TEXAS Funeral Prearrangement License
EXAM STUDY GUIDE 2026/2027 ACCURATE
QUESTIONS WITH CORRECT DETAILED ANSWER ||
100% GUARANTEED PASS
<RECENT VERSION>
1. A funeral prearrangement life insurance agent must be supervised -
ANSWER ✔ By a legal reserve life insurance agent whose company holds a
seller's permit.
2. The maximum initial guaranteed death benefit that a funeral prearrangement
life insurance agent may sell is - ANSWER ✔ $15,000
3. A funeral prearrangement life insurance agent license expires when the
agent - ANSWER ✔ Fails to submit a biannual renewal application and fee
4. When an application for an insurance agent license is denied, except for
failure to pass the examination, the applicant may NOT re-apply for at least -
ANSWER ✔ 60 months
5. An agents insurance license could be suspended or revoked if the agent -
ANSWER ✔ fails to remit premiums
6. Some life insurance policies for an additional death benefits declaration to
made the option of - ANSWER ✔ the insurance company
,7. The intended beneficiary of the proceeds of a life insurance policy must be
designated on the - ANSWER ✔ policy application
8. If the primary and contingent beneficiaries of a life insurance policy are both
living when the insured dies, the proceeds will be paid to the - ANSWER ✔
primary beneficiary only
9. A life insurance policy owner may designate a new beneficiary without the
consent of the current beneficiary unless the current beneficiary designation
is - ANSWER ✔ irrevocable
10._____ increases when life insurance policy dividends are used to purchase
paid-up additions - ANSWER ✔ death benefit and cash value
11.During the insured's lifetime, a policy owner may surrender a whole
insurance policy for a cash payment equal to the - ANSWER ✔ net cash
value
12.The policy option, _______ allows a policy owner to surrender a whole life
policy for a lesser amount of permanent life insurance coverage on which no
further premiums are due - ANSWER ✔ reduced paid-up insurance
13.The death proceeds of a life insurance policy are payable in lump sum
payment, life income, and fixed amount installemts - ANSWER ✔ It is NOT
payable in Dividend-only
, 14.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
15.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
16.The people at the insurance company who determine the risk and accept or
reject the risk are called - ANSWER ✔ Underwriters
17.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
18.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
19.When the applicant has more to gain by the insured's continued life, the
applicant has an ___ in the insured. - ANSWER ✔ Insurable Interest
20.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 - ANSWER ✔ The irrevocable
beneficiary
EXAM STUDY GUIDE 2026/2027 ACCURATE
QUESTIONS WITH CORRECT DETAILED ANSWER ||
100% GUARANTEED PASS
<RECENT VERSION>
1. A funeral prearrangement life insurance agent must be supervised -
ANSWER ✔ By a legal reserve life insurance agent whose company holds a
seller's permit.
2. The maximum initial guaranteed death benefit that a funeral prearrangement
life insurance agent may sell is - ANSWER ✔ $15,000
3. A funeral prearrangement life insurance agent license expires when the
agent - ANSWER ✔ Fails to submit a biannual renewal application and fee
4. When an application for an insurance agent license is denied, except for
failure to pass the examination, the applicant may NOT re-apply for at least -
ANSWER ✔ 60 months
5. An agents insurance license could be suspended or revoked if the agent -
ANSWER ✔ fails to remit premiums
6. Some life insurance policies for an additional death benefits declaration to
made the option of - ANSWER ✔ the insurance company
,7. The intended beneficiary of the proceeds of a life insurance policy must be
designated on the - ANSWER ✔ policy application
8. If the primary and contingent beneficiaries of a life insurance policy are both
living when the insured dies, the proceeds will be paid to the - ANSWER ✔
primary beneficiary only
9. A life insurance policy owner may designate a new beneficiary without the
consent of the current beneficiary unless the current beneficiary designation
is - ANSWER ✔ irrevocable
10._____ increases when life insurance policy dividends are used to purchase
paid-up additions - ANSWER ✔ death benefit and cash value
11.During the insured's lifetime, a policy owner may surrender a whole
insurance policy for a cash payment equal to the - ANSWER ✔ net cash
value
12.The policy option, _______ allows a policy owner to surrender a whole life
policy for a lesser amount of permanent life insurance coverage on which no
further premiums are due - ANSWER ✔ reduced paid-up insurance
13.The death proceeds of a life insurance policy are payable in lump sum
payment, life income, and fixed amount installemts - ANSWER ✔ It is NOT
payable in Dividend-only
, 14.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
15.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
16.The people at the insurance company who determine the risk and accept or
reject the risk are called - ANSWER ✔ Underwriters
17.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
18.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
19.When the applicant has more to gain by the insured's continued life, the
applicant has an ___ in the insured. - ANSWER ✔ Insurable Interest
20.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 - ANSWER ✔ The irrevocable
beneficiary
