Exam (elaborations)
TEXAS LIFE INSURANCE EXAM
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TEXAS LIFE INSURANCE EXAM
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TEXAS LIFE INSURANCE EXAMWho is considered a field underwriter? - Answers -An agent
When must insurable interest exist in life insurance? - Answers -Application or issue
date
If no receipt is issued at the time of application, a statement of good health is usually
required at the time of? - Answers -Policy delivery
The Medical Information Bureau is?(MIB) - Answers -a source of medical information to
alert insurers to adverse medical history
A substandard risk compared to a standard risk would pay? - Answers -a higher
premium
Which document describes specific information about policy provisions and benefits? -
Answers -Policy summary
Does not have an insurable interest? - Answers -Insured's best friend
If an agent fails to obtain an applicants signature on the insurance application, the agent
must? - Answers -Return the application to the applicant for signature
What includes information regarding a person's credit, character, reputation, and
habits? - Answers -Consumer report
When the insured purchased a new home, he wanted to purchase a life insurance
policy that would protect his family against losing it should he die before the mortgage
was paid. Which of the following policies is best suitable for that need? - Answers -
Decreasing term
An annually renewable term policy? - Answers -Renews each year with an increased
premium
The time period during which an annuitant contributes to annuity is called? - Answers -
The accumulation period
An example of limited-pay life policy? - Answers -Life paid-up at the age 65
An individual owns an adjustable life policy. Sometimes in the future he wants to
increase the death benefit. What is correct regarding the death benefit increase? -
Answers -It can be increased by providing evidence of insurability
What is true regarding a universal life policy? - Answers -The premiums can be
decreased by the insured
, With a traditional whole life policy, the death benefit.. - Answers -Remains constant over
time
Whose life expectancy is taken into consideration in an annuity? - Answers -Annuitant
An insured receives a monthly summary of his life insurability policy. The cash value
this month is significantly lower than it was last month. What type of policy is it? -
Answers -Variable
An individual inherited a large sum of money at age 40 and wanted to use it to provide a
guarantee income after his retirement at age 60. Which of the following types of
annuities would best meet this need? - Answers -Deferred
What would be considered a disadvantage of term insurance? - Answers -If the insured
dies after the end of the term, there is no death benefit to the beneficiary
The renewable provision allows the policy-owner to renew the coverage at the
expiration date - Answers -Without evidence of insurability
What is the main source of underwriting information used by the company in the risk
selection process? - Answers -Application
An insured submits the full premium along with a completed application, and the policy
is issued 10 days later. When does the coverage begin? - Answers -On the date of
application
What is the main responsibility of a company's underwriting unit? - Answers -Risk
selection and classification
What best describes the USA PATRIOT Act with regards to the insurance industry? -
Answers -To prevent terrorism activities through monitoring of financial transactions
If the agent feels that could misrepresentation on the part of the applicant for insurance,
what must the agent do? - Answers -Inform the insurance comapny
Representations are statements made by the applicant that are? - Answers -Considered
true to the best of the applicant's knowledge
Which type of life insurance policy generates immediate cash value? - Answers -Single
premium
What is true regarding a joint life policy? - Answers -Premium is based on the average
age of the insureds
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