TEXAS LIFE INSURANCE EXAM QUESTIONS
WITH ACCURATE ANSWERS
Who is considered a field underwriter? - Accurate answers An agent
When must insurable interest exist in life insurance? - Accurate answers Application or
issue date
If no receipt is issued at the time of application, a statement of good health is usually required
at the time of? - Accurate answers Policy delivery
The Medical Information Bureau is?(MIB) - Accurate answers a source of medical
information to alert insurers to adverse medical history
A substandard risk compared to a standard risk would pay? - Accurate answers a higher
premium
Which document describes specific information about policy provisions and benefits? -
Accurate answers Policy summary
Does not have an insurable interest? - Accurate answers Insured's best friend
What is the main source of underwriting information used by the company in the risk selection
process? - Accurate answers Application
An insured submits the full premium along with a completed application, and the policy is
issued 10 days later. When does the coverage begin? - Accurate answers On the date of
application
What is the main responsibility of a company's underwriting unit? - Accurate answers Risk
selection and classification
What best describes the USA PATRIOT Act with regards to the insurance industry? - Accurate
answers To prevent terrorism activities through monitoring of financial transactions
If the agent feels that could misrepresentation on the part of the applicant for insurance, what
must the agent do? - Accurate answers Inform the insurance comapny
Representations are statements made by the applicant that are? - Accurate answers
Considered true to the best of the applicant's knowledge
, If an agent fails to obtain an applicants signature on the insurance application, the agent must?
- Accurate answers Return the application to the applicant for signature
What includes information regarding a person's credit, character, reputation, and habits? -
Accurate answers Consumer report
When the insured purchased a new home, he wanted to purchase a life insurance policy that
would protect his family against losing it should he die before the mortgage was paid. Which of
the following policies is best suitable for that need? - Accurate answers Decreasing term
An annually renewable term policy? - Accurate answers Renews each year with an
increased premium
The time period during which an annuitant contributes to annuity is called? - Accurate
answers The accumulation period
An example of limited-pay life policy? - Accurate answers Life paid-up at the age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to increase the
death benefit. What is correct regarding the death benefit increase? - Accurate answers It
can be increased by providing evidence of insurability
What is true regarding a universal life policy? - Accurate answers The premiums can be
decreased by the insured
With a traditional whole life policy, the death benefit.. - Accurate answers Remains
constant over time
Whose life expectancy is taken into consideration in an annuity? - Accurate answers
Annuitant
An insured receives a monthly summary of his life insurability policy. The cash value this month
is significantly lower than it was last month. What type of policy is it? - Accurate answers
Variable
An individual inherited a large sum of money at age 40 and wanted to use it to provide a
guarantee income after his retirement at age 60. Which of the following types of annuities
would best meet this need? - Accurate answers Deferred
What would be considered a disadvantage of term insurance? - Accurate answers If the
insured dies after the end of the term, there is no death benefit to the beneficiary
The renewable provision allows the policy-owner to renew the coverage at the expiration date -
Accurate answers Without evidence of insurability
WITH ACCURATE ANSWERS
Who is considered a field underwriter? - Accurate answers An agent
When must insurable interest exist in life insurance? - Accurate answers Application or
issue date
If no receipt is issued at the time of application, a statement of good health is usually required
at the time of? - Accurate answers Policy delivery
The Medical Information Bureau is?(MIB) - Accurate answers a source of medical
information to alert insurers to adverse medical history
A substandard risk compared to a standard risk would pay? - Accurate answers a higher
premium
Which document describes specific information about policy provisions and benefits? -
Accurate answers Policy summary
Does not have an insurable interest? - Accurate answers Insured's best friend
What is the main source of underwriting information used by the company in the risk selection
process? - Accurate answers Application
An insured submits the full premium along with a completed application, and the policy is
issued 10 days later. When does the coverage begin? - Accurate answers On the date of
application
What is the main responsibility of a company's underwriting unit? - Accurate answers Risk
selection and classification
What best describes the USA PATRIOT Act with regards to the insurance industry? - Accurate
answers To prevent terrorism activities through monitoring of financial transactions
If the agent feels that could misrepresentation on the part of the applicant for insurance, what
must the agent do? - Accurate answers Inform the insurance comapny
Representations are statements made by the applicant that are? - Accurate answers
Considered true to the best of the applicant's knowledge
, If an agent fails to obtain an applicants signature on the insurance application, the agent must?
- Accurate answers Return the application to the applicant for signature
What includes information regarding a person's credit, character, reputation, and habits? -
Accurate answers Consumer report
When the insured purchased a new home, he wanted to purchase a life insurance policy that
would protect his family against losing it should he die before the mortgage was paid. Which of
the following policies is best suitable for that need? - Accurate answers Decreasing term
An annually renewable term policy? - Accurate answers Renews each year with an
increased premium
The time period during which an annuitant contributes to annuity is called? - Accurate
answers The accumulation period
An example of limited-pay life policy? - Accurate answers Life paid-up at the age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to increase the
death benefit. What is correct regarding the death benefit increase? - Accurate answers It
can be increased by providing evidence of insurability
What is true regarding a universal life policy? - Accurate answers The premiums can be
decreased by the insured
With a traditional whole life policy, the death benefit.. - Accurate answers Remains
constant over time
Whose life expectancy is taken into consideration in an annuity? - Accurate answers
Annuitant
An insured receives a monthly summary of his life insurability policy. The cash value this month
is significantly lower than it was last month. What type of policy is it? - Accurate answers
Variable
An individual inherited a large sum of money at age 40 and wanted to use it to provide a
guarantee income after his retirement at age 60. Which of the following types of annuities
would best meet this need? - Accurate answers Deferred
What would be considered a disadvantage of term insurance? - Accurate answers If the
insured dies after the end of the term, there is no death benefit to the beneficiary
The renewable provision allows the policy-owner to renew the coverage at the expiration date -
Accurate answers Without evidence of insurability
