Texas Life Insurance Exam 3 Latest 2023-2024

Texas Life Insurance Exam 3 (Latest 2023-2024)

A++ Exam with All New Qs & As - Guaranteed Pass!

• 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 nonguaran-teed elements
• buyer's guide is generic information about life polices which must

be provided atthe time of application

• policy summary is a description of features and benefits of the

policy being issuedand must be provided when the policy is delivered.

• Underwriting (Field underwriting (by agent)

Answer:

• application completed andsigned

- agent's report: agent's observation about the application that can

assist inunderwriting -premiums with application and conditional receipts

• underwriting ( company underwriting)

Answer:

- multiple sources of information: ap-plications, consumer reports,

MIB (Medical Information Burea) 1 / 2

• 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 ReportsRules

• 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 notpaid

with the application, the agent must obtain the premium and a statement ofcontinued 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 ofthe 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 companyand who represents the client

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