FUNERAL PREARRANGEMENT COMPREHENSIVE
ANSWERS AND QUESTIONS SET A+
✔✔In a flexablle premium deferred annuity - ✔✔the owner determines the timing and
amount of each purchase payment
✔✔Payments must be made according to a fixed premium schedule for _____ -
✔✔level premium deferred annuities
✔✔The surrender charges in a deferred annuity will normally - ✔✔decline slightly each
year and eventually disappear
✔✔In a deferred annuity contract, assuming no withdrawals, ______ is equal to the
greater of the current cash value or the total premiums paid - ✔✔the death benefit
during the accumulation period
✔✔_____ bears the investment risk in a fixed annuity - ✔✔the insurance company
✔✔The following statement is true of the assets in the general account of an insurance
company that issues annuities - ✔✔they back the guarantees of the issuer's fixed
annuities
✔✔In fixed annuities, the guaranteed minimum interest rate is - ✔✔specified in the
annuity contract and remains unchanged
✔✔The guaranteed minimum interest rate in a fixed annuity will most commonly be in
the range of - ✔✔3%-4%
✔✔______ has the most affect on the current interest rate used in a fixed annuity -
✔✔the earnings of the insurance company
✔✔ A funeral prearrangement life insurance agent must be supervised - ✔✔By a legal
reserve life insurance agent whose company holds a seller's permit.
, ✔✔The maximum initial guaranteed death benefit that a funeral prearrangement life
insurance agent may sell is - ✔✔$15,000
✔✔A funeral prearrangement life insurance agent license expires when the agent -
✔✔Fails to submit a biannual renewal application and fee
✔✔When an application for an insurance agent license is denied, except for failure to
pass the examination, the applicant may NOT re-apply for at least - ✔✔60 months
✔✔An agents insurance license could be suspended or revoked if the agent - ✔✔fails to
remit premiums
✔✔______ must be offered at the beginning of a sales presentation for funeral goods
and service - ✔✔The general price list
✔✔The ___ must be given to the consumer to keep - ✔✔General price list
✔✔The general price list (GPL) must include - ✔✔The funeral providers name and
address, the effective date of the list, and all the exact caption of "General Price List".
✔✔The required disclosures for the general price list (GPL) - ✔✔must use the identical
wording given in the FTC Funeral Rule
✔✔As part of a prearranged funeral sale, the seller must disclose - ✔✔that embalming
is optional when the burial is immediate
✔✔The GPL must disclose the - ✔✔availability of alternative containers for cremation
✔✔The GPL - ✔✔must price each item or service seperately
✔✔______ cannot be declined by the purchaser - ✔✔The basic services of a funeral
director
✔✔The FTC Funeral Rule prohibits funeral providers from - ✔✔requiring the purchase
of a casket for direct cremation
✔✔A funeral provider must keep a copy of a price list on file for ____ after its last
distribution to a consumer - ✔✔1 year
✔✔Prepaid funeral benefits contract forms must be approved by - ✔✔the Texas
Department of Banking
ANSWERS AND QUESTIONS SET A+
✔✔In a flexablle premium deferred annuity - ✔✔the owner determines the timing and
amount of each purchase payment
✔✔Payments must be made according to a fixed premium schedule for _____ -
✔✔level premium deferred annuities
✔✔The surrender charges in a deferred annuity will normally - ✔✔decline slightly each
year and eventually disappear
✔✔In a deferred annuity contract, assuming no withdrawals, ______ is equal to the
greater of the current cash value or the total premiums paid - ✔✔the death benefit
during the accumulation period
✔✔_____ bears the investment risk in a fixed annuity - ✔✔the insurance company
✔✔The following statement is true of the assets in the general account of an insurance
company that issues annuities - ✔✔they back the guarantees of the issuer's fixed
annuities
✔✔In fixed annuities, the guaranteed minimum interest rate is - ✔✔specified in the
annuity contract and remains unchanged
✔✔The guaranteed minimum interest rate in a fixed annuity will most commonly be in
the range of - ✔✔3%-4%
✔✔______ has the most affect on the current interest rate used in a fixed annuity -
✔✔the earnings of the insurance company
✔✔ A funeral prearrangement life insurance agent must be supervised - ✔✔By a legal
reserve life insurance agent whose company holds a seller's permit.
, ✔✔The maximum initial guaranteed death benefit that a funeral prearrangement life
insurance agent may sell is - ✔✔$15,000
✔✔A funeral prearrangement life insurance agent license expires when the agent -
✔✔Fails to submit a biannual renewal application and fee
✔✔When an application for an insurance agent license is denied, except for failure to
pass the examination, the applicant may NOT re-apply for at least - ✔✔60 months
✔✔An agents insurance license could be suspended or revoked if the agent - ✔✔fails to
remit premiums
✔✔______ must be offered at the beginning of a sales presentation for funeral goods
and service - ✔✔The general price list
✔✔The ___ must be given to the consumer to keep - ✔✔General price list
✔✔The general price list (GPL) must include - ✔✔The funeral providers name and
address, the effective date of the list, and all the exact caption of "General Price List".
✔✔The required disclosures for the general price list (GPL) - ✔✔must use the identical
wording given in the FTC Funeral Rule
✔✔As part of a prearranged funeral sale, the seller must disclose - ✔✔that embalming
is optional when the burial is immediate
✔✔The GPL must disclose the - ✔✔availability of alternative containers for cremation
✔✔The GPL - ✔✔must price each item or service seperately
✔✔______ cannot be declined by the purchaser - ✔✔The basic services of a funeral
director
✔✔The FTC Funeral Rule prohibits funeral providers from - ✔✔requiring the purchase
of a casket for direct cremation
✔✔A funeral provider must keep a copy of a price list on file for ____ after its last
distribution to a consumer - ✔✔1 year
✔✔Prepaid funeral benefits contract forms must be approved by - ✔✔the Texas
Department of Banking
