Texas Funeral Prearrangement Test Questions
With Complete solutions
The |people |at |the |insurance |company |who |determine |the |risk |and |accept |or |reject |the |risk |
are |called |- |CORRECT |ANSWER✔✔-Underwriters
A |______ |risk |is |one |where |the |proposed |insured |exceeds |the |basic |standards |so |the |company
|may |offer |more |coverage |or |a |lesser |premium |for |the |coverage |applied |for |to |the |applicant. |- |
CORRECT |ANSWER✔✔-Preferred
The |amount |the |insurer |needs |to |cover |the |risk |it |has |assumed |is |called |the: |Mortality |charge,
|Reserve, |Standard |risk, |Liability |account |- |CORRECT |ANSWER✔✔-Mortality |Charge
When |the |applicant |has |more |to |gain |by |the |insured's |continued |life, |the |applicant |has |an |___
|in |the |insured. |- |CORRECT |ANSWER✔✔-Insurable |Interest
The |policy |owner |cannot |change |the |beneficiary |to |another |person |or |entity |without |the |
beneficiary's |prior |consent |when |the |beneficiary |is |listed |as: |The |primary |beneficiary, |The |
contingent |beneficiary, |The |irrevocable |beneficiary, |The |default |beneficiary |- |CORRECT |
ANSWER✔✔-The |irrevocable |beneficiary
___ |is |when |the |effective |date |of |the |policy |is |set |at |an |earlier |date |than |when |the |application
|is |completed |in |order |to |save |age. |- |CORRECT |ANSWER✔✔-Backdating
The |payment |method |that |allows |the |premium |payer |to |authorize |the |premium |payer's |bank |
to |automatically |pay |the |insurance |policy's |premiums |from |the |premium |payer's |account |
without |generating |a |paper |check |is: |Direct |bil, |Pre-Authorized |Checking |(PAC), |Electronic |
Funds |Transfer |(EFT), |Money |order |- |CORRECT |ANSWER✔✔-Pre-Authorized |Checking |(PAC)
, If |premiums |are |not |made |to |keep |the |insurance |policy |in |force, |the |policy |is |said |to |____. |- |
CORRECT |ANSWER✔✔-Lapse
An |insurance |contract |is |a |___ |contract. |- |CORRECT |ANSWER✔✔-Unilateral
The |provision |that |provides |that |the |policy |owner |has |a |certain |period |of |time |to |examine |the |
policy |is |the: |Grace |period, |Facility |of |payment, |Insuring |clause, |Free |look |- |CORRECT |
ANSWER✔✔-Free |Look
The |entire |contract |provision |lists |all |of |the |documents |that |make |up |the |insurance |policy. |
These |documents |include: |The |insurance |policy, |The |application |for |the |insurance |policy, |
Riders |attached |to |the |policy, |All |of |the |above |- |CORRECT |ANSWER✔✔-All |of |the |above
The |incontestability |clause |provides |that |after |a |certain |period |of |time, |the |insurance |company
|cannot |contest |the |policy's |validity |for |any |reason. |What |is |the |period |of |time?: |90 |days, |2 |
years, |45 |days, |4 |years |- |CORRECT |ANSWER✔✔-2 |years
The |rider |that |provides |that |the |company |will |waive |the |payment |of |premiums |should |the |
premium |payer |become |totally |disabled |and |will |continue |the |waiver |of |premium |during |the |
time |of |the |total |disablement |is |called:Double |indemnity |rider, |Waiver |of |premium |benefit |
rider, |Accidental |death |benefit |rider, |Guaranteed |insurability |option |rider |- |CORRECT |
ANSWER✔✔-Waiver |of |premium |benefit |rider
The |_____ |loan |provision |provides |that |the |cash |value |of |the |policy |can |automatically |be |used
|to |pay |overdue |policy |premiums. |- |CORRECT |ANSWER✔✔-Automatic |Premium
When |a |premium |payer |has |stopped |making |scheduled |premium |payments |and |the |policy |
goes |into |reduced |paid-up |insurance |(RPU), |the |cash |value |of |the |policy |is |used |to |purchase |a |
single |premium |whole |life |insurance |policy |for |a |____ |amount |of |coverage |with |no |further |
payments |due. |Greater, |Lesser, |or |Equal |- |CORRECT |ANSWER✔✔-Lesser
With Complete solutions
The |people |at |the |insurance |company |who |determine |the |risk |and |accept |or |reject |the |risk |
are |called |- |CORRECT |ANSWER✔✔-Underwriters
A |______ |risk |is |one |where |the |proposed |insured |exceeds |the |basic |standards |so |the |company
|may |offer |more |coverage |or |a |lesser |premium |for |the |coverage |applied |for |to |the |applicant. |- |
CORRECT |ANSWER✔✔-Preferred
The |amount |the |insurer |needs |to |cover |the |risk |it |has |assumed |is |called |the: |Mortality |charge,
|Reserve, |Standard |risk, |Liability |account |- |CORRECT |ANSWER✔✔-Mortality |Charge
When |the |applicant |has |more |to |gain |by |the |insured's |continued |life, |the |applicant |has |an |___
|in |the |insured. |- |CORRECT |ANSWER✔✔-Insurable |Interest
The |policy |owner |cannot |change |the |beneficiary |to |another |person |or |entity |without |the |
beneficiary's |prior |consent |when |the |beneficiary |is |listed |as: |The |primary |beneficiary, |The |
contingent |beneficiary, |The |irrevocable |beneficiary, |The |default |beneficiary |- |CORRECT |
ANSWER✔✔-The |irrevocable |beneficiary
___ |is |when |the |effective |date |of |the |policy |is |set |at |an |earlier |date |than |when |the |application
|is |completed |in |order |to |save |age. |- |CORRECT |ANSWER✔✔-Backdating
The |payment |method |that |allows |the |premium |payer |to |authorize |the |premium |payer's |bank |
to |automatically |pay |the |insurance |policy's |premiums |from |the |premium |payer's |account |
without |generating |a |paper |check |is: |Direct |bil, |Pre-Authorized |Checking |(PAC), |Electronic |
Funds |Transfer |(EFT), |Money |order |- |CORRECT |ANSWER✔✔-Pre-Authorized |Checking |(PAC)
, If |premiums |are |not |made |to |keep |the |insurance |policy |in |force, |the |policy |is |said |to |____. |- |
CORRECT |ANSWER✔✔-Lapse
An |insurance |contract |is |a |___ |contract. |- |CORRECT |ANSWER✔✔-Unilateral
The |provision |that |provides |that |the |policy |owner |has |a |certain |period |of |time |to |examine |the |
policy |is |the: |Grace |period, |Facility |of |payment, |Insuring |clause, |Free |look |- |CORRECT |
ANSWER✔✔-Free |Look
The |entire |contract |provision |lists |all |of |the |documents |that |make |up |the |insurance |policy. |
These |documents |include: |The |insurance |policy, |The |application |for |the |insurance |policy, |
Riders |attached |to |the |policy, |All |of |the |above |- |CORRECT |ANSWER✔✔-All |of |the |above
The |incontestability |clause |provides |that |after |a |certain |period |of |time, |the |insurance |company
|cannot |contest |the |policy's |validity |for |any |reason. |What |is |the |period |of |time?: |90 |days, |2 |
years, |45 |days, |4 |years |- |CORRECT |ANSWER✔✔-2 |years
The |rider |that |provides |that |the |company |will |waive |the |payment |of |premiums |should |the |
premium |payer |become |totally |disabled |and |will |continue |the |waiver |of |premium |during |the |
time |of |the |total |disablement |is |called:Double |indemnity |rider, |Waiver |of |premium |benefit |
rider, |Accidental |death |benefit |rider, |Guaranteed |insurability |option |rider |- |CORRECT |
ANSWER✔✔-Waiver |of |premium |benefit |rider
The |_____ |loan |provision |provides |that |the |cash |value |of |the |policy |can |automatically |be |used
|to |pay |overdue |policy |premiums. |- |CORRECT |ANSWER✔✔-Automatic |Premium
When |a |premium |payer |has |stopped |making |scheduled |premium |payments |and |the |policy |
goes |into |reduced |paid-up |insurance |(RPU), |the |cash |value |of |the |policy |is |used |to |purchase |a |
single |premium |whole |life |insurance |policy |for |a |____ |amount |of |coverage |with |no |further |
payments |due. |Greater, |Lesser, |or |Equal |- |CORRECT |ANSWER✔✔-Lesser
