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Texas Life Agent Exam Questions / Complete
Study Guide / Actual Exam Questions & Correct
Answers (Verified Detailed Answers) A Grade.
_____________Quiz____________? Which of the following is NOT correct regarding Ordinary Whole Life policies? -
Answer ✓✓
The cash value grows more quickly in the beginning years of the policy. _____________Quiz____________? A life insurance police that combines term insurance protection, a flexible premium, and cash value accumulation is: -
Answer ✓✓
Universal Life _____________Quiz____________? Which of the following is an example of a Limited-Pay Life policy: -
Answer ✓✓
20 - Pay Life _____________Quiz____________? John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash value will equal the face amount of the policy when he reaches the age of: -
Answer ✓✓
_____________Quiz____________? Which of the following individual policy conversions is usually permitted without any evidence of insurability? -
Answer ✓✓
Conversion from a term policy to a whole life whole life policy _____________Quiz____________? Which of the following statements is true about the premium amount schedule for a Whole Life policy? -
Answer ✓✓
Premiums are payable throughout the insured's lifetime, and coverage continues until the insured's death _____________Quiz____________? You have a client that is a real estate agent. Which of the following types of permanent protection is best for this type of client? -
Answer ✓✓
Adjustable life _____________Quiz____________? Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20- year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? -
Answer ✓✓
A $50,000 decreasing term policy for 20 years. _____________Quiz____________? Which of the following statements about a renewable term policy is true? -
_____________Quiz____________? Which of the following contracts require that a series of benefit payments be made at specified intervals? -
Answer ✓✓
Annuity _____________Quiz____________? In order to sell variable life insurance you must be registered with which of the following? -
Answer ✓✓
The NASD (FINRA) _____________Quiz____________? Most term life insurance: -
Answer ✓✓
Is convertible to permanent Whole Life without a physical exam _____________Quiz____________? Which of the following types of insurance policies would provide the greatest amount of protection for a temporary period during which an insured will have limited financial resources? -
Answer ✓✓
Term _____________Quiz____________? A 45-year old customer who is seeking to supplement his retirement income at age 65 would not buy a: -
Answer ✓✓
Immediate annuity
_____________Quiz____________? An insurance producer selling a variable annuity whose cash value depends on the performance of an underlying investment account must be registered with -
Answer ✓✓
The Financial Industry Regulatory Authority (FINRA, formerly NASD) _____________Quiz____________? Which of the following policies provides the greatest amount of protection for an insured's premium dollar as well as some cash accumulation? -
Answer ✓✓
Whole Life _____________Quiz____________? A life insurance policy whose cash value will fluctuate depend upon the performance of a separate account is: -
Answer ✓✓
Variable life _____________Quiz____________? If a client wants ash value life insurance with a flexible premium and an adjustable death benefit that will allow the policy owner a choice of various cash value investment options, he should buy: -
Answer ✓✓
Variable/Universal Life _____________Quiz____________? Which of the following is an example of a limited-pay life policy? -
Answer ✓✓
Answer ✓✓
When the insured receives the contract and makes the first premium payment, if needed _____________Quiz____________? Which of the following is true about the Insuring Clause? -
Answer ✓✓
It contains the insurer's enforceable promise to pay covered claims _____________Quiz____________? An insured died during the grace period of their life insurance policy and had not paid the required annual premium. The insurance company is obligated to pay which of the following to the beneficiary: -
Answer ✓✓
The face amount of the policy less any earned premiums _____________Quiz____________? The life insurance rider that will pay the insured's premium after a period of disability due to accident or sickness: -
Answer ✓✓
Waiver of premium _____________Quiz____________? A customer buys a $25,000 life insurance policy with a $25,000 Accidental Death Benefit rider attached. If he dies of cancer, how much will his policy pay? -
Answer ✓✓
_____________Quiz____________?
Which of the following statements about a typical suicide clause in a life insurance policy is true? -
Answer ✓✓
Suicide is excluded for a specific period of years and covered thereafter _____________Quiz____________? A beneficiary designation that prevents the policy owner from making certain changes in the policy is: -
Answer ✓✓
Irrevocable _____________Quiz____________? An insurance company will grant an advance from the cash value of a life insurance policy when the policy owner requests which of the following? -
Answer ✓✓
Policy loan _____________Quiz____________? The clause that states the insurer's promise to pay the policy benefits in accordance with the contract's provisions is the: -
Answer ✓✓
Insuring Clause _____________Quiz____________? What life insurance policy provision applies if a policy lapsed last year and the insured wants it. back? -
Answer ✓✓
Reinstatement
Jim gets married and wants to add his new spouse to his existing Life insurance policy. Which rider should he add? -
Answer ✓✓
Other insured rider _____________Quiz____________? Which of the following is a non-forfeiture option that provides continuing cash value buildup
Answer ✓✓
Reduced Paid-Up _____________Quiz____________? Which of the following is true about the Misstatement of Age provision: -
Answer ✓✓
It allows the insurer to adjust benefits _____________Quiz____________? A $10,000 Life insurance policy with a Triple Indemnity clause has been in force for three years. The insured is injured in a train wreck and dies in a hospital five months later. The death proceeds payable under the policy would be: -
Answer ✓✓
_____________Quiz____________? Margaret May wants to name her husband as the beneficiary of her Life policy; however, she wishes to retain all of the rights of ownership. Mrs. May should name her husband as: -
Answer ✓✓
Revocable beneficiary
_____________Quiz____________? The 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: -
Answer ✓✓
Incontestability clause _____________Quiz____________? A client applied for Life insurance on October 1st. The application was approved and the policy was issued on October 10th. It was delivered to the customer on October 18th. When did the Free Look start? -
Answer ✓✓
October 18 _____________Quiz____________? If the insured understated his age and the error is discovered after the insured's death, the insurance company will? -
Answer ✓✓
Pay the amount that the premium paid would have purchased at the correct age _____________Quiz____________? In a policy insuring the life of a child, which of the following allows the premiums to be waived in the event of the death or disability of the person responsible for premium payments? -
Answer ✓✓
Payor benefit rider _____________Quiz____________? Which of the following statements about the Misstatement of Age provision in a life insurance policy is true? -
Answer ✓✓
Answer ✓✓
Limit the policy to the contract plus the application, if attached _____________Quiz____________? The purpose of the Grace period is: -
Answer ✓✓
Protect the policy owner against unintentional lapse _____________Quiz____________? Dividend projections may be included in a proposal for Life insurance when which of the following is true? -
Answer ✓✓
When there is a clear statement that they are not guaranteed _____________Quiz____________? The provision in a life insurance policy that provides protection against unintentional policy lapse is known as? -
Answer ✓✓
Automatic premium loan provision _____________Quiz____________? If the insured dies 5 years after he bought a life insurance policy and the insurer determines that there was material misrepresentation on his application, they will: -
Answer ✓✓
Pay the claim _____________Quiz____________? The life insurance policy provision that prevents the insurer from modifying a policy after it has been issued is the: -
Answer ✓✓
Entire Contract Clause _____________Quiz____________? A client buys a life insurance policy on July 1st and dies by suicide 6 months later. The insurance company will: -
Answer ✓✓
Deny the claim, but refund the premium _____________Quiz____________? With proper notice and authorization, insurers may report underwriting information that an applicant lists on their application for Life insurance to the: -
Answer ✓✓
Medical Information Bureau (MIB) _____________Quiz____________? A producer completes an application for Life insurance and sends it to the underwriter who approves it and issues the policy. When is the coverage effective: -
Answer ✓✓
When the producer delivers the policy and picks up the premium _____________Quiz____________? A producer submits a completed and signed application to the underwriter along with the first premium check. After checking the results of the physical exam, the underwriter issues a 'rated policy'. Which of the following will not be required? -
Answer ✓✓
A new completed and signed application _____________Quiz____________?
_____________Quiz____________? A producer sends a completed and signed application along with the check for the initial premium to the underwriter, who notices that the applicant forgot to sign the check. When would coverage start? -
Answer ✓✓
When the producer delivers the policy and picks up a signed check along with a Statement of Continued Good Health _____________Quiz____________? When giving a client a conditional receipt, which of the following is true? -
Answer ✓✓
The coverage will begin at earliest as of the date of the application or when the client passes a physical, whichever is later. _____________Quiz____________? A producer takes an application from a proposed insured without receiving payment of the first premium. The insurance company issues the policy, and when the producer visits the proposed insured to deliver it, she realizes that the health of the applicant has deteriorated significantly since the application was taken. The producer should: -
Answer ✓✓
Refuse to deliver the policy or to accept any premium offered _____________Quiz____________? Statements made by an insurance applicant on a life insurance policy that are supposed to be true are referred to as: -
Answer ✓✓
Representations _____________Quiz____________?
If an existing client of a producer wants to buy another life insurance policy, the producer should: -
Answer ✓✓
Have the customer come in and complete and sign a new application _____________Quiz____________? If an application for life insurance is not complete: -
Answer ✓✓
The insurer will return it to the producer _____________Quiz____________? An applicant has been denied insurance coverage because of information contained in a consumer report. According to the Fair Credit Reporting Act, all of the following statements are true about this situation, EXCEPT: -
Answer ✓✓
The applicant has the right to obtain a copy of the consumer report directly from an insurance company that used the report _____________Quiz____________? Life insurance becomes effective when: -
Answer ✓✓
When the conditions in the conditional receipt are satisfied _____________Quiz____________? Once completed and signed by the applicant, a producer may change an application: -
Answer ✓✓
If the applicant initials the change _____________Quiz____________?
_____________Quiz____________? Which of the following is not considered to be a 'qualified' plan -
Answer ✓✓
Split Dollar _____________Quiz____________? Traditional IRAs have a premature distribution penalty for distributions taken prior to age -
Answer ✓✓
_____________Quiz____________? When someone other than the insured is the owner of a Life insurance policy, the owner may do all of the following without the insured's consent, EXCEPT: -
Answer ✓✓
Increase the amount of insurance _____________Quiz____________? Albert Metz, who has $2,000 of Group Life insurance, has just terminated his employment. Mr. Metz has how many days in which to convert his group coverage to individual coverage?
Answer ✓✓
_____________Quiz____________? An insurable interest must exist when: -
Answer ✓✓
A life insurance policy is issued
_____________Quiz____________? A parent who wishes to have complete control of their son's life insurance policy until the son reaches age 25 can do so through the use of which of the following? -
Answer ✓✓
Ownership provision _____________Quiz____________? A Life insurance policy of which the cash value is over-funded according to IRS rules is known as: -
Answer ✓✓
A Modified Endowment Contract _____________Quiz____________? Premature distributions from a Traditional IRA prior to age 59 1/2 are subject to: -
Answer ✓✓
Ordinary income tax plus a 10% penalty _____________Quiz____________? A client with a participating Life insurance policy receives both interest and dividends. What are the tax implications? -
Answer ✓✓
The interest is taxable, but the dividends are not _____________Quiz____________? When a company requires that their employees pay part of the premium for the Group Life insurance coverage, it is known as a ___________ group: -
Answer ✓✓
Contributory
