Texas Life Insurance Exam | 120 Questions with 100%
Correct Answers | Verified 100% Correct
What is the main responsibility of a company's underwriting unit? - ANSWER -
Risk selection and classification
What best describes the USA PATRIOT Act with regards to the insurance
industry? - ANSWER -To prevent terrorism activities through monitoring of
financial transactions
If the agent feels that could misrepresentation on the part of the applicant for
insurance, what must the agent do? - ANSWER -Inform the insurance comapny
Representations are statements made by the applicant that are? - ANSWER -
Considered true to the best of the applicant's knowledge
If an agent fails to obtain an applicants signature on the insurance application, the
agent must? - ANSWER -Return the application to the applicant for signature
What includes information regarding a person's credit, character, reputation, and
habits? - ANSWER -Consumer report
When the insured purchased a new home, he wanted to purchase a life insurance
policy that would protect his family against losing it should he die before the
mortgage was paid. Which of the following policies is best suitable for that need? -
ANSWER -Decreasing term
An annually renewable term policy? - ANSWER -Renews each year with an
increased premium
The time period during which an annuitant contributes to annuity is called? -
ANSWER -The accumulation period
An example of limited-pay life policy? - ANSWER -Life paid-up at the age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to
increase the death benefit. What is correct regarding the death benefit increase? -
ANSWER -It can be increased by providing evidence of insurability
, What is true regarding a universal life policy? - ANSWER -The premiums can be
decreased by the insured
With a traditional whole life policy, the death benefit.. - ANSWER -Remains
constant over time
Whose life expectancy is taken into consideration in an annuity? - ANSWER -
Annuitant
An insured receives a monthly summary of his life insurability policy. The cash
value this month is significantly lower than it was last month. What type of policy
is it? - ANSWER -Variable
An individual inherited a large sum of money at age 40 and wanted to use it to
provide a guarantee income after his retirement at age 60. Which of the following
types of annuities would best meet this need? - ANSWER -Deferred
What would be considered a disadvantage of term insurance? - ANSWER -If the
insured dies after the end of the term, there is no death benefit to the beneficiary
The renewable provision allows the policy-owner to renew the coverage at the
expiration date - ANSWER -Without evidence of insurability
Which type of life insurance policy generates immediate cash value? - ANSWER -
Single premium
What is true regarding a joint life policy? - ANSWER -Premium is based on the
average age of the insureds
The insured is also the policyowner of a whole life policy. What age must the
insured attain in order to receive the policy's face amount? - ANSWER -100
What provision of a life insurance policy states the application is part of the
contract? - ANSWER -Entire contract
A life insurance policy clause that prevents an insurance company from denying
payment of a death claim after a specific period of time is known as the.. -
ANSWER -Incontestability clause
Correct Answers | Verified 100% Correct
What is the main responsibility of a company's underwriting unit? - ANSWER -
Risk selection and classification
What best describes the USA PATRIOT Act with regards to the insurance
industry? - ANSWER -To prevent terrorism activities through monitoring of
financial transactions
If the agent feels that could misrepresentation on the part of the applicant for
insurance, what must the agent do? - ANSWER -Inform the insurance comapny
Representations are statements made by the applicant that are? - ANSWER -
Considered true to the best of the applicant's knowledge
If an agent fails to obtain an applicants signature on the insurance application, the
agent must? - ANSWER -Return the application to the applicant for signature
What includes information regarding a person's credit, character, reputation, and
habits? - ANSWER -Consumer report
When the insured purchased a new home, he wanted to purchase a life insurance
policy that would protect his family against losing it should he die before the
mortgage was paid. Which of the following policies is best suitable for that need? -
ANSWER -Decreasing term
An annually renewable term policy? - ANSWER -Renews each year with an
increased premium
The time period during which an annuitant contributes to annuity is called? -
ANSWER -The accumulation period
An example of limited-pay life policy? - ANSWER -Life paid-up at the age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to
increase the death benefit. What is correct regarding the death benefit increase? -
ANSWER -It can be increased by providing evidence of insurability
, What is true regarding a universal life policy? - ANSWER -The premiums can be
decreased by the insured
With a traditional whole life policy, the death benefit.. - ANSWER -Remains
constant over time
Whose life expectancy is taken into consideration in an annuity? - ANSWER -
Annuitant
An insured receives a monthly summary of his life insurability policy. The cash
value this month is significantly lower than it was last month. What type of policy
is it? - ANSWER -Variable
An individual inherited a large sum of money at age 40 and wanted to use it to
provide a guarantee income after his retirement at age 60. Which of the following
types of annuities would best meet this need? - ANSWER -Deferred
What would be considered a disadvantage of term insurance? - ANSWER -If the
insured dies after the end of the term, there is no death benefit to the beneficiary
The renewable provision allows the policy-owner to renew the coverage at the
expiration date - ANSWER -Without evidence of insurability
Which type of life insurance policy generates immediate cash value? - ANSWER -
Single premium
What is true regarding a joint life policy? - ANSWER -Premium is based on the
average age of the insureds
The insured is also the policyowner of a whole life policy. What age must the
insured attain in order to receive the policy's face amount? - ANSWER -100
What provision of a life insurance policy states the application is part of the
contract? - ANSWER -Entire contract
A life insurance policy clause that prevents an insurance company from denying
payment of a death claim after a specific period of time is known as the.. -
ANSWER -Incontestability clause
