Texas Life Insurance exam
Questions and Answers 100%
PASS
Who is considered a field underwriter? - CORRECT ANSWER-An agent
When must insurable interest exist in life insurance? - CORRECT ANSWER-
Application or issue date
If no receipt is issued at the time of application, a statement of good health is
usually required at the time of? - CORRECT ANSWER-Policy delivery
The Medical Information Bureau is?(MIB) - 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 document describes specific information about policy provisions and
benefits? - CORRECT ANSWER-Policy summary
Does not have an insurable interest? - CORRECT ANSWER-Insured's best friend
What is the main source of underwriting information used by the company in the
risk selection process? - CORRECT ANSWER-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 application
What is the main responsibility of a company's underwriting unit? - CORRECT
ANSWER-Risk selection and classification
What best describes the USA PATRIOT Act with regards to the insurance
industry? - CORRECT ANSWER-To prevent terrorism activities through
monitoring of financial transactions
If the agent feels that could misrepresentation on the part of the applicant for
insurance, what must the agent do? - CORRECT ANSWER-Inform the insurance
comapny
Representations are statements made by the applicant that are? - CORRECT
ANSWER-Considered true to the best of the applicant's knowledge
If an agent fails to obtain an applicants signature on the insurance application, the
agent must? - CORRECT ANSWER-Return the application to the applicant for
signature
What includes information regarding a person's credit, character, reputation, and
habits? - CORRECT ANSWER-Consumer report
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, When the insured purchased 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 policies is best suitable for that need? -
CORRECT ANSWER-Decreasing term
An annually renewable term policy? - CORRECT ANSWER-Renews each year
with an increased premium
The time period during which an annuitant contributes to annuity is called? -
CORRECT ANSWER-The accumulation period
An example of limited-pay life policy? - CORRECT ANSWER-Life paid-up at the
age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to
increase the death benefit. What is correct regarding the death benefit increase? -
CORRECT ANSWER-It can be increased by providing evidence of insurability
What is true regarding a universal life policy? - CORRECT ANSWER-The
premiums can be decreased by the insured
With a traditional whole life policy, the death benefit.. - CORRECT ANSWER-
Remains constant over time
Whose life expectancy is taken into consideration in an annuity? - CORRECT
ANSWER-Annuitant
Questions and Answers 100%
PASS
Who is considered a field underwriter? - CORRECT ANSWER-An agent
When must insurable interest exist in life insurance? - CORRECT ANSWER-
Application or issue date
If no receipt is issued at the time of application, a statement of good health is
usually required at the time of? - CORRECT ANSWER-Policy delivery
The Medical Information Bureau is?(MIB) - 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 document describes specific information about policy provisions and
benefits? - CORRECT ANSWER-Policy summary
Does not have an insurable interest? - CORRECT ANSWER-Insured's best friend
What is the main source of underwriting information used by the company in the
risk selection process? - CORRECT ANSWER-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 application
What is the main responsibility of a company's underwriting unit? - CORRECT
ANSWER-Risk selection and classification
What best describes the USA PATRIOT Act with regards to the insurance
industry? - CORRECT ANSWER-To prevent terrorism activities through
monitoring of financial transactions
If the agent feels that could misrepresentation on the part of the applicant for
insurance, what must the agent do? - CORRECT ANSWER-Inform the insurance
comapny
Representations are statements made by the applicant that are? - CORRECT
ANSWER-Considered true to the best of the applicant's knowledge
If an agent fails to obtain an applicants signature on the insurance application, the
agent must? - CORRECT ANSWER-Return the application to the applicant for
signature
What includes information regarding a person's credit, character, reputation, and
habits? - CORRECT ANSWER-Consumer report
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, When the insured purchased 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 policies is best suitable for that need? -
CORRECT ANSWER-Decreasing term
An annually renewable term policy? - CORRECT ANSWER-Renews each year
with an increased premium
The time period during which an annuitant contributes to annuity is called? -
CORRECT ANSWER-The accumulation period
An example of limited-pay life policy? - CORRECT ANSWER-Life paid-up at the
age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to
increase the death benefit. What is correct regarding the death benefit increase? -
CORRECT ANSWER-It can be increased by providing evidence of insurability
What is true regarding a universal life policy? - CORRECT ANSWER-The
premiums can be decreased by the insured
With a traditional whole life policy, the death benefit.. - CORRECT ANSWER-
Remains constant over time
Whose life expectancy is taken into consideration in an annuity? - CORRECT
ANSWER-Annuitant
