Texas Funeral Prearrangement Test 2024 - 100% Correct

Texas Funeral Prearrangement Test 2024 - 100% Correct 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: Mortality charge, Reserve, Standard risk, Liability account -Answer-Mortality Charge When the applicant has more to gain by the insured's continued 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: The primary beneficiary, The contingent beneficiary, The irrevocable beneficiary, The default beneficiary -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 the premium payer's account without generating a paper check is: Direct bil, Pre-Authorized Checking (PAC), Electronic Funds Transfer (EFT), Money order -Answer-Pre-Authorized Checking (PAC) If premiums are not made to keep the insurance policy in force, the policy is said to ____. - Answer-Lapse An insurance contract is a ___ contract. -Answer-Unilateral The provision that provides that the policy owner has a certain period of time to examine the policy is the: Grace period, Facility of payment, Insuring clause, Free look -Answer-Free Look The entire contract provision lists all of the documents that make up the insurance policy. These documents include: The insurance policy, The application for the insurance policy, Riders attached to the policy, All of the above -Answer-All of the above 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 the period of time?: 90 days, 2 years, 45 days, 4 years -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:Double indemnity rider, Waiver of premium benefit rider