Funeral Pre-arrangement
how long must a funeral provider keep a copy of a price list on file after its last distribution to a consumer?
1 year
under a continuous premium whole life policy, premiums are payable every year to age
100
insurance companies generally cannot contest the validity of a life insurance contract after it has been enforced for
2 years
the guaranteed minimum interest rate in a fixed annuity will most commonly be in the range of
3%-4%
after an insurance-funded prepaid funeral benefits contract has been signed, a copy must be provided to the purchaser within:
30 days
premiums collected for insurance policies funding prepaid funeral benefits must be remitted to the insurance company within:
30 days
when an insurance agent discovers that a fraudulent insurance act has been committed, the agent must report it within
30 days
When an application for an insurance license is denied, EXCEPT for failure to pass the examination, the applicant MAY NOT REAPPLY FOR AT LEAST:
60 Months
when soliciting business from individuals by telephone, what is the latest time of day the solicitor can place the call?
9:00 pm
single premium whole life insurance provides
immediate lifetime protection as a paid-up policy
an insurance company allows an agent to collect premiums on its behalf even though that authority is not listed in the agents contract. the agents authority to collect premiums is considered
implied
when an individual or firm would suffer substantial financial or emotional loss at another's death, this creates an
insurable interest
an agent who advertises the features of a particular policy must obtain prior approval from the
insurance company
some life insurance policies provide for an additional death benefit declaration to be made at the option of the
insurance company
a life insurance policy owner may designate a new beneficiary without the consent of the current beneficiary unless the current beneficiary designation is
irrevocable
in some circumstances, the income tax exempt status of the death proceeds of a life insurance policy may be lost if the policy
is sold to a new owner
when a proposed insured has a somewhat lower than average life expectancy, the insurer most often will
issue coverage with a higher than standard premium rate
which statement is true of a life insurance illustration
it illustrates hypothetical results of the policy
which item is correct regarding the federal waiver of cancellation form?
it is not needed when the prearrangement contract is purchased at the funeral home
payments must be made according to a fixed premium schedule for
level premium deferred annuities
an insurance agent may be found guilty of defamation for
making a false statement about another insurance company's solvency
making statements about a policy that would lead an individual to a false conclusion is
misrepresentation
the general price list:
must price each item or service separately
the required disclosures for the general price list:
must use identical wording given in the FTC funeral rule
during the insured's lifetime, a policyowner may surrender a whole life insurance policy for a cash payment equal to the
net cash value
during a sales presentation, it is considered an unfair trade practice for an insurance agent to
omit a material fact when describing a policy
if the insurer's experience improves, the owner of an interest-sensitive whole life insurance policy may be able to:
pay lower premiums for the same benefits
what occurs when an annuity is annuitized
periodic benefit payments begin
the intended beneficiary of the proceeds of a life insurance policy must be designated on the
policy application
if the primary and contingent beneficiaries of a life insurance policy are both living when the insured dies, then the proceeds will be paid to the
primary beneficiary only
during a life insurance sales presentation, it is unlawful for an agent to
promise to share the agent's commission with the applicant
during the accumulation period of an annuity, the insurance company would make a payment in any of these situations except
purchase payments stopped by the owner (death of annuitant, cancellation by the owner, partial withdrawal by the owner)
which policy option allows a policyowner to surrender a whole life policy for a lesser amount of permanent life insurance coverage on which no further premiums are due
reduced paid-up insurance
if the insured fails to sign a statement of good health required by the insurer at the time of policy delivery, then the agent must
refuse any premium payment and return the policy to the insurer
if the texas commissioner of insurance suspects an agent of committing fraudulent insurance act, the commissioner must
report the information to a law enforcement agency or prosecuting attorney
the FTC funeral rule prohibits funeral providers from:
requiring the purchase of a casket for direct cremation
during the accumulation period of an annuity, the interest earnings are
retained in the contract on a tax deferred basis
which type of whole life insurance always has a cash surrender value when the policy first takes effect, regardless of the insured's age at issue?
single premium
in fixed annuities, the guaranteed minimum interest rate is
specified in the annuity contract and remains unchanged
which payment from a life insurance company is normally free from federal income taxation
the amount paid to a beneficiary because of the insured's death
which party to an annuity contract must be an individual, and cannot be a corporation
the annuitant
in a flexible premium deferred annuity, which amount is directly affected by the annuitant's age
the annuity benefit payment
a general price list must disclose:
the availability of alternative containers for cremation
what is true for BOTH an annuity contract and a life insurance policy?
the cash value build-up is tax-deferred
in a deferred annuity contract, assuming no withdrawals, which amount is equal to the greater of the current cash value or the total premiums paid?
the death benefit during the accumulation period
what occurs when a deferred life insurance policy has remained in force for the specified vesting period
the death benefit increases
which factor has the most affect on the correct interest rate used in a fixed annuity
the earnings of the insurance company
when an annuity advertisement includes the current interest rate being credited, it must also include
the guaranteed interest rate
who bears the investment risk in a fixed annuity
the insurance company
which item is most correct regarding misrepresentation of the proposed insured's health?
the insurance company may contest a claim because of the misrepresentation during the policy's first two years
under a limited payment whole life policy, the guaranteed cash surrender value must equal the face amount when
the insured reaches age 100
in insurance, under the law of agency
the insurer is bound by the acts of its insurance agents
when a partial withdrawal is made from a deferred annuity, the funds will be paid to
the owner
who can assign a deferred annuity to another person
the owner
which statement is true of fixed, flexible premium deferred annuities
the owner determines the timing and amount of each purchase payment
the beneficiary of a deferred annuity will receive a payment only when
the owner/annuitant dies
a life insurance policy summary is a summary of
the policy benefits and cost
the accumulation of cash value in whole life insurance policies is made possible by
the policy loan feature
the purchaser of a prepaid funeral benefits contract may be given the option to irrevocably waive
the purchasers right to cancel the contract
the general price list must include all of the following except:
the seller's permit number (the funeral provider's name and address, the effective date of the list, the exact caption of "General Price List")
prepaid funeral benefits contract forms must be approved by:
the texas department of banking
which statement is true of the assets in the general account of an insurance company that issues annuities
they back the guarantees of the insurer's fixed annuities
the implied authority of insurance agents is
unwritten
an advertisement for an insurance policy cannot
use a potentially misleading policy title
if the application was taken without a premium payment, then coverage will become effective
when the agent delivers the policy and collects the initial premium
What is the maximum initial guaranteed death benefit that a funeral prearrangement life insurance may sell?
$25,000
An agent's insurance license could be suspended or revoked if the agent:
Fails to remit premiums
A funeral prearrangement life insurance agent license will expire when the agent:
Fails to submit a renewal form and fee at the end of each two year renewal period
A funeral prearrangement life insurance agent must be supervised by:
None of the above
a conditional receipt given to the applicant for the premium paid at the time of application will provide immediate life insurance protection
ONLY if the insured later proves to be insurable
Which statement is true about the general price list (GPL) for funeral goods and services being offered?
The GPL must be given to the consumer to keep
Which of these documents must be offered at the beginning of a sales presentation for funeral goods and services?
The general price list
an agent who publishes a derogatory article about the financial condition of an insurer may be guilty of
defamation
which type of insurance policy has a lower death benefit in the early years of the policy and a higher death benefit later
deferred whole life
the death proceeds of a life insurance policy are payable in all of the following ways except
dividend only (lump sum payment, life income, fixed amount installations)
at the time of the sale of a funeral prearrangement contract, the purchaser should be given:
the "facts about funerals" pamphlet from the texas funeral service commission
all changes and corrections made to an application for life insurance must be initialed by the
applicant
the complete life insurance contract between the insurer and the policy owner usually consists of the policy and the attached
application
which item on a funeral provider's general price list cannot be declined by the purchaser?
basic services of the funeral director
under the waiver of premium rider on a life insurance policy, the insurance company will pay the policy premiums at no cost to the insured when the insured
becomes and remains totally disabled
If Chris names ABC Company to receive the death benefit from a life insurance policy on Lee's life, then
chris is the owner and ABC company is the beneficiary
for essential information regarding proposed insureds, a life insurance company's underwriter relies most often on information from the
completed application
which of these increases when life insurance policy dividends are used to purchase paid-up additions
death benefit and cash value
the surrender charges in a deferred annuity will normally
decline slightly each year and eventually disappear
as part of a prearranged funeral sale, the seller must disclose that:
embalming is optional when the burial is immediate
which type of authority is detailed in the agent's contract with the insurance company?
express
for which action may a contract seller's permit be cancelled?
failing to provide premium remittance evidence requested by the banking department
which activity of an insurance agent would be considered rebating?
giving a policyholder a portion of the agent's commission
it is unlawful to charge different life insurance premium rates among individuals who
have the same life expectancy
selling a funeral prearrangement contract to a person who cannot afford it can result often in:
all of the above (lapse of the contract for non-payment, loss of income to the agent, loss of business to the funeral home)
all of the following are found in a single premium deferred annuity contract except
a purchase payment schedule (an accumulation period, a minimum guaranteed interest rate, a surrender option)
if an insured dies by suicide in the first two years of a life insurance policy, the insurer normally will pay
a refund of the total premiums paid
when compared to a whole life policy with premiums payable for life for the same face amount, a limited payment whole life policy will have
a shorter premium paying period
in a deferred annuity, purchase payments are always made during the
accumulation period
the free look period is the limited period of time
after policy delivery when the policy owner may cancel for a full refund
whole life insurance is designed to afford protection up to
age 100
insurance companies may require a written statement disclosing any relevant adverse information about a proposed insured from the individual's
agent
an agents authority to solicit applications on behalf of the insurer is granted in the
agents contract with the insurer
failure to describe fully the goods and materials on the contract may result in
all of the above (harm to the agent's relationship w the funeral home, return of the contract for the correction and resubmission, stress and confusion for the customers family at the time of funeral)
an accidental death benefit rider attached to a life insurance policy will normally pay a benefit at the insured's death resulting from
an injury sustained in a traffic crash