Preneed Prep Exam 2024 Questions and Answers

Preneed Prep Exam 2024 Questions and Answers Joint Memorandum - Who What When Why -Answer-Who: DOB, FSC, TDI What: A joint agreement that established specific area of responsibilities for prepaid funeral svc . When: 1995 Why : its creation was mandated by the Texas Civil Statutes What is a preneed Funeral contract -Answer-Any written contract of agreement, funded by an insurance policy, annuity contract or trust deposit, for the purpose of furnishing or delivery of prepaid funeral benefits for the final disposition of a corpse at the time of that individual's death In regards to PreNeed Funeral policies What 5 responsibilities does TDI, Texas Department of Insurance have -Answer-Regulating & licensing insurers which propose to issue insurance products for prepaid funeral contract funding Regs & licenses individuals who perform acts of insurance agents Regulates & approves insurance products designed to fund prepaid funeral contracts Regulates unfair trade practices relating to the sale of insurance funded contracts for prepaid funerals Regulates unfair claims practices of insurance companies Agent -Answer-An authorized representative of the parties to a contract Define Agency -Answer-A group of insurance agents, most often managed by a "general agent" who work together representing one or more insurance companies. Difference between prepaid prearrangement and preneed funeral -Answer-DOB uses Prepaid TDI uses Prepaid interchangeably with Prearrangement FTC Preneed encompasses both pre - paid and arrangement In regards to PreNeed Funeral policies What 5 responsibilities does DOB, Texas Department of Banking have -Answer-• Issuing renewal & cancellation of permits to sell PFS merchandise • Approve funeral benefit contracts & contract forms • Approve release & withdrawal of funds under certain circumstances • Est. reporting requirements & conducting audits/examinations of records • Maintaining guaranty funds for PF benefits m