Insurance license practice XCEL solutions FINAL EXAM #12 - Texas life only Latest Update 2024- 2025 Exam 300 Questions and 100% Verified Correct Answers Guaranteed A+
Question 1 Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? - CORRECT ANSWER: Life income
Question 10 which of the following policies combines investment choices with a form of Term
coverage? - CORRECT ANSWER: Variable universal life
Question 100 which type of life policy contains a monthly mortality charge as well as a self-directed
investment choices? - CORRECT ANSWER: Variable universal life
Question 11 How long does an insurance company appointment remain in force? - CORRECT
ANSWER: Until terminated
Question 12 in Texas an individual life insurance policy is REQUIRED to have a grace period of? -
CORRECT ANSWER: 31 days
Question 13 Which statement is TRUE regarding a variable whole life policy? - CORRECT
ANSWER: A minimum guaranteed death benefit is provided
Question 14 in an insurance contract the insurer is the only party who makes a - CORRECT
ANSWER: Unilateral
Question 15 which of these is NOT considered to be an element of an insurance contract? -
CORRECT ANSWER: Negotiating
Question 16
What does a 401(k) plan generally provide its participants? - CORRECT ANSWER:
Salary-deferral contributions
Question 17 All these statements concerning Settlement Options are true, EXCEPT? - CORRECT
ANSWER: Only the beneficiary may select 1 / 4
Question 18 A domestic insurance company in Texas is considered a company that? - CORRECT
ANSWER: Is incorporated and formed in Texas
Question 19 Which of the following statements about non-contributory employee group life insurance
is FALSE? - CORRECT ANSWER: A minimum number of employees is required to
participate
Question 2 A new agent must complete at least _____ hours of continuing education within 24
months of initial license? - CORRECT ANSWER: 24 hours
Question 20 when a misrepresentation on a life insurance policy application is discovered what action may an insurance company take? - CORRECT ANSWER: void the policy only if it is discovered during the contestable period and proven to be material
Question 21 In Texas how long must a policy be in force before an insurance company must pay
death benefits for suicide - CORRECT ANSWER: 2 years
Question 22 All these statements about the waiver of premium provision are correct EXCEPT? - CORRECT ANSWER: insured must be eligible for Social Security disability for claim to be accepted
Question 23 Employee with $25,000 group term life coverage was recently fired. This employee's
group coverage may be converted to a? - CORRECT ANSWER: $25,000 individual
whole life policy
Question 24 What type of life policy covers 2 lives and pays the face amount after the first one dies?
- CORRECT ANSWER: Joint life policy
Question 25 Which of these provisions is not required in life insurance policies? - CORRECT
ANSWER: Extended term
Question 26 If you insured's age was misstated on a life insurance contract, the misstatement of age provision requires that any death benefit payable would be? - CORRECT ANSWER: an amount that the premiums paid would have purchased at the current age
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Question 27 what provision in a life insurance policy states that the application is considered part of
the contract? - CORRECT ANSWER: Entire contract provision
Question 28 M has an insurance policy that also has an outstanding policy loan at a time of M's death. The insurer will deduct the outstanding loan balance from the? - CORRECT
ANSWER: Policy proceeds
Question 29 Under the USA Patriot act, insurers are required to report receipt of cash payments in
excess of? - CORRECT ANSWER: $10,000
Question 3 L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L has understated range on the application. Under the misstatement of age provision the insurer will? - CORRECT ANSWER: Adjust the death benefits to a reduced amount
Question 30 Credit life insurance is? - CORRECT ANSWER: insurance issued on a debtor to cover outstanding loan balance
Question 31 The phrase "transacting business" includes - CORRECT ANSWER: Collecting premiums
Question 32
What is the purpose of the USA Patriot act? - CORRECT ANSWER: Detect and deter
terrorism
Question 33 an insurer is NOT required to provide information on fraudulent claims if requested by? -
CORRECT ANSWER: An insured
Question 34 Which of the following is Not included in a life insurance illustration? - CORRECT
ANSWER: Companies mortality table
Question 35 Employee is covered under a group life plan with a $50,000 death benefit. What is the maximum amount a spouse may be insured for under this program? - CORRECT
ANSWER: $25,000
Question 36 3 / 4
which life insurance rider typically appears on a Juvenile life insurance policy -
CORRECT ANSWER: Payor benefit rider
Question 37 Which of these retirement plans can be started by an employee, even if another plan is
in existence? - CORRECT ANSWER: Individual retirement account (IRA)
Question 38 What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? - CORRECT
ANSWER: Family maintenance policy
Question 39 which statement regarding the Misstatement of Age provision is considered to be true? -
CORRECT ANSWER: Coverage will be adjusted to reflect the insurance true age if
misstatement of age is discovered
Question 4
An example of false advertising would be? - CORRECT ANSWER: And insurer
exaggerating in dividends in a magazine advertisement
Question 40 In a key employee life insurance policy the third-party owner can be all the following
EXCEPT - CORRECT ANSWER: The insured
Question 41 Insured may assign up to ____ of the policy ownership under an individual life insurance
policy - CORRECT ANSWER: 100%
Question 42 Which of these is NOT a reason for purchasing life insurance on the life of a minor? - CORRECT ANSWER: If both parents were to die, it would provide death benefits that the child
Question 43
A policy that becomes a modified endowment contract - CORRECT ANSWER: Will lose
many of its tax advantages
Question 44 An underwriter determines that an applicant's risk should be recognized due to a health
issue. This policy may be issued with a(n)? - CORRECT ANSWER: Exclusion for the
medical condition
Question 45 A temporary agents license issued by the commissioner of Insurance is valid for up to
____ days - CORRECT ANSWER: 90 day
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