TEXAS GENERAL LINES - LIFE, ACCIDENT AND HEALTH

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TEXAS GENERAL LINES - LIFE, ACCIDENT AND HEALTH

INSURANCE PRACTICE EXAM EXAM QUESTIONS

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

-Format: Multiple-choice / Flashcard

Question 1: 9) A client with a participating Life insurance policy receives both interest and dividends. What are the tax implications?

Answer:

A- Neither are taxable B- The interest is taxable, but the dividends are not C- Both are taxable as ordinary income D- The dividends are taxable, but the interest isn't Question 2: 26) Which of these is a rider that would ensure you can purchase additional insurance coverage, at specified ages, regardless of health?

Answer:

A- Payor Benefit Rider B- Guaranteed Insurability Rider C- Waiver of Premium Rider D- Child Term Rider Question 3: 1) An insured's premium for Life insurance is based mainly upon their:

Answer:

A- Risk classification B- Gender C- Occupation D- Age

Question 4: 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:

Answer:

A- 60 B- 70

C- 100

D- 30 Question 5: 8) Which of the following statements is true about the premium payment schedule for a Whole Life policy?

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 D- Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's death Question 6: 15) Which of the following statements about a typical Suicide clause in a Life insurance policy is true?

Answer:

A- Suicide is excluded for a specific period of years and covered thereafter B- Suicide is excluded as long as the policy is in force C- Suicide is covered for a specific period of years and excluded thereafter D- Suicide is covered as long as the policy is in force Question 7: 17) Grandma owns a policy on her grandchild. Which rider would kick in if Grandma should die tomorrow?

Answer:

A- Guaranteed Insurability Rider B- Waiver of Premium Rider C- Payor Benefit Rider D- Child Term Rider

Question 8: 30) The Life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the:

Answer:

A- Misstatement of Age clause B- Insuring clause C- Incontestability clause D- Reinstatement clause Question 9: 19) What Life insurance policy provision applies if a policy lapsed last year and the insured wants it back?

Answer:

A- Assignment B- Reinstatement C- Non-forfeiture D- Grace Period Question 10: 8) Once completed and signed by the applicant, a producer may change an

application:

Answer:

A- With consent of his manager B- If the applicant initials the change C- With the verbal consent of the applicant D- At anytime Question 11: 17) When giving a client a conditional receipt, which of the following is true?

Answer:

A- You never collect a premium until you deliver the policy B- The coverage will begin at earliest as of the date of application or when the client passes a physical, whichever is later C- Coverage begins as of date of application D- In order for coverage to begin the applicant must pay all premiums Question 12: 9) A life insurance policy that covers two parties, but only pays when the last party

dies is known as:

Answer:

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

Question 13: 28) Margaret May wants to name her husband as the beneficiary of her Life policy; however, she wishes to retain all of the rights of ownership. Mrs. May should name her husband

as:

Answer:

A- Revocable beneficiary B- Irrevocable beneficiary C- Tertiary beneficiary D- Secondary beneficiary Question 14: 13) In a policy insuring the life of a child, which of the following allows the premiums to be waived in the event of the death or disability of the person responsible for premium payments?

Answer:

A- Reduced Paid-Up option B- Payor Benefit Rider C- Waiver of Premium provision D- Reduction of Premium option Question 15: 15) A producer completes an application for Life insurance and sends it to the

underwriter who approves it and issues the policy. When is coverage effective:

Answer:

A- Immediately B- When the producer delivers the policy and picks up the premium C- On the date the client signed the application D- On the date the underwriter approved the application Question 16: 14) In order to sell variable life insurance you must be registered with which of the following?

Answer:

A- The SEC B- The State C- The NYSE D- The NASD Question 17: 33) Jim gets married and wants to add his new spouse to his existing Life insurance policy. Which rider should he add?

Answer:

A- Guaranteed Insurability Rider B- Other Insured Rider C- Payor Rider