TEXAS LIFE INSURANCE EXAM QUESTIONS WITH THE LATEST AND UPDATED SCORE

TEXAS LIFE INSURANCE EXAM QUESTIONS WITH THE
LATEST AND UPDATED SCORE.

Insurance a




(General concept) -- Answer ✔✔ - transfers the risk of loss from an individual to an
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insurer a




- based on the principle of indemnity
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- based on the principle of risk (risk pooling)
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insurable interest a a




(General Concept) -- Answer ✔✔ - must exist at the time of the application
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- insuring one's own life, family member, or a business partner
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Solicitation and sales presentation -- Answer ✔✔ - illustration- presentation of
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nonguaranteed elements a




- buyer's guide is generic information about life polices which must be provided at the
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time of application
a a a




- policy summary is a description of features and benefits of the policy being issued and
a a a a a a a a a a a a a a a a




must be provided when the policy is delivered.
a a a a a a a




Underwriting (Field underwriting (by agent) -- Answer ✔✔ - application completed and
a a a a a a a a a a a a




signed a




- agent's report: agent's observation about the application that can assist in underwriting
a a a a a a a a a a a a a




-premiums with application and conditional receipts
a a a a a




underwriting ( company underwriting) -- Answer ✔✔ - multiple sources of information:
a a a a a a a a a a a a




applications, consumer reports, MIB (Medical Information Bureau)
a a a a a a a




- Risk Classification: 3 types of risk : standard, substandard, preferred
a a a a a a a a a a




Underwriting (Federal Regulation) -- Answer ✔✔ - Fair Credit Reporting Act: protect
a a a a a a a a a a a a




consumers against circulations of inaccurate or obsolete information
a a a a a a a a




- USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules
a a a a a a a a a a

, Premium Determination -- Answer ✔✔ - 3 key Factors for life insurance: mortality,
a a a a a a a a a a a a a




interest, and expense a a




- Mode: the more frequently premium is paid, the higher the premium
a a a a a a a a a a a




Policy Issue and Delivery -- Answer ✔✔ Effective date of coverage - if the premium is not
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paid with the application, the agent must obtain the premium and a statement of
a a a a a a a a a a a a a a




continued good health at the time of the policy delivery
a a a a a a a a a




Agent/ Producer -- Answer ✔✔ a legal representative of an insurance company; the
a a a a a a a a a a a a a




classification of producers usually includes agents and brokers' agents are the agents of
a a a a a a a a a a a a a




the insurer
a




Applicant of proposed insured -- Answer ✔✔ a person applying for insurance
a a a a a a a a a a a




Beneficiary -- Answer ✔✔ a person who receives the benefits of an insurance policy
a a a a a a a a a a a a a




Broker -- Answer ✔✔ an insurance producer who is not appointed by an insurance
a a a a a a a a a a a a a a




company and who represents the client a a a a a




Death benefits -- Answer ✔✔ the amount paid upon death of the insured in a life
a a a a a a a a a a a a a a a a




insurance policy a




Estate -- Answer ✔✔ a person's net worth
a a a a a a a




Insurance policy -- Answer ✔✔ a contact between a policyowner (and/or insured) and an
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insurance company which agrees to pay insured or the beneficiary for loss caused by
a a a a a a a a a a a a a a




specific events. a




Insured -- Answer ✔✔ a person covered by the insurance policy; may or may not be the
a a a a a a a a a a a a a a a a a




policyowner

insurer (principal) -- Answer ✔✔ the company who issues an insurance policy
a a a a a a a a a a a




Lapse -- Answer ✔✔ policy termination due to nonpayment of premium
a a a a a a a a a a