Texas Funeral Prearrangement Certification Test 2026 |
Most Frequently Tested Concepts | Graded A+
1. The Texas Funeral Service Commission (FSC) is responsible for:
Licensing all funeral directors and embalmers in Texas
Regulating all funeral directors and embalmers in Texas
Both A and B
Neither A or B
2. If an individual purchases an immediate annuity at age 65, what financial
planning consideration should they keep in mind regarding their retirement
income?
They should consider how the immediate annuity will provide a
steady income stream during retirement.
They should consider the tax implications of the annuity payments.
They should consider the penalties for early withdrawal from the
annuity.
They should consider the potential for investment growth with a
deferred annuity.
3. If an insurance agent fails to provide full and fair disclosure, what potential
consequence could arise for the applicant?
The applicant will automatically be denied coverage.
The agent could receive a bonus.
The applicant may make an uninformed decision about their
insurance coverage.
The insurance company will increase premiums.
,4. Describe the significance of a lump sum payment to a beneficiary in the
context of life insurance policies.
A lump sum payment is only available if the policyholder had a
specific type of insurance.
A lump sum payment provides immediate financial support to the
beneficiary after the insured's death.
A lump sum payment is used to pay off the insured's debts only.
A lump sum payment is a delayed payment made over several years.
5. The payment method that allows the premium payer to authorize the
premium payer's bank to automatically pay the insurance policy's premiums
from the premium payer's account without generating a paper check is:
Direct bill
Electronic funds transfer (EFT)
Money order
Pre-authorized checking (PAC)
6. Describe the dual role of the Texas Funeral Service Commission in relation to
funeral service professionals.
The Texas Funeral Service Commission only licenses funeral directors.
The Texas Funeral Service Commission is responsible for both
licensing and regulating funeral directors and embalmers.
The Texas Funeral Service Commission only regulates embalmers.
The Texas Funeral Service Commission oversees the financial aspects
of funeral homes.
,7. Who is responsible for approving preneed funeral contracts in Texas?
The Texas Attorney General
The Texas Health Department
The Texas Department of Banking
The Texas Funeral Service Commission
8. In an annuity contract, who is the individual that receives the benefits during
the payout phase?
Owner
Insurance company
Beneficiary
Annuitant
9. When a premium payer has stopped making scheduled premium payments
and the policy goes reduced paid-up insurance (RPU), the cash value of the
policy is used to purchase a single premium whole life insurance policy for a
______ amount of coverage with no further payments due.
Equal
lesser
greater
10. If an individual is looking for a life insurance policy that is affordable and
does not provide cash value, which type of insurance should they choose?
Whole life insurance
Universal life insurance
Variable life insurance
, Term life insurance
11. If an insurance company identifies a new client as a preferred risk, what
implications does this have for the client's insurance policy terms?
The client will be denied coverage altogether.
The client will have to pay a higher premium with reduced coverage.
The client may receive a lower premium and higher coverage limits.
The client will only be offered basic coverage with no options.
12. What is the name of the payment method that enables automatic payment of
insurance premiums from a bank account?
Electronic Funds Transfer (EFT)
Credit Card Payment
Cash Payment
Wire Transfer
13. Advertising must be:
clear
Understandable
non-misleading
all of the above
14. An agent's license expires on:
On the agent's date of birth each odd or even year, depending on
whether the agent's date of birth is in an even year or an odd year
Most Frequently Tested Concepts | Graded A+
1. The Texas Funeral Service Commission (FSC) is responsible for:
Licensing all funeral directors and embalmers in Texas
Regulating all funeral directors and embalmers in Texas
Both A and B
Neither A or B
2. If an individual purchases an immediate annuity at age 65, what financial
planning consideration should they keep in mind regarding their retirement
income?
They should consider how the immediate annuity will provide a
steady income stream during retirement.
They should consider the tax implications of the annuity payments.
They should consider the penalties for early withdrawal from the
annuity.
They should consider the potential for investment growth with a
deferred annuity.
3. If an insurance agent fails to provide full and fair disclosure, what potential
consequence could arise for the applicant?
The applicant will automatically be denied coverage.
The agent could receive a bonus.
The applicant may make an uninformed decision about their
insurance coverage.
The insurance company will increase premiums.
,4. Describe the significance of a lump sum payment to a beneficiary in the
context of life insurance policies.
A lump sum payment is only available if the policyholder had a
specific type of insurance.
A lump sum payment provides immediate financial support to the
beneficiary after the insured's death.
A lump sum payment is used to pay off the insured's debts only.
A lump sum payment is a delayed payment made over several years.
5. The payment method that allows the premium payer to authorize the
premium payer's bank to automatically pay the insurance policy's premiums
from the premium payer's account without generating a paper check is:
Direct bill
Electronic funds transfer (EFT)
Money order
Pre-authorized checking (PAC)
6. Describe the dual role of the Texas Funeral Service Commission in relation to
funeral service professionals.
The Texas Funeral Service Commission only licenses funeral directors.
The Texas Funeral Service Commission is responsible for both
licensing and regulating funeral directors and embalmers.
The Texas Funeral Service Commission only regulates embalmers.
The Texas Funeral Service Commission oversees the financial aspects
of funeral homes.
,7. Who is responsible for approving preneed funeral contracts in Texas?
The Texas Attorney General
The Texas Health Department
The Texas Department of Banking
The Texas Funeral Service Commission
8. In an annuity contract, who is the individual that receives the benefits during
the payout phase?
Owner
Insurance company
Beneficiary
Annuitant
9. When a premium payer has stopped making scheduled premium payments
and the policy goes reduced paid-up insurance (RPU), the cash value of the
policy is used to purchase a single premium whole life insurance policy for a
______ amount of coverage with no further payments due.
Equal
lesser
greater
10. If an individual is looking for a life insurance policy that is affordable and
does not provide cash value, which type of insurance should they choose?
Whole life insurance
Universal life insurance
Variable life insurance
, Term life insurance
11. If an insurance company identifies a new client as a preferred risk, what
implications does this have for the client's insurance policy terms?
The client will be denied coverage altogether.
The client will have to pay a higher premium with reduced coverage.
The client may receive a lower premium and higher coverage limits.
The client will only be offered basic coverage with no options.
12. What is the name of the payment method that enables automatic payment of
insurance premiums from a bank account?
Electronic Funds Transfer (EFT)
Credit Card Payment
Cash Payment
Wire Transfer
13. Advertising must be:
clear
Understandable
non-misleading
all of the above
14. An agent's license expires on:
On the agent's date of birth each odd or even year, depending on
whether the agent's date of birth is in an even year or an odd year
