©EVERLY 2024/2025 ALL RIGHTS RESERVED.
Insurance license practice XCEL solutions
FINAL EXAM #12 - Texas life only. Exam
Questions And Answers (Guaranteed A+)
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
1|Page
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
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
2|Page
Insurance license practice XCEL solutions
FINAL EXAM #12 - Texas life only. Exam
Questions And Answers (Guaranteed A+)
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
1|Page
, ©EVERLY 2024/2025 ALL RIGHTS RESERVED.
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
2|Page
