Texas Life Insurance Exam
Unabridged Formatted Document • Complete Practice Exam Edition
Texas Life Insurance Exam Questions with 100% Correct answers updated
1. Insurance
(General con-
cept)
- 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)
2. insurable inter-
est
(General Con-
cept)
- must exist at the time of the application
- insuring one's own life, family member, or a business partner
3. Solicitation and
sales presenta-
tion
- 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.
Davieacademia • Texas Life Insurance Exam Page 1 of 21
, 4. Underwriting
(Field
underwriting (by
agent)
- application completed and signed
- agent's report: agent's observation about the application that can assist in
underwriting
-premiums with application and conditional receipts
5. underwriting (
company under-
writing)
- multiple sources of information: applications, consumer reports, MIB (Medical
Information Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
6. Underwriting
(Federal
Regulation)
- Fair Credit Reporting Act: protect consumers against circulations of inaccurate
or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules
7. Premium Deter-
mination
- 3 key Factors for life insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher the premium
Davieacademia • Texas Life Insurance Exam Page 2 of 21
, 8.
Texas Life Insurance Exam Questions with 100% Correct answers updated
Policy Issue and
Delivery
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
9. Agent/ Producer a legal representative of an insurance company; the classification of
producers
usually includes agents and brokers' agents are the agents of the insurer
10. Applicant of pro-
posed insured
a person applying for insurance
11. Beneficiary a person who receives the benefits of an insurance policy
12. Broker an insurance producer who is not appointed by an insurance company and who
represents the client
13. Death benefits the amount paid upon death of the insured in a life insurance policy
14. Estate a person's net worth
Davieacademia • Texas Life Insurance Exam Page 3 of 21
Unabridged Formatted Document • Complete Practice Exam Edition
Texas Life Insurance Exam Questions with 100% Correct answers updated
1. Insurance
(General con-
cept)
- 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)
2. insurable inter-
est
(General Con-
cept)
- must exist at the time of the application
- insuring one's own life, family member, or a business partner
3. Solicitation and
sales presenta-
tion
- 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.
Davieacademia • Texas Life Insurance Exam Page 1 of 21
, 4. Underwriting
(Field
underwriting (by
agent)
- application completed and signed
- agent's report: agent's observation about the application that can assist in
underwriting
-premiums with application and conditional receipts
5. underwriting (
company under-
writing)
- multiple sources of information: applications, consumer reports, MIB (Medical
Information Burea)
- Risk Classification: 3 types of risk : standard, substandard, preferred
6. Underwriting
(Federal
Regulation)
- Fair Credit Reporting Act: protect consumers against circulations of inaccurate
or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules
7. Premium Deter-
mination
- 3 key Factors for life insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher the premium
Davieacademia • Texas Life Insurance Exam Page 2 of 21
, 8.
Texas Life Insurance Exam Questions with 100% Correct answers updated
Policy Issue and
Delivery
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
9. Agent/ Producer a legal representative of an insurance company; the classification of
producers
usually includes agents and brokers' agents are the agents of the insurer
10. Applicant of pro-
posed insured
a person applying for insurance
11. Beneficiary a person who receives the benefits of an insurance policy
12. Broker an insurance producer who is not appointed by an insurance company and who
represents the client
13. Death benefits the amount paid upon death of the insured in a life insurance policy
14. Estate a person's net worth
Davieacademia • Texas Life Insurance Exam Page 3 of 21
