Texas Funeral Prearrangement Exam Prep Graded A+

Role of a Legal Reserve Life Insurance Agent whose company holds a seller's permit? - ANSWER-Supervisor of Funeral Prearrangement Life Insurance agent What is the maximum initial guaranteed $ benefit that a prearrangement life insurance may sell? - ANSWER-$15,000 When does a funeral prearrangement life insurance agent license expire? - ANSWER-When a funeral prearrangement life insurance *agent fails to submit a biannual renewal application and fee* How long must an agent wait to reapply for a license after it's been denied? - ANSWER-60 months, except for failure to pass the examination. When can an agent's insurance license be suspended or revoked? - ANSWER-Upon failure of agent to remit premiums When must an agent offer the General Price List (GPL)? - ANSWER-At the beginning of a sales presentation for funeral goods and services. Must an agent give a consumer the GPL to keep? - ANSWER-Yes. Does the GPL require inclusion of the seller's permit? - ANSWER-No. GPL must include only the funeral provider's name and address, the effective date of the list, and the exact caption of "General Price List." What wording is required for disclosures in the General Price List? - ANSWER-GPL disclosures must use the identical wording in given in the FTC Funeral Rule. When is embalming optional? - ANSWER-The seller must disclose that embalming is optional when the burial is immediate. True or False: The GPL must disclose the availability of alternative containers for cremation - ANSWER-True True or False: The GPL must price each item or service separately. - ANSWER-True True or False: The basic services of a funeral director can be declined by the purchaser. - ANSWER-False, basic services cannot be declined. True or False: The FTC Funeral rule prohibits funeral providers from requiring the purchase of a casket for direct cremation. - ANSWER-True How long must the funeral provider retain a copy of a price list on file? - ANSWER-1 year from its last distribution to the consumer Who must approve all prepaid funeral benefits contract forms?` - ANSWER-The Texas Department of Banking When must the purchaser receive a copy of an insurance funded prepaid funeral contract? - ANSWER-Within 30 days from when it was signed. True or False: premiums collected from insurance policies funding prepaid funeral benefits must be remitted to the insurance company within 60 days. - ANSWER-False. Premiums collected must be remitted within 30 days. True or False: failure to provide the Banking Department with premium remittance evidence upon request may result in cancelling the seller's permit. - ANSWER-True. When is the Federal Waiver Cancellation form not needed? - ANSWER-When the prearrangement contract is purchased at the funeral home. When should the purchaser be given the "Fact about Funerals" pamphlet from the Texas Funeral Commission? - ANSWER-At the time of sale, the seller should provide the Fact of Funerals pamphlet to the purchaser. True or False: Selling a prearrangement contract to someone who cannot afford it can result in force business closure of the funeral home. - ANSWER-False, however it could result in loss of business to the funeral home. Can an insurance company question the applicants health after accepting the application? - ANSWER-No. Not even when there may have been a misrepresentation. The time to question the health is before the application is accepted. True or False: The purchaser of a prepaid funeral benefits contracts may be given the option to irrevocably waive the purchasers right to cancel the contract? - ANSWER-True. Purchasers can waive their right to cancel a prepaid funeral benefits contract. What may occur when an agent fails to describe fully the goods and materials on the contract the customer? - ANSWER-Potential harm to the agent's relationship with the funeral home, return of the contract for corrections and resubmissions, stress and confusion for customer's family at the time of funeral. In insurance, under the law of the agency, the Insurer is? - ANSWER-Bound by the acts of its insurance agents Implied authority - ANSWER-When an insurance company allows an agent to collect premiums on its behalf, even thought the authority is not listed in the agent's contract, it is considered implied authority. True or False: Implied authority is written. - ANSWER-False. Implied authority is unwritten. True or False: An agent's authority to solicit applications on behalf of the insurer is granted in the Agent's contract with the insure. - ANSWER-True. Express Authority - ANSWER-Authority that is detailed in the agent's contract with the insurance company. From whom must the agent who obtain approval prior to advertising a feature in a particular policy? - ANSWER-The Insurance Company The Guaranteed Interest Rate - ANSWER-When an annuity advertisement includes the current interest rate being credited, it must also include the guaranteed rate. Life Insurance Policy Summary - ANSWER-A summary of the policy benefits and cost. Life insurance illustration - ANSWER-The illustration of hypothetical results of the policy. 9PM - ANSWER-The latest time of day that a collector and place a call. Misrepresentation - ANSWER-Making statements about a policy that would lead an individual to a false conclusion. Unfair Trade Practice - ANSWER-Occurs when the insurance agent omits a material fact when describing a policy during a sales presentation. True or False: an advertisement for an insurance policy cannot use a potentially misleading policy title? - ANSWER-True Defamation - ANSWER-When an agent publishes a derogatory article about the financial condition of an insurer Guilt of Defamation - ANSWER-An agent may be found guilty of defamation when making a false statement about another insurance company's solvency. True or False: It is lawful to charge different life insurance premium rates among individuals who have the same life expectancy. - ANSWER-False. It is unlawful to charge different premium rates among individuals with the same life expectancy. Rebating - ANSWER-Giving a policy holder a portion of the agent's commission is considered rebating and is unlawful.