Texas Life Insurance Exam Questions With Verified And Updated Answers

©THESTAR EXAM SOLUTIONS 2024/2025 ALL RIGHTS RESERVED. 1 | P a g e Texas Life Insurance Exam Questions With Verified And Updated Answers. Who is considered a field underwriter? - answerAn agent When must insurable interest exist in life insurance? - answerApplication 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? - answerPolicy delivery The Medical Information Bureau is?(MIB) - answera source of medical information to alert insurers to adverse medical history A substandard risk compared to a standard risk would pay? - answera higher premium Which document describes specific information about policy provisions and benefits? - answerPolicy summary Does not have an insurable interest? - answerInsured's best friend What is the main source of underwriting information used by the company in the risk selection process? - answerApplication An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin? - answerOn the date of application ©THESTAR EXAM SOLUTIONS 2024/2025 ALL RIGHTS RESERVED. 2 | P a g e What is the main responsibility of a company's underwriting unit? - answerRisk selection and classification What best describes the USA PATRIOT Act with regards to the insurance industry? - answerTo 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? - answerInform the insurance comapny Representations are statements made by the applicant that are? - answerConsidered 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? - answerReturn the application to the applicant for signature What includes information regarding a person's credit, character, reputation, and habits? - answerConsumer 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? - answerDecreasing term An annually renewable term policy? - answerRenews each year with an increased premium The time period during which an annuitant contributes to annuity is called? - answerThe accumulation period ©THESTAR EXAM SOLUTIONS 2024/2025 ALL RIGHTS RESERVED. 3 | P a g e An example of limited-pay life policy? - answerLife 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? - answerIt can be increased by providing evidence of insurability What is true regarding a universal life policy? - answerThe premiums can be decreased by the insured With a traditional whole life policy, the death benefit.. - answerRemains constant over time Whose life expectancy is taken into consideration in an annuity? - answerAnnuitant An insured receives a monthly summary of his life insurability policy. The cash value this month is significantly lower than it was last month. What type of policy is it? - answerVariable An individual inherited a large sum of money at age 40 and wanted to use it to provide a guarantee income after his retirement at age 60. Which of the following types of annuities would best meet this need? - answerDeferred What would be considered a disadvantage of term insurance? - answerIf the insured dies after the end of the term, there is no death benefit to the beneficiary The renewable provision allows the policy-owner to renew the coverage at the expiration date - answerWithout evidence of insurability Which type of life insurance policy generates immediate cash value? - answerSingle premium