TX PRENEED FUNERAL FINAL EXAM 2026 ACTUAL
QUESTIONS AND ANSWERS RATED A+
✔✔variable annuity - ✔✔pays a lifetime income, but the income payments vary
depending on common stock prices
✔✔variable annuity - ✔✔premiums are invested in stocks, bonds or mutual funds which
could make gains or losses. Preneed providers donot allow VA to fund Prepaid
contracts.
✔✔fixed, flexible premium deferred annuity - ✔✔Annuity that requires payments that
vary from year to year in the $50 to $100 range or as much as he/she wishes.
✔✔single premium deferred annuity - ✔✔purchased with a lump sum, but income is
deferred until some future date. Not a purchase payment schedule.
✔✔level premium deferred annuity - ✔✔A policy premium that remains the same over
the period of time premiums are paid.
✔✔who bears the investment risk in a fixed annuity? - ✔✔insurance company
✔✔flexible premium deferred annuity - ✔✔the annuitant's age will directly effect the
amount of the annuity benefit payments
✔✔Free of federal income taxation. - ✔✔If taken as a lump sum, life insurance
proceeds to beneficiaries are passed
✔✔tax exemption of an insurance policy - ✔✔May be lost if the policy is sóld to a new
owner
✔✔owner - ✔✔make allowable changes in the annuity, make partial withdrawls from the
annuity, assign the annuity contract to a funeral home, cancel or surrender policy, name
the annuitant & beneficiary
✔✔Annuitization - ✔✔The point at which funds accumulated in an annuity are converted
into periodic income payments beginning the annuity phase.
✔✔accumulation period - ✔✔prior to retirement, premiums are credited with interest.
While money is accumulating
✔✔Insurable Interest - ✔✔something of value that, if lost, would cause you financial
harm
, ✔✔Insurable Interest - ✔✔An interest in the subject of an insurance policy that is not
unduly remote and that would cause the interested party to suffer financial loss if an
insured event occurred.
✔✔settlement options - ✔✔lump, life income & fixed amount installments
✔✔settlement options - ✔✔Choices available to the insured/owner for distribution of
insurance proceeds.
✔✔lump sum - ✔✔Settlement method that pays the beneficiary the entire proceeds of a
life insurance policy in one payment rather than in installments.
✔✔Life Income Settlement Option - ✔✔Upon maturity of an insurance policy, the policy
proceeds are used to purchase an immediate Life Annuity payable in periodic payments
to the beneficiary for the rest of his/her life.
✔✔fixed amount installment - ✔✔Annuity certain payout option which pays the
annuitant a stipulated amount periodically.
✔✔Dividends - ✔✔payments of cash from a corporation to its stockholders
✔✔Dividends only - ✔✔is not a settlement option
✔✔Single Premium - ✔✔"Cash sale in full"
✔✔tax deferral option - ✔✔provided in annuities & life policies
✔✔fixed annuity contract - ✔✔the guaranteed interest rate is specified in the annuity
contract & remains unchanged
✔✔how late in the evening May a solicitor call on the telephone seeking business? -
✔✔9:00 pm
✔✔Defamation - ✔✔Act of harming or ruining another's reputation. Publishing &/or
making a false statement about a competitor
✔✔how long an applicant have to wait to reapply for insurance if its denied? -
✔✔minimum of 12 months
✔✔how long does an Agent have to report a fraudulent act to avoid disciplinary action?
- ✔✔within 30 days
QUESTIONS AND ANSWERS RATED A+
✔✔variable annuity - ✔✔pays a lifetime income, but the income payments vary
depending on common stock prices
✔✔variable annuity - ✔✔premiums are invested in stocks, bonds or mutual funds which
could make gains or losses. Preneed providers donot allow VA to fund Prepaid
contracts.
✔✔fixed, flexible premium deferred annuity - ✔✔Annuity that requires payments that
vary from year to year in the $50 to $100 range or as much as he/she wishes.
✔✔single premium deferred annuity - ✔✔purchased with a lump sum, but income is
deferred until some future date. Not a purchase payment schedule.
✔✔level premium deferred annuity - ✔✔A policy premium that remains the same over
the period of time premiums are paid.
✔✔who bears the investment risk in a fixed annuity? - ✔✔insurance company
✔✔flexible premium deferred annuity - ✔✔the annuitant's age will directly effect the
amount of the annuity benefit payments
✔✔Free of federal income taxation. - ✔✔If taken as a lump sum, life insurance
proceeds to beneficiaries are passed
✔✔tax exemption of an insurance policy - ✔✔May be lost if the policy is sóld to a new
owner
✔✔owner - ✔✔make allowable changes in the annuity, make partial withdrawls from the
annuity, assign the annuity contract to a funeral home, cancel or surrender policy, name
the annuitant & beneficiary
✔✔Annuitization - ✔✔The point at which funds accumulated in an annuity are converted
into periodic income payments beginning the annuity phase.
✔✔accumulation period - ✔✔prior to retirement, premiums are credited with interest.
While money is accumulating
✔✔Insurable Interest - ✔✔something of value that, if lost, would cause you financial
harm
, ✔✔Insurable Interest - ✔✔An interest in the subject of an insurance policy that is not
unduly remote and that would cause the interested party to suffer financial loss if an
insured event occurred.
✔✔settlement options - ✔✔lump, life income & fixed amount installments
✔✔settlement options - ✔✔Choices available to the insured/owner for distribution of
insurance proceeds.
✔✔lump sum - ✔✔Settlement method that pays the beneficiary the entire proceeds of a
life insurance policy in one payment rather than in installments.
✔✔Life Income Settlement Option - ✔✔Upon maturity of an insurance policy, the policy
proceeds are used to purchase an immediate Life Annuity payable in periodic payments
to the beneficiary for the rest of his/her life.
✔✔fixed amount installment - ✔✔Annuity certain payout option which pays the
annuitant a stipulated amount periodically.
✔✔Dividends - ✔✔payments of cash from a corporation to its stockholders
✔✔Dividends only - ✔✔is not a settlement option
✔✔Single Premium - ✔✔"Cash sale in full"
✔✔tax deferral option - ✔✔provided in annuities & life policies
✔✔fixed annuity contract - ✔✔the guaranteed interest rate is specified in the annuity
contract & remains unchanged
✔✔how late in the evening May a solicitor call on the telephone seeking business? -
✔✔9:00 pm
✔✔Defamation - ✔✔Act of harming or ruining another's reputation. Publishing &/or
making a false statement about a competitor
✔✔how long an applicant have to wait to reapply for insurance if its denied? -
✔✔minimum of 12 months
✔✔how long does an Agent have to report a fraudulent act to avoid disciplinary action?
- ✔✔within 30 days
