Life Insurance Exam (Texas) Key
Questions with 100% Correct
Answers.
_____________Quiz____________?
Insurance
(General concept) -
Answer✓✓
- transfers the risk of loss from an individual to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
_____________Quiz____________?
insurable interest
(General Concept) -
Answer✓✓
- must exist at the time of the application
- insuring one's own life, family member, or a business partner
_____________Quiz____________?
Solicitation and sales presentation -
Answer✓✓
1
, - illustration- presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must be provided at the time
of application
- policy summary is a description of features and benefits of the policy being issued and
must be provided when the policy is delivered.
_____________Quiz____________?
Underwriting (Field underwriting (by agent) -
Answer✓✓
- application completed and signed
- agent's report: agent's observation about the application that can assist in underwriting
-premiums with application and conditional receipts
_____________Quiz____________?
underwriting ( company underwriting) -
Answer✓✓
- multiple sources of information: applications, consumer reports, MIB (Medical Information
Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
_____________Quiz____________?
Underwriting (Federal Regulation) -
Answer✓✓
- Fair Credit Reporting Act: protect consumers against circulations of inaccurate or obsolete
information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules
_____________Quiz____________?
Premium Determination -
2
, Answer✓✓
- 3 key Factors for life insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher the premium
_____________Quiz____________?
Policy Issue and Delivery -
Answer✓✓
Effective date of coverage - if the premium is not paid with the application, the agent must
obtain the premium and a statement of continued good health at the time of the policy
delivery
_____________Quiz____________?
Agent/ Producer -
Answer✓✓
a legal representative of an insurance company; the classification of producers usually
includes agents and brokers' agents are the agents of the insurer
_____________Quiz____________?
Applicant of proposed insured -
Answer✓✓
a person applying for insurance
_____________Quiz____________?
Beneficiary -
Answer✓✓
a person who receives the benefits of an insurance policy
_____________Quiz____________?
3
Questions with 100% Correct
Answers.
_____________Quiz____________?
Insurance
(General concept) -
Answer✓✓
- transfers the risk of loss from an individual to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
_____________Quiz____________?
insurable interest
(General Concept) -
Answer✓✓
- must exist at the time of the application
- insuring one's own life, family member, or a business partner
_____________Quiz____________?
Solicitation and sales presentation -
Answer✓✓
1
, - illustration- presentation of nonguaranteed elements
- buyer's guide is generic information about life polices which must be provided at the time
of application
- policy summary is a description of features and benefits of the policy being issued and
must be provided when the policy is delivered.
_____________Quiz____________?
Underwriting (Field underwriting (by agent) -
Answer✓✓
- application completed and signed
- agent's report: agent's observation about the application that can assist in underwriting
-premiums with application and conditional receipts
_____________Quiz____________?
underwriting ( company underwriting) -
Answer✓✓
- multiple sources of information: applications, consumer reports, MIB (Medical Information
Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
_____________Quiz____________?
Underwriting (Federal Regulation) -
Answer✓✓
- Fair Credit Reporting Act: protect consumers against circulations of inaccurate or obsolete
information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules
_____________Quiz____________?
Premium Determination -
2
, Answer✓✓
- 3 key Factors for life insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher the premium
_____________Quiz____________?
Policy Issue and Delivery -
Answer✓✓
Effective date of coverage - if the premium is not paid with the application, the agent must
obtain the premium and a statement of continued good health at the time of the policy
delivery
_____________Quiz____________?
Agent/ Producer -
Answer✓✓
a legal representative of an insurance company; the classification of producers usually
includes agents and brokers' agents are the agents of the insurer
_____________Quiz____________?
Applicant of proposed insured -
Answer✓✓
a person applying for insurance
_____________Quiz____________?
Beneficiary -
Answer✓✓
a person who receives the benefits of an insurance policy
_____________Quiz____________?
3
