PRENEED KEY EXAM SCRIPT 2026 FULL
QUESTIONS AND CORRECT ANSWERS STUDY
GUIDE
◉ In regards to PreNeed Funeral policies
What 5 responsibilities does TDI, Texas Department of Insurance
have. Answer: Regulating & licensing insurers which propose to
issue insurance products for prepaid funeral contract funding
Regs & licenses individuals who perform acts of insurance agents
Regulates & approves insurance products designed to fund prepaid
funeral contracts
Regulates unfair trade practices relating to the sale of insurance
funded contracts for prepaid funerals
Regulates unfair claims practices of insurance companies
◉ Agent. Answer: An authorized representative of the parties to a
contract
,◉ Define Agency. Answer: A group of insurance agents, most often
managed by a "general agent" who work together representing one
or more insurance companies.
◉ Difference between prepaid prearrangement and preneed funeral.
Answer: DOB uses Prepaid
TDI uses Prepaid interchangeably with Prearrangement
FTC Preneed encompasses both pre - paid and arrangement
◉ In regards to PreNeed Funeral policies
What 5 responsibilities does DOB, Texas Department of Banking
have. Answer: • Issuing renewal & cancellation of permits to sell PFS
merchandise
• Approve funeral benefit contracts & contract forms
• Approve release & withdrawal of funds under certain
circumstances
• Est. reporting requirements & conducting audits/examinations of
records
• Maintaining guaranty funds for PF benefits maintained in trusts
, ◉ In regards to PreNeed Funeral policies
What are the 2 areas of responsibilities for FSC, Texas Funeral
Service Commission. Answer: 1) Licensing and regulating all funeral
directors and embalmers
2) taking actions against violators
◉ Life Insurance. Answer: a contract between an insurance company
and policy owner which provides a death benefit immediately or in
the future which is usually higher than the initial premiums paid to
purchase the policy
◉ Define Insurance Agent
Insurance Agents are also referred to as. Answer: Any person who
solicits insurance takes applications, receives or transmits premium,
receives or delivers policies
AKA affiliates
◉ Annuity. Answer: Insurance contracts which allow the steady
accumulation of premiums at interest. At the death of the owner of
QUESTIONS AND CORRECT ANSWERS STUDY
GUIDE
◉ In regards to PreNeed Funeral policies
What 5 responsibilities does TDI, Texas Department of Insurance
have. Answer: Regulating & licensing insurers which propose to
issue insurance products for prepaid funeral contract funding
Regs & licenses individuals who perform acts of insurance agents
Regulates & approves insurance products designed to fund prepaid
funeral contracts
Regulates unfair trade practices relating to the sale of insurance
funded contracts for prepaid funerals
Regulates unfair claims practices of insurance companies
◉ Agent. Answer: An authorized representative of the parties to a
contract
,◉ Define Agency. Answer: A group of insurance agents, most often
managed by a "general agent" who work together representing one
or more insurance companies.
◉ Difference between prepaid prearrangement and preneed funeral.
Answer: DOB uses Prepaid
TDI uses Prepaid interchangeably with Prearrangement
FTC Preneed encompasses both pre - paid and arrangement
◉ In regards to PreNeed Funeral policies
What 5 responsibilities does DOB, Texas Department of Banking
have. Answer: • Issuing renewal & cancellation of permits to sell PFS
merchandise
• Approve funeral benefit contracts & contract forms
• Approve release & withdrawal of funds under certain
circumstances
• Est. reporting requirements & conducting audits/examinations of
records
• Maintaining guaranty funds for PF benefits maintained in trusts
, ◉ In regards to PreNeed Funeral policies
What are the 2 areas of responsibilities for FSC, Texas Funeral
Service Commission. Answer: 1) Licensing and regulating all funeral
directors and embalmers
2) taking actions against violators
◉ Life Insurance. Answer: a contract between an insurance company
and policy owner which provides a death benefit immediately or in
the future which is usually higher than the initial premiums paid to
purchase the policy
◉ Define Insurance Agent
Insurance Agents are also referred to as. Answer: Any person who
solicits insurance takes applications, receives or transmits premium,
receives or delivers policies
AKA affiliates
◉ Annuity. Answer: Insurance contracts which allow the steady
accumulation of premiums at interest. At the death of the owner of
