Texas Prearrangement Life Insurance Agent License Exam Questions with correct Answers 2024

Texas Prearrangement Life Insurance Agent License Exam Questions with correct Answers 2024 Prepaid Funeral Benefits Contract -Answer-"any written contract or agreement, whether funded by insurance policies or annuity contracts,...or by trust deposits, which has for its purpose the furnishing or delivery of prepaid funeral benefits in connection with the final disposition of a human corpse at a time determinable by the death of such person." Joint Memo or JMOU -Answer-In 1995, Texas Civil Statutes mandated that the Texas Department of Banking, the Texas Funeral Service Commission and the Texas Department of Insurance adopt a Joint Memorandum of Understanding (Joint Memo or JMOU), regarding prepaid funeral services. This Memorandum outlined the responsibilities of each agency in regulating prepaid funeral contract sales and services. Agent -Answer-an "authorized representative" of one of the parties to a contract Agency -Answer-The relationship which is established in the insurance company's contract with an agent is normally referred to as the "power of agency." a group of insurance agents, most often managed by a "general agent." Life Insurance -Answer-a contract between an insurance company and a policy owner which provides a death benefit, immediately or in the future, that is usually higher than the initial premiums paid to purchase the policy. Annuity -Answer-a contract which allows the steady accumulation of premiums at interest. annuities will return premiums paid and interest earned, but do not produce a death benefit like life insurance. Trust Account -Answer-a non-insurance account, normally held at a bank or trust institution, created and maintained for the benefit of a prepaid funeral customer. Trustee -Answer-An individual referred to as the "trustee" administers and supervises a trust account Insurance Funded Contract -Answer-When the TDI and the DOB regulations address prepaid funeral contract conversions (from trust to insurance funding), "insurance funded contract" refers to annuity products only, not to life insurance. Permit Holder or Seller -Answer-Any individual or business-entity licensed in Texas to sell prepaid funeral contracts to the public Provider -Answer-Any business entity which fulfills the prepaid funeral contract by guaranteeing the funeral goods or services is a Provider.