Texas Health Insurance Practice Exam Free 2026

• A. A policy that renews with lower premiums
• B. A policy with guaranteed benefits
• C. A policy guaranteed to increase in value
• D. A policy the insurer must renew regardless of health changes

Correct answer: D. A policy the insurer must renew regardless of health changes

Explanation: A guaranteed renewable policy must be renewed by the insurer as long as premiums are paid, regardless of changes in the insured's health. However, the insurer may increase premiums for the entire class of policyholders.

• A. The insured cannot cancel the policy
• B. The insurer cannot cancel or raise premiums as long as premiums are paid
• C. The policy cannot be cancelled for any reason
• D. Cancellation fees do not apply

Correct answer: B. The insurer cannot cancel or raise premiums as long as premiums are paid

Explanation: A noncancellable policy cannot be cancelled by the insurer, and the insurer cannot raise premiums above what's stated in the policy, as long as premiums are paid on time. This provides maximum protection.

• A. The insurer's right to recover claim payments from a third party responsible for the loss
• B. Substituting one policy for another
• C. Reducing coverage amounts
• D. A subordinate insurance policy

Correct answer: A. The insurer's right to recover claim payments from a third party responsible for the loss

Explanation: Subrogation is the insurer's right to recover money paid for claims from a third party who caused the insured's injury or illness. For example, if you're injured in a car accident caused by another driver.

• A. To replace income when the insured cannot work due to illness or injury
• B. To pay for home modifications
• C. To pay medical bills
• D. To provide a death benefit

Correct answer: A. To replace income when the insured cannot work due to illness or injury

Explanation: Disability insurance provides income replacement when the insured cannot work due to a covered illness or injury. It helps maintain financial stability during periods of disability.

• A. Any occupation disability
• B. Working in your own business
• C. Occupational hazard coverage
• D. Inability to perform the duties of your specific occupation

Correct answer: D. Inability to perform the duties of your specific occupation

Explanation: Own occupation disability means the insured is considered disabled if they cannot perform the duties of their specific occupation, even if they could work in another occupation.

• A. Multiple occupation coverage
• B. The insured is only considered disabled if unable to work in any occupation
• C. Coverage for any type of work
• D. Working in any available job

Correct answer: B. The insured is only considered disabled if unable to work in any occupation

Explanation: Any occupation disability is a stricter definition where the insured is only considered disabled if they cannot perform the duties of any occupation for which they are reasonably suited by education, training, or experience.

• A. Coverage that replaces income for a limited period, typically 3-6 months
• B. Temporary disability from minor injuries
• C. Part-time disability coverage
• D. Disability coverage for short people

Correct answer: A. Coverage that replaces income for a limited period, typically 3-6 months

Explanation: Short-term disability insurance provides income replacement for a limited period, typically 3-6 months, during which the insured cannot work due to illness or injury.

• A. Lifetime medical coverage
• B. Coverage for chronic conditions only
• C. Disability coverage for tall people
• D. Coverage that provides income for extended periods, often until age 65

Correct answer: D. Coverage that provides income for extended periods, often until age 65

Explanation: Long-term disability insurance provides income replacement for extended periods, potentially lasting years or until the insured reaches age 65, after short-term disability benefits are exhausted.

• A. Coverage for family members
• B. Coverage for remaining medical bills
• C. Leftover policy benefits
• D. Partial benefits when the insured can work but at reduced capacity or income

Correct answer: D. Partial benefits when the insured can work but at reduced capacity or income

Explanation: Residual disability coverage provides partial benefits when the insured can return to work but at reduced hours or in a limited capacity, resulting in reduced income.

• A. Employer-provided insurance
• B. Health insurance for low-income families
• C. State-run health insurance
• D. Federal health insurance program primarily for people 65 and older

Correct answer: D. Federal health insurance program primarily for people 65 and older

Explanation: Medicare is a federal health insurance program primarily for people 65 and older, as well as certain younger people with disabilities and those with End-Stage Renal Disease.

• A. Prescription drugs
• B. Doctor visits and outpatient services
• C. Hospital insurance including inpatient care
• D. Dental and vision

Correct answer: C. Hospital insurance including inpatient care

Explanation: Medicare Part A is hospital insurance that covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care.

• A. Long-term care
• B. Hospital stays
• C. Prescription drugs
• D. Medical insurance including doctor services and outpatient care

Correct answer: D. Medical insurance including doctor services and outpatient care

Explanation: Medicare Part B is medical insurance that covers physician services, outpatient care, preventive services, durable medical equipment, and some home health care.