1 Exampromax - Stuvia US
TEXAS State Insurance License Exam
Questions and Answers 100% Correct Answers
Already Graded A+
Q: An insurer neglects to pay a legitimate claim that is covered under the
terms of the policy. Which of the following insurance principles has the
insurer violated?
Ans: Consideration
Q: Which of the following statements regarding HIV testing for insurance
Exampromax - Stuvia US
purposes is NOT true?
Ans: Insurers are barred from requesting HIV testing.
Q: All of the following are dividend options EXCEPT
Ans: Fixed period installments
Q: Which of the following documents delivered to the policyowner
includes information about premium amounts, cash values, surrender
values and death benefits for specific policy years?
Ans: A Policy Summary
Q: A 60-year-old participant in a 401(k) plan takes a distribution and rolls it
over to an IRA within 60 days. Which of the following is true?
Ans: The amount of the distribution is reduced by the amount of a 20%
withholding tax.
Q: Which of the following best describes annually renewable term
insurance?
Ans: It's Level Term Insurance
, 2 Exampromax - Stuvia US
Q: Which of the following policies would be classified as a traditional level
premium contract?
Ans: Straight Life
Q: Which option is being utilized when the insurer accumulates dividends
at interest and then uses the accumulated dividends, plus interest, and the
policy cash value to pay the policy up early?
Ans: Paid Up Option
Q: A couple owns a life insurance policy with a Children's Term rider.
Their daughter is reaching the maximum age of dependent coverage, so she
will have to convert to permanent insurance in the near future. Which of the
following will she need to provide for proof of insurability?
Exampromax - Stuvia US
Ans: Proof Of Insurability is not required
Q: When a whole life policy lapses or is surrendered prior to maturity, the
cash value can be used to
Ans: Purchase a single premium policy for a reduced face amount.
Q: All of the following are examples of third-party ownership of a life
insurance policy EXCEPT
Ans: An insured borrows money from the bank and makes a collateral
assignment of a part of the death benefit to secure the loan.
Q: Which two terms are associated directly with the way an annuity is
funded?
Ans: Single Payment or Periodic Payments
Q: A business owner was trying to obtain a bank loan to fund the purchase
of a new business facility, but the bank required proof of additional assets to
secure the loan. The business owner then decided to use her $250,000 life
insurance policy to secure the loan. Which provision makes this possible?
Ans: Collateral Assignment
TEXAS State Insurance License Exam
Questions and Answers 100% Correct Answers
Already Graded A+
Q: An insurer neglects to pay a legitimate claim that is covered under the
terms of the policy. Which of the following insurance principles has the
insurer violated?
Ans: Consideration
Q: Which of the following statements regarding HIV testing for insurance
Exampromax - Stuvia US
purposes is NOT true?
Ans: Insurers are barred from requesting HIV testing.
Q: All of the following are dividend options EXCEPT
Ans: Fixed period installments
Q: Which of the following documents delivered to the policyowner
includes information about premium amounts, cash values, surrender
values and death benefits for specific policy years?
Ans: A Policy Summary
Q: A 60-year-old participant in a 401(k) plan takes a distribution and rolls it
over to an IRA within 60 days. Which of the following is true?
Ans: The amount of the distribution is reduced by the amount of a 20%
withholding tax.
Q: Which of the following best describes annually renewable term
insurance?
Ans: It's Level Term Insurance
, 2 Exampromax - Stuvia US
Q: Which of the following policies would be classified as a traditional level
premium contract?
Ans: Straight Life
Q: Which option is being utilized when the insurer accumulates dividends
at interest and then uses the accumulated dividends, plus interest, and the
policy cash value to pay the policy up early?
Ans: Paid Up Option
Q: A couple owns a life insurance policy with a Children's Term rider.
Their daughter is reaching the maximum age of dependent coverage, so she
will have to convert to permanent insurance in the near future. Which of the
following will she need to provide for proof of insurability?
Exampromax - Stuvia US
Ans: Proof Of Insurability is not required
Q: When a whole life policy lapses or is surrendered prior to maturity, the
cash value can be used to
Ans: Purchase a single premium policy for a reduced face amount.
Q: All of the following are examples of third-party ownership of a life
insurance policy EXCEPT
Ans: An insured borrows money from the bank and makes a collateral
assignment of a part of the death benefit to secure the loan.
Q: Which two terms are associated directly with the way an annuity is
funded?
Ans: Single Payment or Periodic Payments
Q: A business owner was trying to obtain a bank loan to fund the purchase
of a new business facility, but the bank required proof of additional assets to
secure the loan. The business owner then decided to use her $250,000 life
insurance policy to secure the loan. Which provision makes this possible?
Ans: Collateral Assignment
