Insurance license practice XCEL solutions FINAL EXAM #12 - Texas life only

Insurance license practice XCEL solutions FINAL EXAM #12 - Texas life only 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 in an insurance contract the insurer is the only party who makes a - CORRECT ANSWER- Unilateral Question 15 which of these is NOT considered to be an element of an insurance contract? - CORRECT ANSWER- Negotiating Question 16 What does a 401(k) plan generally provide its participants? - CORRECT ANSWER- Salary-deferral contributions Question 17 All these statements concerning Settlement Options are true, EXCEPT? - CORRECT ANSWER- Only the beneficiary may select Question 18 A domestic insurance company in Texas is considered a company that? - CORRECT ANSWER- Is incorporated and formed in Texas Question 19 Which of the following statements about non-contributory employee group life insurance is FALSE? - CORRECT ANSWER- A minimum number of employees is required to participate Question 20 when a misrepresentation on a life insurance policy application is discovered what action may an insurance company take? - CORRECT ANSWER- void the policy only if it is discovered during the contestable period and proven to be material Question 21 In Texas how long must a policy be in force before an insurance company must pay death benefits for suicide - CORRECT ANSWER- 2 years Question 22 All these statements about the waiver of premium provision are correct EXCEPT? - CORRECT ANSWER- insured must be eligible for Social Security disability for claim to be accepted Question 23 Employee with $25,000 group term life coverage was recently fired. This employee's group coverage may be converted to a? - CORRECT ANSWER- $25,000 individual whole life policy Question 24 What type of life policy covers 2 lives and pays the face amount after the first one dies? - CORRECT ANSWER- Joint life policy Question 25 Which of these provisions is not required in life insurance policies? - CORRECT ANSWER- Extended term Question 26 If you insured's age was misstated on a life insurance contract, the misstatement of age provision requires that any death benefit payable would be? - CORRECT ANSWER- an amount that the premiums paid would have purchased at the current age Question 27 what provision in a life insurance policy states that the application is considered part of the contract? - CORRECT ANSWER- Entire contract provision Question 28 M has an insurance policy that also has an outstanding policy loan at a time of M's death. The insurer will deduct the outstanding loan balance from the? - CORRECT ANSWER- Policy proceeds Question 29 Under the USA Patriot act, insurers are required to report receipt of cash payments in excess of? - CORRECT ANSWER- $10,000 Question 30 Credit life insurance is? - CORRECT ANSWER- insurance issued on a debtor to cover outstanding loan balance Question 31 The phrase "transacting business" includes - CORRECT ANSWER- Collecting premiums Question 32 What is the purpose of the USA Patriot act? - CORRECT ANSWER- Detect and deter terrorism Question 33 an insurer is NOT required to provide information on fraudulent claims if requested by? - CORRECT ANSWER- An insured