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An insured purchased a variable life insurance policy with a face amount of $50,000. Over the life of the policy, stock performance declined and the cash value fell $10,000. If the insured dies, how much will be paid out?

$50,000

Group Life insurance is a single policy written to provide coverage to members of a group. Which of the following statements concerning group life is CORRECT?

100% participation of members is required in noncontributory plans

How long must producer maintain records of CE completion?

4 years

In insurance, an offer is usually made when

An applicant submits an application to the insurer

The LEAST expensive first year premium is found in which of the following policies?

Annually Renewable Term

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

Common Disaster Clause

Which of the following best described the aleatory nature of an insurance contract?

Exchange of unequal values

Which of the following settlement options in life insurance is known as straight life?

Life income

Which fo the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Size of each installment

Which of the following information will be stated in the consideration clause of a life insurance policy?

The amount of premium payment

Which of the following determines the cash value of a variable life policy?

The performance of the policy portfolio

An insurer neglects to pay legit claim that is covered under the terms of the policy Which of the following insurance principles has the insurer violated?

Consideration

Which of the following includes information regarding a person's credit, character, rep, and habits?

Consumer report

To become a Texas insurance agent, an individual must

Have passed a licensing exam with the 12 months before applying

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What is the right policy for him?

Limited pay whole whole life

A couple owns a life insurance policy with a Children's Term rider. Their daughter is reaching the ma age of dependent coverage, so she will have to convert to permanent insurance in the future. Which of the following will she need to provide for proof of insurability?

Proof of insurability is not required

The annuity owner dies while the annuity is still in the accumulation stage. Which fo the following is TRUE?

The beneficiary will receive the greater of the money paid into the annuity or the cash value

All of the following are true regarding the guaranteed insurability rider EXCEPT

This rider is available to all insureds with no additional premium

All of the following are TRUE regarding the convertibility option under a term life insurance policy EXCEPT

Upon conversion, the death benefit of the permanent policy will be reduced by 50%

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants tot be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Guaranteed insurability option

What is the term for how frequently a policy owner is required to pay the policy premium?

Mode

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in the consumer report

Must be informed of the source of the report

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check form the insurer. from what type of insurer did the insured purchase the policy?

Mutual

Which of the following is NOT required ona n illustraiton used in the sale of a life insurance policy?

The name of the primary and secondary beneficiaries

Which of the following is correct concerning the taxation of premiums in a key person life insurance policy?

Premiums are not tax deductible as a business expense

In which of the following instances would the premium be tax deductible?

Premiums paid by an employer on a $30,000 group term life insurance plan for employees

All of the following are TRUE statements regarding the accumulation at interest option EXCEPT?

The interest is not taxable since it remains inside the insurance policy

A policy owner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Automatic Premium Loan Provision

If a person is compensated for a testimonial in an advertisement, which fo the following statements should be included in the advertisement?

Paid endorsement

Which of the following when attached to a permanent life insurance policy allows the policy owner to customize the policy to provide an additional amount of temporary insurance on the insured, or allows amounts of temporary insurance to cover other family members

Term rider

The policy owner of an adjustable life policy wants to increase the death benefit. Which of the following statements is correct regarding this change?

The death benefit can be increased by providing evidence of insurability

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

Paid-up option

Circulation deceptive sales material to the public is what type of unfair trade practice?

False advertisement