TEXAS LIFE INSURANCE EXAM QUESTIONS WITH THE
LATEST & UPDATED SCORE.
What is the main source of underwriting information used by the company in the risk
a a a a a a a a a a a a a a a
selection process? -- Correct Answer ✔✔ Application
a a a a a a
An insured submits the full premium along with a completed application, and the policy is
a a a a a a a a a a a a a a a
issued 10 days later. When does the coverage begin? -- Correct Answer ✔✔ On the date
a a a a a a a a a a a a a a a a
of application
a
What is the main responsibility of a company's underwriting unit? -- Correct Answer ✔✔
a a a a a a a a a a a a a a
Risk selection and classification
a a a
What best describes the USA PATRIOT Act with regards to the insurance industry? --
a a a a a a a a a a a a a a
Correct Answer ✔✔ To prevent terrorism activities through monitoring of financial
a a a a a a a a a a a
transactions
If the agent feels that misrepresentation on the part of the applicant occurred for
a a a a a a a a a a a a a a
insurance, what must the agent do? -- Correct Answer ✔✔ Inform the insurance
a a a a a a a a a a a a a
company
Representations are statements made by the applicant that are? -- Correct Answer ✔✔
a a a a a a a a a a a a a
Considered true to the best of the applicant's knowledge a a a a a a a a
If an agent fails to obtain an applicant’s signature on the insurance application, the agent
a a a a a a a a a a a a a a a
must? -- Correct Answer ✔✔ Return the application to the applicant for signature
a a a a a a a a a a a a
What includes information regarding a person's credit, character, reputation, and habits? -
a a a a a a a a a a a
- Correct Answer ✔✔ Consumer report
a a a a a
,When the insured purchased a new home, he wanted to purchase a life insurance policy
a a a a a a a a a a a a a a a
that would protect his family against losing it should he die before the mortgage was paid.
a a a a a a a a a a a a a a a a
Which of the following policies is best suitable for that need? -- Correct Answer ✔✔
a a a a a a a a a a a a a a a
Decreasing term a
What is an annually renewable term policy? -- Correct Answer ✔✔ Renews each year
a a a a a a a a a a a a a a
with an increased premium
a a a
The time period during which an annuitant contributes to annuity is called? -- Correct
a a a a a a a a a a a a a a
Answer ✔✔ The accumulation period a a a a
An example of limited-pay life policy? -- Correct Answer ✔✔ Life paid-up at the age 65
a a a a a a a a a a a a a a a
An individual owns an adjustable life policy. Sometime in the future he wants to increase
a a a a a a a a a a a a a a a
the death benefit. What is correct regarding the death benefit increase? -- Correct
a a a a a a a a a a a a a
Answer ✔✔ It can be increased by providing evidence of insurability
a a a a a a a a a a
What is true regarding a universal life policy? -- Correct Answer ✔✔ The premiums can
a a a a a a a a a a a a a a a
be decreased by the insured
a a a a
With a traditional whole life policy, the death benefit... -- Correct Answer ✔✔ is
a a a a a a a a a a a a a a
guaranteed and also remains level for life a a a a a a
What are the three basic forms of whole life insurance? -- Correct Answer ✔✔ 1. Straight
a a a a a a a a a a a a a a a
Whole Life (Ordinary life or continuous premium whole life)
a a a a a a a a a
2. Limited-pay whole life
a a a
3. Single premium whole life
a a a a
Whose life expectancy is taken into consideration in an annuity? -- Correct Answer ✔✔
a a a a a a a a a a a a a a
Annuitant
An insured receives a monthly summary of his life insurability policy. The cash value this
a a a a a a a a a a a a a a a
month is significantly lower than it was last month. What type of policy is it? -- Correct
a a a a a a a a a a a a a a a a a
Answer ✔✔ Variable a a
,An individual inherited a large sum of money at age 40 and wanted to use it to provide a
a a a a a a a a a a a a a a a a a a a
guarantee income after his retirement at age 60. Which of the following types of annuities
a a a a a a a a a a a a a a a
would best meet this need? -- Correct Answer ✔✔ Deferred
a a a a a a a a a
What would be considered a disadvantage of term insurance? -- Correct Answer ✔✔ If
a a a a a a a a a a a a a a
the insured dies after the end of the term, there is no death benefit to the beneficiary
a a a a a a a a a a a a a a a a
The renewable provision allows the policy-owner to renew the coverage at the
a a a a a a a a a a a a
expiration date -- Correct Answer ✔✔ Without evidence of insurability
a a a a a a a a a
Which type of life insurance policy generates immediate cash value? -- Correct Answer
a a a a a a a a a a a a a
✔✔ Single premium Whole Life
a a a a
*Because the policy is completely paid up with one premium
a a a a a a a a a
What is true regarding a joint life policy? -- Correct Answer ✔✔ Premium is based on the
a a a a a a a a a a a a a a a a a
average age of the insureds a a a a
The insured is also the policyowner of a whole life policy. What age must the insured
a a a a a a a a a a a a a a a a
attain in order to receive the policy's face amount? -- Correct Answer ✔✔ 100
a a a a a a a a a a a a a
What provision of a life insurance policy states the application is part of the contract? --
a a a a a a a a a a a a a a a a
Correct Answer ✔✔ Entire contract a a a a
A life insurance policy clause that prevents an insurance company from denying payment
a a a a a a a a a a a a a
of a death claim after a specific period of time is known as the.. -- Correct Answer ✔✔
a a a a a a a a a a a a a a a a a a
Incontestability clause a
When a death claim is submitted, the insurer discovered that the insured understated her
a a a a a a a a a a a a a a
age on the application for a life policy. What will the insurer take? -- Correct Answer ✔✔
a a a a a a a a a a a a a a a a a
Pay a reduced death benefit based on the insured's actual age
a a a a a a a a a a
What term refers to the transfer of some or all of the ownership of some or all of the
a a a a a a a a a a a a a a a a a a a
ownership rights of a life insurance policy from one individual to another? -- Correct
a a a a a a a a a a a a a a
Answer ✔✔ Assignment a a
, What is true about the free-look period in a life insurance policy? -- Correct Answer ✔✔
a a a a a a a a a a a a a a a a
It commences when the policy is delivered
a a a a a a
A spouse receives $5,000 a month until the principle and interest on her husband’s life
a a a a a a a a a a a a a a a
insurance policy have been paid out. Which settlement option did this beneficiary choose?
a a a a a a a a a a a a
a-- Correct Answer ✔✔ Fixed amount
a a a a a
What feature allows an insurance policy to remain in force for a specific number of days
a a a a a a a a a a a a a a a a
beyond the premium due date? -- Correct Answer ✔✔ Grace period provision
a a a a a a a a a a a
The insured usually pays $1,200 annually for her life insurance premium. This year, she has
a a a a a a a a a a a a a a
accumulated $175 in dividends, and applied that to her next premium, reducing it to
a a a a a a a a a a a a a a a
$1,025. What dividend option has the insured chosen? -- Correct Answer ✔✔ Reduction
a a a a a a a a a a a a a
of premium a
What are the Nonforfeiture Options of Life Insurance? -- Correct Answer ✔✔ - Cash
a a a a a a a a a a a a a
- Extended Term
a a
- Paid Up Reduced Amount
a a a a
Which of the following is true of the fixed-period and fixed-amount settlement options? --
a a a a a a a a a a a a a
Correct Answer ✔✔ Both guarantee that the principle and interest will be fully paid out
a a a a a a a a a a a a a a a
What is NOT a standard exclusion in life insurance policies? -- Correct Answer ✔✔
a a a a a a a a a a a a a a
Disability, or Suicide. a a a
The standard exclusions are Aviation, hazardous work/activities, military
a a a a a a a
What are the standard exclusions in life insurance policies? -- Correct Answer ✔✔ -
a a a a a a a a a a a a a a
Aviation a
-hazardous occupations or hobbies a a a a
- War or military service
a a a a
Under what circumstance will the contingent beneficiary receive the death benefit? --
a a a a a a a a a a a a
Correct Answer ✔✔ If the primary beneficiary dies before the insured
a a a a a a a a a a
LATEST & UPDATED SCORE.
What is the main source of underwriting information used by the company in the risk
a a a a a a a a a a a a a a a
selection process? -- Correct Answer ✔✔ Application
a a a a a a
An insured submits the full premium along with a completed application, and the policy is
a a a a a a a a a a a a a a a
issued 10 days later. When does the coverage begin? -- Correct Answer ✔✔ On the date
a a a a a a a a a a a a a a a a
of application
a
What is the main responsibility of a company's underwriting unit? -- Correct Answer ✔✔
a a a a a a a a a a a a a a
Risk selection and classification
a a a
What best describes the USA PATRIOT Act with regards to the insurance industry? --
a a a a a a a a a a a a a a
Correct Answer ✔✔ To prevent terrorism activities through monitoring of financial
a a a a a a a a a a a
transactions
If the agent feels that misrepresentation on the part of the applicant occurred for
a a a a a a a a a a a a a a
insurance, what must the agent do? -- Correct Answer ✔✔ Inform the insurance
a a a a a a a a a a a a a
company
Representations are statements made by the applicant that are? -- Correct Answer ✔✔
a a a a a a a a a a a a a
Considered true to the best of the applicant's knowledge a a a a a a a a
If an agent fails to obtain an applicant’s signature on the insurance application, the agent
a a a a a a a a a a a a a a a
must? -- Correct Answer ✔✔ Return the application to the applicant for signature
a a a a a a a a a a a a
What includes information regarding a person's credit, character, reputation, and habits? -
a a a a a a a a a a a
- Correct Answer ✔✔ Consumer report
a a a a a
,When the insured purchased a new home, he wanted to purchase a life insurance policy
a a a a a a a a a a a a a a a
that would protect his family against losing it should he die before the mortgage was paid.
a a a a a a a a a a a a a a a a
Which of the following policies is best suitable for that need? -- Correct Answer ✔✔
a a a a a a a a a a a a a a a
Decreasing term a
What is an annually renewable term policy? -- Correct Answer ✔✔ Renews each year
a a a a a a a a a a a a a a
with an increased premium
a a a
The time period during which an annuitant contributes to annuity is called? -- Correct
a a a a a a a a a a a a a a
Answer ✔✔ The accumulation period a a a a
An example of limited-pay life policy? -- Correct Answer ✔✔ Life paid-up at the age 65
a a a a a a a a a a a a a a a
An individual owns an adjustable life policy. Sometime in the future he wants to increase
a a a a a a a a a a a a a a a
the death benefit. What is correct regarding the death benefit increase? -- Correct
a a a a a a a a a a a a a
Answer ✔✔ It can be increased by providing evidence of insurability
a a a a a a a a a a
What is true regarding a universal life policy? -- Correct Answer ✔✔ The premiums can
a a a a a a a a a a a a a a a
be decreased by the insured
a a a a
With a traditional whole life policy, the death benefit... -- Correct Answer ✔✔ is
a a a a a a a a a a a a a a
guaranteed and also remains level for life a a a a a a
What are the three basic forms of whole life insurance? -- Correct Answer ✔✔ 1. Straight
a a a a a a a a a a a a a a a
Whole Life (Ordinary life or continuous premium whole life)
a a a a a a a a a
2. Limited-pay whole life
a a a
3. Single premium whole life
a a a a
Whose life expectancy is taken into consideration in an annuity? -- Correct Answer ✔✔
a a a a a a a a a a a a a a
Annuitant
An insured receives a monthly summary of his life insurability policy. The cash value this
a a a a a a a a a a a a a a a
month is significantly lower than it was last month. What type of policy is it? -- Correct
a a a a a a a a a a a a a a a a a
Answer ✔✔ Variable a a
,An individual inherited a large sum of money at age 40 and wanted to use it to provide a
a a a a a a a a a a a a a a a a a a a
guarantee income after his retirement at age 60. Which of the following types of annuities
a a a a a a a a a a a a a a a
would best meet this need? -- Correct Answer ✔✔ Deferred
a a a a a a a a a
What would be considered a disadvantage of term insurance? -- Correct Answer ✔✔ If
a a a a a a a a a a a a a a
the insured dies after the end of the term, there is no death benefit to the beneficiary
a a a a a a a a a a a a a a a a
The renewable provision allows the policy-owner to renew the coverage at the
a a a a a a a a a a a a
expiration date -- Correct Answer ✔✔ Without evidence of insurability
a a a a a a a a a
Which type of life insurance policy generates immediate cash value? -- Correct Answer
a a a a a a a a a a a a a
✔✔ Single premium Whole Life
a a a a
*Because the policy is completely paid up with one premium
a a a a a a a a a
What is true regarding a joint life policy? -- Correct Answer ✔✔ Premium is based on the
a a a a a a a a a a a a a a a a a
average age of the insureds a a a a
The insured is also the policyowner of a whole life policy. What age must the insured
a a a a a a a a a a a a a a a a
attain in order to receive the policy's face amount? -- Correct Answer ✔✔ 100
a a a a a a a a a a a a a
What provision of a life insurance policy states the application is part of the contract? --
a a a a a a a a a a a a a a a a
Correct Answer ✔✔ Entire contract a a a a
A life insurance policy clause that prevents an insurance company from denying payment
a a a a a a a a a a a a a
of a death claim after a specific period of time is known as the.. -- Correct Answer ✔✔
a a a a a a a a a a a a a a a a a a
Incontestability clause a
When a death claim is submitted, the insurer discovered that the insured understated her
a a a a a a a a a a a a a a
age on the application for a life policy. What will the insurer take? -- Correct Answer ✔✔
a a a a a a a a a a a a a a a a a
Pay a reduced death benefit based on the insured's actual age
a a a a a a a a a a
What term refers to the transfer of some or all of the ownership of some or all of the
a a a a a a a a a a a a a a a a a a a
ownership rights of a life insurance policy from one individual to another? -- Correct
a a a a a a a a a a a a a a
Answer ✔✔ Assignment a a
, What is true about the free-look period in a life insurance policy? -- Correct Answer ✔✔
a a a a a a a a a a a a a a a a
It commences when the policy is delivered
a a a a a a
A spouse receives $5,000 a month until the principle and interest on her husband’s life
a a a a a a a a a a a a a a a
insurance policy have been paid out. Which settlement option did this beneficiary choose?
a a a a a a a a a a a a
a-- Correct Answer ✔✔ Fixed amount
a a a a a
What feature allows an insurance policy to remain in force for a specific number of days
a a a a a a a a a a a a a a a a
beyond the premium due date? -- Correct Answer ✔✔ Grace period provision
a a a a a a a a a a a
The insured usually pays $1,200 annually for her life insurance premium. This year, she has
a a a a a a a a a a a a a a
accumulated $175 in dividends, and applied that to her next premium, reducing it to
a a a a a a a a a a a a a a a
$1,025. What dividend option has the insured chosen? -- Correct Answer ✔✔ Reduction
a a a a a a a a a a a a a
of premium a
What are the Nonforfeiture Options of Life Insurance? -- Correct Answer ✔✔ - Cash
a a a a a a a a a a a a a
- Extended Term
a a
- Paid Up Reduced Amount
a a a a
Which of the following is true of the fixed-period and fixed-amount settlement options? --
a a a a a a a a a a a a a
Correct Answer ✔✔ Both guarantee that the principle and interest will be fully paid out
a a a a a a a a a a a a a a a
What is NOT a standard exclusion in life insurance policies? -- Correct Answer ✔✔
a a a a a a a a a a a a a a
Disability, or Suicide. a a a
The standard exclusions are Aviation, hazardous work/activities, military
a a a a a a a
What are the standard exclusions in life insurance policies? -- Correct Answer ✔✔ -
a a a a a a a a a a a a a a
Aviation a
-hazardous occupations or hobbies a a a a
- War or military service
a a a a
Under what circumstance will the contingent beneficiary receive the death benefit? --
a a a a a a a a a a a a
Correct Answer ✔✔ If the primary beneficiary dies before the insured
a a a a a a a a a a
