LIFE ONLY AGENT UPDATED FINAL PAPER QUESTIONS
AND SOLUTIONS GUARANTEE A+
✔✔#46. Which of the following is true of a children's rider added to an insured's
permanent life insurance policy? - ✔✔It is term coverage that is convertible to
permanent insurance at or prior to the child reaching the maximum coverage age.
✔✔#47. he premiums paid by the employer in a business life insurance policy are -
✔✔Tax deductible by the employer.
✔✔#48. The LEAST expensive first-year premium is found in which of the following
policies? - ✔✔Annually Renewable Term
✔✔#49. To sell variable life insurance policies, an agent must receive all of the following
EXCEPT - ✔✔SEC registration.
✔✔Which of the following is an example of a limited-pay life policy? - ✔✔Life Paid-up at
Age 65
✔✔#53.The insured had his wife named as the beneficiary of his life insurance policy.
To ensure that his wife had income for life after the insured's death, he chose the life
income settlement option. The amount of payments will be determined by taking into
account all of the following EXCEPT - ✔✔The insured's age at death.
✔✔#54.The proposed insured makes the premium payment on a new insurance policy.
If the insured should die, the insurer will pay the death benefit to the beneficiary if the
policy is approved. This is an example of what kind of contract? - ✔✔Conditional
✔✔#55. An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash value,
which is currently $20,000. What would be the face amount of the new term policy -
✔✔$50,000
✔✔#57. Items stipulated in the contract that the insurer will not provide coverage for are
found in the - ✔✔Exclusions clause.
✔✔#59. An applicant who receives a preferred risk classification qualifies for - ✔✔Lower
premiums than a person who receives a standard risk.
✔✔#61. An insured purchased an insurance policy 5 years ago. Last year, she received
a dividend check from the insurance company that was not taxable. This year, she did
not receive a check from the insurer. From what type of insurer did the insured
purchase the policy? - ✔✔Mutual
, ✔✔#62. An insurer devises an intimidation strategy in order to corner a large portion of
the insurance market. Which of the following best describes this practice? - ✔✔Illegal
✔✔#63. Which of the following persons is required to hold a producer license? - ✔✔A
person who negotiates insurance contracts
✔✔#64. An agent explains the details of a life insurance policy to a client. The agent
does not realize, however, that the state has recently rewritten two of the provisions. As
a result, the agent inadvertently misrepresents the policy, making it more attractive than
it really is. What best describes this situation? - ✔✔There is no misconduct
✔✔#65.All of the following information must be disclosed to the viator prior to the
execution of a viatical settlement contract EXCEPT - ✔✔Availability of stranger-
originated life insurance (STOLI).
✔✔#69.When twin brothers applied for life insurance from Company A, the company
found that while neither of them smoked and both had a very similar lifestyle, one of the
twins was in a much stronger financial position than the other. Because of this, the
company charged him a higher rate for his insurance. This practice is considered -
✔✔Discrimination.
✔✔#70. An agent's license will terminate within how many days from the due date of
obligatory fees and continuing education requirements? - ✔✔90 DAYS
✔✔#71. During replacement of life insurance, a replacing insurer must do which of the
following? - ✔✔Obtain a list of all life insurance policies that will be replaced
✔✔#73.The type of insurance sold to a debtor and designed to pay the amount due on
a loan if the debtor dies before the loan is repaid is called - ✔✔Credit life.
✔✔#76. If a policyowner surrenders his life insurance policy that has been in force for 5
years within 60 days after the premium due date, what will the insurer be required to
pay? - ✔✔A cash surrender value
✔✔#79. When possible, what should insurers strive to eliminate from illustrations? -
✔✔Footnotes and caveats
✔✔#83. In Texas, the state's continuing education requirement - ✔✔Consists of
completing 24 hours of CE each biennium.
✔✔#88. All of the following would be considered an insurance transaction EXCEPT -
✔✔Obtaining an insurance license.
AND SOLUTIONS GUARANTEE A+
✔✔#46. Which of the following is true of a children's rider added to an insured's
permanent life insurance policy? - ✔✔It is term coverage that is convertible to
permanent insurance at or prior to the child reaching the maximum coverage age.
✔✔#47. he premiums paid by the employer in a business life insurance policy are -
✔✔Tax deductible by the employer.
✔✔#48. The LEAST expensive first-year premium is found in which of the following
policies? - ✔✔Annually Renewable Term
✔✔#49. To sell variable life insurance policies, an agent must receive all of the following
EXCEPT - ✔✔SEC registration.
✔✔Which of the following is an example of a limited-pay life policy? - ✔✔Life Paid-up at
Age 65
✔✔#53.The insured had his wife named as the beneficiary of his life insurance policy.
To ensure that his wife had income for life after the insured's death, he chose the life
income settlement option. The amount of payments will be determined by taking into
account all of the following EXCEPT - ✔✔The insured's age at death.
✔✔#54.The proposed insured makes the premium payment on a new insurance policy.
If the insured should die, the insurer will pay the death benefit to the beneficiary if the
policy is approved. This is an example of what kind of contract? - ✔✔Conditional
✔✔#55. An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash value,
which is currently $20,000. What would be the face amount of the new term policy -
✔✔$50,000
✔✔#57. Items stipulated in the contract that the insurer will not provide coverage for are
found in the - ✔✔Exclusions clause.
✔✔#59. An applicant who receives a preferred risk classification qualifies for - ✔✔Lower
premiums than a person who receives a standard risk.
✔✔#61. An insured purchased an insurance policy 5 years ago. Last year, she received
a dividend check from the insurance company that was not taxable. This year, she did
not receive a check from the insurer. From what type of insurer did the insured
purchase the policy? - ✔✔Mutual
, ✔✔#62. An insurer devises an intimidation strategy in order to corner a large portion of
the insurance market. Which of the following best describes this practice? - ✔✔Illegal
✔✔#63. Which of the following persons is required to hold a producer license? - ✔✔A
person who negotiates insurance contracts
✔✔#64. An agent explains the details of a life insurance policy to a client. The agent
does not realize, however, that the state has recently rewritten two of the provisions. As
a result, the agent inadvertently misrepresents the policy, making it more attractive than
it really is. What best describes this situation? - ✔✔There is no misconduct
✔✔#65.All of the following information must be disclosed to the viator prior to the
execution of a viatical settlement contract EXCEPT - ✔✔Availability of stranger-
originated life insurance (STOLI).
✔✔#69.When twin brothers applied for life insurance from Company A, the company
found that while neither of them smoked and both had a very similar lifestyle, one of the
twins was in a much stronger financial position than the other. Because of this, the
company charged him a higher rate for his insurance. This practice is considered -
✔✔Discrimination.
✔✔#70. An agent's license will terminate within how many days from the due date of
obligatory fees and continuing education requirements? - ✔✔90 DAYS
✔✔#71. During replacement of life insurance, a replacing insurer must do which of the
following? - ✔✔Obtain a list of all life insurance policies that will be replaced
✔✔#73.The type of insurance sold to a debtor and designed to pay the amount due on
a loan if the debtor dies before the loan is repaid is called - ✔✔Credit life.
✔✔#76. If a policyowner surrenders his life insurance policy that has been in force for 5
years within 60 days after the premium due date, what will the insurer be required to
pay? - ✔✔A cash surrender value
✔✔#79. When possible, what should insurers strive to eliminate from illustrations? -
✔✔Footnotes and caveats
✔✔#83. In Texas, the state's continuing education requirement - ✔✔Consists of
completing 24 hours of CE each biennium.
✔✔#88. All of the following would be considered an insurance transaction EXCEPT -
✔✔Obtaining an insurance license.
