PRENEED CERTIFICATION EVALUATION
COMPLETE QUESTIONS AND VERIFIED
ANSWERS
●● What is a preneed Funeral contract
Answer: Any written contract of agreement, funded by an insurance
policy, annuity contract or trust deposit, for the purpose of furnishing or
delivery of prepaid funeral benefits for the final disposition of a corpse
at the time of that individual's death
●● 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 the policy, annuities
return premiums paid and interest earned, but do not produce a death
benefit like life insurances
●● Trust Account
Answer: A non-insurance account, normally held at a bank or trust
institution, created and maintained for the benefit of a prepaid funeral
customer. A trustee administers and supervises the account under the
regulatory authority of the DOB.
●● Fiduciary responsibility
Answer: The act of conducting oneself in accordance to the highest
moral and ethical standards
●● Insurance funded contract
Answer: Research this more
COMPLETE QUESTIONS AND VERIFIED
ANSWERS
●● What is a preneed Funeral contract
Answer: Any written contract of agreement, funded by an insurance
policy, annuity contract or trust deposit, for the purpose of furnishing or
delivery of prepaid funeral benefits for the final disposition of a corpse
at the time of that individual's death
●● 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 the policy, annuities
return premiums paid and interest earned, but do not produce a death
benefit like life insurances
●● Trust Account
Answer: A non-insurance account, normally held at a bank or trust
institution, created and maintained for the benefit of a prepaid funeral
customer. A trustee administers and supervises the account under the
regulatory authority of the DOB.
●● Fiduciary responsibility
Answer: The act of conducting oneself in accordance to the highest
moral and ethical standards
●● Insurance funded contract
Answer: Research this more
