Life Insurance Exam Question
(Texas) Exam Questions and
Answers 100% PASS
Which of the following is considered a field underwriter? - CORRECT
ANSWER-An agent
When must insurable interest exist in life insurance? - CORRECT ANSWER-
Application or issues date
If no receipt is issued at the time application, a statement of good health is usually
required at the time of - CORRECT ANSWER-Policy Delivery
The Medical Information Bureau is - CORRECT ANSWER-A source of medical
information to alert insurers to adverse medical history
A substandard risk compared to a standard risk would pay - CORRECT
ANSWER-A higher premium
Which of the following documents describes specific information about policy
provisions and benefits? - CORRECT ANSWER-Policy Summary
All the following may have an insurable interest in the insured EXCEPT -
CORRECT ANSWER-Insured's best friend
,Which of the following would be the main source of underwriting information
used by the company in the risk selection process? - CORRECT ANSWER-
Application
"90% information comes from the application"
An insured submits the full premium along with a completed application, and the
policy is issued 10 days later. When does the coverage begin? - CORRECT
ANSWER-On the date of the application
What is the main responsibility of a company's underwriting unit? - CORRECT
ANSWER-Risk selection and classification( preferred, standard, substandard)
Which of the following best describes the purpose of the USA PATRIOT Act with
regards to the insurance, what must the agent do? - CORRECT ANSWER-Inform
the insurance company
If the agent feels that there could be misrepresentation on the part of the applicant
for insurance, what must the agent do? - CORRECT ANSWER-Inform the
insurance company
Representations are statements made by the applicant that are - CORRECT
ANSWER-Considered true to the best of the applicant's knowledge
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,If an agent fails to obtain an applicant's signature on the insurance application, the
agent must - CORRECT ANSWER-Return the application to the applicant for a
signature.
Which of the following includes information regarding a person's credit, character,
reputation, and habits? - CORRECT ANSWER-Consumers report
What is insurance? - CORRECT ANSWER-is a contract in which one party (the
insurance company) agrees to idemnify (make whole) the insured party against loss,
damage or liability arising from an unknown event.
Representation are statements made by the applicant for insurance that are -
CORRECT ANSWER-True to the best of the applicant's knowledge.
Insurable interest must exist at the time of - CORRECT ANSWER-application
A warranty is an - CORRECT ANSWER-absolutely true statement
If an insurer issues a policy with unanswered questions on the application, the
insurer has given up the right to use the missing information in underwriting. -
CORRECT ANSWER-True
The agent's report includes the agent's personal observation concerning the
proposed insured. - CORRECT ANSWER-True
The primary purpose of an investigative consumer report is to assess an applicant's
- CORRECT ANSWER-Lifestyle and habits
, In a life insurance policy, when must insurable interest exist? - CORRECT
ANSWER-A valid insurable interest may exist between the policyowners and the
insured when they policy is insuring any of the following
1. policyowner's own life
2. the life of a family member (a spouse or a close blood relative)
3. The life of a business partner, key employees, or someone who has a financial
obligation to the policy owner (such as debtor to a creditor)
Insurance is the transfer of risk - CORRECT ANSWER-True
What type of receipt is given to the applicant who submits the application with the
premium payment? - CORRECT ANSWER-conditional
A document that provides information for underwriting purposes is the... -
CORRECT ANSWER-Application
A person of average physical condition and lifestyles would receive which
underwriting classification? - CORRECT ANSWER-Standard
When the insured purchase a new home, he wanted to purchase a life insurance
policy that would protect his family against losing it should he die before the
mortgage was paid. Which of the following polices is best suitable for that need? -
CORRECT ANSWER-Decreasing term
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
(Texas) Exam Questions and
Answers 100% PASS
Which of the following is considered a field underwriter? - CORRECT
ANSWER-An agent
When must insurable interest exist in life insurance? - CORRECT ANSWER-
Application or issues date
If no receipt is issued at the time application, a statement of good health is usually
required at the time of - CORRECT ANSWER-Policy Delivery
The Medical Information Bureau is - CORRECT ANSWER-A source of medical
information to alert insurers to adverse medical history
A substandard risk compared to a standard risk would pay - CORRECT
ANSWER-A higher premium
Which of the following documents describes specific information about policy
provisions and benefits? - CORRECT ANSWER-Policy Summary
All the following may have an insurable interest in the insured EXCEPT -
CORRECT ANSWER-Insured's best friend
,Which of the following would be the main source of underwriting information
used by the company in the risk selection process? - CORRECT ANSWER-
Application
"90% information comes from the application"
An insured submits the full premium along with a completed application, and the
policy is issued 10 days later. When does the coverage begin? - CORRECT
ANSWER-On the date of the application
What is the main responsibility of a company's underwriting unit? - CORRECT
ANSWER-Risk selection and classification( preferred, standard, substandard)
Which of the following best describes the purpose of the USA PATRIOT Act with
regards to the insurance, what must the agent do? - CORRECT ANSWER-Inform
the insurance company
If the agent feels that there could be misrepresentation on the part of the applicant
for insurance, what must the agent do? - CORRECT ANSWER-Inform the
insurance company
Representations are statements made by the applicant that are - CORRECT
ANSWER-Considered true to the best of the applicant's knowledge
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
,If an agent fails to obtain an applicant's signature on the insurance application, the
agent must - CORRECT ANSWER-Return the application to the applicant for a
signature.
Which of the following includes information regarding a person's credit, character,
reputation, and habits? - CORRECT ANSWER-Consumers report
What is insurance? - CORRECT ANSWER-is a contract in which one party (the
insurance company) agrees to idemnify (make whole) the insured party against loss,
damage or liability arising from an unknown event.
Representation are statements made by the applicant for insurance that are -
CORRECT ANSWER-True to the best of the applicant's knowledge.
Insurable interest must exist at the time of - CORRECT ANSWER-application
A warranty is an - CORRECT ANSWER-absolutely true statement
If an insurer issues a policy with unanswered questions on the application, the
insurer has given up the right to use the missing information in underwriting. -
CORRECT ANSWER-True
The agent's report includes the agent's personal observation concerning the
proposed insured. - CORRECT ANSWER-True
The primary purpose of an investigative consumer report is to assess an applicant's
- CORRECT ANSWER-Lifestyle and habits
, In a life insurance policy, when must insurable interest exist? - CORRECT
ANSWER-A valid insurable interest may exist between the policyowners and the
insured when they policy is insuring any of the following
1. policyowner's own life
2. the life of a family member (a spouse or a close blood relative)
3. The life of a business partner, key employees, or someone who has a financial
obligation to the policy owner (such as debtor to a creditor)
Insurance is the transfer of risk - CORRECT ANSWER-True
What type of receipt is given to the applicant who submits the application with the
premium payment? - CORRECT ANSWER-conditional
A document that provides information for underwriting purposes is the... -
CORRECT ANSWER-Application
A person of average physical condition and lifestyles would receive which
underwriting classification? - CORRECT ANSWER-Standard
When the insured purchase a new home, he wanted to purchase a life insurance
policy that would protect his family against losing it should he die before the
mortgage was paid. Which of the following polices is best suitable for that need? -
CORRECT ANSWER-Decreasing term
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
