200 QUESTIONS TEXAS LIFE INSURANCE ONLY STATE

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200 QUESTIONS TEXAS LIFE INSURANCE ONLY STATE

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Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

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Question 1: B owns a Whole Life policy with a guaranteed insurability option that allows him to purchase, without evidence of insurability, stated amounts of

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additional Whole Life coverage at specified times Question 2: The entity whose sole purpose is sharing medical data among its member companies is called the

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Medical Information Bureau (MIB) Question 3: A certificate of ____ permits an insurance company to transact business in Texas.

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authority

Question 4: A foreign insurance company conducting insurance business in Texas

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was formed under the laws of another state

Question 5: An example of an unfair claims settlement practice is

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turning down a claim without providing the basis of denial Question 6: ABC Insurance Company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. ABC is committing a prohibited act under Texas insurance laws covering

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unfair methods of competition Question 7: K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in a fatal accident where K dies before P. Under the Common Disaster provision, which of these statements is true?

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Proceeds will be payable to K's estate if P dies within a specified time Question 8: A whole life insurance policyowner does not wish to continue making premium payments. Which of the following enables the policyowner to sell the policy for more than it's cash value?

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life settlement contact Question 9: Two partners own equal shares in a business worth a total of $1,000,000. If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE?

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Each partner owns a $500,000 policy on their partner's life Question 10: When a life insurance policy exceeds certain IRS table values, the result would create which of the following?

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Modified Endowment Contract (MEC) Question 11: Which of the following is TRUE about a qualified retirement that is "top heavy"?

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More than 60% of plan assets are in the key employee accounts

Question 12: A 15-year mortgage is best protected by what kind of life policy?

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15-year decreasing term Question 13: Before a life insurance policy is issued, which of these components of the contract is required?

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Applicant's signature on application Question 14: Variable Whole Life Insurance can be described as:

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both an insurance and securities product Question 15: Which statement regarding the Change of Beneficiary provision is true?

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The policyowner can change the beneficiary Question 16: Agent J takes an application and initial premium from an applicant and sends the application and premium check to the insurance company. The insurance company returns the check back to J because the check is made out to J instead of the insurance company. What action should J take?

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Return to the customer, collect a new check made out to the insurance company, and send the new check out to the insurance company

Question 17: With whom may an agent legally share commissions?

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Another agent with the same line of insurance Question 18: An underwriter determines that a life insurance applicants risk should be

reclassified due to a health issue. This policy may be issued with a(n):

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extra premium

Question 19: Information obtained from a phone conversation to the proposed insured can be found in which of these reports?

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Inspection report

Question 20: Life and health insurance policies are

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unilateral contracts Question 21: When an insurance application is taken by a producer, which of these statements is true?

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Any changes made on the application require the applicant's initials Question 22: What is a consideration given by an insurer in the Consideration clause of a life policy?

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Promise to pay a death benefit to a named beneficiary Question 23: M completes an application for life insurance but does not pay the initial premium.

All of these actions must occur before M's policy goes into effect EXCEPT:

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free-look period has expired Question 24: Which of these is NOT considered to be a right given to a policyowner?

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Modify a provision in the insurance contract Question 25: Which of the following is NOT a required provision in a group life policies?

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Right to Loan Question 26: All of these statements concerning Settlement Options are true, EXCEPT:

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Only the beneficiary may select