Preneed Prep Exam 2024 Questions and Answers

Preneed Prep Exam 2024 Questions and Answers Joint Memorandum - Who What When Why -Answer-Who: DOB, FSC, TDI What: A joint agreement that established specific area of responsibilities for prepaid funeral svc . When: 1995 Why : its creation was mandated by the Texas Civil Statutes 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 Permit holder or seller -Answer-Any individual or business entity licensed in Texas to sell prepaid funeral contracts to the pu