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LIFE INSURANCE EXAM (TEXAS) 120 VERIFIED EXAM QUESTIONS WITH 100% CORRECT ANSWERS. ALREADY GRADE A LATEST 2024 £6.74
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LIFE INSURANCE EXAM (TEXAS) 120 VERIFIED EXAM QUESTIONS WITH 100% CORRECT ANSWERS. ALREADY GRADE A LATEST 2024
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LIFE INSURANCE EXAM (TEXAS) 120 VERIFIED EXAM QUESTIONS WITH 100% CORRECT ANSWERS. ALREADY GRADE A LATEST 2024

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  • July 12, 2024
  • 8
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • life insurance exam texas
  • life insurance
  • life insurance exam texas 120 verified exam ques
  • life insurance exam texas 120 verified exam

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  • LIFE INSURANCE
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LIFE INSURANCE EXAM (TEXAS) 120 VERIFIED EXAM QUESTIONS
WITH 100% CORRECT ANSWERS. ALREADY GRADE A+/ LATEST 2024
1. Insurance
(General concept): - 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)
2. insurable interest
(General Concept): - must exist at the time of the application -
insuring one's own life, family member, or a business partner
3. Solicitation and sales presentation: - 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.
4. Underwriting (Field underwriting (by agent): - application completed and signed
- agent's report: agent's observation about the application that can assist in
underwriting
-premiums with application and conditional receipts
5. underwriting ( company underwriting): - multiple sources of information:
applications, consumer reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
6. Underwriting (Federal Regulation): - Fair Credit Reporting Act: protect consumers
against circulations of inaccurate or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules
7. Premium Determination: - 3 key Factors for life insurance: mortality, interest, and
expense
- Mode: the more frequently premium is paid, the higher the premium
8. Policy Issue and Delivery: 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
9. Agent/ Producer: a legal representative of an insurance company; the
classification of producers usually includes agents and brokers' agents are the
agents of the insurer
10. Applicant of proposed insured: a person applying for insurance
11. Beneficiary: a person who receives the benefits of an insurance policy
12. Broker: an insurance producer who is not appointed by an insurance company
and who represents the client

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, .
13. Death benefits: the amount paid upon death of the insured in a life insurance
policy
14 Estate: a person's net worth
15. Insurance policy: 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.
16. Insured: a person covered by the insurance policy; may or may not be the
policyowner
17. insurer (principal): the company who issues an insurance policy
18. Lapse: policy termination due to nonpayment of premium
19. Life insurance: coverage on human lives
20. Policyowner: the person entitled to exercise the rights and privileges in the policy
21. Premium: the money paid to the insurance company for the insurance policy
22. Underwriting: is the risk selection and classification process
23. Attained age: the insured's age at the time the policy is issued or renewed
24. cash value: a policy's saving element or living benefit
25. Face amount: the amount of benefits stated in the life insurance policy
26. Fixed life insurance: contracts that offer guaranteed minimum or fixed benefits
27. Deferred: withheld or postponed until a specified time or event in the future
28. Endow: the cash value of a whole life policy has reached the contractual face
amount
29. Level premium: the premium that does not change throughout the life of a policy
30. Liquidation of an estate: converting a person's net worth into a cash flow
31. Mature: the time when the policy's face amount is paid out upon the death of the
insured or policy endowment
32. Nonforfeiture values: benefits in a life insurance policy that the policyowner
cannot lose even if the policy is surrendered or lapses
33. Policy Maturity: in life polices, the time when the face value is paid out
34. Qualified Plan: a retirement plan that meets IRS guidelines for receiving favorable
tax treatment
35. Securities: financial instrument that may trade for value (for example, stock,
bonds options
36. Suitability: a requirement to determine if an insurance product is appropriate for a
customer
37. Variable life insurance: contracts in which the cash value accumulate based
upon a specific portfolio of stocks without guarantees of performance
38. Types of insurance: -term/temporary
- permanent/ whole life
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