illness certified as likely to cause death within a stated period

Because Accelerated death benefits pay part of the face amount while the insured is alive, on a certified terminal illness and in many contracts on chronic illness or confinement to a nursing home. What is paid out is subtracted from the amount the beneficiary later receives.

Where the other options lead

A.Confusing an accelerated benefit trigger with a waiver of premium trigger. Six months of total disability is the waiting period for waiver of premium. Accelerated benefits turn on terminal or chronic illness.
B.Reading the rider as a hardship provision. Hardship is not a trigger. The rider responds to defined medical conditions.
C.Confusing acceleration with maturity of the contract. An endowing policy pays its face amount at maturity as a matter of course. Acceleration is an early payment on medical grounds.

Worked explanations

The paper carries one for every question, at the back. These are the three above.

Q1 C Ch. 2: II. Policy riders, provisions, options and exclusions (life)

Answer: C - The fifth dividend option

Because The one-year term option is called the fifth dividend option because it sits after the four standard ones. It buys the largest amount of death benefit a dividend will purchase, often capped at the current cash value, and it is bought again each year.

Where the other options lead

A.Attaching a nonforfeiture name to a dividend option. Extended term is bought with cash value after a lapse. The one-year term option is bought with a dividend on a policy in force.
B.Confusing permanent additions with one-year term. Paid-up additions are permanent and never expire. One-year term coverage lapses each year unless the next dividend renews it.
D.Confusing a use of surplus with a living benefit. Accelerated benefits pay part of the face amount on terminal illness. They are not a dividend option.

Q2 C Ch. 10: TX-I. Texas statutes and rules common to life and health insurance

Answer: C - No, giving or selling securities as an inducement to enter the contract is prohibited

Because The accident and health rebating provision mirrors the life and annuity one. It prohibits inducements not specified in the policy, rebates of premium, and giving, selling or purchasing stocks, bonds or other securities, or dividends accrued on them, or anything of value not specified in the contract, in connection with the policy or as an inducement to enter it. TIC 1702.152

Where the other options lead

A.Assuming disclosure cures an inducement. The prohibition is on giving, selling or offering securities in connection with or as an inducement to the contract, disclosed or not.
B.Assuming the prohibition depends on whose securities they are. The prohibition covers securities of an insurer or of any other corporation, association or partnership.
D.Importing a securities law concept. Whether the client could lawfully buy the shares elsewhere is beside the point. The inducement is prohibited.

Q3 D Ch. 2: II. Policy riders, provisions, options and exclusions (life)

Answer: D - A terminal illness certified as likely to cause death within a stated period

Because Accelerated death benefits pay part of the face amount while the insured is alive, on a certified terminal illness and in many contracts on chronic illness or confinement to a nursing home. What is paid out is subtracted from the amount the beneficiary later receives.

Where the other options lead

A.Confusing an accelerated benefit trigger with a waiver of premium trigger. Six months of total disability is the waiting period for waiver of premium. Accelerated benefits turn on terminal or chronic illness.
B.Reading the rider as a hardship provision. Hardship is not a trigger. The rider responds to defined medical conditions.
C.Confusing acceleration with maturity of the contract. An endowing policy pays its face amount at maturity as a matter of course. Acceleration is an early payment on medical grounds.

The rest of this mock paper comes with the course

Texas Life and Health: the whole syllabus taught, the questions that test it, 5 timed mocks, and all 6 PDFs to print.