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TEXAS LIFE INSURANCE EXAM PART #3 QUESTIONS AND ANSWERS
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TEXAS LIFE INSURANCE EXAM PART #3 QUESTIONS AND ANSWERS
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TEXAS LIFE INSURANCE EXAM PART #3QUESTIONS AND ANSWERS
Under an extended term nonforfeiture option, the policy cash value is converted to
a)
A lower face amount than the whole life policy.
b)
A higher face amount than the whole life policy.
c)
The same face amount as in the whole life policy.
d)
The face amount equal to the cash value. - Answer-c)
The same face amount as in the whole life policy.
A father owns a life insurance policy on his 15-year-old daughter. The policy contains
the optional Payor Benefit rider. If the father becomes disabled, what will happen to the
life insurance premiums?
a)
The insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums.
b)
The insured's premiums will be waived until she is 21.
c)
The premiums will become tax deductible until the insured's 18th birthday.
d)
Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected. - Answer-b)
The insured's premiums will be waived until she is 21
Annually renewable term policies provide a level death benefit for a premium that
a)
Decreases annually.
b)
Remains level.
c)
Fluctuates.
d)
Increases annually. - Answer-d)
Increases annually
Which of the following is INCORRECT concerning a noncontributory group plan?
a)
The employer pays 100% of the premiums.
b)
The employees receive individual policies.
, c)
They help to reduce adverse selection against the insurer.
d)
They require 100% employee participation. - Answer-b)
The employees receive individual policies
Which of the following is true about the mandatory free look in a Life Insurance policy?
a)
It applies only to term life insurance policies.
b)
It is optional on all life insurance policies.
c)
It commences when the policy is delivered.
d)
It commences when the application is signed. - Answer-c)
It commences when the policy is delivered.
Most agents try to collect the initial premium for submission with the application. When
an agent collects the initial premium from the applicant, the agent should issue the
applicant a
a)
Statement of good health.
b)
Backdated receipt.
c)
Warranty.
d)
Premium receipt. - Answer-d)
Premium receipt.
Which of the following is TRUE regarding the accumulation period of an annuity?
a)
It is also referred to as the annuity period.
b)
It is a period of time during which the beneficiary receives income
c)
It is limited to 10 years.
d)
It is a period during which the payments into the annuity grow tax deferred. - Answer-d)
It is a period during which the payments into the annuity grow tax deferred.
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