INSURANCE LICENSE PRACTICE
XCEL SOLUTIONS FINAL EXAM #12 -
TEXAS LIFE ONLY QUESTIONS AND
ANSWERS
Insured may assign up to ____ of the policy ownership under an individual life
insurance policy - ANSWER-100%
Which of these is NOT a reason for purchasing life insurance on the life of a minor? -
ANSWER-If both parents were to die, it would provide death benefits that the child
A policy that becomes a modified endowment contract - ANSWER-Will lose many of
its tax advantages
An underwriter determines that an applicant's risk should be recognized due to a
health issue. This policy may be issued with a(n)? - ANSWER-Exclusion for the
medical condition
A temporary agents license issued by the commissioner of Insurance is valid for up
to ____ days - ANSWER-90 day
L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They
purchase a family policy that covers L's spouse at age 65. A death benefit will NOT
be paid in which of the following? - ANSWER-L's spouse dies at age 66
A policy owner would like to change the beneficiary on a Life insurance policy and
make the change permanent. Which type of designation would fill this need? -
ANSWER-Irrevocable
the type of annuity that can be purchased with one monetary deposit is called a(n)? -
ANSWER-Immediate annuity
An example of an unfair claims settlement practice is? - ANSWER-turn down a claim
without providing the basis of denial
What type of life insurance are credit issued as? - ANSWER-Term
Which of the following best describes a contingent beneficiary? - ANSWER-person
designated by the insurance receive policy proceeds in the event that the primary
beneficiary dies before the insured
What is an organization that solicits insurance only to its members? - ANSWER-
Fraternal benefit society
All of these statements about the Commissioner of Insurance are true EXCEPT? -
ANSWER-The commissioner must be elected
, a life insurance policy that provides a policy owner with cash value along with face
value amount is called? - ANSWER-Whole life
An insurance company may NOT reject a prospective insured life application on the
basis of which of the following factors? - ANSWER-Gender or Marital status
How often must an insurance agent license normally be renewed? - ANSWER-Every
two years
Group life insurance policies are generally written as? - ANSWER-Annually
renewable term
On August 6, Submitted an application for a $50,000 life insurance policy and did not
pay the initial premium. On August 18, D went to the doctor complaining of chest
pain, and some tests were given by the doctor. the life policy was delivered by the
producer on August 20th and they explained what had taken place with the doctor.
What action should the producer then take? - ANSWER-Collect initial premium along
with a signed health statement
the Insurance Commissioner must give how many days notice prior to holding a
hearing regarding an agent's unfair or deceptive practice? - ANSWER-30 days
S is covered by a whole life policy. Which insurance products can cover his children?
- ANSWER-Child term Rider
Insurance policies are offered on a take-it-or-leave-it basis, which make them? -
ANSWER-Contracts of adhesion
Which of the following may NOT charge fees for insurance advice? - ANSWER-
Legal reserve agent's
The consideration clause in a life insurance contract contains what pertinent
information? - ANSWER-Amount of premium payments and when they're due
who is liable when an insured suffers a loss on a policy sold by an agent through an
insurer not authorized to conduct business in Texas? - ANSWER-The agent and the
company
Traditional individual retirement annuity (IRA) distributions must start by? -
ANSWER-April 1st of the year following the year the participant attains age 70 ½
Which of the following groups may NOT be insured by a group life insurance policy?
- ANSWER-Individuals who are related by blood
Q applied for life insurance and submitted the initial premium on January 1. Policy
was issued February 1, but it was not delivered by the agent until February 7. Q is
disqualified and returns the policy February 13. How will the insurer handle this
situation? - ANSWER-Policy was returned within the free look period, premium will
be fully refunded
XCEL SOLUTIONS FINAL EXAM #12 -
TEXAS LIFE ONLY QUESTIONS AND
ANSWERS
Insured may assign up to ____ of the policy ownership under an individual life
insurance policy - ANSWER-100%
Which of these is NOT a reason for purchasing life insurance on the life of a minor? -
ANSWER-If both parents were to die, it would provide death benefits that the child
A policy that becomes a modified endowment contract - ANSWER-Will lose many of
its tax advantages
An underwriter determines that an applicant's risk should be recognized due to a
health issue. This policy may be issued with a(n)? - ANSWER-Exclusion for the
medical condition
A temporary agents license issued by the commissioner of Insurance is valid for up
to ____ days - ANSWER-90 day
L, aged 50, and L's spouse, 48, have one natural child and one adopted child. They
purchase a family policy that covers L's spouse at age 65. A death benefit will NOT
be paid in which of the following? - ANSWER-L's spouse dies at age 66
A policy owner would like to change the beneficiary on a Life insurance policy and
make the change permanent. Which type of designation would fill this need? -
ANSWER-Irrevocable
the type of annuity that can be purchased with one monetary deposit is called a(n)? -
ANSWER-Immediate annuity
An example of an unfair claims settlement practice is? - ANSWER-turn down a claim
without providing the basis of denial
What type of life insurance are credit issued as? - ANSWER-Term
Which of the following best describes a contingent beneficiary? - ANSWER-person
designated by the insurance receive policy proceeds in the event that the primary
beneficiary dies before the insured
What is an organization that solicits insurance only to its members? - ANSWER-
Fraternal benefit society
All of these statements about the Commissioner of Insurance are true EXCEPT? -
ANSWER-The commissioner must be elected
, a life insurance policy that provides a policy owner with cash value along with face
value amount is called? - ANSWER-Whole life
An insurance company may NOT reject a prospective insured life application on the
basis of which of the following factors? - ANSWER-Gender or Marital status
How often must an insurance agent license normally be renewed? - ANSWER-Every
two years
Group life insurance policies are generally written as? - ANSWER-Annually
renewable term
On August 6, Submitted an application for a $50,000 life insurance policy and did not
pay the initial premium. On August 18, D went to the doctor complaining of chest
pain, and some tests were given by the doctor. the life policy was delivered by the
producer on August 20th and they explained what had taken place with the doctor.
What action should the producer then take? - ANSWER-Collect initial premium along
with a signed health statement
the Insurance Commissioner must give how many days notice prior to holding a
hearing regarding an agent's unfair or deceptive practice? - ANSWER-30 days
S is covered by a whole life policy. Which insurance products can cover his children?
- ANSWER-Child term Rider
Insurance policies are offered on a take-it-or-leave-it basis, which make them? -
ANSWER-Contracts of adhesion
Which of the following may NOT charge fees for insurance advice? - ANSWER-
Legal reserve agent's
The consideration clause in a life insurance contract contains what pertinent
information? - ANSWER-Amount of premium payments and when they're due
who is liable when an insured suffers a loss on a policy sold by an agent through an
insurer not authorized to conduct business in Texas? - ANSWER-The agent and the
company
Traditional individual retirement annuity (IRA) distributions must start by? -
ANSWER-April 1st of the year following the year the participant attains age 70 ½
Which of the following groups may NOT be insured by a group life insurance policy?
- ANSWER-Individuals who are related by blood
Q applied for life insurance and submitted the initial premium on January 1. Policy
was issued February 1, but it was not delivered by the agent until February 7. Q is
disqualified and returns the policy February 13. How will the insurer handle this
situation? - ANSWER-Policy was returned within the free look period, premium will
be fully refunded
