TEXAS LIFE INSURANCE EXAM

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TEXAS LIFE INSURANCE EXAM

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

-Format: Multiple-choice / Flashcard

Question 1: P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when

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P receives the policy and pays the premium Question 2: Which of the following types of policies pays a benefit if the insured goes blind?

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AD&D Question 3: Tom has a qualified retirement plan with his employer that is currently considered to be 80% "vested". How can this be interpreted?

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If Tom's employment is terminated, 20% of the funds would be forfeited Question 4: F needs life insurance that provides coverage for only a limited amount of time with a death benefit that changes regularly according to a schedule. What kind of policy is needed?

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Decreasing term policy

Question 5: Why would the Insurance Commissioner examine the records of an insurance company?

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To determine the solvency of the company Question 6: K has a life insurance policy where her husband is beneficiary and her daughter is contingent beneficiary. Under the Common Disaster clause, if K and her husband are both killed in an automobile accident, where would the death proceeds be directed?

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daughter Question 7: D needs life insurance that provides coverage for only a limited amount of time while also paying the lowest possible premium. What kind of policy is needed?

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Level term Question 8: T has a term policy that allows him to continue the coverage after expiration of the initial policy period What type of term coverage is this?

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renewable Question 9: Which of the following is NOT a required provision in group life policies?

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Right to loan Question 10: What action can a policyowner take if an application for a bank loan requires collateral?

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Assign policy ownership to the bank

Question 11: An example of false advertising would be

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An insurer exaggerating its dividends in a magazine advertisement

Question 12: ___ of continuing education MUST be completed in the classroom or classroom equivalent.

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50%

Question 13: Credit Life insurance is

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Insurance issued on a debtor to cover outstanding loan balances Question 14: How long does the coverage normally remain on a limited-pay life policy?

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Age 100

Question 15: An example of rebating would be

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Returning a portion of a premium as inducement to purchase insurance Question 16: All of the following are considered to be typical characteristics describing the

nature of an insurance contract, EXCEPT:

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bilateral Question 17: In regards to representations or warranties, which of these statements is TRUE?

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If material to the risk, false representations will void a policy Question 18: Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require?

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Each partner must own a policy on the other partners Question 19: Which statement is correct regarding the premium payment schedule for whole life policies?

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Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured

Question 20: All are true statements regarding the underwriting process, EXCEPT:

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AIDS and HIV virus exams can be conducted in a discriminatory fashion Question 21: What provision in a life insurance policy states that the application is considered part of the contract?

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Entire Contract provision Question 22: A term life insurance policy matures:

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upon the insured's death during the term of the policy Question 23: A father who dies within 3 years after purchasing a life insurance policy on his infant daughter can have the policy premiums waived under which provision?

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Payor provision Question 24: In a qualified retirement plan, the yearly contributions to an employee's account

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are restricted to maximum levels set by the IRS

Question 25: How does an indexed annuity differ from a fixed annuity ?

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Indexed annuity owners receive credited interest tied to the fluctuations of the linked index Question 26: When a policyowner exchanges a term policy for a whole life policy without providing proof of good health, which of these apply?

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Conversion provision Question 27: An applicant's medical information received from the Medical Information Bureau (MIB) may be furnished to the

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applicant's physician