Texas Life Insurance Exam
Questions and Answers 100%
PASS
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 - CORRECT
ANSWER-P receives the policy and pays the premium
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be carrer? - CORRECT ANSWER-
20-Pay Life accumulates cash value faster than Straight Life
How does an indexed annuity differ from a fixed annuity ? - CORRECT
ANSWER-Indexed annuity owners receive credited interest tied to the fluctuations
of the linked index
During a sales presentation for a participating life insurance policy, an agent MUST
- CORRECT ANSWER-make a prospect understand that dividends are NOT
guaranteed
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has
an irrevocable eneficiary. What action will the insurance company take if I requests
,a change of beneficiary? - CORRECT ANSWER-request of the change will be
refused
Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health? - CORRECT ANSWER-
conversion
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? - CORRECT ANSWER-
renewable
Which of the following is NOT a required provision in group life policies? -
CORRECT ANSWER-Right to loan
The Insurance Commissioner must give how many days notice prior to holding a
hearing regarding an agent's unfair or deceptive practice? - CORRECT ANSWER-
30
The Accelerated Death Benefit provision in a life insurance policy is also known as
a(n) ) - CORRECT ANSWER-Living Benefit
In Texas, an individual life insurance policy is required to have a grace period of -
CORRECT ANSWER-31 days
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, Which statement is correct regarding the premium payment schedule for whole life
policies? - CORRECT ANSWER-Premiums are payable throughout the insured's
lifetime/ coverage lasts until death of the insured
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? - CORRECT ANSWER-Each partner must own a policy on the
other partners
Why would the Insurance Commissioner examine the records of an insurance
company? - CORRECT ANSWER-To determine the solvency of the company
Which of the following features of a group Term Life policy enables an individual
to leave the group and continue his or her insurance without providing evidence of
insurability? - CORRECT ANSWER-Conversion privilege
Taking receipt of premiums and holding them for the insurance company is an
example of: - CORRECT ANSWER-fiduciary responsibility
K buys a policy where the premium stays fixed for the first 5 years. The premium
then increases in year 6 and stays level thereafter, all the while the death benefit
remains the same. What kind of policy is this? - CORRECT ANSWER-Modified
Whole Life
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's
death? - CORRECT ANSWER-Face amount plus the policy's cash value
Questions and Answers 100%
PASS
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 - CORRECT
ANSWER-P receives the policy and pays the premium
A potential client, age 40, would like to purchase a Whole Life policy that will
accumulate cash value at a faster rate in the early years of the policy. Which of
these statements made by the producer would be carrer? - CORRECT ANSWER-
20-Pay Life accumulates cash value faster than Straight Life
How does an indexed annuity differ from a fixed annuity ? - CORRECT
ANSWER-Indexed annuity owners receive credited interest tied to the fluctuations
of the linked index
During a sales presentation for a participating life insurance policy, an agent MUST
- CORRECT ANSWER-make a prospect understand that dividends are NOT
guaranteed
T is covered by an Accidental Death and Dismemberment (AD&D) policy that has
an irrevocable eneficiary. What action will the insurance company take if I requests
,a change of beneficiary? - CORRECT ANSWER-request of the change will be
refused
Which provision allows the policyowner to change a term life policy to a
permanent one without providing proof of good health? - CORRECT ANSWER-
conversion
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? - CORRECT ANSWER-
renewable
Which of the following is NOT a required provision in group life policies? -
CORRECT ANSWER-Right to loan
The Insurance Commissioner must give how many days notice prior to holding a
hearing regarding an agent's unfair or deceptive practice? - CORRECT ANSWER-
30
The Accelerated Death Benefit provision in a life insurance policy is also known as
a(n) ) - CORRECT ANSWER-Living Benefit
In Texas, an individual life insurance policy is required to have a grace period of -
CORRECT ANSWER-31 days
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, Which statement is correct regarding the premium payment schedule for whole life
policies? - CORRECT ANSWER-Premiums are payable throughout the insured's
lifetime/ coverage lasts until death of the insured
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? - CORRECT ANSWER-Each partner must own a policy on the
other partners
Why would the Insurance Commissioner examine the records of an insurance
company? - CORRECT ANSWER-To determine the solvency of the company
Which of the following features of a group Term Life policy enables an individual
to leave the group and continue his or her insurance without providing evidence of
insurability? - CORRECT ANSWER-Conversion privilege
Taking receipt of premiums and holding them for the insurance company is an
example of: - CORRECT ANSWER-fiduciary responsibility
K buys a policy where the premium stays fixed for the first 5 years. The premium
then increases in year 6 and stays level thereafter, all the while the death benefit
remains the same. What kind of policy is this? - CORRECT ANSWER-Modified
Whole Life
What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's
death? - CORRECT ANSWER-Face amount plus the policy's cash value
