Texas Funeral Prearrangement Life Insurance Agent License Exam Updated

The people at the insurance company who determine the risk and accept or reject the risk are called - ANSWER-Underwriters A______risk is one where the proposed insured exceeds the basic standards so the company may offer more coverage or a lesser premium for the coverage applied for to the applicant. - ANSWER-Preferred The amount the insurer needs to cover the risk it has assumed is called the - ANSWER-Morality charge When the applicant has more to gain by the insured's continues life, the applicant has an _______ in the insured. - ANSWER-Insurable interest The policy owner cannot change the beneficiary to another person or entity without the beneficiary's prior consent when the beneficiary is listed as - ANSWER-The irrevocable beneficiary ______ is when the effective date of the policy is set at an earlier date than when the application is completed in order to save age - ANSWER-Backdating The payment method that allows the premium payer to authorize the premium payer's bank to automatically pay the insurance policy's premiums from from the premium payer's account without getting a part check is called - ANSWER-Electronic Funds Transfer (EFT) If premiums are not made to keep the insurance policy in force, the policy is to said to - ANSWER-Lapse Am insurance cintra this a _____ contract - ANSWER-Unilateral The provision that provides that the policy owner has a certain period of time to examine the policy is the - ANSWER-Free Look Entire Contract Provision lists all of the documents that make up the insurance policy. These documents include - ANSWER-The insurance policy, the application for the insurance policy, and riders attached to the policy The incontestability clause provides that after a certain period of time, the insurance company cannot contest the policy's validity for any reason. What is that period of time? - ANSWER-2 years The rider that provides that the company will waive the payment of premiums should the premium payer become totally disabled and will continue the waiver of premium during the time of the total disablement is called - ANSWER-Waiver of premium benefit rider The _______ ______ loan provision provides that the cash value of the policy can automatically be used to pay overdue policy premiums. - ANSWER-Automatic premium When a premium payer has stopped making scheduled premium payments and the policy goes into reduced paid- up insurance (RPU), the cash value of the policy is used to purchase a single premium whole life insurance policy for a _____ amount of coverage with no further payments due. - ANSWER-Lesser If the insurance company is a mutual company, the profits credited to a policy are called - ANSWER-Dividends When the insured dies, the beneficiary of the policy usually receives the policy proceeds in a single _____ payment - ANSWER-Lump sum An agent who holds a Funeral Prearrangement Life Insurance License May not write any coverage or combination of coverages with an initial guaranteed death benefit that exceeds - ANSWER-$15,000 If the applicant for an insurance license is denied, for any reason except failure to pass the exam, the applicant may not re-apply for a minimum of: - ANSWER-60 months The agent's license may expire if the agent fails to submit a renewal form and fee at the end of each _____yea renewal period. - ANSWER-Two Which type of authority is not expressly conferred on an agent, but the principal either intentionally or negligently allows a third party to believe the agent possesses: - ANSWER-Apparent Insurance agents must provide full and fair disclosure to the applicant about the insurance being purchased: - ANSWER-True A false communication that harms the reputation of another or a derogatory article about the financial condition of an insurer is called: - ANSWER-Defamation The Department of Insurance regulates the sales practices of insurance agents—-t/f - ANSWER-True Advertising must be: - ANSWER-Clear, understandable,