Insurance
(General concept) - 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) - ANSWER - must exist at the time of the application
- insuring ...
Texas Life Insurance Exam Questions and Answers with complete solutions
Insurance (General concept) - 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) - ANSWER - must exist at the time of the application - insuring one's own life, family member, or a business partner
Solicitation and sales presentation - 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) - 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) - ANSWER - multiple sources of information: applications, consumer reports, MIB (Medical Information Burea) - Risk Classification: 3 types of risk : standard, substandard, preferred
Underwriting (Federal Regulation) - 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 - 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 - 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 - 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 - ANSWER a person applying for insurance
Beneficiary - ANSWER a person who receives the benefits of an insurance policy
Broker - ANSWER an insurance producer who is not appointed by an insurance company and who represents the client
Death benefits - ANSWER the amount paid upon death of the insured in a life insurance
policy
Estate - ANSWER a person's net worth
Insurance policy - ANSWER a contact between a policyowner (and/or insured) and an insurance company which agrees to pay insured or the beneficiary for loss caused by specific events.
Insured - ANSWER a person covered by the insurance policy; may or may not be the policyowner
insurer (principal) - ANSWER the company who issues an insurance policy
Lapse - ANSWER policy termination due to nonpayment of premium
Life insurance - ANSWER coverage on human lives
Policyowner - ANSWER the person entitled to exercise the rights and privileges in the policy
Premium - ANSWER the money paid to the insurance company for the insurance policy
Underwriting - ANSWER is the risk selection and classification process
Attained age - ANSWER the insured's age at the time the policy is issued or renewed
cash value - ANSWER a policy's saving element or living benefit
Face amount - ANSWER the amount of benefits stated in the life insurance policy
Fixed life insurance - ANSWER contracts that offer guaranteed minimum or fixed benefits
Deferred - ANSWER withheld or postponed until a specified time or event in the future
Endow - ANSWER the cash value of a whole life policy has reached the contractual face amount
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
