10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The TX-LAH exam has 145 questions and runs 2 hours 30 minutes.
These 10 free TX-LAH questions are organized by exam domain, so you can see how each part of the Texas General Lines - Life, Accident, Health and HMO Agent Exam blueprint is tested. Reveal the answer and explanation under each question.
A client wants permanent life insurance with flexible premiums. She chooses a $500,000 specified amount and wants accumulated cash value added to that amount at death, accepting the generally higher insurance cost this design creates. Which universal life death-benefit option matches her objective?
Correct answer: C - Universal life, Option B
An indexed annuity credits interest using a 75% participation rate, a 1% spread, a 6% cap, and a 0% floor. The reference index gains 12% for the period. Ignoring contract charges, calculate the credited rate and identify the correct ownership statement.
Correct answer: A - 6%; formula-linked credit, with no direct index ownership
After a qualifying disability and the rider's waiting period, the owner of a universal life policy wants the insurer to stop deducting mortality and expense charges from cash value. The owner understands the rider may not make the planned flexible premium. Identify the rider that produces this result.
Correct answer: D - Waiver of monthly deduction
A policyowner named an irrevocable beneficiary. He now requests a policy loan large enough to reduce the beneficiary's protected interest. The policy is active and has sufficient cash value. What approval is generally needed before the loan can proceed?
Correct answer: B - Consent from the irrevocable beneficiary
An underwriter receives an MIB alert that conflicts with an applicant's answers, but no supporting medical records have been obtained. How should the alert influence underwriting?
Correct answer: B - Verify the underlying information through appropriate underwriting sources
A permanent-life applicant presents an $8,000 cash-equivalent transaction that is inconsistent with her financial circumstances, cannot explain the source, and is identifiable. Select the response that complies with the insurer's anti-money-laundering obligations.
Correct answer: D - Use the insurer's AML process: file a SAR within 30 calendar days and do not tip off the applicant
A 45-year-old owns a life policy classified as a Modified Endowment Contract. Its cash value is $90,000, cost basis is $60,000, and there have been no prior distributions. The owner takes a $20,000 policy loan; no penalty exception applies. Determine the federal tax treatment of the loan.
Correct answer: A - $20,000 is taxable gain, generally with a 10% additional tax
After a dentist becomes disabled, the practice needs reimbursement for office rent, staff salaries, utilities, and accounting fees. The owner does not want personal income replacement or funds to purchase the practice. The policy best suited to this exposure is:
Correct answer: C - Business overhead expense disability insurance
An employee is covered by a qualifying high-deductible health plan and wants to contribute to an HSA. Her spouse's general-purpose FSA can reimburse her medical expenses before the HDHP deductible. What is the consequence for her HSA contributions?
Correct answer: D - It makes her ineligible to contribute while that coverage remains
A tax-qualified long-term-care insured can bathe and eat independently but needs substantial assistance with dressing and transferring. A licensed practitioner expects the limitations to last 120 days, and the insured has no cognitive impairment. Which eligibility determination is correct?
Correct answer: C - The ADL trigger is satisfied
The TX-LAH exam also covers these domains. Drill them in the full free practice test:
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