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TEXAS LIFE INSURANCE EXAM
UPDATED ACTUAL EXAM WITH CORRECT
SOLUTIONS.
Who is considered a field underwriter? - correct answer- An agent
When must insurable interest exist in life insurance? - correct answer- Application or issue date
If no receipt is issued at the time of application, a statement of good health is usually required at the time of? - correct answer- Policy delivery
The Medical Information Bureau is?(MIB) - correct answer- a source of medical information to alert insurers to adverse medical history
A substandard risk compared to a standard risk would pay? - correct answer- a higher premium
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Which document describes specific information about policy provisions and benefits? - correct answer- Policy summary
Does not have an insurable interest? - correct answer- Insured's best friend
What is the main source of underwriting information used by the company in the risk selection process? - correct answer- Application
An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin? - correct answer- On the date of application
What is the main responsibility of a company's underwriting unit? - correct answer- Risk selection and classification
What best describes the USA PATRIOT Act with regards to the insurance industry? - correct answer- To prevent terrorism activities through monitoring of financial transactions
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If the agent feels that could misrepresentation on the part of the applicant for insurance, what must the agent do? - correct answer- Inform the insurance comapny
Representations are statements made by the applicant that are? - correct answer- Considered true to the best of the applicant's knowledge
If an agent fails to obtain an applicants signature on the insurance application, the agent must? - correct answer- Return the application to the applicant for signature
What includes information regarding a person's credit, character, reputation, and habits? - correct answer- Consumer report
When the insured purchased a new home, he wanted to purchase a life insurance policy that would protect his family against losing it should he die before the mortgage was paid.Which of the following policies is best suitable for that need? - correct answer- Decreasing term
An annually renewable term policy? - correct answer- Renews each year with an increased premium
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