INSURANCE LICENSE PRACTICE XCEL
SOLUTIONS FINAL EXAM #12 - TEXAS
LIFE QUESTIONS AND ANSWERS
Question 1
Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? - Answer-Life income
Question 2
A new agent must complete at least _____ hours of continuing education within 24
months of initial license? - Answer-24 hours
Question 3
L takes out a life insurance policy and dies 10 years later. During the claim process, the
insurer discovers that L has understated range on the application. Under the
misstatement of age provision the insurer will? - Answer-Adjust the death benefits to a
reduced amount
Question 4
An example of false advertising would be? - Answer-And insurer exaggerating in
dividends in a magazine advertisement
Question 5
With whom an agent legally share commissions? - Answer-Another agent with the same
line of insurance
Question 6
Insurance agent as a fiduciary responsibility to all of the following EXCEPT? - Answer-
Other agents
Question 7
Which of these is not an example of doing insurance business? - Answer-Selling shares
of stock
Question 8
taking receipt of premiums and holding them for the insurance company is an example
of? - Answer-Fiduciary responsibility
Question 9
How does an indexed annuity differ from a fixed annuity? - Answer-Indexed annuity
owners receive crediting interest time to the fluctuation of the linked index
Question 10
, which of the following policies combines investment choices with a form of Term
coverage? - Answer-Variable universal life
Question 11
How long does an insurance company appointment remain in force? - Answer-Until
terminated
Question 12
in Texas an individual life insurance policy is REQUIRED to have a grace period of? -
Answer-31 days
Question 13
Which statement is TRUE regarding a variable whole life policy? - Answer-A minimum
guaranteed death benefit is provided
Question 14
in an insurance contract the insurer is the only party who makes a - Answer-Unilateral
Question 15
which of these is NOT considered to be an element of an insurance contract? - Answer-
Negotiating
Question 16
What does a 401(k) plan generally provide its participants? - Answer-Salary-deferral
contributions
Question 17
All these statements concerning Settlement Options are true, EXCEPT? - Answer-Only
the beneficiary may select
Question 18
A domestic insurance company in Texas is considered a company that? - Answer-Is
incorporated and formed in Texas
Question 19
Which of the following statements about non-contributory employee group life insurance
is FALSE? - Answer-A minimum number of employees is required to participate
Question 20
when a misrepresentation on a life insurance policy application is discovered what
action may an insurance company take? - Answer-void the policy only if it is discovered
during the contestable period and proven to be material
Question 21
In Texas how long must a policy be in force before an insurance company must pay
death benefits for suicide - Answer-2 years
SOLUTIONS FINAL EXAM #12 - TEXAS
LIFE QUESTIONS AND ANSWERS
Question 1
Which settlement option pays a stated amount to an annuitant, but no residual value to
a beneficiary? - Answer-Life income
Question 2
A new agent must complete at least _____ hours of continuing education within 24
months of initial license? - Answer-24 hours
Question 3
L takes out a life insurance policy and dies 10 years later. During the claim process, the
insurer discovers that L has understated range on the application. Under the
misstatement of age provision the insurer will? - Answer-Adjust the death benefits to a
reduced amount
Question 4
An example of false advertising would be? - Answer-And insurer exaggerating in
dividends in a magazine advertisement
Question 5
With whom an agent legally share commissions? - Answer-Another agent with the same
line of insurance
Question 6
Insurance agent as a fiduciary responsibility to all of the following EXCEPT? - Answer-
Other agents
Question 7
Which of these is not an example of doing insurance business? - Answer-Selling shares
of stock
Question 8
taking receipt of premiums and holding them for the insurance company is an example
of? - Answer-Fiduciary responsibility
Question 9
How does an indexed annuity differ from a fixed annuity? - Answer-Indexed annuity
owners receive crediting interest time to the fluctuation of the linked index
Question 10
, which of the following policies combines investment choices with a form of Term
coverage? - Answer-Variable universal life
Question 11
How long does an insurance company appointment remain in force? - Answer-Until
terminated
Question 12
in Texas an individual life insurance policy is REQUIRED to have a grace period of? -
Answer-31 days
Question 13
Which statement is TRUE regarding a variable whole life policy? - Answer-A minimum
guaranteed death benefit is provided
Question 14
in an insurance contract the insurer is the only party who makes a - Answer-Unilateral
Question 15
which of these is NOT considered to be an element of an insurance contract? - Answer-
Negotiating
Question 16
What does a 401(k) plan generally provide its participants? - Answer-Salary-deferral
contributions
Question 17
All these statements concerning Settlement Options are true, EXCEPT? - Answer-Only
the beneficiary may select
Question 18
A domestic insurance company in Texas is considered a company that? - Answer-Is
incorporated and formed in Texas
Question 19
Which of the following statements about non-contributory employee group life insurance
is FALSE? - Answer-A minimum number of employees is required to participate
Question 20
when a misrepresentation on a life insurance policy application is discovered what
action may an insurance company take? - Answer-void the policy only if it is discovered
during the contestable period and proven to be material
Question 21
In Texas how long must a policy be in force before an insurance company must pay
death benefits for suicide - Answer-2 years
