TEXAS LIFE INSURANCE EXAM PART 3 EXAM QUESTIONS

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TEXAS LIFE INSURANCE EXAM PART 3 EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -41 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: #48.

All of the following information about the applicant is identified in the General Information section of a life insurance application EXCEPT a) Occupation.b) Education.c) Age.d) Gender.

Answer:

b) Education.

Question 2: #53.

The death protection component of Universal Life Insurance is always a) Decreasing Term b)

Annually Renewable Term c) Whole Life d) Adjustable Life

Answer:

b) Annually Renewable Term

Question 3: #6.

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?a) The insured will have to pay premiums for 6 months. If at the end of this period the father is still disabled, the insured will be refunded the premiums.b) The insured's premiums will be waived until she is 21.c) The premiums will become tax deductible until the insured's 18th birthday.d) Since it is the policyowner, and not the insured, who has become disabled, the life insurance policy will not be affected.

Answer:

b) The insured's premiums will be waived until she is 21

Question 4: #37.

Which of the following is true about the premium on the children's rider in a life insurance policy?a) It decreases when the oldest child reaches the age of 21.b) It increases when a newborn baby is added to the policy.

c) It decreases when an adopted child is added to the policy.d) It remains the same no matter how many children are added to the policy.

Answer:

d) It remains the same no matter how many children are added to the policy.

Question 5: #44.

Which statement is NOT true regarding a Straight Life policy?a) It has the lowest annual premium of the three types of Whole Life policies.b) Its premium steadily decreases over time, in response to its growing cash value.c) The face value of the policy is paid to the insured at age 100.d) It usually develops cash value by the end of the third policy year.

Answer:

b) Its premium steadily decreases over time, in response to its growing cash value.

Question 6: #31.

A man decided to purchase a $100,000 Annually Renewable Term Life policy to provide additional protection until his children finished college. He discovered that his policy a) Decreased death benefit at each renewal.b) Required a premium increase each renewal.c) Built cash values.d) Required proof of insurability every year.

Answer:

b) Required a premium increase each renewal.

Question 7: #39.

An insured and his wife are both involved in a head-on collision. The husband dies instantly, and the wife dies 15 days later. The company pays the death benefit to the estate of the insured.This indicates that the life insurance policy had what provision?a) Common Disaster b) Accidental Death c) Survivor Life d) Second-to-Die

Answer:

a) Common Disaster

Question 8: #22.

Which of the following components must a life insurance policy have to allow policy loans?a) Cash value b) Dividends c) Flexible premiums d) Face amount

Answer:

a) Cash value