Texas Life Insurance Exam with 100% correct answers {2024/2025}
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Course
Texas Life Insurance
Institution
Texas Life Insurance
Texas Life Insurance Exam with 100% correct
answers {2024/2025}
P completes an application for a $10,000 life policy, but does not give
the producer the initial premium. P's coverage becomes effective
when - CORRECT ANSWER P receives the policy and pays the premium
A potential client, age 4...
Texas Life Insurance Exam with 100% correct
answers {2024/2025}
P completes an application for a $10,000 life policy, but does not give
the producer the initial premium. P's coverage becomes effective
when - CORRECT ANSWER P receives the policy and pays the premium
A potential client, age 40, would like to purchase a Whole Life policy
that will accumulate cash value at a faster rate in the early years of
the policy. Which of these statements made by the producer would be
carrer? - CORRECT ANSWER 20-Pay Life accumulates cash value
faster than Straight Life
How does an indexed annuity differ from a fixed annuity ? - CORRECT
ANSWER Indexed annuity owners receive credited interest tied to the
fluctuations of the linked index
During a sales presentation for a participating life insurance policy, an
agent MUST - CORRECT ANSWER make a prospect understand that
dividends are NOT guaranteed
T is covered by an Accidental Death and Dismemberment (AD&D)
policy that has an irrevocable eneficiary. What action will the
insurance company take if I requests a change of beneficiary? -
CORRECT ANSWER request of the change will be refused
,Which provision allows the policyowner to change a term life policy to
a permanent one without providing proof of good health? - CORRECT
ANSWER conversion
T has a term policy that allows him to continue the coverage after
expiration of the initial policy period What type of term coverage is
this? - CORRECT ANSWER renewable
Which of the following is NOT a required provision in group life
policies? - CORRECT ANSWER Right to loan
The Insurance Commissioner must give how many days notice prior to
holding a hearing regarding an agent's unfair or deceptive practice? -
CORRECT ANSWER 30
The Accelerated Death Benefit provision in a life insurance policy is
also known as a(n) ) - CORRECT ANSWER Living Benefit
In Texas, an individual life insurance policy is required to have a grace
period of - CORRECT ANSWER 31 days
Which statement is correct regarding the premium payment schedule
for whole life policies? - CORRECT ANSWER Premiums are payable
throughout the insured's lifetime/ coverage lasts until death of the
insured
Company Z has a Cross Purchase Buy-Sell Agreement in place among
its three founding partners. If the agreement is funded with individual
,life insurance, what would it require? - CORRECT ANSWER Each
partner must own a policy on the other partners
Why would the Insurance Commissioner examine the records of an
insurance company? - CORRECT ANSWER To determine the solvency
of the company
Which of the following features of a group Term Life policy enables an
individual to leave the group and continue his or her insurance without
providing evidence of insurability? - CORRECT ANSWER Conversion
privilege
Taking receipt of premiums and holding them for the insurance
company is an example of: - CORRECT ANSWER fiduciary
responsibility
K buys a policy where the premium stays fixed for the first 5 years.
The premium then increases in year 6 and stays level thereafter, all
the while the death benefit remains the same. What kind of policy is
this? - CORRECT ANSWER Modified Whole Life
What does a Face Amount Plus Cash Value Policy supposed to pay at
the insured's death? - CORRECT ANSWER Face amount plus the
policy's cash value
In regards to representations or warranties, which of these statements
is TRUE? - CORRECT ANSWER If material to the risk, false
representations will void a policy
, What provision in a life insurance policy states that the application is
considered part of the contract? - CORRECT ANSWER Entire Contract
provision
J is 35-years old and looking to purchase a whole life insurance policy.
Which of the following types of policies will provide the most rapid
growth of cash value? - CORRECT ANSWER 20-pay life
Which of the following statements about accumulated interest eared
on dividends from an insurance policy is TRUE? - CORRECT ANSWER It
is taxed as ordinary income
A life insurance policy which ensures that the premium will be paid if
the insured becomes disabled has what kind of rider attached? -
CORRECT ANSWER Waiver of Premium
Which of the following is a requirement for obtaining a Texas
insurance agent's license? - CORRECT ANSWER Be honest,
trustworthy, and reliable
Which of the following groups may NOT be insured by a group life
insurance policy? - CORRECT ANSWER Individuals who are related by
blood
The amount of coverage on a group credit life policy is limited to -
CORRECT ANSWER the insured's total loan value
D was actively serving in the Marines when he was killed in an
automobile accident while on leave. His $100,000 Whole life policy
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