TEXAS LIFE INSURANCE EXAM GUIDE
QUESTIONS AND ANSWERS
Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - Answer-Variable Universal Life
Insurance contracts are known as because certain future conditions or acts must occur
before any claims can be paid. - Answer-conditional
Question Benefits for drug and alcohol treatment under a group health policy must
include all of the following EXCEPT - Answer-transportation to and from an outpatient
facility
Credit life insurance is typically issued with which of the following types of coverage? -
Answer-Decreasing Term
In a Life insurance contract, an insurance company's promise to pay stated benefits is
called the? - Answer-Insuring clause
A policy that becomes a Modified Endowment Contract (MEC) - Answer-will lose many
of its tax advantages
Which of the following features of a group Term Life policy enables an individual to
leave the group and continue his or her insurance without providing evidence of
insurability? - Answer-Conversion privilege
Insurance company agent appointments remain in force for which of the following
maximum periods of time, if any? - Answer-Until terminated or withdrawn
An insured covered by Accidental Death and Dismemberment (AD&D) insurance has
just died. What will happen if the primary beneficiary had already died before the
insured and contingent beneficiary? - Answer-Proceeds will go to the contingent
beneficiary
An insurance agent does NOT have fiduciary responsibilities to.. - Answer-other agents
Which of these statements is INCORRECT regarding a Preferred Provider Organization
(PPO)? - Answer-PPO's are NOT a type of managed care systems
the Common Disaster provision, which of these statements is true? (AD&D) insurance
policy. Both are involved in a fatal accident where K dies before P. Under Kis the
insured and P is the sole beneficiary on an Accidental Death and Dismemberment -
Answer-Proceeds will be paid to P's estate
, Which of the following circumstances would cause a Medicare Supplement policy to be
cancelled? - Answer-The insured fails to pay the permium
What kind of premium does a Whole Life policy have? - Answer-level
At what point does an informal contract become binding? - Answer-When one party
makes an offer and the other party accepts that offer
What action will an insurer take if an interest payment on a policy loan is not made on
time? - Answer-automatically add the amount of interest due to the loan balance
Which rider provides coverage for a child under a parent's life insurance policy? -
Answer-Child term rider
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? - Answer-Company X
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have... - Answer-insurable interest in the proposed
insured
If the insured and primary determined who died first, where are the death proceeds to
be directed under the Uniform beneficiary are both killed in the same accident and it
cannot be Simultaneous Death Act? - Answer-Insured's contingent beneficiary
All of the following provisions must be included in life insurance policies EXCEPT -
Answer-Extended Term
All of the following are defined as doing insurance business EXCEPT. - Answer-selling
mutual funds
What is the purpose of the U.S.A. Patriot Act? - Answer-detect and deter terrorism
An agent MUST give a prospective insured an Outline of Coverage when taking an
application for a - Answer-Medicare Supplement policy
Which of the following correctly explains the actions an agent should take if a customer
wants to apply for an insurance policy? - Answer-Review the application and information
with the customer then obtain the customers signature then send the application to the
insurance company
Which of the following statements is CORRECT about the period in which a Term Policy
can be converted? - Answer-It varies according to the contracts
QUESTIONS AND ANSWERS
Which type of life policy contains a monthly mortality charge as well as self-directed
investment choices? - Answer-Variable Universal Life
Insurance contracts are known as because certain future conditions or acts must occur
before any claims can be paid. - Answer-conditional
Question Benefits for drug and alcohol treatment under a group health policy must
include all of the following EXCEPT - Answer-transportation to and from an outpatient
facility
Credit life insurance is typically issued with which of the following types of coverage? -
Answer-Decreasing Term
In a Life insurance contract, an insurance company's promise to pay stated benefits is
called the? - Answer-Insuring clause
A policy that becomes a Modified Endowment Contract (MEC) - Answer-will lose many
of its tax advantages
Which of the following features of a group Term Life policy enables an individual to
leave the group and continue his or her insurance without providing evidence of
insurability? - Answer-Conversion privilege
Insurance company agent appointments remain in force for which of the following
maximum periods of time, if any? - Answer-Until terminated or withdrawn
An insured covered by Accidental Death and Dismemberment (AD&D) insurance has
just died. What will happen if the primary beneficiary had already died before the
insured and contingent beneficiary? - Answer-Proceeds will go to the contingent
beneficiary
An insurance agent does NOT have fiduciary responsibilities to.. - Answer-other agents
Which of these statements is INCORRECT regarding a Preferred Provider Organization
(PPO)? - Answer-PPO's are NOT a type of managed care systems
the Common Disaster provision, which of these statements is true? (AD&D) insurance
policy. Both are involved in a fatal accident where K dies before P. Under Kis the
insured and P is the sole beneficiary on an Accidental Death and Dismemberment -
Answer-Proceeds will be paid to P's estate
, Which of the following circumstances would cause a Medicare Supplement policy to be
cancelled? - Answer-The insured fails to pay the permium
What kind of premium does a Whole Life policy have? - Answer-level
At what point does an informal contract become binding? - Answer-When one party
makes an offer and the other party accepts that offer
What action will an insurer take if an interest payment on a policy loan is not made on
time? - Answer-automatically add the amount of interest due to the loan balance
Which rider provides coverage for a child under a parent's life insurance policy? -
Answer-Child term rider
A Key Employee policy is taken out by Company X on its vice president. Ten years
later, this employee leaves Company X and begins working for Company Y. If this
individual were to die and the policy is still in force and unchanged, where would the
death proceeds be directed? - Answer-Company X
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have... - Answer-insurable interest in the proposed
insured
If the insured and primary determined who died first, where are the death proceeds to
be directed under the Uniform beneficiary are both killed in the same accident and it
cannot be Simultaneous Death Act? - Answer-Insured's contingent beneficiary
All of the following provisions must be included in life insurance policies EXCEPT -
Answer-Extended Term
All of the following are defined as doing insurance business EXCEPT. - Answer-selling
mutual funds
What is the purpose of the U.S.A. Patriot Act? - Answer-detect and deter terrorism
An agent MUST give a prospective insured an Outline of Coverage when taking an
application for a - Answer-Medicare Supplement policy
Which of the following correctly explains the actions an agent should take if a customer
wants to apply for an insurance policy? - Answer-Review the application and information
with the customer then obtain the customers signature then send the application to the
insurance company
Which of the following statements is CORRECT about the period in which a Term Policy
can be converted? - Answer-It varies according to the contracts
