Texas Life Insurance exam with 100% correct answers 2024 GRADED A
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Texas life insurance
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Texas Life Insurance
Texas Life Insurance exam with 100% correct answers
2024 GRADED A
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 - CORRECT
ANSWER P receives the policy and pays the premium
A potential client, ag...
Texas Life Insurance exam with 100% correct answers
2024 GRADED A
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 - CORRECT
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? - CORRECT ANSWER 20-
Pay Life accumulates cash value faster than Straight Life
How does an indexed annuity differ from a fixed annuity ? - CORRECT 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 - CORRECT 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? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER
renewable
Which of the following is NOT a required provision in group life policies? - CORRECT
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? - CORRECT ANSWER 30
,The Accelerated Death Benefit provision in a life insurance policy is also known
as a(n) ) - CORRECT ANSWER Living Benefit
In Texas, an individual life insurance policy is required to have a grace period of -
CORRECT ANSWER 31 days
Which statement is correct regarding the premium payment schedule for whole
life policies? - CORRECT 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? - CORRECT ANSWER Each partner must own a policy on the
other partners
Why would the Insurance Commissioner examine the records of an insurance
company? - CORRECT 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? - CORRECT ANSWER Conversion privilege
Taking receipt of premiums and holding them for the insurance company is an
example of: - CORRECT ANSWER fiduciary responsibility
K buys a policy where the premium stays fixed for the first 5 years. The premium
then increases in year 6 and stays level thereafter, all the while the death benefit
remains the same. What kind of policy is this? - CORRECT ANSWER Modified
Whole Life
What does a Face Amount Plus Cash Value Policy supposed to pay at the
insured's death? - CORRECT ANSWER Face amount plus the policy's cash value
In regards to representations or warranties, which of these statements is TRUE? -
CORRECT ANSWER If material to the risk, false representations will void a policy
What provision in a life insurance policy states that the application is considered
part of the contract? - CORRECT ANSWER Entire Contract provision
,J is 35-years old and looking to purchase a whole life insurance policy. Which of
the following types of policies will provide the most rapid growth of cash value? -
CORRECT ANSWER 20-pay life
Which of the following statements about accumulated interest eared on dividends
from an insurance policy is TRUE? - CORRECT ANSWER It is taxed as ordinary
income
A life insurance policy which ensures that the premium will be paid if the insured
becomes disabled has what kind of rider attached? - CORRECT ANSWER Waiver of
Premium
Which of the following is a requirement for obtaining a Texas insurance agent's
license? - CORRECT ANSWER Be honest, trustworthy, and reliable
Which of the following groups may NOT be insured by a group life insurance
policy? - CORRECT ANSWER Individuals who are related by blood
The amount of coverage on a group credit life policy is limited to - CORRECT
ANSWER the insured's total loan value
D was actively serving in the Marines when he was killed in an automobile
accident while on leave. His $100,000 Whole life policy contains a War Exclusion
clause. How much will D's beneficiary's receive? - CORRECT ANSWER The full
face amount
The underwriting process involves all of these EXCEPT for - CORRECT ANSWER
Policy loan
Which of the following Dividend options results in taxable income to the
policyowner? - CORRECT ANSWER Accumulation at interest
Which of these is NOT relevant when determining the amount of personal life
insurance needed? - CORRECT ANSWER Local unemployment rate
An insured is past due on his life insurance premium, but is still within the Grace
Period. What will the beneficiary receive if the insured dies during this Grace
Period? - CORRECT ANSWER Full face amount minus any past due premiums
What action should a producer take if the initial premium is NOT submitted with
the application? - CORRECT ANSWER Forward the application to the insurer
without the initial premium
, The type of annuity that can be purchased with one monetary deposit is called
a(n) - CORRECT ANSWER Immediate annuity
How does a typical Variable Life Policy investment account grow? - CORRECT
ANSWER Through mutual funds, stocks, bonds
Which of these provisions is NOT required in life insurance policies? - CORRECT
ANSWER Extended Term
If a contract of adhesion contains complicated language, to whom would the
interpretation be in favor of? - CORRECT ANSWER insured
D needs life insurance that provides coverage for only a limited amount of time
while also paying the lowest possible premium. What kind of policy is needed? -
CORRECT ANSWER Level term
How long does the coverage normally remain on a limited-pay life policy? -
CORRECT ANSWER Age 100
How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law? - CORRECT ANSWER 6 months
N purchases an annuity by making payments in an amount no less than $100
quarterly. This describes which of the following annuities? - CORRECT ANSWER
Flexible Installment Deferred
The Consideration clause of an insurance contract includes: - CORRECT ANSWER
the schedule and amount of premium payments
What type of employee welfare plans are not subject to ERISA regulations? -
CORRECT ANSWER Church plans
A policyowner is allowed to pay premiums more than once a year under which
provision? - CORRECT ANSWER Mode of Premium
Which of these is an element of a Single Premium annuity? - CORRECT ANSWER
Lump-sum payment
Insurance policies are considered aleatory contracts because - CORRECT ANSWER
performance is conditioned upon a future occurrence
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