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Build your Texas Life & Health exam preparation around understanding, practice and review. Try these original teaching examples, explain your answers, then use TSI’s lessons and practice tools to keep improving.
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Learn the reasoning before memorizing an answer
Example 1: three people, three policy roles
Morgan owns a life insurance policy covering Alex. Casey is named to receive the death benefit. Morgan is the policyowner, Alex is the insured, and Casey is the beneficiary.
First identify what the question asks: who controls the policy, whose life is covered, or who receives the benefit. Those roles may belong to different people. A beneficiary’s rights also depend on the designation and policy terms.
Example 2: apply the deductible first
Assume $5,000 in covered, allowed medical expenses, a $1,000 deductible still to be met, and an insurer that pays 80% afterward. No other cost-sharing or limit applies in this example.
- Subtract the deductible: $5,000 − $1,000 = $4,000.
- The insurer pays 80% of $4,000: $3,200.
- The member pays the $1,000 deductible plus 20% of $4,000: $1,800.
The common mistake is applying 80% to the entire bill before accounting for the deductible. Real plan terms determine which expenses count and which limits apply.
10 Life & Health practice questions
Choose an answer before opening its explanation. These are original TSI teaching questions, not actual state exam questions. Use missed concepts to guide your next review; this short exercise does not predict an exam result.
1. Identify the risk
A situation creates a chance of loss or no loss, with no opportunity for gain. Which term fits?
- Speculative risk
- Pure risk
- Premium
- Beneficiary
Show answer and explanation for question 1
B — Pure risk. Pure risk involves loss or no loss. Speculative risk includes an opportunity for gain. Look at the possible outcomes before choosing the term.
2. Separate the policy roles
Morgan owns a policy on Alex’s life. Casey is named to receive the death benefit. Who is the beneficiary?
- Morgan
- Alex
- Casey
- The insurance company
Show answer and explanation for question 2
C — Casey. The beneficiary is named to receive the benefit. Morgan’s ownership and Alex’s role as the insured are separate from Casey’s role.
3. Understand the end of a term
The insured survives the end of a term-life policy. The example specifies no return-of-premium benefit and no exercised conversion. Is a death benefit payable simply because the term ended?
- No
- Yes, the full death benefit
- Yes, half the death benefit
- Only if the beneficiary requests it
Show answer and explanation for question 3
A — No. The described death benefit depends on death during the covered term. Reaching the end of that term is not itself a covered death. Read the stated policy features rather than adding a benefit the question does not include.
4. Recognize a beneficiary designation
Which designation generally permits the policyowner to change the beneficiary without that beneficiary’s consent, subject to the policy and applicable law?
- Irrevocable
- Contingent only
- Estate only
- Revocable
Show answer and explanation for question 4
D — Revocable. A revocable designation can generally be changed by the owner. An irrevocable designation gives the beneficiary rights that can restrict changes. The distinction is about rights, not whether the beneficiary is a relative.
5. Distinguish an annuity’s basic function
Which description best matches an annuity’s basic income-payment function?
- Paying only for hospital services
- Providing a stream of income under the contract’s terms
- Insuring a vehicle against collision
- Replacing every type of life insurance benefit
Show answer and explanation for question 5
B — Providing income. Annuities can provide income payments under their contract terms. Life insurance and annuities can both include additional features, but their basic purposes should not be treated as identical.
6. Identify the annuity phase
A deferred annuity is accumulating value before its scheduled income-payment phase. Which annuity phase is described?
- A disability elimination period
- A claim appeal
- The accumulation phase
- A beneficiary designation
Show answer and explanation for question 6
C — The accumulation phase. The question is about building value before the annuity’s income phase. Keep the product context in mind: similar terms can have different meanings in health insurance.
7. Calculate the insurer’s share
Using the $5,000 medical-expense example above, with a $1,000 unmet deductible and 80% paid by the insurer afterward, how much does the insurer pay?
- $3,200
- $4,000
- $1,800
- $5,000
Show answer and explanation for question 7
A — $3,200. Subtract the $1,000 deductible first, leaving $4,000. Then multiply $4,000 by 80%. The member’s $1,800 includes both the deductible and the remaining 20% share.
8. Identify a fixed-dollar cost share
A hypothetical health plan specifies a fixed $30 charge for an eligible visit. Which term describes that charge?
- A death benefit
- A percentage coinsurance share
- An annuity payment
- A copayment
Show answer and explanation for question 8
D — A copayment. This example specifies a fixed dollar amount. Coinsurance describes a percentage share. Do not assume that one visit’s copayment describes every service under the plan.
9. Explain an elimination period
In a disability-income policy, what does an elimination period generally describe?
- The deadline for changing a beneficiary
- A waiting period that must be satisfied before benefits become payable under the contract
- The amount of the life insurance death benefit
- A guarantee that every disability claim will be paid
Show answer and explanation for question 9
B — A waiting period. It is a time-based condition under the disability contract. Other eligibility requirements still apply; the passage of time alone does not establish that a claim qualifies.
10. Separate preparation from licensing
Does completing a TSI exam-preparation course itself issue a Texas insurance-agent license?
- Yes, immediately after the last lesson
- Yes, when the course is purchased
- No; the applicable exam and state application requirements are separate
- Only if every practice question is correct
Show answer and explanation for question 10
C — Preparation and licensing are separate. TSI helps you prepare. Follow the current Texas Department of Insurance instructions for the exam, fingerprint process and license application. The state makes the licensing decision.
Use a study sequence that builds understanding
TSI’s Texas Life, Health & Annuity course organizes the core lessons in this order:
- Definitions: learn the vocabulary and identify the roles in a question.
- Health Plans: compare coverage concepts and work through cost-sharing examples.
- Life & Annuity: distinguish policy types, provisions, beneficiaries and annuity concepts.
- State Regulation: connect the general concepts to the Texas material.
- Practice and review: return to the lesson behind a missed answer, then try another practice block.
Study at a pace that lets you explain why an answer is correct. Repeating an answer without understanding its reasoning makes it harder to handle a differently worded question.
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Texas Life & Health self-study
Learn online with TSI’s lesson videos, study materials and practice tools. Review the current full price, included resources and access term before enrolling.
Add scheduled live online preparation
Prefer a scheduled class alongside the online course? Review the available Texas Life & Health live-online dates and what that format includes.
Review the Texas licensing steps and the current TDI application instructions. Purchases follow TSI’s Refund and Cancellation Policy.
Original teaching examples from TSI National, checked against the relevant course concepts. These hypothetical examples illustrate study concepts, not advice to select an insurance product or a promise of exam passage.