Texas Life Insurance exam |122
Complete Questions and Answers
Who is considered a field underwriter? - -An agent
- When must insurable interest exist in life insurance? - -Application 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? - -Policy delivery
- The Medical Information Bureau is?(MIB) - -a source of medical information
to alert insurers to adverse medical history
- A substandard risk compared to a standard risk would pay? - -a higher
premium
- Which document describes specific information about policy provisions and
benefits? - -Policy summary
- Does not have an insurable interest? - -Insured's best friend
- What is the main source of underwriting information used by the company
in the risk selection process? - -Application
- An insured submits the full premium along with a completed application,
and the policy is issued 10 days later. When does the coverage begin? - -On
the date of application
- What is the main responsibility of a company's underwriting unit? - -Risk
selection and classification
- What best describes the USA PATRIOT Act with regards to the insurance
industry? - -To 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? - -Inform the insurance comapny
- Representations are statements made by the applicant that are? - -
Considered 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? - -Return the application to the applicant for
signature
- What includes information regarding a person's credit, character,
reputation, and habits? - -Consumer 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? - -Decreasing term
- An annually renewable term policy? - -Renews each year with an
increased premium
- The time period during which an annuitant contributes to annuity is called?
- -The accumulation period
- An example of limited-pay life policy? - -Life 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? - -It can be increased by providing evidence of insurability
- What is true regarding a universal life policy? - -The premiums can be
decreased by the insured
- With a traditional whole life policy, the death benefit.. - -Remains constant
over time
- Whose life expectancy is taken into consideration in an annuity? - -
Annuitant
- 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? - -Variable
- 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? - -Deferred
- What would be considered a disadvantage of term insurance? - -If the
insured dies after the end of the term, there is no death benefit to the
beneficiary
Complete Questions and Answers
Who is considered a field underwriter? - -An agent
- When must insurable interest exist in life insurance? - -Application 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? - -Policy delivery
- The Medical Information Bureau is?(MIB) - -a source of medical information
to alert insurers to adverse medical history
- A substandard risk compared to a standard risk would pay? - -a higher
premium
- Which document describes specific information about policy provisions and
benefits? - -Policy summary
- Does not have an insurable interest? - -Insured's best friend
- What is the main source of underwriting information used by the company
in the risk selection process? - -Application
- An insured submits the full premium along with a completed application,
and the policy is issued 10 days later. When does the coverage begin? - -On
the date of application
- What is the main responsibility of a company's underwriting unit? - -Risk
selection and classification
- What best describes the USA PATRIOT Act with regards to the insurance
industry? - -To 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? - -Inform the insurance comapny
- Representations are statements made by the applicant that are? - -
Considered 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? - -Return the application to the applicant for
signature
- What includes information regarding a person's credit, character,
reputation, and habits? - -Consumer 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? - -Decreasing term
- An annually renewable term policy? - -Renews each year with an
increased premium
- The time period during which an annuitant contributes to annuity is called?
- -The accumulation period
- An example of limited-pay life policy? - -Life 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? - -It can be increased by providing evidence of insurability
- What is true regarding a universal life policy? - -The premiums can be
decreased by the insured
- With a traditional whole life policy, the death benefit.. - -Remains constant
over time
- Whose life expectancy is taken into consideration in an annuity? - -
Annuitant
- 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? - -Variable
- 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? - -Deferred
- What would be considered a disadvantage of term insurance? - -If the
insured dies after the end of the term, there is no death benefit to the
beneficiary
