200 questions Texas Life Insurance Only State
Exam Simulator
$25,000 (spouse may not exceed 1/2 of the amount) - ANS-An employee is covered under a
company group life plan with a $50,000 death benefit. What is the MAXIMUM amount a spouse
may be insured for under this program?
$50,000 - ANS-S buys a $50,000 whole life policy with a $50,000 Accidental Death and
Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the
beneficiary?
$50,000 - ANS-T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay?
10% penalty is applied to withdrawals before age 59 1/2 - ANS-All of the following statements
about traditional individual accounts are false EXCEPT
100% - ANS-An insured may assign up to ____ of policy ownership under an individual life
insurance policy.
15-year decreasing term - ANS-A 15-year mortgage is best protected by what kind of life policy?
2 years - ANS-In Texas, how long must a policy be in force before an insurance company must
pay death benefits for suicide
24 - ANS-A new general property and casualty licensee must complete at LEAST ____ hours of
continuing education within 24 months of initial licensure.
31 days - ANS-In Texas, an individual life insurance policy is REQUIRED to have a Grace
period of
5 - ANS-Q is severely injured in an automobile accident and becomes totally disabled. How
many months must Q be disabled before being able to apply for Social Security disability
benefits?
59 1/2 - ANS-An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age?
6 months - ANS-How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law?
, 90 - ANS-A temporary agent's license issued by the Commissioner of Insurance is valid for up
to ____ days
A fine of up to $500 (unintentional is $50) - ANS-What is the monetary penalty for willfully
violating a cease-and-desist order?
A minimum number of employees is required to participate - ANS-Which of the following
statements about noncontributory employee group life insurance is FALSE?
A pension deficiency if the key employee dies - ANS-Which of these is NOT a reason for a
business to buy a key person life insurance
A signed application by the prospect - ANS-Before a life insurance policy is issued, which of
these contract elements is necessary?
A Whole Life Policy with an Other Insured Rider - ANS-Y purchased $100,000 worth of
permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on
the same policy. Which of these policies did Y purchase?
Accidental Death and Dismemberment rider (AD&D) - ANS-The option that provides an
additional death benefit for a limited amount of time at the lowest possible cost is called a(n):
Accumulation at interest - ANS-A policyowner may generate taxable income from which of the
following Dividend Options?
Activate insurance companies' financial reserves - ANS-Which of the following actions does the
Commissioner of Insurance NOT have the power to conduct?
additional death benefits - ANS-A Cost of Living rider gives the insured
additional Whole Life coverage at specified times - ANS-B owns a Whole Life policy with a
guaranteed insurability option that allows him to purchase, without evidence of insurability,
stated amounts of
adjust the death benefit to a reduced amount - ANS-L takes out a life insurance policy and dies
10 years later. During the claim process, the insurer discovers that L had understated her age
on the application. Under the Misstatement of Age provision, the insurer will
an amount that the premiums paid would have purchased at the current age - ANS-If an
insured's age was misstated on a life insurance contract, the Misstatement of Age provision
requires that any death benefit payable would be
Exam Simulator
$25,000 (spouse may not exceed 1/2 of the amount) - ANS-An employee is covered under a
company group life plan with a $50,000 death benefit. What is the MAXIMUM amount a spouse
may be insured for under this program?
$50,000 - ANS-S buys a $50,000 whole life policy with a $50,000 Accidental Death and
Dismemberment rider. S dies 1 year later of natural causes. How much will the insurer pay the
beneficiary?
$50,000 - ANS-T took out a $50,000 life insurance policy with an Accidental Death and
Dismemberment rider. Five years later, T commits suicide. How much will the insurer pay?
10% penalty is applied to withdrawals before age 59 1/2 - ANS-All of the following statements
about traditional individual accounts are false EXCEPT
100% - ANS-An insured may assign up to ____ of policy ownership under an individual life
insurance policy.
15-year decreasing term - ANS-A 15-year mortgage is best protected by what kind of life policy?
2 years - ANS-In Texas, how long must a policy be in force before an insurance company must
pay death benefits for suicide
24 - ANS-A new general property and casualty licensee must complete at LEAST ____ hours of
continuing education within 24 months of initial licensure.
31 days - ANS-In Texas, an individual life insurance policy is REQUIRED to have a Grace
period of
5 - ANS-Q is severely injured in an automobile accident and becomes totally disabled. How
many months must Q be disabled before being able to apply for Social Security disability
benefits?
59 1/2 - ANS-An IRA owner can start making withdrawals and NOT be subjected to a tax
penalty beginning at what age?
6 months - ANS-How long can a cash surrender value payment be deferred by the insurance
company under the Nonforfeiture Law?
, 90 - ANS-A temporary agent's license issued by the Commissioner of Insurance is valid for up
to ____ days
A fine of up to $500 (unintentional is $50) - ANS-What is the monetary penalty for willfully
violating a cease-and-desist order?
A minimum number of employees is required to participate - ANS-Which of the following
statements about noncontributory employee group life insurance is FALSE?
A pension deficiency if the key employee dies - ANS-Which of these is NOT a reason for a
business to buy a key person life insurance
A signed application by the prospect - ANS-Before a life insurance policy is issued, which of
these contract elements is necessary?
A Whole Life Policy with an Other Insured Rider - ANS-Y purchased $100,000 worth of
permanent protection on himself and $50,000 worth of 10-year Term coverage for his wife on
the same policy. Which of these policies did Y purchase?
Accidental Death and Dismemberment rider (AD&D) - ANS-The option that provides an
additional death benefit for a limited amount of time at the lowest possible cost is called a(n):
Accumulation at interest - ANS-A policyowner may generate taxable income from which of the
following Dividend Options?
Activate insurance companies' financial reserves - ANS-Which of the following actions does the
Commissioner of Insurance NOT have the power to conduct?
additional death benefits - ANS-A Cost of Living rider gives the insured
additional Whole Life coverage at specified times - ANS-B owns a Whole Life policy with a
guaranteed insurability option that allows him to purchase, without evidence of insurability,
stated amounts of
adjust the death benefit to a reduced amount - ANS-L takes out a life insurance policy and dies
10 years later. During the claim process, the insurer discovers that L had understated her age
on the application. Under the Misstatement of Age provision, the insurer will
an amount that the premiums paid would have purchased at the current age - ANS-If an
insured's age was misstated on a life insurance contract, the Misstatement of Age provision
requires that any death benefit payable would be
