Insurance license practice XCEL solutions
FINAL EXAM #12 - Texas life only
UPDATED Exam Questions and
CORRECT Answers
Question 1
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary? - CORRECT ANSWER - Life income
Question 2
A new agent must complete at least _____ hours of continuing education within 24 months of
initial license? - CORRECT 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? - CORRECT ANSWER - Adjust the death benefits to a reduced
amount
Question 4
An example of false advertising would be? - CORRECT ANSWER - And insurer
exaggerating in dividends in a magazine advertisement
Question 5
With whom an agent legally share commissions? - CORRECT ANSWER - Another agent
with the same line of insurance
Question 6
Insurance agent as a fiduciary responsibility to all of the following EXCEPT? - CORRECT
ANSWER - Other agents
, Question 7
Which of these is not an example of doing insurance business? - CORRECT ANSWER -
Selling shares of stock
Question 8
taking receipt of premiums and holding them for the insurance company is an example of? -
CORRECT ANSWER - Fiduciary responsibility
Question 9
How does an indexed annuity differ from a fixed annuity? - CORRECT 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? -
CORRECT ANSWER - Variable universal life
Question 11
How long does an insurance company appointment remain in force? - CORRECT
ANSWER - Until terminated
Question 12
in Texas an individual life insurance policy is REQUIRED to have a grace period of? -
CORRECT ANSWER - 31 days
Question 13
Which statement is TRUE regarding a variable whole life policy? - CORRECT
ANSWER - A minimum guaranteed death benefit is provided
Question 14
FINAL EXAM #12 - Texas life only
UPDATED Exam Questions and
CORRECT Answers
Question 1
Which settlement option pays a stated amount to an annuitant, but no residual value to a
beneficiary? - CORRECT ANSWER - Life income
Question 2
A new agent must complete at least _____ hours of continuing education within 24 months of
initial license? - CORRECT 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? - CORRECT ANSWER - Adjust the death benefits to a reduced
amount
Question 4
An example of false advertising would be? - CORRECT ANSWER - And insurer
exaggerating in dividends in a magazine advertisement
Question 5
With whom an agent legally share commissions? - CORRECT ANSWER - Another agent
with the same line of insurance
Question 6
Insurance agent as a fiduciary responsibility to all of the following EXCEPT? - CORRECT
ANSWER - Other agents
, Question 7
Which of these is not an example of doing insurance business? - CORRECT ANSWER -
Selling shares of stock
Question 8
taking receipt of premiums and holding them for the insurance company is an example of? -
CORRECT ANSWER - Fiduciary responsibility
Question 9
How does an indexed annuity differ from a fixed annuity? - CORRECT 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? -
CORRECT ANSWER - Variable universal life
Question 11
How long does an insurance company appointment remain in force? - CORRECT
ANSWER - Until terminated
Question 12
in Texas an individual life insurance policy is REQUIRED to have a grace period of? -
CORRECT ANSWER - 31 days
Question 13
Which statement is TRUE regarding a variable whole life policy? - CORRECT
ANSWER - A minimum guaranteed death benefit is provided
Question 14
