TEXAS LIFE INSURANCE EXAM QUESTIONS
WITH 100 PERCENT CORRECT ANSWERS
VERIFIED FULL SOLUTION STUDY GUIDE
⩥ When must insurable interest exist in life insurance?
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?
Answer: Policy delivery
⩥ The Medical Information Bureau is?(MIB)
Answer: a source of medical information to alert insurers to adverse
medical history
⩥ A substandard risk compared to a standard risk would pay?
Answer: a higher premium
⩥ Which document describes specific information about policy
provisions and benefits?
Answer: Policy summary
,⩥ Does not have an insurable interest?
Answer: Insured's best friend
⩥ What is the main source of underwriting information used by the
company in the risk selection process?
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?
Answer: On the date of application
⩥ What is the main responsibility of a company's underwriting unit?
Answer: Risk selection and classification
⩥ What best describes the USA PATRIOT Act with regards to the
insurance industry?
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?
Answer: Inform the insurance comapny
, ⩥ Representations are statements made by the applicant that are?
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?
Answer: Return the application to the applicant for signature
⩥ What includes information regarding a person's credit, character,
reputation, and habits?
Answer: Consumer report
⩥ 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?
Answer: Decreasing term
⩥ An annually renewable term policy?
Answer: Renews each year with an increased premium
⩥ The time period during which an annuitant contributes to annuity is
called?
Answer: The accumulation period
WITH 100 PERCENT CORRECT ANSWERS
VERIFIED FULL SOLUTION STUDY GUIDE
⩥ When must insurable interest exist in life insurance?
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?
Answer: Policy delivery
⩥ The Medical Information Bureau is?(MIB)
Answer: a source of medical information to alert insurers to adverse
medical history
⩥ A substandard risk compared to a standard risk would pay?
Answer: a higher premium
⩥ Which document describes specific information about policy
provisions and benefits?
Answer: Policy summary
,⩥ Does not have an insurable interest?
Answer: Insured's best friend
⩥ What is the main source of underwriting information used by the
company in the risk selection process?
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?
Answer: On the date of application
⩥ What is the main responsibility of a company's underwriting unit?
Answer: Risk selection and classification
⩥ What best describes the USA PATRIOT Act with regards to the
insurance industry?
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?
Answer: Inform the insurance comapny
, ⩥ Representations are statements made by the applicant that are?
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?
Answer: Return the application to the applicant for signature
⩥ What includes information regarding a person's credit, character,
reputation, and habits?
Answer: Consumer report
⩥ 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?
Answer: Decreasing term
⩥ An annually renewable term policy?
Answer: Renews each year with an increased premium
⩥ The time period during which an annuitant contributes to annuity is
called?
Answer: The accumulation period
