©EVERLY 2025 ALL RIGHTS RESERVED
Texas Funeral Prearrangement Exam
Questions And Answers 100% Pass
The people at the insurance company who determine the risk and accept or reject the risk are
called - ANS Underwriters
A ______ risk is one where the proposed insured exceeds the basic standards so the company
may offer more coverage or a lesser premium for the coverage applied for to the applicant. -
ANS Preferred
The amount the insurer needs to cover the risk it has assumed is called the: Mortality charge,
Reserve, Standard risk, Liability account - ANS Mortality Charge
When the applicant has more to gain by the insured's continued life, the applicant has an ___ in
the insured. - ANS Insurable Interest
The policy owner cannot change the beneficiary to another person or entity without the
beneficiary's prior consent when the beneficiary is listed as: The primary beneficiary, The
contingent beneficiary, The irrevocable beneficiary, The default beneficiary - ANS The
irrevocable beneficiary
___ is when the effective date of the policy is set at an earlier date than when the application is
completed in order to save age. - ANS Backdating
, ©EVERLY 2025 ALL RIGHTS RESERVED
The payment method that allows the premium payer to authorize the premium payer's bank to
automatically pay the insurance policy's premiums from the premium payer's account without
generating a paper check is: Direct bil, Pre-Authorized Checking (PAC), Electronic Funds Transfer
(EFT), Money order - ANS Pre-Authorized Checking (PAC)
If premiums are not made to keep the insurance policy in force, the policy is said to ____. -
ANS Lapse
An insurance contract is a ___ contract. - ANS Unilateral
The provision that provides that the policy owner has a certain period of time to examine the
policy is the: Grace period, Facility of payment, Insuring clause, Free look - ANS Free Look
The entire contract provision lists all of the documents that make up the insurance policy.
These documents include: The insurance policy, The application for the insurance policy, Riders
attached to the policy, All of the above - ANS All of the above
The incontestability clause provides that after a certain period of time, the insurance company
cannot contest the policy's validity for any reason. What is the period of time?: 90 days, 2 years,
45 days, 4 years - ANS 2 years
The rider that provides that the company will waive the payment of premiums should the
premium payer become totally disabled and will continue the waiver of premium during the
time of the total disablement is called:Double indemnity rider, Waiver of premium benefit
rider, Accidental death benefit rider, Guaranteed insurability option rider - ANS Waiver of
premium benefit rider
The _____ loan provision provides that the cash value of the policy can automatically be used
to pay overdue policy premiums. - ANS Automatic Premium
When a premium payer has stopped making scheduled premium payments and the policy goes
into reduced paid-up insurance (RPU), the cash value of the policy is used to purchase a single
Texas Funeral Prearrangement Exam
Questions And Answers 100% Pass
The people at the insurance company who determine the risk and accept or reject the risk are
called - ANS Underwriters
A ______ risk is one where the proposed insured exceeds the basic standards so the company
may offer more coverage or a lesser premium for the coverage applied for to the applicant. -
ANS Preferred
The amount the insurer needs to cover the risk it has assumed is called the: Mortality charge,
Reserve, Standard risk, Liability account - ANS Mortality Charge
When the applicant has more to gain by the insured's continued life, the applicant has an ___ in
the insured. - ANS Insurable Interest
The policy owner cannot change the beneficiary to another person or entity without the
beneficiary's prior consent when the beneficiary is listed as: The primary beneficiary, The
contingent beneficiary, The irrevocable beneficiary, The default beneficiary - ANS The
irrevocable beneficiary
___ is when the effective date of the policy is set at an earlier date than when the application is
completed in order to save age. - ANS Backdating
, ©EVERLY 2025 ALL RIGHTS RESERVED
The payment method that allows the premium payer to authorize the premium payer's bank to
automatically pay the insurance policy's premiums from the premium payer's account without
generating a paper check is: Direct bil, Pre-Authorized Checking (PAC), Electronic Funds Transfer
(EFT), Money order - ANS Pre-Authorized Checking (PAC)
If premiums are not made to keep the insurance policy in force, the policy is said to ____. -
ANS Lapse
An insurance contract is a ___ contract. - ANS Unilateral
The provision that provides that the policy owner has a certain period of time to examine the
policy is the: Grace period, Facility of payment, Insuring clause, Free look - ANS Free Look
The entire contract provision lists all of the documents that make up the insurance policy.
These documents include: The insurance policy, The application for the insurance policy, Riders
attached to the policy, All of the above - ANS All of the above
The incontestability clause provides that after a certain period of time, the insurance company
cannot contest the policy's validity for any reason. What is the period of time?: 90 days, 2 years,
45 days, 4 years - ANS 2 years
The rider that provides that the company will waive the payment of premiums should the
premium payer become totally disabled and will continue the waiver of premium during the
time of the total disablement is called:Double indemnity rider, Waiver of premium benefit
rider, Accidental death benefit rider, Guaranteed insurability option rider - ANS Waiver of
premium benefit rider
The _____ loan provision provides that the cash value of the policy can automatically be used
to pay overdue policy premiums. - ANS Automatic Premium
When a premium payer has stopped making scheduled premium payments and the policy goes
into reduced paid-up insurance (RPU), the cash value of the policy is used to purchase a single
