Texas Life Insurance Exam | Questions & Answers
Already Passed| Updated 2024
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 -
Answer P receives the policy and pays the premium
A potential client, age...
Texas Life Insurance Exam | Questions & Answers Already Passed| Updated 2024 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 - 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? - Answer ✓✓20-Pay Life accumulates cash value faster than Straight Life How does an indexed annuity differ from a fixed annuity ? - 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 - 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? - 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? - 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? - Answer ✓✓renewable Which of the following is NOT a required provision in group life policies? - 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? - Answer ✓✓30 The Accelerated Death Benefit provision in a life insurance policy is also known as a(n) ) - Answer ✓✓Living Benefit In Texas, an individual life insurance policy is required to have a grace period of - Answer ✓✓31 days Which statement is correct regarding the premium payment schedule for whole life policies? - 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? - Answer ✓✓Each partner must own a policy on the other partners Why would the Insurance Commissioner examine the records of an insurance company? - 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? - Answer ✓✓Conversion privilege Taking receipt of premiums and holding them for the insurance company is an example of: - Answer ✓✓fiduciary responsibility
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