Insurance license practice XCEL solutions FINAL EXAM #12 - Texas life only Questions and Answers 100% Pass

Insurance license practice XCEL solutions FINAL EXAM #12 - Texas life only Questions and Answers 100% Pass Question 1 Which settlement option pays a stated amount to an annuitant, but no residual value to a beneficiary? - Correct Answer ️️ -Life income Question 2 A new agent must complete at least _____ hours of continuing education within 24 months of initial license? - Correct Answer ️️ -24 hours Question 3 L takes out a life insurance policy and dies 10 years later. During the claim process, the insurer discovers that L has understated range on the application. Under the misstatement of age provision the insurer will? - Correct Answer ️️ -Adjust the death benefits to a reduced amount Question 4 An example of false advertising would be? - Correct Answer ️️ -And insurer exaggerating in dividends in a magazine advertisement Question 5 With whom an agent legally share commissions? - Correct Answer ️️ -Another agent with the same line of insurance Question 6 Insurance agent as a fiduciary responsibility to all of the following EXCEPT? - Correct Answer ️️ -Other agents Question 7 Which of these is not an example of doing insurance business? - Correct Answer ️️ - Selling shares of stock Question 8 taking receipt of premiums and holding them for the insurance company is an example of? - Correct Answer ️️ -Fiduciary responsibility Question 9 How does an indexed annuity differ from a fixed annuity? - Correct Answer ️️ -Indexed annuity owners receive crediting interest time to the fluctuation of the linked index Question 10 which of the following policies combines investment choices with a form of Term coverage? - Correct Answer ️️ -Variable universal life Question 11 How long does an insurance company appointment remain in force? - Correct Answer ️️ -Until terminated Question 12 in Texas an individual life insurance policy is REQUIRED to have a grace period of? - Correct Answer ️️ -31 days Question 13 Which statement is TRUE regarding a variable whole life policy? - Correct Answer ️️ - A minimum guaranteed death benefit is provided Question 14 in an insurance contract the insurer is the only party who makes a - Correct Answer ️️ -Unilateral Question 15 which of these is NOT considered to be an element of an insurance contract? - Correct Answer ️️ -Negotiating Question 16 What does a 401(k) plan generally provide its participants? - Correct Answer ️️ - Salary-deferral contributions Question 17 All these statements concerning Settlement Options are true, EXCEPT? - Correct Answer ️️ -Only the beneficiary may select Question 18 A domestic insurance company in Texas is considered a company that? - Correct Answer ️️ -Is incorporated and formed in Texas Question 19 Which of the following statements about non-contributory employee group life insurance is FALSE? - Correct Answer ️️ -A minimum number of employees is required to participate Question 20 when a misrepresentation on a life insurance policy application is discovered what action may an insurance company take? - Correct Answer ️️ -void the policy only if it is discovered during the contestable period and proven to be material Question 21 In Texas how long must a policy be in force before an insurance company must pay death benefits for suicide - Correct Answer ️️ -2 years Question 22 All these statements about the waiver of premium provision are correct EXCEPT? - Correct Answer ️️ -insured must be eligible for Social Security disability for claim to be accepted Question 23 Employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a? - Correct Answer ️️ -$25,000 individual whole life policy Question 24 What type of life policy covers 2 lives and pays the face amount after the first one dies? - Correct Answer ️️ -Joint life policy Question 25 Which of these provisions is not required in life insurance policies? - Correct Answer ️️ -Extended term Question 26 If you insured's age was misstated on a life insurance contract, the misstatement of age provision requires that any death benefit payable would be? - Correct Answer ️️ -an amount that the premiums paid would have purchased at the current age Question 27 what provision in a life insurance policy states that the application is considered part of the contract? - Correct Answer ️️ -Entire contract provision Question 28 M has an insurance policy that also has an outstanding policy loan at a time of M's death. The insurer will deduct the outstanding loan balance from the? - Correct Answer ️️ -Policy proceeds Question 29 Under the USA Patriot act, insurers are required to report receipt of cash payments in excess of? - Correct Answer ️️ -$10,000 Question 30 Credit life insurance is? - Correct Answer ️️ -insurance issued on a debtor to cover outstanding loan balance Question 31 The phrase "transacting business" includes - Correct Answer ️️ -Collecting premiums Question 32 What is the purpose of the USA Patriot act? - Correct Answer ️️ -Detect and deter terrorism Question 33 an insurer is NOT required to provide information on fraudulent claims if requested by? - Correct Answer ️️ -An insured Question 34 Which of the following is Not included in a life insurance illustration? - Correct Answer ️️ -Companies mortality table Question 35 Employee is covered under a group life plan with a $50,000 death benefit. What is the maximum amount a spouse may be insured for under this program? - Correct Answer ️️ -$25,000 Question 36 which life insurance rider typically appears on a Juvenile life insurance policy - Correct Answer ️️ -Payor benefit rider Question 37 Which of these retirement plans can be started by an employee, even if another plan is in existence? - Correct Answer ️️ -Individual retirement account (IRA) Question 38 What kind of life insurance policy pays a specified monthly income to a beneficiary for 30 years and then pays a lump sum benefit at the end of that 30 years? - Correct Answer ️️ -Family maintenance policy Question 39 which statement regarding the Misstatement of Age provision is considered to be true? - Correct Answer ️️ -Coverage will be adjusted to reflect the insurance true age if misstatement of age is discovered Question 40 In a key employee life insurance policy the third-party owner can be all the following EXCEPT - Correct Answer ️️ -The insured Question 41 Insured may assign up to ____ of the policy ownership under an individual life insurance policy - Correct Answer ️️ -100% Question 42 Which of these is NOT a reason for purchasing life insurance on the life of a minor? - Correct Answer ️️ -If both parents were to die, it would provide death benefits that the child Question 43 A policy that becomes a modified endowment contract - Correct Answer ️️ -Will lose many of its tax advantages Question 44 An underwriter determines that an applicant's risk should be recognized due to a health issue. This policy may be issued with a(n)? - Correct Answer ️️ -Exclusion for the medical condition Question 45 A temporary agents license issued by the commissioner of Insurance is valid for up to ____ days - Correct Answer ️️ -90 day Question 46 L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They purchase a family policy that covers L's spouse at age 65. A death benefit will NOT be paid in which of the following? - Correct Answer ️️ -L's spouse dies at age 66 Question 47 A policy owner would like to change the beneficiary on a Life insurance policy and make the change permanent. Which type of designation would fill this nee