Texas Life Insurance Exam 1 (Latest 2023-2024)
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- 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
- / 3
- 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 2 / 3
- 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 in sur ance 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
- 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?
Answer: Modified Whole Life
- What does a Face Amount Plus Cash Value Policy supposed to
pay at the insured's death?
Answer: Face amount plus the policy's cash value
- In regards to representations or warranties, which of these
- / 3
statements is TRUE?