Texas Funeral Prearrangement Test
Exam 2026 Questions and Answers
The people at the insurance company who determine the risk and accept or reject
the risk are called - Correct 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. - Correct answer-Preferred
The amount the insurer needs to cover the risk it has assumed is called the:
Mortality charge, Reserve, Standard risk, Liability account - Correct answer-
Mortality Charge
When the applicant has more to gain by the insured's continued life, the applicant
has an ___ in the insured. - Correct answer-Insurable Interest
The policy owner cannot change the beneficiary to another person or entity without
the beneficiary's prior consent when the beneficiary is listed as: The primary
beneficiary, The contingent beneficiary, The irrevocable beneficiary, The default
beneficiary - Correct answer-The irrevocable beneficiary
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, ___ is when the effective date of the policy is set at an earlier date than when the
application is completed in order to save age. - Correct answer-Backdating
The payment method that allows the premium payer to authorize the premium
payer's bank to automatically pay the insurance policy's premiums from the
premium payer's account without generating a paper check is: Direct bil, Pre-
Authorized Checking (PAC), Electronic Funds Transfer (EFT), Money order -
Correct answer-Pre-Authorized Checking (PAC)
If premiums are not made to keep the insurance policy in force, the policy is said to
____. - Correct answer-Lapse
An insurance contract is a ___ contract. - Correct answer-Unilateral
The provision that provides that the policy owner has a certain period of time to
examine the policy is the: Grace period, Facility of payment, Insuring clause, Free
look - Correct answer-Free Look
The entire contract provision lists all of the documents that make up the insurance
policy. These documents include: The insurance policy, The application for the
insurance policy, Riders attached to the policy, All of the above - Correct answer-
All of the above
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Exam 2026 Questions and Answers
The people at the insurance company who determine the risk and accept or reject
the risk are called - Correct 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. - Correct answer-Preferred
The amount the insurer needs to cover the risk it has assumed is called the:
Mortality charge, Reserve, Standard risk, Liability account - Correct answer-
Mortality Charge
When the applicant has more to gain by the insured's continued life, the applicant
has an ___ in the insured. - Correct answer-Insurable Interest
The policy owner cannot change the beneficiary to another person or entity without
the beneficiary's prior consent when the beneficiary is listed as: The primary
beneficiary, The contingent beneficiary, The irrevocable beneficiary, The default
beneficiary - Correct answer-The irrevocable beneficiary
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, ___ is when the effective date of the policy is set at an earlier date than when the
application is completed in order to save age. - Correct answer-Backdating
The payment method that allows the premium payer to authorize the premium
payer's bank to automatically pay the insurance policy's premiums from the
premium payer's account without generating a paper check is: Direct bil, Pre-
Authorized Checking (PAC), Electronic Funds Transfer (EFT), Money order -
Correct answer-Pre-Authorized Checking (PAC)
If premiums are not made to keep the insurance policy in force, the policy is said to
____. - Correct answer-Lapse
An insurance contract is a ___ contract. - Correct answer-Unilateral
The provision that provides that the policy owner has a certain period of time to
examine the policy is the: Grace period, Facility of payment, Insuring clause, Free
look - Correct answer-Free Look
The entire contract provision lists all of the documents that make up the insurance
policy. These documents include: The insurance policy, The application for the
insurance policy, Riders attached to the policy, All of the above - Correct answer-
All of the above
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
