Health Care > EXAM > Texas Life Insurance Exam Questions and Answers with complete solutions 2023/2024 (All)

Texas Life Insurance Exam Questions and Answers with complete solutions 2023/2024

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Insurance (General concept) - Correct Answer - 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) ... insurable interest (General Concept) - Correct Answer - must exist at the time of the application - insuring one's own life, family member, or a business partner Solicitation and sales presentation - Correct Answer - 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. Underwriting (Field underwriting (by agent) - Correct Answer - application completed and signed - agent's report: agent's observation about the application that can assist in underwriting -premiums with application and conditional receipts underwriting ( company underwriting) - Correct Answer - multiple sources of information: applications, consumer reports, MIB (Medical Information Burea) - Risk Classification: 3 types of risk : standard, substandard, preferred Underwriting (Federal Regulation) - Correct Answer - Fair Credit Reporting Act: protect consumers against circulations of inaccurate or obsolete information - USE PATRIOT Act/ Anti-money Laundering and Suspicious Activity Reports Rules Premium Determination - Correct Answer - 3 key Factors for life insurance: mortality, interest, and expense - Mode: the more frequently premium is paid, the higher the premium Policy Issue and Delivery - Correct Answer 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 Agent/ Producer - Correct Answer a legal representative of an insurance company; the classification of producers usually includes agents and brokers' agents are the agents of the insurer Applicant of proposed insured - Correct Answer a person applying for insurance [Show More]

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