Life Insurance Exam (Texas)
Questions and Answers 100%
PASS
Insurance
(General concept) - CORRECT ANSWER-- transfers the risk of loss from an
individual to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
insurable interest
(General Concept) - CORRECT ANSWER-- must exist at the time of the
application
- insuring one's own life, family member, or a business partner
Solicitation and sales presentation - CORRECT ANSWER-- illustration-
presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must be provided at
the time of application
,- policy summary is a description of features and benefits of the policy being issued
and must be provided when the policy is delivered.
Underwriting (Field underwriting (by agent) - CORRECT ANSWER-- application
completed and signed
- agent's report: agent's observation about the application that can assist in
underwriting
-premiums with application and conditional receipts
underwriting ( company underwriting) - CORRECT ANSWER-- multiple sources
of information: applications, consumer reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
Underwriting (Federal Regulation) - CORRECT ANSWER-- Fair Credit Reporting
Act: protect consumers against circulations of inaccurate or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports
Rules
Premium Determination - CORRECT ANSWER-- 3 key Factors for life
insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher the premium
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, Policy Issue and Delivery - CORRECT ANSWER-Effective date of coverage - if
the premium is not paid with the application, the agent must obtain the premium
and a statement of continued good health at the time of the policy delivery
Agent/ Producer - CORRECT ANSWER-a legal representative of an insurance
company; the classification of producers usually includes agents and brokers'
agents are the agents of the insurer
Applicant of proposed insured - CORRECT ANSWER-a person applying for
insurance
Beneficiary - CORRECT ANSWER-a person who receives the benefits of an
insurance policy
Broker - CORRECT ANSWER-an insurance producer who is not appointed by an
insurance company and who represents the client
Death benefits - CORRECT ANSWER-the amount paid upon death of the
insured in a life insurance policy
Estate - CORRECT ANSWER-a person's net worth
Insurance policy - CORRECT ANSWER-a contact between a policyowner
(and/or insured) and an insurance company which agrees to pay insured or the
beneficiary for loss caused by specific events.
Insured - CORRECT ANSWER-a person covered by the insurance policy; may or
may not be the policyowner
Questions and Answers 100%
PASS
Insurance
(General concept) - CORRECT ANSWER-- transfers the risk of loss from an
individual to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
insurable interest
(General Concept) - CORRECT ANSWER-- must exist at the time of the
application
- insuring one's own life, family member, or a business partner
Solicitation and sales presentation - CORRECT ANSWER-- illustration-
presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must be provided at
the time of application
,- policy summary is a description of features and benefits of the policy being issued
and must be provided when the policy is delivered.
Underwriting (Field underwriting (by agent) - CORRECT ANSWER-- application
completed and signed
- agent's report: agent's observation about the application that can assist in
underwriting
-premiums with application and conditional receipts
underwriting ( company underwriting) - CORRECT ANSWER-- multiple sources
of information: applications, consumer reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
Underwriting (Federal Regulation) - CORRECT ANSWER-- Fair Credit Reporting
Act: protect consumers against circulations of inaccurate or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports
Rules
Premium Determination - CORRECT ANSWER-- 3 key Factors for life
insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher the premium
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, Policy Issue and Delivery - CORRECT ANSWER-Effective date of coverage - if
the premium is not paid with the application, the agent must obtain the premium
and a statement of continued good health at the time of the policy delivery
Agent/ Producer - CORRECT ANSWER-a legal representative of an insurance
company; the classification of producers usually includes agents and brokers'
agents are the agents of the insurer
Applicant of proposed insured - CORRECT ANSWER-a person applying for
insurance
Beneficiary - CORRECT ANSWER-a person who receives the benefits of an
insurance policy
Broker - CORRECT ANSWER-an insurance producer who is not appointed by an
insurance company and who represents the client
Death benefits - CORRECT ANSWER-the amount paid upon death of the
insured in a life insurance policy
Estate - CORRECT ANSWER-a person's net worth
Insurance policy - CORRECT ANSWER-a contact between a policyowner
(and/or insured) and an insurance company which agrees to pay insured or the
beneficiary for loss caused by specific events.
Insured - CORRECT ANSWER-a person covered by the insurance policy; may or
may not be the policyowner
