TEXAS STATE EXAM SIMULATOR ACTUAL
SCRIPT WITH 100 PERCENT CORRECT
ANSWERS
◉ A student pilot can pay regular premium costs for her life
insurance policy with the addition of which of the following?
Guaranteed Insurability rider
Aviation exclusion
Impairment rider
Accidental Death Benefit rider
Answer: Aviation exclusion
◉ In a life insurance policy, which provision states who may select
policy options, designate and name a beneficiary, and be the
recipient of any financial benefits from the policy?
Nonforfeiture
Entire Contract
Insuring Clause
Owner's Rights
Answer: Owner's Rights
,◉ A Renewable Term Policy is renewable at the option of the
Owner
Company
Insured
Assignee
Answer: insured
◉ Which of these is considered a true statement regarding
Medicaid?
Funded by both state and federal governments
Intended to be used by individuals age 65 and older
Provides disability income benefits
Automatically covers those receiving Social Security disability
benefits
Answer: Funded by both state and federal governments
◉ Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects
the amount of the premium payment
Policyowner has no say where the investment will go but can
choose the premium mode
, The investment vehicle for this type of policy is held in the
insurer's general portfolio
The death benefit can vary but the policyowner has no say in the
premium amount paid
Answer: Policyowner controls where the investment will go and
selects the amount of the premium payment
◉ In life insurance, the needs approach is used mostly to establish
which type of life insurance a client should apply for
how much life insurance a client should apply for
which company a client should use when applying for life
insurance
what the maximum amount the client can spend on life insurance
Answer: how much life insurance a client should apply for
◉ A life insurance illustration is NOT required to include the
name of the insurer
underwriting or rating classification upon which the illustration
is based
initial death benefit
company's mortality table
Answer: company's mortality table
, ◉ Which of these characteristics is consistent with a Straight Life
policy?
Owner can adjust both premium and death benefit
Premiums are lower for the first five years, increase the sixth
year, then levels off for the remaining length of the contract
Owner has the option of converting to term insurance
Premiums are payable for as long as there is insurance coverage
in force
Answer: Premiums are payable for as long as there is insurance
coverage in force
◉ Under the Texas insurance code, which of the following
statements about the Suicide clause is CORRECT?
The Commissioner of Insurance must review insurance
companies' Suicide clauses every five years for discrimination
A Suicide clause must apply equally to Life and Accidental Death
and Dismemberment (AD&D) policies
An insurance company must actuarially justify any suicide
limitation
Suicide may not be a defense against payment after the second
year
Answer: Suicide may not be a defense against payment after the
second year
SCRIPT WITH 100 PERCENT CORRECT
ANSWERS
◉ A student pilot can pay regular premium costs for her life
insurance policy with the addition of which of the following?
Guaranteed Insurability rider
Aviation exclusion
Impairment rider
Accidental Death Benefit rider
Answer: Aviation exclusion
◉ In a life insurance policy, which provision states who may select
policy options, designate and name a beneficiary, and be the
recipient of any financial benefits from the policy?
Nonforfeiture
Entire Contract
Insuring Clause
Owner's Rights
Answer: Owner's Rights
,◉ A Renewable Term Policy is renewable at the option of the
Owner
Company
Insured
Assignee
Answer: insured
◉ Which of these is considered a true statement regarding
Medicaid?
Funded by both state and federal governments
Intended to be used by individuals age 65 and older
Provides disability income benefits
Automatically covers those receiving Social Security disability
benefits
Answer: Funded by both state and federal governments
◉ Which is true concerning a Variable Universal Life policy?
Policyowner controls where the investment will go and selects
the amount of the premium payment
Policyowner has no say where the investment will go but can
choose the premium mode
, The investment vehicle for this type of policy is held in the
insurer's general portfolio
The death benefit can vary but the policyowner has no say in the
premium amount paid
Answer: Policyowner controls where the investment will go and
selects the amount of the premium payment
◉ In life insurance, the needs approach is used mostly to establish
which type of life insurance a client should apply for
how much life insurance a client should apply for
which company a client should use when applying for life
insurance
what the maximum amount the client can spend on life insurance
Answer: how much life insurance a client should apply for
◉ A life insurance illustration is NOT required to include the
name of the insurer
underwriting or rating classification upon which the illustration
is based
initial death benefit
company's mortality table
Answer: company's mortality table
, ◉ Which of these characteristics is consistent with a Straight Life
policy?
Owner can adjust both premium and death benefit
Premiums are lower for the first five years, increase the sixth
year, then levels off for the remaining length of the contract
Owner has the option of converting to term insurance
Premiums are payable for as long as there is insurance coverage
in force
Answer: Premiums are payable for as long as there is insurance
coverage in force
◉ Under the Texas insurance code, which of the following
statements about the Suicide clause is CORRECT?
The Commissioner of Insurance must review insurance
companies' Suicide clauses every five years for discrimination
A Suicide clause must apply equally to Life and Accidental Death
and Dismemberment (AD&D) policies
An insurance company must actuarially justify any suicide
limitation
Suicide may not be a defense against payment after the second
year
Answer: Suicide may not be a defense against payment after the
second year
