Insurance
(General concept) - ANSWER - transfers the risk of loss from an individual to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
insurable interest
(General Concept) - ANSWER - must exist at the time of the application
- insuring ...
texas life insurance exam questions and answers with complete solutions
insurance general concept
insurable interest general concept
solicitation and sales presentation
underwriting field underwr
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Texas Life Insurance Exam Questions and Answers with complete solutions
Insurance (General concept) - ANSWER - transfers the risk of loss from an individual to an insurer - based on the principle of indemnity - based on the principle of risk (risk pooling)
insurable interest (General Concept) - ANSWER - must exist at the time of the application - insuring one's own life, family member, or a business partner
Solicitation and sales presentation - ANSWER - illustration- presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must be provided at the time of application - policy summary is a description of features and benefits of the policy being issued and must be provided when the policy is delivered.
Underwriting (Field underwriting (by agent) - ANSWER - application completed and signed - agent's report: agent's observation about the application that can assist in underwriting
-premiums with application and conditional receipts
underwriting ( company underwriting) - ANSWER - multiple sources of information: applications, consumer reports, MIB (Medical Information Burea) - Risk Classification: 3 types of risk : standard, substandard, preferred
Underwriting (Federal Regulation) - ANSWER - Fair Credit Reporting Act: protect consumers against circulations of inaccurate or obsolete information - USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules
Premium Determination - ANSWER - 3 key Factors for life insurance: mortality, interest,
and expense
- Mode: the more frequently premium is paid, the higher the premium
Policy Issue and Delivery - ANSWER Effective date of coverage - if the premium is not paid with the application, the agent must obtain the premium and a statement of continued good health at the time of the policy delivery
Agent/ Producer - ANSWER a legal representative of an insurance company; the classification of producers usually includes agents and brokers' agents are the agents of
the insurer Applicant of proposed insured - ANSWER a person applying for insurance
Beneficiary - ANSWER a person who receives the benefits of an insurance policy
Broker - ANSWER an insurance producer who is not appointed by an insurance company and who represents the client
Death benefits - ANSWER the amount paid upon death of the insured in a life insurance
policy
Estate - ANSWER a person's net worth
Insurance policy - ANSWER a contact between a policyowner (and/or insured) and an insurance company which agrees to pay insured or the beneficiary for loss caused by specific events.
Insured - ANSWER a person covered by the insurance policy; may or may not be the policyowner
insurer (principal) - ANSWER the company who issues an insurance policy
Lapse - ANSWER policy termination due to nonpayment of premium
Life insurance - ANSWER coverage on human lives
Policyowner - ANSWER the person entitled to exercise the rights and privileges in the policy
Premium - ANSWER the money paid to the insurance company for the insurance policy
Underwriting - ANSWER is the risk selection and classification process
Attained age - ANSWER the insured's age at the time the policy is issued or renewed
cash value - ANSWER a policy's saving element or living benefit
Face amount - ANSWER the amount of benefits stated in the life insurance policy
Fixed life insurance - ANSWER contracts that offer guaranteed minimum or fixed benefits
Deferred - ANSWER withheld or postponed until a specified time or event in the future
Endow - ANSWER the cash value of a whole life policy has reached the contractual face amount
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