Texas Insurance Adjuster Exam
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
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
insurer (principal) -correct answer-the company who issues an insurance policy
Lapse -correct answer-policy termination due to nonpayment of premium
Life insurance -correct answer-coverage on human lives
Policyowner -correct answer-the person entitled to exercise the rights and privileges in the
policy
Premium -correct answer-the money paid to the insurance company for the insurance policy
Underwriting -correct answer-is the risk selection and classification process
Attained age -correct answer-the insured's age at the time the policy is issued or renewed
cash value -correct answer-a policy's saving element or living benefit
Face amount -correct answer-the amount of benefits stated in the life insurance policy
Fixed life insurance -correct answer-contracts that offer guaranteed minimum or fixed
benefits
Deferred -correct answer-withheld or postponed until a specified time or event in the future
Endow -correct answer-the cash value of a whole life policy has reached the contractual face
amount
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
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
insurer (principal) -correct answer-the company who issues an insurance policy
Lapse -correct answer-policy termination due to nonpayment of premium
Life insurance -correct answer-coverage on human lives
Policyowner -correct answer-the person entitled to exercise the rights and privileges in the
policy
Premium -correct answer-the money paid to the insurance company for the insurance policy
Underwriting -correct answer-is the risk selection and classification process
Attained age -correct answer-the insured's age at the time the policy is issued or renewed
cash value -correct answer-a policy's saving element or living benefit
Face amount -correct answer-the amount of benefits stated in the life insurance policy
Fixed life insurance -correct answer-contracts that offer guaranteed minimum or fixed
benefits
Deferred -correct answer-withheld or postponed until a specified time or event in the future
Endow -correct answer-the cash value of a whole life policy has reached the contractual face
amount
