Texas Life Insurance Exam Question and Answers with Certified Solutions

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Texas Life Insurance Exam Question and Answers with Certified Solutions P completes an application for a $10,000 life policy, but does not give the producer the initial premium. P's coverage become... s effective when ✔✔P receives the policy and pays the premium A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be carrer? ✔✔20-Pay Life accumulates cash value faster than Straight Life How does an indexed annuity differ from a fixed annuity ? ✔✔Indexed annuity owners receive credited interest tied to the fluctuations of the linked index During a sales presentation for a participating life insurance policy, an agent MUST ✔✔make a prospect understand that dividends are NOT guaranteed T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable eneficiary. What action will the insurance company take if I requests a change of beneficiary? ✔✔request of the change will be refused Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? ✔✔conversion T has a term policy that allows him to continue the coverage after expiration of the initial policy period What type of term coverage is this? ✔✔renewable Which of the following is NOT a required provision in group life policies? ✔✔Right to loan The Insurance Commissioner must give how many days notice prior to holding a hearing regarding an agent's unfair or deceptive practice? ✔✔30 The Accelerated Death Benefit provision in a life insurance policy is also known as a(n) ) ✔✔Living Benefit In Texas, an individual life insurance policy is required to have a grace period of ✔✔31 days Which statement is correct regarding the premium payment schedule for whole life policies? ✔✔Premiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require? ✔✔Each partner must own a policy on the other partners Why would the Insurance Commissioner examine the records of an insurance company? ✔✔To determine the solvency of the company Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? ✔✔Conversion privilege Taking receipt of premiums and holding them for the insurance company is an example of: ✔✔fiduciary responsibility K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this? ✔✔Modified Whole Life What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? ✔✔Face amount plus the policy's cash value In regards to representations or warranties, which of these statements is TRUE? ✔✔If material to the risk, false representations will void a policy What provision in a life insurance policy states that the application is considered part of the contract? ✔✔Entire Contract provision J is 35-years old and looking to purchase a whole life insurance policy. Which of the following types of policies will provide the most rapid growth of cash value? ✔✔20-pay life Which of the following statements about accumulated interest eared on dividends from an insurance policy is TRUE? ✔✔It is taxed as ordinary income A life insurance policy which ensures that the premium will be paid if the insured becomes disabled has what kind of rider attached? ✔✔Waiver of Premium Which of the following is a requirement for obtaining a Texas insurance agent's license? ✔✔Be honest, trustworthy, and reliable Which of the following groups may NOT be insured by a group life insurance policy? ✔✔Individuals who are related by blood The amount of coverage on a group credit life policy is limited to ✔✔the insured's total loan value D was actively serving in the Marines when he was killed in an automobile accident while on leave. His $100,000 Whole life policy contains a War Exclusion clause. How much will D's beneficiary's receive? ✔✔The full face amount The underwriting process involves all of these EXCEPT for ✔✔Policy loan Which of the following Dividend options results in taxable income to the policyowner? ✔✔Accumulation at interest [Show More]

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