TEXAS LIFE AGENT EXAM QUESTIONS

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TEXAS LIFE AGENT EXAM QUESTIONS

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

-Format: Multiple-choice / Flashcard

Question 1: Which of the following is an example of a Limited-Pay Life policy:

Answer:

20-Pay Life Question 2: 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:

Incontestability clause Question 3: The time period covered by the Free Look Provision of a life insurance contract

starts:

Answer:

When the insured receives the contract and makes the first premium payment, if needed Question 4: What life insurance policy provision applies if a policy lapsed last year and the insured wants it. back?

Answer:

Reinstatement

Question 5: 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?

Answer:

A $50,000 decreasing term policy for 20 years.Question 6: Dividend projections may be included in a proposal for Life insurance when which of the following is true?

Answer:

There is a clear statement that payment of future dividends is not guaranteed Question 7: The clause that states the insurer's promise to pay the policy benefits in

accordance with the contract's provisions is the:

Answer:

Insuring Clause Question 8: The type of government primarily concerned with the regulation of insurance and

insurance companies is:

Answer:

State government Question 9: An insurable interest must exist:

Answer:

At the time of the application Question 10: Tim Watson wants to obtain a Life insurance policy on his employee, Mike Carson, and to name Mike's wife, Deborah Carson, as the beneficiary. Signatures of which of the following would be legally required on the application?

• Tim Watson

II. Mike Carson III. Deborah Carson

Answer:

I and II

Question 11: Statements made by an insurance applicant on a life insurance policy that are

supposed to be true are referred to as:

Answer:

Representations Question 12: On life insurance, the purpose of the Entire Contract Clause is to:

Answer:

Limit the policy to the contract plus the application, if attached Question 13: When someone other than the insured is the owner of a Life insurance policy, the

owner may do all of the following without the insured's consent, EXCEPT:

Answer:

Increase the amount of insurance Question 14: The life insurance rider that will pay the insured's premium after a period of

disability due to accident or sickness:

Answer:

Waiver of premium Question 15: The purpose of the Grace period is:

Answer:

Protect the policy owner against unintentional lapse Question 16: If an existing client of a producer wants to buy another life insurance policy, the

producer should:

Answer:

Have the customer come in and complete and sign a new application Question 17: If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to

Answer:

Charge the extra premium

Question 18: Which of the following is not considered to be a 'qualified' plan

Answer:

Split Dollar Question 19: A 45-year old customer who is seeking to supplement his retirement income at age

65 would not buy a:

Answer:

Immediate annuity Question 20: Jim gets married and wants to add his new spouse to his existing Life insurance policy. Which rider should he add?

Answer:

Other insured rider Question 21: Which of the following individual policy conversions is usually permitted without any evidence of insurability?

Answer:

Conversion from a term policy to a whole life whole life policy Question 22: The contingent beneficiary will receive policy proceeds when:

Answer:

The primary beneficiary pre-deceases the insured Question 23: The owner of a business is insured under a $100,000 Key Employee Life policy that contains a Double Indemnity clause and a Suicide clause. The business has paid the annual premium of $2,000. Six months after the inception date of the policy, the insured commits

suicide. The insurance company's liability for payment is:

Answer:

$2,000

Question 24: All of the following are considered to be owner's rights under a life insurance

policy, EXCEPT:

Answer:

Changing an irrevocable beneficiary