TEXAS State Insurance License Exam |42
Questions and Answers
An insurer neglects to pay a legitimate claim that is covered under the terms
of the policy. Which of the following insurance principles has the insurer
violated? - -Consideration
- Which of the following statements regarding HIV testing for insurance
purposes is NOT true? - -Insurers are barred from requesting HIV testing.
- All of the following are dividend options EXCEPT - -Fixed period
installments
- Which of the following documents delivered to the policyowner includes
information about premium amounts, cash values, surrender values and
death benefits for specific policy years? - -A Policy Summary
- A 60-year-old participant in a 401(k) plan takes a distribution and rolls it
over to an IRA within 60 days. Which of the following is true? - -The amount
of the distribution is reduced by the amount of a 20% withholding tax.
- Which of the following best describes annually renewable term insurance? -
-It's Level Term Insurance
- Which of the following policies would be classified as a traditional level
premium contract? - -Straight Life
- Which option is being utilized when the insurer accumulates dividends at
interest and then uses the accumulated dividends, plus interest, and the
policy cash value to pay the policy up early? - -Paid Up Option
- A couple owns a life insurance policy with a Children's Term rider. Their
daughter is reaching the maximum age of dependent coverage, so she will
have to convert to permanent insurance in the near future. Which of the
following will she need to provide for proof of insurability? - -Proof Of
Insurability is not required
- When a whole life policy lapses or is surrendered prior to maturity, the
cash value can be used to - -Purchase a single premium policy for a reduced
face amount.
- All of the following are examples of third-party ownership of a life
insurance policy EXCEPT - -An insured borrows money from the bank and
Questions and Answers
An insurer neglects to pay a legitimate claim that is covered under the terms
of the policy. Which of the following insurance principles has the insurer
violated? - -Consideration
- Which of the following statements regarding HIV testing for insurance
purposes is NOT true? - -Insurers are barred from requesting HIV testing.
- All of the following are dividend options EXCEPT - -Fixed period
installments
- Which of the following documents delivered to the policyowner includes
information about premium amounts, cash values, surrender values and
death benefits for specific policy years? - -A Policy Summary
- A 60-year-old participant in a 401(k) plan takes a distribution and rolls it
over to an IRA within 60 days. Which of the following is true? - -The amount
of the distribution is reduced by the amount of a 20% withholding tax.
- Which of the following best describes annually renewable term insurance? -
-It's Level Term Insurance
- Which of the following policies would be classified as a traditional level
premium contract? - -Straight Life
- Which option is being utilized when the insurer accumulates dividends at
interest and then uses the accumulated dividends, plus interest, and the
policy cash value to pay the policy up early? - -Paid Up Option
- A couple owns a life insurance policy with a Children's Term rider. Their
daughter is reaching the maximum age of dependent coverage, so she will
have to convert to permanent insurance in the near future. Which of the
following will she need to provide for proof of insurability? - -Proof Of
Insurability is not required
- When a whole life policy lapses or is surrendered prior to maturity, the
cash value can be used to - -Purchase a single premium policy for a reduced
face amount.
- All of the following are examples of third-party ownership of a life
insurance policy EXCEPT - -An insured borrows money from the bank and
