Texas Life Insurance Exam P completes an application for a $10,000 life policy, but does not give the producer the initial premium.P's coverage becomes effective when correct answerP receives the policy and pays the premium A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash value at a faster rate in the early years of the policy. Which of these statements made by the producer would be carrer? correct answer20-Pay Life accumulates cash value faster than Straight Life How does an indexed annuity differ from a fixed annuity ? correct answerIndexed annuity owners receive credited interest tied to the fluctuations of the linked index During a sales presentation for a participating life insurance policy, an agent MUST correct answermake a prospect understand that dividends are NOT guaranteed T is covered by an Accidental Death and Dismemberment (AD&D) policy that has an irrevocable eneficiary. What action will the insurance company take if I requests a change of beneficiary? correct answerrequest of the change will be refused Which provision allows the policyowner to change a term life policy to a permanent one without providing proof of good health? correct answerconversion T has a term policy that allows him to continue the coverage after expiration of the initial policy period What type of term coverage is this? correct answerrenewable Which of the following is NOT a required provision in group life policies? correct answerRight to loan The Insurance Commissioner must give how many days notice prior to holding a hearing regarding an agent's unfair or deceptive practice? correct answer30 1 / 2
The Accelerated Death Benefit provision in a life insurance policy is also known as a(n) ) correct answerLiving Benefit In Texas, an individual life insurance policy is required to have a grace period of correct answer31 days Which statement is correct regarding the premium payment schedule for whole life policies? correct answerPremiums are payable throughout the insured's lifetime/ coverage lasts until death of the insured Company Z has a Cross Purchase Buy-Sell Agreement in place among its three founding partners. If the agreement is funded with individual life insurance, what would it require? correct answerEach partner must own a policy on the other partners Why would the Insurance Commissioner examine the records of an insurance company? correct answerTo determine the solvency of the company Which of the following features of a group Term Life policy enables an individual to leave the group and continue his or her insurance without providing evidence of insurability? correct answerConversion privilege Taking receipt of premiums and holding them for the insurance company is an example of: correct answerfiduciary responsibility K buys a policy where the premium stays fixed for the first 5 years. The premium then increases in year 6 and stays level thereafter, all the while the death benefit remains the same. What kind of policy is this?correct answerModified Whole Life What does a Face Amount Plus Cash Value Policy supposed to pay at the insured's death? correct answerFace amount plus the policy's cash value In regards to representations or warranties, which of these statements is TRUE? correct answerIf material to the risk, false representations will void a policy
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