TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH

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TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH

INSURANCE

CORRECT SOLUTIONS.

LIFE SECTION 1 - correct answer- LIFE SECTION 1

1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay?

• correct answer- A- $50,000 Whole Life policy

B- $50,000 Level Term policy for 20 years C- $50,000 20 Pay Life policy D- $50,000 Decreasing Term policy for 20 years

2) A 45-year old customer who is seeking to supplement his

retirement income at age 65 would not buy a: - correct answer-

A- Deferred Annuity B- Equity Indexed Annuity C- Variable Annuity D- Immediate Annuity

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3) John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value will equal the face amount of

the policy when he reaches the age of: - correct answer- A- 60

B- 70

C- 100

D- 30

4) Which of the following is an example of a Limited-Pay Life policy? - correct answer- A- Universal life B- Whole Life C- Life Paid-Up at Age 65 D- Renewable Term to Age 70

5) Which of the following policies provides the greatest amount of protection for an insured's premium dollar as well as some cash accumulation? - correct answer- A- Annuity B- Whole Life C- Term D- Limited-Pay Life

6) Which of the following individual policy conversions is usually permitted without any evidence of insurability? - correct answer- A- Conversion to a lower-premium plan B- Conversion from a Whole Life policy to a Term policy 2 / 4

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C- Conversion from a Term policy to a Whole Life policy D- Conversion to a larger amount of insurance

7) Which of the following is NOT correct regarding Ordinary Whole Life policies? - correct answer- A- The premiums payments are owed annually until you die or reach age 100 B- The cash value grows more quickly in the beginning years of the policy C- Coverage lasts for your own life D- Ordinary Whole Life is a type of permanent insurance

8) Which of the following statements is true about the premium payment schedule for a Whole Life policy? - correct answer- A- Premiums are payable for a designated period of time only, after which coverage is no longer provided

B- Premiums are payable until the insured's retirement only, after which coverage is continued automatically until the insured's death

C- One premium, in the amount of the insured's choice, is payable at the time of application, and the balance of the premiums is deducted from the face amount of the policy at the time of the insured's death

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D- Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's death

9) A life insurance policy that covers two parties, but only pays

when the last party dies is known as: - correct answer- A- Joint

Life B- Contingent Life C- Other insured Life D- Survivorship Life

10) Which of the following contracts requires that a series of benefit payments be made at specified intervals? - correct answer- A- 20-Pay Life B- Modified Whole Life C- Annuity D- Ordinary Whole Life

11) If a client wants cash value life insurance with a flexible premium and an adjustable death benefit that will allow the policy owner a choice of various cash value investment options,

he should buy: - correct answer- A- Variable Life

B- Universal Life C- Adjustable Life D- Variable/Universal Life

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