Accident & Health · Practice sample
Texas life and health insurance exam practice test
Unofficial, original sample questions on general-knowledge topics for the Texas General Lines – Life, Accident and Health exam (InsTX-LAH05), based on the outline effective September 1, 2026. Not actual exam questions. Not a prelicensing course. Not the exam vendor, an insurance department, or a licensing association.
Free sample questions
Preparing for the Texas Life, Accident and Health exam and want to test yourself? Below are free sample questions on general concepts: health coverage, disability income, Medicare and Medigap, long-term care, group health and COBRA, plus a few life insurance basics. Each question has the answer and a short explanation.
How to use this sample
Try each question first, then tap Show answer to check it and read why.
Read the explanation even when you get it right. The reason is what carries over to a new question.
If a question trips you up, revisit that topic in the study notes linked below, then come back.
This sample covers general insurance concepts only. It does not cover Texas law. Medicare and COBRA items describe federal programs in general terms.
This sample shows how practice works. It does not measure how prepared you are or predict your exam result.
1. The waiting time in a disability policy
In a disability income policy, what is the elimination period?
A. The longest time benefits will be paid for one disability
B. The time after a disability begins before benefits start
C. The time an applicant must wait before applying for coverage
D. The time the insurer has to decide whether to renew the policy
Show answer
Answer: B. The time after a disability begins before benefits start.
The elimination period works like a deductible measured in time. A longer elimination period usually lowers the premium. How long benefits can continue once they start is the benefit period, which is a separate clock.
2. Who paid decides the tax
An employer pays the full premium for a group disability income plan and does not include it in employees' income. An employee becomes disabled and receives benefits. How are those benefits generally treated for income tax?
A. Tax-free to the employee
B. Taxable to the employee
C. Taxable to the employer
D. Tax-free only after the elimination period
Show answer
Answer: B. Taxable to the employee.
Tax treatment of disability benefits follows who paid the premium and with what dollars. When the employer pays with dollars that were not taxed to the employee, benefits are generally taxable. When an individual pays with after-tax dollars, benefits are generally received tax-free.
3. Medicare and the hospital stay
Which part of Medicare mainly covers inpatient hospital care?
A. Part A
B. Part B
C. Part C
D. Part D
Show answer
Answer: A. Part A.
Part A is hospital insurance: inpatient hospital stays, and limited skilled nursing facility, hospice, and some home health care. Part B covers doctor services and outpatient care. Part C is Medicare Advantage, offered by private plans. Part D covers prescription drugs.
4. Medigap and Medicare Advantage
A person plans to stay in a Medicare Advantage plan. Why is a Medicare supplement (Medigap) policy not a fit for this person?
A. Medigap covers only prescription drugs
B. Medigap is designed to fill cost-sharing gaps in Original Medicare, not in Medicare Advantage plans
C. Medigap replaces Part A entirely
D. Medigap is available only through an employer
Show answer
Answer: B. Medigap is designed to fill gaps in Original Medicare.
Medigap policies help pay deductibles, coinsurance, and other cost-sharing under Original Medicare (Parts A and B). They do not pay Medicare Advantage plan cost-sharing. Federal law generally makes it illegal to sell a Medigap policy to someone who has a Medicare Advantage plan, unless they are switching back to Original Medicare.
5. What starts long-term care benefits
Which is a common benefit trigger in a long-term care insurance policy?
A. Reaching a set age, whether or not care is needed
B. Being unable to perform a specified number of activities of daily living without substantial help, or having a severe cognitive impairment
C. Any hospital stay, no matter how short
D. Retiring from full-time work
Show answer
Answer: B. Inability to perform activities of daily living, or severe cognitive impairment.
Long-term care policies pay when the insured needs ongoing help with activities of daily living (such as bathing, dressing, eating, and moving from a bed to a chair) or has a cognitive impairment such as Alzheimer's disease. Age or retirement alone does not trigger benefits.
6. Levels of care
A nonmedical aide helps an insured bathe, dress, and eat at home. What level of care is this?
A. Skilled care
B. Intermediate care
C. Custodial care
D. Acute care
Show answer
Answer: C. Custodial care.
Custodial care is help with daily living that does not need licensed medical staff. Skilled care is daily care ordered by a doctor and given by licensed professionals, such as nurses or therapists. Intermediate care is occasional skilled care. Long-term care policies commonly cover custodial care, which Medicare generally does not cover on an ongoing basis.
7. Two group health plans
Jordan is covered as an employee under a group health plan at work and as a dependent under a spouse's group health plan. For Jordan's own medical claims, which plan usually pays first?
A. The spouse's plan
B. Jordan's own employer plan
C. Whichever plan has the lower deductible
D. Each plan pays half
Show answer
Answer: B. Jordan's own employer plan.
Under coordination of benefits, the plan that covers a person as an employee is usually primary for that person. The plan that covers the person as a dependent is secondary. Coordination keeps total payments from exceeding the covered expense.
8. Keeping group health after leaving a job
Under COBRA, which event is a qualifying event that lets a covered employee continue the employer's group health coverage?
A. Termination of employment for gross misconduct
B. Termination of employment for reasons other than gross misconduct, or a reduction in hours
C. A pay raise
D. The plan's annual open enrollment
Show answer
Answer: B. Termination for reasons other than gross misconduct, or a reduction in hours.
COBRA is a federal law that lets qualified beneficiaries continue a covered employer's group health coverage for a limited period after a qualifying event. The person usually pays the full cost, which can include a small administrative charge. Termination for gross misconduct is the exception that does not qualify.
9. Cost sharing after the deductible
After meeting the deductible on a major medical plan, the insured pays a set percentage of covered costs and the insurer pays the rest, until the insured's share reaches the plan's out-of-pocket maximum. What is this cost sharing called?
A. Copayment
B. Coinsurance
C. Premium
D. Elimination period
Show answer
Answer: B. Coinsurance.
Coinsurance splits covered costs by percentage after the deductible. A copayment is a flat dollar amount for a service, such as a doctor visit. The premium is what the insured pays to keep coverage in force. An elimination period belongs to disability and long-term care policies, not medical expense plans.
10. When the primary beneficiary has died
The primary beneficiary of a life insurance policy dies before the insured, and no contingent beneficiary was named. When the insured dies, where are the proceeds usually paid?
A. To the primary beneficiary's estate
B. To the insured's estate
C. To the insurer's general account
D. Split among the insured's employers
Show answer
Answer: B. To the insured's estate.
If no named beneficiary survives the insured, proceeds usually go to the insured's estate. That is why naming a contingent beneficiary matters. A primary beneficiary has to be alive when the insured dies to receive the proceeds, so the proceeds do not pass to that beneficiary's estate.
11. Term vs whole life
What is a key difference between term life and whole life insurance?
A. Term life builds cash value and whole life does not
B. Whole life builds cash value and is designed to last for the insured's whole life; term covers a set period
C. Term life premiums always increase every month
D. Whole life can be bought only through an employer
Show answer
Answer: B. Whole life builds cash value and is permanent; term covers a set period.
Term life pays only if the insured dies during the term and generally has no cash value, so it usually costs less at the start. Whole life is permanent coverage with level premiums and cash value that grows over time.
Study the topics behind these questions
- Disability income: individual and group disability, elimination and benefit periods
- Medicare parts and Medigap vs Medicare Advantage: what each part covers and how Medigap fits
- Long-term care: benefit triggers and levels of care
- Group insurance and COBRA: group health, coordination of benefits, and continuation
Unofficial study aid. Not affiliated with Pearson VUE or the Texas Department of Insurance. Passing is not guaranteed.