FINAL EXAM - TEXAS LIFE ONLY

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FINAL EXAM - TEXAS LIFE ONLY

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

-Format: Multiple-choice / Flashcard

Question 1: What is the monetary penalty for willfully violating a cease-and-desist order?

• fine of up to $500
• fine of up to $250
• fine of up to $50
• fine of up to $100

Answer:

A fine of up to $500 Question 2: Group life insurance policies are generally written as:

• term rider
• annually renewable term
• increasing term
• group whole life

Answer:

annually renewable term Question 3: In a life insurance contract, an insurance company's promise to pay stated benefits

is called the:

Answer:

insuring clause

Question 4: Which of these is NOT an example of doing insurance business?

Answer:

Selling shares of stock Question 5: Which of these life insurance riders allows the applicant to have excess coverage?

Answer:

Term Rider

Question 6: A license may be denied, suspended, or revoked if the license

Answer:

is found guilty of misrepresentation in obtaining license Question 7: A new general property and casualty licensee must complete at LEAST ____ hours of continuing education within 24 months of initial licensure.

Answer:

24 Question 8: K is shopping for a permanent life insurance policy that will offer her the MOST protection per dollar of annual premium. Which of these policies best fits her needs?

Answer:

Straight Life

Question 9: The advantage of reinstating an original life policy is

Answer:

the premiums are based on a younger age Question 10: Which action will a life insurance company most likely take if an insured dies and it is discovered that the insured's age was misstated on the application?

Answer:

Pay an amount the premiums would have purchased at the insured's actual age Question 11: S buys a $10,000 Whole Life policy in 2003 and pays an annual premium of $100. S dies 5 years later in 2008 and the insurer pays the beneficiary $10,500. What kind of rider did S include on the policy?

Answer:

return of premium rider

Question 12: How often must an insurance agent license normally be renewed

Answer:

every two years

Question 13: With whom may an agent legally share commissions?

Answer:

Another agent with the same line of insurance

Question 14: Credit Life insurance is

Answer:

insurance issued on a debtor to cover outstanding loan balances

Question 15: Premature IRA distributions are assessed a penalty tax of

Answer:

10%

Question 16: The reason for backdating a policy is

Answer:

to obtain a premium rate based on an earlier age Question 17: A(n) _____ beneficiary may be changed by the policyowner WITHOUT the consent of the beneficiary

Answer:

revocable Question 18: A(n) _____ Life policy offers the owner investment in products such as money-market funds, long-term bonds and equities

Answer:

variable Question 19: T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?

Answer:

Life annuity with period certain

Question 20: What does the insuring agreement in a Life insurance contract establish?

Answer:

an insurer's basic promise Question 21: A policyowner's rights are limited under which beneficiary designation?

Answer:

Irrevocable Question 22: An insured's inability to perform two or more activities of daily living may trigger which type of policy rider?

• waiver of premium
• long term care
• accelerated death benefit
• accidental

Answer:

Long term care Question 23: If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of?

Answer:

Insured Question 24: In a Key Employee life insurance policy, the third-party owner can be all of the

following, EXCEPT:

Answer:

Insured Question 25: Taking receipt of premiums and holding them for the insurance company is an

example of:

Answer:

fiduciary responsibility Question 26: Which statement regarding third-party ownership of a life insurance policy is true?

Answer:

It is used extensively in estate-planning as well as business circumstances