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TEXAS LIFE INSURANCE EXAM Q&A
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TEXAS LIFE INSURANCE EXAM Q&A
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TEXAS LIFE INSURANCE EXAM Q&AIn a survivorship life policy, when does the insurer pay the death benefit?
a)
If the insured survives to age 100
b)
Upon the last death
c)
Upon the first death
d)
Half at the first death, and half at the second death - Answer-b)
Upon the last death
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 premiums will become tax deductible until the insured's 18th birthday.
b)
Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected.
c)
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.
d)
The insured's premiums will be waived until she is 21. - Answer-d)
The insured's premiums will be waived until she is 21
A rider attached to a life insurance policy that provides coverage on the insured's family
members is called the
a)
Other-insured rider.
b)
Change of insured rider.
c)
Juvenile rider.
d)
Payor rider. - Answer-a)
Other-insured rider.
Annually renewable term policies provide a level death benefit for a premium that
a)
Fluctuates.
b)
Increases annually.
c)
, Decreases annually.
d)
Remains level. - Answer-b)
Increases annually.
An insured owns a life insurance policy. To be able to pay some of her medical bills, she
withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the
insurer charges a fee. What type of policy does the insured most likely have?
a)
Adjustable life
b)
Term life
c)
Limited pay
d)
Universal life - Answer-d)
Universal life
When an annuity is written, whose life expectancy is taken into account?
a)
Beneficiary
b)
Life expectancy is not a factor when writing an annuity.
c)
Owner
d)
Annuitant - Answer-d)
Annuitant
Which of the following is TRUE regarding the accumulation period of an annuity?
a)
It is limited to 10 years.
b)
It is a period during which the payments into the annuity grow tax deferred.
c)
It is also referred to as the annuity period.
d)
It is a period of time during which the beneficiary receives income - Answer-b)
It is a period during which the payments into the annuity grow tax deferred.
A prospective insured receives a conditional receipt but dies before the policy is issued.
The insurer will
a)
Automatically pay the policy proceeds.
b)
Pay the policy proceeds only if it would have issued the policy.
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