TEXAS GENERAL LINES INSURANCE EXAM
STUDY GUIDE
Cash Value - CORRECT ANSWER ✔✔- Guaranteed value shown annually for
whole life policies.
Universal Life Insurance - CORRECT ANSWER ✔✔- Flexible premiums with
guaranteed minimum return.
Death Benefit Options - CORRECT ANSWER ✔✔- Option A pays face value;
Option B includes cash value.
Variable Life Insurance - CORRECT ANSWER ✔✔- No guarantees; not backed
by state fund.
FINRA Registration - CORRECT ANSWER ✔✔- Agents must be registered to
sell variable products.
Inflation Hedge - CORRECT ANSWER ✔✔- Variable life products protect
against inflation.
Separate Account - CORRECT ANSWER ✔✔- Funds invested like mutual funds
in variable products.
Joint Life Policy - CORRECT ANSWER ✔✔- Pays upon first insured's death.
,Joint and Survivor Policy - CORRECT ANSWER ✔✔- Pays upon second
insured's death.
Survivorship Life Insurance - CORRECT ANSWER ✔✔- Used for estate tax
funding.
Incomplete Application - CORRECT ANSWER ✔✔- Returned unless
underwriters approve it as is.
Representations - CORRECT ANSWER ✔✔- Applicant statements considered
true but not guaranteed.
Warranty - CORRECT ANSWER ✔✔- Absolute guarantee of truth in insurance
applications.
Conditional Receipt - CORRECT ANSWER ✔✔- Coverage starts after conditions
are met and approved.
Insurable Interest - CORRECT ANSWER ✔✔- Must exist at application time, not
claim time.
HIPAA - CORRECT ANSWER ✔✔- Protects individually identifiable health
information privacy.
Protected Health Information - CORRECT ANSWER ✔✔- Includes health data,
name, address, SSN, birth date.
, Credit Report Authorization - CORRECT ANSWER ✔✔- Insurer needs written
pre-authorization to access report.
STOLI - CORRECT ANSWER ✔✔- Stranger-originated life insurance, often
illegal.
IOLI - CORRECT ANSWER ✔✔- Investor-originated life insurance, often illegal.
Surcharge - CORRECT ANSWER ✔✔- Rate increase for higher risk
classifications.
Standard Risk - CORRECT ANSWER ✔✔- An individual with an average life
expectancy.
Rated Policy - CORRECT ANSWER ✔✔- Issued to individuals classified as
substandard risks.
Avocation - CORRECT ANSWER ✔✔- Hobbies considered in life insurance
underwriting.
Premium Payment - CORRECT ANSWER ✔✔- Coverage begins only after
premium is paid.
Policy Delivery - CORRECT ANSWER ✔✔- Producer explains provisions, riders,
and exclusions.
STUDY GUIDE
Cash Value - CORRECT ANSWER ✔✔- Guaranteed value shown annually for
whole life policies.
Universal Life Insurance - CORRECT ANSWER ✔✔- Flexible premiums with
guaranteed minimum return.
Death Benefit Options - CORRECT ANSWER ✔✔- Option A pays face value;
Option B includes cash value.
Variable Life Insurance - CORRECT ANSWER ✔✔- No guarantees; not backed
by state fund.
FINRA Registration - CORRECT ANSWER ✔✔- Agents must be registered to
sell variable products.
Inflation Hedge - CORRECT ANSWER ✔✔- Variable life products protect
against inflation.
Separate Account - CORRECT ANSWER ✔✔- Funds invested like mutual funds
in variable products.
Joint Life Policy - CORRECT ANSWER ✔✔- Pays upon first insured's death.
,Joint and Survivor Policy - CORRECT ANSWER ✔✔- Pays upon second
insured's death.
Survivorship Life Insurance - CORRECT ANSWER ✔✔- Used for estate tax
funding.
Incomplete Application - CORRECT ANSWER ✔✔- Returned unless
underwriters approve it as is.
Representations - CORRECT ANSWER ✔✔- Applicant statements considered
true but not guaranteed.
Warranty - CORRECT ANSWER ✔✔- Absolute guarantee of truth in insurance
applications.
Conditional Receipt - CORRECT ANSWER ✔✔- Coverage starts after conditions
are met and approved.
Insurable Interest - CORRECT ANSWER ✔✔- Must exist at application time, not
claim time.
HIPAA - CORRECT ANSWER ✔✔- Protects individually identifiable health
information privacy.
Protected Health Information - CORRECT ANSWER ✔✔- Includes health data,
name, address, SSN, birth date.
, Credit Report Authorization - CORRECT ANSWER ✔✔- Insurer needs written
pre-authorization to access report.
STOLI - CORRECT ANSWER ✔✔- Stranger-originated life insurance, often
illegal.
IOLI - CORRECT ANSWER ✔✔- Investor-originated life insurance, often illegal.
Surcharge - CORRECT ANSWER ✔✔- Rate increase for higher risk
classifications.
Standard Risk - CORRECT ANSWER ✔✔- An individual with an average life
expectancy.
Rated Policy - CORRECT ANSWER ✔✔- Issued to individuals classified as
substandard risks.
Avocation - CORRECT ANSWER ✔✔- Hobbies considered in life insurance
underwriting.
Premium Payment - CORRECT ANSWER ✔✔- Coverage begins only after
premium is paid.
Policy Delivery - CORRECT ANSWER ✔✔- Producer explains provisions, riders,
and exclusions.
