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Life Insurance Exam Question (Texas)
Actual Exam Questions & Correct,
Certified Solutions / 2025 / 2026.
_____________Quiz____________? Which of the following is considered a field underwriter? -
Answer ✓✓
An agent _____________Quiz____________? When must insurable interest exist in life insurance? -
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Application or issues date _____________Quiz____________? If no receipt is issued at the time application, a statement of good health is usually required at the time of -
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Policy Delivery _____________Quiz____________? The Medical Information Bureau is -
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A source of medical information to alert insurers to adverse medical history
_____________Quiz____________? A substandard risk compared to a standard risk would pay -
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A higher premium _____________Quiz____________? Which of the following documents describes specific information about policy provisions and benefits? -
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Policy Summary _____________Quiz____________? All the following may have an insurable interest in the insured EXCEPT -
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Insured's best friend _____________Quiz____________? Which of the following would be the main source of underwriting information used by the company in the risk selection process? -
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Application "90% information comes from the application" _____________Quiz____________? An insured submits the full premium along with a completed application, and the policy is issued 10 days later. When does the coverage begin? -
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Return the application to the applicant for a signature. _____________Quiz____________? Which of the following includes information regarding a person's credit, character, reputation, and habits? -
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Consumers report _____________Quiz____________? What is insurance? -
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is a contract in which one party (the insurance company) agrees to idemnify (make whole) the insured party against loss, damage or liability arising from an unknown event. _____________Quiz____________? Representation are statements made by the applicant for insurance that are -
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True to the best of the applicant's knowledge. _____________Quiz____________? Insurable interest must exist at the time of -
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application _____________Quiz____________? A warranty is an -
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absolutely true statement
_____________Quiz____________? If an insurer issues a policy with unanswered questions on the application, the insurer has given up the right to use the missing information in underwriting. -
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True _____________Quiz____________? The agent's report includes the agent's personal observation concerning the proposed insured. -
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True _____________Quiz____________? The primary purpose of an investigative consumer report is to assess an applicant's -
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Lifestyle and habits _____________Quiz____________? In a life insurance policy, when must insurable interest exist? -
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A valid insurable interest may exist between the policyowners and the insured when they policy is insuring any of the following
- policyowner's own life
- the life of a family member (a spouse or a close blood relative)
- The life of a business partner, key employees, or someone who has a financial obligation to the policy owner (such as debtor to a creditor) _____________Quiz____________?
An annually renewable term policy -
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maintains a level premium each year _____________Quiz____________? Whose life expectancy is taken into consideration in an annuity? -
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Annuitant _____________Quiz____________? An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need? -
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Deferred _____________Quiz____________? Which of the following would be considered a disadvantage of term insurance? -
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If the insured dies after the end of the term, there is no death benefits to the beneficiary _____________Quiz____________? The renewable provision allows the policyowner to renew the coverage at the expiration date. -
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Without evidence of insurability _____________Quiz____________?
Which type of life insurance policy generates immediate cash value? -
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Single premium _____________Quiz____________? The time period during which an annuitant contributes to an annuity is called -
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The accumulation period _____________Quiz____________? Which of the following is an example of a limited- pay life policy? -
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Life paid- up at age 65 (higher premium) _____________Quiz____________? An individual owns a adjustable life policy. Sometimes in the future he wants to increase the death benefit. Which of the following statement is correct regarding the death benefits increases? -
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It can be increased by providing evidence of insurability. _____________Quiz____________? Which of the following statements is true regarding a universal life policy? -
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It is issued without a guaranteed interest rate _____________Quiz____________? With a traditional whole life policy, the death benefit -
entire contract _____________Quiz____________? A life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the -
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incontestability clause (2 years) _____________Quiz____________? When a death claim is submitted, the insurer discovered that the insured understated her age on the application for a life policy. What actions will the insurer take? -
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pay a reduced death benefit based on the insured's actual age _____________Quiz____________? Which of the following terms refers to the transfer of some or all of the ownership rights of a life insurance policy from one individual to another? -
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Assignment _____________Quiz____________? Which of the following is true about the free-look period in a life insurance policy? -
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It commences when the policy is delivered _____________Quiz____________? A spouse receives $5,000 a month until the principal and interest on her husband's life insurance policy have been paid out. Which settlement options did this beneficiary choose? -
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Fixed amount _____________Quiz____________? Which of the following features allows an insurance policy to remain in force for a specific number of days beyond the premium due date? -
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Grace period provision _____________Quiz____________? The insured usually pays $1,200 annually for her life insurance premium. This year, she has accumulated $175 in dividends, and applied that to her next premium, reducing it to $1,025. What dividend options has the insured chosen? -
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Reduction of premium _____________Quiz____________? All of the following are nonforfeiture options in life insurance policies EXCEPT -
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Automatic premium loans _____________Quiz____________? Which of the following is true of the fixed- period and fixed amount settlement options? -
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both guarantee that the principal and interest will be fully paid out (pay everything out ) _____________Quiz____________? Which of the following is NOT a standard exclusion in life insurance policies? -
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_____________Quiz____________? The medical information bureau (MIB) membership consists of -
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insurers _____________Quiz____________? A conditional receipt guarantees that coverage will begin on the date of application -
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False (after the first payment) _____________Quiz____________? Which law protects consumers against the circulation of inaccurate or obsolete information -
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Fair Credit Reporting Act _____________Quiz____________? An insurer is required to obtain a signed disclosures authorization form when it intends to -
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obtain a consumer report (credit report) _____________Quiz____________? Statements made by the insured on the application are considered -
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representation _____________Quiz____________? The proceeds paid to the beneficiary of a life insurance policy are called the -
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Death benefits _____________Quiz____________? Which nonprofit organization collects and maintains adverse medical data on insurance applicant? -
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Medical Information Bureau _____________Quiz____________? A beneficiary must have a insurable interest in the insured -
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False _____________Quiz____________? Example: Insured :Jane Smith Agent: Bob Policy : term life policy period: 5 year premium: $300 -
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Policy Summary _____________Quiz____________? Who is considered the field underwriter -
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agent
If the policy premium has not been submitted with the application, upon policy delivery the agent must obtain____from the insured. -
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A statement of GOOD health _____________Quiz____________? As a field underwriter, an agent is responsible for helping the insurer prevent adverse selection. -
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True _____________Quiz____________? Who receives the death benefit in a life insurance policy? -
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Beneficiary _____________Quiz____________? Purchasing a surivorship life policy is less expensive than purchasing two individual policies. -
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True _____________Quiz____________? The shorter the premium-paying period of a whole life policy, the ____the total annual cost.
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higher _____________Quiz____________?
Term life insurance is referred to as -
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Temporary protection _____________Quiz____________? Decreasing term graph, the line A that ""? -
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Death benefits _____________Quiz____________? Decreasing term graph In the graphic below, what does line B represent? "---" -
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Premium _____________Quiz____________? Whole life insurance only endows at age 100. -
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True _____________Quiz____________? The death benefit in a Universal Life policy is always annually renewable term... -
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True _____________Quiz____________? Upon the insured's death, the beneficiary of a whole life policy will receive the face amount and the cash value -
_____________Quiz____________? The 10 % early withdrawal penalty from an IRA can be waived for -
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catastrophic medical expenses _____________Quiz____________? The number of credits required to obtain a fully insured status to receives social security benefits is -
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_____________Quiz____________? All of the following persons who do not have an employer-sponsored retirement plan would be eligible to set up contribution to a traditional IRA EXCEPT -
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Arelene, age 70, a nurse (70 1/2) _____________Quiz____________? What is the requirement for a number of employees in a SIMPLE plan? -
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No more than 100 _____________Quiz____________? The advantage of qualified plans to employers is -
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Tax- deductible contributions
_____________Quiz____________? With personal life insurance, the lumps- sum death benefits is received by the beneficiary -
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Tax Free _____________Quiz____________? In a group life polices, individual certificates are given to -
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Each insured person _____________Quiz____________? Which of the following insurance arrangement will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? -
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Third- party ownership _____________Quiz____________? Which of the following are Social Security benefits? -
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Retirement, disability, and survivors _____________Quiz____________? A key- person insurance policy benefit will pay for which of the following? -
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Cost of training a replacement _____________Quiz____________?
