Texas Funeral Prearrangement Test 2025 with
250 Recently Tested Exam Questions and Correct
Verified Answers/ TX Funeral Prearrangement
Exam Prep 2025-2026 (Brand New!)
An agent who holds a Funeral Prearrangement Life Insurance License may not
write any coverage or combination of coverages with an initial guaranteed death
benefit that exceeds ____. - ANSWER-$15,000
Selling a funeral prearrangement contract to a person who cannot afford it can
result often in - ANSWER-loss of business to the funeral home
The agent's license may expire if the agent fails to submit a renewal form and fee
at the end of each ___ year renewal period. - ANSWER-Two
If the applicant for an insurance license is denied, for any reason except failure to
pass the exam, the applicant may not re-apply for a minimum of: 15 months, 30
months, 60 months, 90 months - ANSWER-60 months
Whole life insurance develops guaranteed cash values that the policy owner can:
Take a loan against, Cash Surrender, Use as premium for ETI or RPU, or All of the
above - ANSWER-All of the above
Limited pay whole life insurance has a longer premium paying period than a whole
life insurance policy with premiums payable for life for the same face amount.
True or False - ANSWER-False
pg. 1
,Interest-sensitive whole life Insurance companies are regulated by the: Individual
states or Federal government - ANSWER-Individual states
As part of a prearranged funeral sale, the seller must disclose - ANSWER-that
embalming is optional when the burial is immediate
A copy of an insurance-funded prepaid funeral contract must be provided to the
purchaser within ____ from when it was signed - ANSWER-30 days
Regarding misrepresentation of the proposed insured's health - ANSWER-if the
insurance company accepts the application, the applicant's health cannot be
questioned
The purchaser of a prepaid funeral benefits contract may be given the option to
irrevocably waive - ANSWER-the purchaser's right to cancel the contract
Insurance companies incorporated in the state of Texas are called home state or
_____ companies. Insurance companies incorporated in other states but licensed to
do business in Texas are called _____ companies. - ANSWER-Domestic; Foreign
If Chris names ABC Company to receive the death benefit from a life insurance
policy on Lee's life, then - ANSWER-Chris is the owner and ABC Company is the
beneficiary
The death proceeds of a life insurance policy are payable in lump sum payment,
life income, and fixed amount installments - ANSWER-It is NOT payable in
Dividend-only
pg. 2
, An accidental death benefit rider attached to a life insurance policy will normally
pay a benefit at the insured's death, resulting from - ANSWER-an injury sustained
in a traffic crash
Under the waiver of premium rider on a life insurance policy, the insurance
company will pay the policy premiums at no cost to the insured when the insured -
ANSWER-becomes and mains totally disabled
When an individual or firm would suffer substantial financial or emotional loss at
another's death, this creates an - ANSWER-insurable interest
All changes and corrections made to an application for life insurance must be
initialed - ANSWER-by the applicant
A conditional receipt given to the applicant for the premium paid at the time of
application will provide immediate life insurance protection - ANSWER-ONLY if
the insured later proves to be insurable
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
pg. 3
250 Recently Tested Exam Questions and Correct
Verified Answers/ TX Funeral Prearrangement
Exam Prep 2025-2026 (Brand New!)
An agent who holds a Funeral Prearrangement Life Insurance License may not
write any coverage or combination of coverages with an initial guaranteed death
benefit that exceeds ____. - ANSWER-$15,000
Selling a funeral prearrangement contract to a person who cannot afford it can
result often in - ANSWER-loss of business to the funeral home
The agent's license may expire if the agent fails to submit a renewal form and fee
at the end of each ___ year renewal period. - ANSWER-Two
If the applicant for an insurance license is denied, for any reason except failure to
pass the exam, the applicant may not re-apply for a minimum of: 15 months, 30
months, 60 months, 90 months - ANSWER-60 months
Whole life insurance develops guaranteed cash values that the policy owner can:
Take a loan against, Cash Surrender, Use as premium for ETI or RPU, or All of the
above - ANSWER-All of the above
Limited pay whole life insurance has a longer premium paying period than a whole
life insurance policy with premiums payable for life for the same face amount.
True or False - ANSWER-False
pg. 1
,Interest-sensitive whole life Insurance companies are regulated by the: Individual
states or Federal government - ANSWER-Individual states
As part of a prearranged funeral sale, the seller must disclose - ANSWER-that
embalming is optional when the burial is immediate
A copy of an insurance-funded prepaid funeral contract must be provided to the
purchaser within ____ from when it was signed - ANSWER-30 days
Regarding misrepresentation of the proposed insured's health - ANSWER-if the
insurance company accepts the application, the applicant's health cannot be
questioned
The purchaser of a prepaid funeral benefits contract may be given the option to
irrevocably waive - ANSWER-the purchaser's right to cancel the contract
Insurance companies incorporated in the state of Texas are called home state or
_____ companies. Insurance companies incorporated in other states but licensed to
do business in Texas are called _____ companies. - ANSWER-Domestic; Foreign
If Chris names ABC Company to receive the death benefit from a life insurance
policy on Lee's life, then - ANSWER-Chris is the owner and ABC Company is the
beneficiary
The death proceeds of a life insurance policy are payable in lump sum payment,
life income, and fixed amount installments - ANSWER-It is NOT payable in
Dividend-only
pg. 2
, An accidental death benefit rider attached to a life insurance policy will normally
pay a benefit at the insured's death, resulting from - ANSWER-an injury sustained
in a traffic crash
Under the waiver of premium rider on a life insurance policy, the insurance
company will pay the policy premiums at no cost to the insured when the insured -
ANSWER-becomes and mains totally disabled
When an individual or firm would suffer substantial financial or emotional loss at
another's death, this creates an - ANSWER-insurable interest
All changes and corrections made to an application for life insurance must be
initialed - ANSWER-by the applicant
A conditional receipt given to the applicant for the premium paid at the time of
application will provide immediate life insurance protection - ANSWER-ONLY if
the insured later proves to be insurable
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
pg. 3
