TX PRENEED FUNERAL UPDATED 2026 EXAM SCRIPT
QUESTIONS AND ANSWERS RATED A+
✔✔Reduced Paid-Up Insurance - ✔✔- the policyowner may request the cash value of
the policy to be used to pay for itself.
- It's the same type of insurance as the original policy except all riders, including those
for disability and accidental death
✔✔Reduced Paid-Up - ✔✔policyowner May surrender whole life policy for léase amt of
permanent insurance coverage on which no more premiums are due
✔✔beneficiary - ✔✔one who benefits from a will, trust or insurance policy
✔✔contingent/secondary beneficiary - ✔✔Receives the policy proceeds if the primary
beneficiary is deceased,
✔✔Irrevocable Beneficiary - ✔✔one that cannot be changed without the beneficiary's
consent
✔✔Rider - ✔✔attached or add on
✔✔types of riders - ✔✔-accidental death- auto accident
-waiver of premium- total disability
-suicide clause- in 1st 2 hrs of policy, refund of total premiums pd inm
✔✔Free Look Provision - ✔✔Generally 10 days after policy delivery to cancel policy w/
full refund, except 30 days for seniors or for replacement policies.
✔✔complete insurance contract - ✔✔consists of the policy & the attached application
✔✔whole life insurance - ✔✔a permanent policy for which you pay a specified premium
each year for the rest of your life
✔✔whole life insurance owner - ✔✔May surrender that policy for a cash payment equal
to the net cash value
✔✔cash value - ✔✔The amount of money saved in a whole life policy that the
policyholder can take by either borrowing against or cashing in the policy
✔✔underwriter - ✔✔A person who evaluates and classifies risks to accept or reject
them on behalf of the insurer.
✔✔life insurance underwriter - ✔✔opten relies on info from the completed application. if
more info needed then ask the agent
, ✔✔All changes in the application - ✔✔must be initialed by the applicant
✔✔conditional receipt - ✔✔conditional upon customer being approved as insurable. if
customer proves not to be insurable then premium must be refunded
✔✔What happens if customer refuses to sign the statement of good health? - ✔✔The
agent must refund any premiums paid and return policy to the company
✔✔What happens to an Agent who is suspected to commit fraud? - ✔✔He/she must be
reported to a prosecuting Attorney or to a law enforcement agency
✔✔When is the funeral benefit contract be provided to the purchaser? - ✔✔Within 30
days
✔✔When is the premium collected be remitted to the insurance company? - ✔✔within
30 days
✔✔When is the federal waiver of cancellation form not needed? - ✔✔When purchase is
made at the funeral home
✔✔What are the rules of advertising for preneed or insurance policy? - ✔✔You must
obtain prior approval from the company
✔✔annuity - ✔✔is a contract btw an individual and a life insurance company
✔✔Immediate Annuity - ✔✔contract owner gets money immediately only if it is funded
with a lump sum
✔✔deferred annuity - ✔✔provides income payments at some future date
✔✔When an annuity includes a variable current interest rate, what does it need to
include? - ✔✔the guarantee interest rate
✔✔Fixed Annuity - ✔✔An annuity that offers fixed payments and guarantees a minimum
rate of interest to be credited to the purchase payment or payments.
✔✔Surrender Charge - ✔✔a fee charged to the insured when a life policy or annuity is
surrendered for its cash value & grows smaller til it dissapears
✔✔variable annuity - ✔✔pays a lifetime income, but the income payments vary
depending on common stock prices
QUESTIONS AND ANSWERS RATED A+
✔✔Reduced Paid-Up Insurance - ✔✔- the policyowner may request the cash value of
the policy to be used to pay for itself.
- It's the same type of insurance as the original policy except all riders, including those
for disability and accidental death
✔✔Reduced Paid-Up - ✔✔policyowner May surrender whole life policy for léase amt of
permanent insurance coverage on which no more premiums are due
✔✔beneficiary - ✔✔one who benefits from a will, trust or insurance policy
✔✔contingent/secondary beneficiary - ✔✔Receives the policy proceeds if the primary
beneficiary is deceased,
✔✔Irrevocable Beneficiary - ✔✔one that cannot be changed without the beneficiary's
consent
✔✔Rider - ✔✔attached or add on
✔✔types of riders - ✔✔-accidental death- auto accident
-waiver of premium- total disability
-suicide clause- in 1st 2 hrs of policy, refund of total premiums pd inm
✔✔Free Look Provision - ✔✔Generally 10 days after policy delivery to cancel policy w/
full refund, except 30 days for seniors or for replacement policies.
✔✔complete insurance contract - ✔✔consists of the policy & the attached application
✔✔whole life insurance - ✔✔a permanent policy for which you pay a specified premium
each year for the rest of your life
✔✔whole life insurance owner - ✔✔May surrender that policy for a cash payment equal
to the net cash value
✔✔cash value - ✔✔The amount of money saved in a whole life policy that the
policyholder can take by either borrowing against or cashing in the policy
✔✔underwriter - ✔✔A person who evaluates and classifies risks to accept or reject
them on behalf of the insurer.
✔✔life insurance underwriter - ✔✔opten relies on info from the completed application. if
more info needed then ask the agent
, ✔✔All changes in the application - ✔✔must be initialed by the applicant
✔✔conditional receipt - ✔✔conditional upon customer being approved as insurable. if
customer proves not to be insurable then premium must be refunded
✔✔What happens if customer refuses to sign the statement of good health? - ✔✔The
agent must refund any premiums paid and return policy to the company
✔✔What happens to an Agent who is suspected to commit fraud? - ✔✔He/she must be
reported to a prosecuting Attorney or to a law enforcement agency
✔✔When is the funeral benefit contract be provided to the purchaser? - ✔✔Within 30
days
✔✔When is the premium collected be remitted to the insurance company? - ✔✔within
30 days
✔✔When is the federal waiver of cancellation form not needed? - ✔✔When purchase is
made at the funeral home
✔✔What are the rules of advertising for preneed or insurance policy? - ✔✔You must
obtain prior approval from the company
✔✔annuity - ✔✔is a contract btw an individual and a life insurance company
✔✔Immediate Annuity - ✔✔contract owner gets money immediately only if it is funded
with a lump sum
✔✔deferred annuity - ✔✔provides income payments at some future date
✔✔When an annuity includes a variable current interest rate, what does it need to
include? - ✔✔the guarantee interest rate
✔✔Fixed Annuity - ✔✔An annuity that offers fixed payments and guarantees a minimum
rate of interest to be credited to the purchase payment or payments.
✔✔Surrender Charge - ✔✔a fee charged to the insured when a life policy or annuity is
surrendered for its cash value & grows smaller til it dissapears
✔✔variable annuity - ✔✔pays a lifetime income, but the income payments vary
depending on common stock prices
