FUNERAL PREARRANGEMENT TX CORRECT EXAMS
ANSWERS AND QUESTIONS SET A+
✔✔Some life insurance policies for an additional death benefits declaration to made the
option of - ✔✔the insurance company
✔✔The intended beneficiary of the proceeds of a life insurance policy must be
designated on the - ✔✔policy application
✔✔If the primary and contingent beneficiaries of a life insurance policy are both living
when the insured dies, the proceeds will be paid to the - ✔✔primary beneficiary only
✔✔A life insurance policy owner may designate a new beneficiary without the consent
of the current beneficiary unless the current beneficiary designation is - ✔✔irrevocable
✔✔_____ increases when life insurance policy dividends are used to purchase paid-up
additions - ✔✔death benefit and cash value
✔✔During the insured's lifetime, a policy owner may surrender a whole insurance policy
for a cash payment equal to the - ✔✔net cash value
✔✔The policy option, _______ allows a policy owner to surrender a whole life policy for
a lesser amount of permanent life insurance coverage on which no further premiums
are due - ✔✔reduced paid-up insurance
✔✔The death proceeds of a life insurance policy are payable in lump sum payment, life
income, and fixed amount installemts - ✔✔It is NOT payable in Dividend-only
✔✔An accidental death benefit rider attached to a life insurance policy will normally pay
a benefit at the insured's death resulting from - ✔✔an injury sustained in a traffic crash
, ✔✔Under the waiver of premium rider on a life insurance policy, the insurance company
will pay the policy premiums at no cost to the insured when the insured - ✔✔becomes
and mains totally disabled
✔✔When an individual or firm would suffer substantial financial or emotional loss at
another's death, this creates an - ✔✔insurable interest
✔✔All changes and corrections made to an application for life insurance must be
initialed - ✔✔by the applicant
✔✔A conditional receipt given to the applicant for the premium paid at the time of
application will provide immediate life insurance protection - ✔✔ONLY if the insured
later proves to be insurable
✔✔For essential information regarding proposed insured a life insurance company's
underwriter relies most often on information from the - ✔✔completed application
✔✔Insurance companies may require a written statement disclosing any relevant
adverse information about a proposed insured from the insividual's - ✔✔agent
✔✔When a proposed insured has somewhat lower than average life expectancy, the
insurer most often will - ✔✔issue coverage with a higher-than-standard premium rate
✔✔If the application was taken without a premium payment, then coverage will become
effective when - ✔✔the agent delivers the policy and collects the initial premium
✔✔If the insured fails to sign a statement of good health required by the insurer at the
time of policy delivery, then the agent must - ✔✔refuse any premium payment and
return the policy to the insurer
✔✔__ is normally free from federal income taxation - ✔✔the amount paid to a
beneficiary because of the insured's death
✔✔In some circumstances, the income tax exempt status of the death proceeds of a life
insurance policy may be lost if the policy - ✔✔is sold to a new owner
✔✔During the accumulation period of an annuity, the insurance company would NOT
make a payment when - ✔✔purchase payments are stopped by the owner
✔✔During the accumulation period of an annuity, the interest earning - ✔✔are retained
in the contract on a tax-deferred basis
ANSWERS AND QUESTIONS SET A+
✔✔Some life insurance policies for an additional death benefits declaration to made the
option of - ✔✔the insurance company
✔✔The intended beneficiary of the proceeds of a life insurance policy must be
designated on the - ✔✔policy application
✔✔If the primary and contingent beneficiaries of a life insurance policy are both living
when the insured dies, the proceeds will be paid to the - ✔✔primary beneficiary only
✔✔A life insurance policy owner may designate a new beneficiary without the consent
of the current beneficiary unless the current beneficiary designation is - ✔✔irrevocable
✔✔_____ increases when life insurance policy dividends are used to purchase paid-up
additions - ✔✔death benefit and cash value
✔✔During the insured's lifetime, a policy owner may surrender a whole insurance policy
for a cash payment equal to the - ✔✔net cash value
✔✔The policy option, _______ allows a policy owner to surrender a whole life policy for
a lesser amount of permanent life insurance coverage on which no further premiums
are due - ✔✔reduced paid-up insurance
✔✔The death proceeds of a life insurance policy are payable in lump sum payment, life
income, and fixed amount installemts - ✔✔It is NOT payable in Dividend-only
✔✔An accidental death benefit rider attached to a life insurance policy will normally pay
a benefit at the insured's death resulting from - ✔✔an injury sustained in a traffic crash
, ✔✔Under the waiver of premium rider on a life insurance policy, the insurance company
will pay the policy premiums at no cost to the insured when the insured - ✔✔becomes
and mains totally disabled
✔✔When an individual or firm would suffer substantial financial or emotional loss at
another's death, this creates an - ✔✔insurable interest
✔✔All changes and corrections made to an application for life insurance must be
initialed - ✔✔by the applicant
✔✔A conditional receipt given to the applicant for the premium paid at the time of
application will provide immediate life insurance protection - ✔✔ONLY if the insured
later proves to be insurable
✔✔For essential information regarding proposed insured a life insurance company's
underwriter relies most often on information from the - ✔✔completed application
✔✔Insurance companies may require a written statement disclosing any relevant
adverse information about a proposed insured from the insividual's - ✔✔agent
✔✔When a proposed insured has somewhat lower than average life expectancy, the
insurer most often will - ✔✔issue coverage with a higher-than-standard premium rate
✔✔If the application was taken without a premium payment, then coverage will become
effective when - ✔✔the agent delivers the policy and collects the initial premium
✔✔If the insured fails to sign a statement of good health required by the insurer at the
time of policy delivery, then the agent must - ✔✔refuse any premium payment and
return the policy to the insurer
✔✔__ is normally free from federal income taxation - ✔✔the amount paid to a
beneficiary because of the insured's death
✔✔In some circumstances, the income tax exempt status of the death proceeds of a life
insurance policy may be lost if the policy - ✔✔is sold to a new owner
✔✔During the accumulation period of an annuity, the insurance company would NOT
make a payment when - ✔✔purchase payments are stopped by the owner
✔✔During the accumulation period of an annuity, the interest earning - ✔✔are retained
in the contract on a tax-deferred basis
