Texas Life Insurance Exam (Latest update ) With complete solutions.

P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage becomes effective when - Answer- P receives the policy and pays the premium A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be carrer? - Answer- 20-Pay Life accumulates cash value faster than Straight Life How does an indexed annuity differ from a fixed annuity ? - Answer- Indexed annuity owners receive credited interest tied to the fluctuations of the linked index During a sales presentation for a participating life insurance policy, an agent MUST - Answer- make a prospect understand that dividends are NOT guaranteed T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable eneficiary. What action will the insurance company take if I requests a change of beneficiary? - Answer- request of the change will be refused Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? - Answer- conversion T has a term policy that allows him to continue the coverage after expiration of the initial policy period What type of term coverage is this? - Answer- renewable