Texas Life Insurance exam Questions
and Correct Answers
Who is considered a field underwriter? - correct answers:An agent
When must insurable interest exist in life insurance? - correct answers: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? - correct answers:Policy delivery
The Medical Information Bureau is?(MIB) - correct answers:a source of medical information to alert
insurers to adverse medical history
A substandard risk compared to a standard risk would pay? - correct answers:a higher premium
Which document describes specific information about policy provisions and benefits? - correct
answers:Policy summary
Does not have an insurable interest? - correct answers:Insured's best friend
What is the main source of underwriting information used by the company in the risk selection process?
- correct answers: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? - correct answers:On the date of application
What is the main responsibility of a company's underwriting unit? - correct answers:Risk selection and
classification
What best describes the USA PATRIOT Act with regards to the insurance industry? - correct answers: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? - correct answers:Inform the insurance comapny
Representations are statements made by the applicant that are? - correct answers: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? - correct
answers:Return the application to the applicant for signature
What includes information regarding a person's credit, character, reputation, and habits? - correct
answers: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? - correct answers:Decreasing term
An annually renewable term policy? - correct answers:Renews each year with an increased premium
The time period during which an annuitant contributes to annuity is called? - correct answers:The
accumulation period
An example of limited-pay life policy? - correct answers:Life paid-up at the age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to increase the death
benefit. What is correct regarding the death benefit increase? - correct answers:It can be increased by
providing evidence of insurability
What is true regarding a universal life policy? - correct answers:The premiums can be decreased by the
insured
With a traditional whole life policy, the death benefit.. - correct answers:Remains constant over time
and Correct Answers
Who is considered a field underwriter? - correct answers:An agent
When must insurable interest exist in life insurance? - correct answers: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? - correct answers:Policy delivery
The Medical Information Bureau is?(MIB) - correct answers:a source of medical information to alert
insurers to adverse medical history
A substandard risk compared to a standard risk would pay? - correct answers:a higher premium
Which document describes specific information about policy provisions and benefits? - correct
answers:Policy summary
Does not have an insurable interest? - correct answers:Insured's best friend
What is the main source of underwriting information used by the company in the risk selection process?
- correct answers: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? - correct answers:On the date of application
What is the main responsibility of a company's underwriting unit? - correct answers:Risk selection and
classification
What best describes the USA PATRIOT Act with regards to the insurance industry? - correct answers: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? - correct answers:Inform the insurance comapny
Representations are statements made by the applicant that are? - correct answers: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? - correct
answers:Return the application to the applicant for signature
What includes information regarding a person's credit, character, reputation, and habits? - correct
answers: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? - correct answers:Decreasing term
An annually renewable term policy? - correct answers:Renews each year with an increased premium
The time period during which an annuitant contributes to annuity is called? - correct answers:The
accumulation period
An example of limited-pay life policy? - correct answers:Life paid-up at the age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to increase the death
benefit. What is correct regarding the death benefit increase? - correct answers:It can be increased by
providing evidence of insurability
What is true regarding a universal life policy? - correct answers:The premiums can be decreased by the
insured
With a traditional whole life policy, the death benefit.. - correct answers:Remains constant over time
