Texas Life Insurance Exam 2 (Latest 2023-2024)
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- Who is considered a field underwriter?
Answer: An agent
- When must insurable interest exist in life insurance?
Answer: 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?
Answer: Policy delivery
- The Medical Information Bureau is?(MIB)
Answer: a source of medical information to alert insurers to adverse
medical history
- A substandard risk compared to a standard risk would pay?
Answer: a higher premium
- Which document describes specific information about policy
provisions and benefits?
Answer: Policy summary
- Does not have an insurable interest?
Answer: Insured's best friend
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- What is the main source of underwriting information used by the
company in the risk selection process?
Answer: 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?
Answer: On the date of application
- What is the main responsibility of a company's underwriting
unit?
Answer: Risk selection and classification
- What best describes the USA PATRIOT Act with regards to the
insurance industry?
Answer: 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?
Answer: Inform the insurance company
- Representations are statements made by the applicant that are?
Answer: Considered true to the best of the applicant's knowledge
- If an agent fails to obtain an applicants signature on the
insurance application, the agent must?
Answer: Return the application to the applicant for signature
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- What includes information regarding a person's credit, character,
reputation, and habits?
Answer: 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?
Answer: Decreasing term
- An annually renewable term policy?
Answer: Renews each year with an increased premium
- The time period during which an annuitant contributes to
annuity is called?
Answer: The accumulation period
- An example of limited-pay life policy?
Answer: 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?
Answer: It can be increased by providing evidence of insurability
- What is true regarding a universal life policy?
Answer: The premiums can be decreased by the insured
- With a traditional whole life policy, the death benefit..
Answer: Remains constant over time
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