Life Insurance Texas

An insurer must acknowledge receipt of a Notice of Claim within how many days?

15

What is the max penalty for habitual willful noncompliance with the Fair Credit Reporting Act?

2,500

If an agent has completed 35 hours of continuing education in one renewal period, how many CE hours will the agent have to complete in the next renewal period?

24 hours

What is the minimum percentage of a licensee's total volume of premiums in a calendar year that must come from business other than controlled business?

25%

If a policyowner surrenders his life insurance policy that has been in force for 5 years within 60 after the premium due date, what will the insurer be required to pay?

A cash surrender value

According to the Entire Contract provision, a policy must contain

A copy of the original application for insurance

6 credits

A worker must have earned at least how many credits during the last 13 quarters?

Which of the following is another term of an authorized insurer?

Admitted

All of the following would be considered rebating EXCEPT

An agent misrepresents policy benefits to convince a policyowner to replace policies

Which of the following would be required to be licensed as an insurance producer?

An employee who solicits insurance and receives a commission

Who can make a fully deductible contribution to a traditional IRA?

An individual not covered by an employer-sponsored plan who has earned income

When annuity is written, whose life expectancy is taken into account?

Annuitant

The full premium was submitted with the application for life insurance, and the policy was issued 2 weeks later as requested. When does coverage become effective?

As of the application date

SIMPLE Plans require all of the following EXCEPT

At least 1,000 employees.

If an insurer meets the state's financial requirements and is approved to transact business in the state, its considered to be

Authorized

Application

Basic source of info used by the company in the risk selection process

The proposed insured makes the premium payment on a new life insurance policy. If the insured should die, the insurer will pay the death benefit to the beneficiary if the policy is approved. This is an example of what contract

Conditional

Contracts of adhesion

Contracts that are prepared by one party and submitted to the other party on a take it or leave it basis are classified as

The term "fixed" in a fixed annuity refers to all of the following EXCEPT

Death benefit

Which of the following is NOT true regarding Variable Universal Life policies

Death benefit is fixed

NOT typically excluded from life policies

Death due to plane crash for a fare-paying passenger

An individual has just borrowed 10,000 from his bank on a 5 year installment loan requiring monthly payments. What type of insurance policy would be best for this situation?

Decreasing Term

]While this is all the insurance he can afford at this time, he wants to be sure that additional coverage will be available in the future. What option should be in the policy?

Guaranteed Insurability Rider

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

Guaranteed insurability rider

Which of the following must be included in all life insurance advertisement?

Identity of the actual insurer

Who makes up the Medical Information Bureau?

Insurers

A beneficary receives payments consisting of both principal and interest portions, which is taxable as income?

Interest only

As a field underwriter, a producer is responsible for all except for...

Issue the policy that is requested

What is NOT true regarding a Certificate of Authority?

It is issued to group insurance participants

Best describes annually renewable term insurance

It is level term insurance

A married couple's retirements annuity pays them $250 per month. The husband dies and his wife continues to receive 125.50 per month for as long as she lives. When the wife dies, payments stop. What settlement option did they select?

Joint and survivor

An applicant who receives a preferred risk classification qualifies for

Lower premiums than a person who receives a standard risk

What is another term for the cash payment settlement options

Lump sum

In a single employer group plan, what is the name of the policy issued to the employer?

Master contract

On its ads, a company claims that it has funds in its possession that are, in fact not available for the payment of losses or claims. The company is guilty of

Misrepresentation

After a back injury, an insured is disabled for a year. His insurance policy carries a disability income benefit rider. What benefits will he receive?

Monthly premium waiver and monthly income

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 from the insurer. From what type of insurer did the insured purchase the policy?

Mutual

During replacement of life insurance, a replacing insurer must do which of the following?

Obtain a list of all life insurance policies that will be replaced

Traditional IRA contributions are tax deductible on which of the following?

Owner's income

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

Paid endorsement

A participating insurance policy may do which of the following?

Pay dividends to the policyowner

An insured purchased a life policy in 2010 and died in 2020. The company discovers at the time that the insured had misstated information about her insurance history on the application. What will the insurer do?

Pay the death benefit

All are true regarding insurance policy loans except

Policy loans can be made on policies that don't accumulate cash value

Universal Life

Policy that allows policyowner to skip premium payments, providing that there is enough cash value in the policy to cover the amount

When a agent collects the initial premium from the applicant, the agent should issue the applicant a

Premium receipt

Statement that is not true about straight life policy

Premium steadily decreases over time, in response to its growing cash value

Annuity

Product that protects an individual from outliving their money

Annuity

Product that provides income for a specified period of years or for life, and protects a person against outliving their money

All of the following are requirements for an individual to be licensed except

Provide a financial statement

Grace period

Required provision protects against unintentional lapse of the policy

A policyowner who is also the insured wants to name her husband as the beneficiary of her life policy. She also wishes to retain all of the rights of the ownership. The policyowner should have her husband named as the

Revocable Beneficiary

Guaranteed Insurability Rider

Rider that will allow individual to purchase additional insurance in the future without having to prove insurability

To sell variable life insurance policies, an agent must receive all except the following

SEC registration

An employee has group insurance through her employer. After 5 yrs, she decides the leave the company and work independently. How can she obtain an individual policy?

She can convert her group policy without evidence of insurability within 31 days leaving the group plan

Annuity certain

Short-term annuity that limits the amount paid to a specific fixed period or until a specific fixed amount is liquidated

What is called a "second-to-die" policy?

Survivorship life

The premiums paid by the employer in a business life insurance policy are

Tax deductible

Mode

Term for how frequently a policyowner is required to pay the policy premium

Provides an underwriter with info concerning an applicants health history

The Medical Information Bureau

An agent licensed in Texas is moving to Kansas. Which of the following applies?

The agent has 30 days to notify the Department of Insurance of the new address

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

The amount of the premium payment

In comparison to a consumer, what describes a unique characteristic of investigative consumer reports?

The customer's associates, friends and neighbors provide the report's data

An employee is insured under her employer's group life plan. If she terminates her group coverage, which of the following statements is INCORRECT?

The insured may choose to convert to term or permanent individual coverage

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 temporary license holder can receive a commission from a sale made to all of the following except

The license holder's sister-in-law

In a life settlement contract, whom does the life settlement broker represent

The owner

If an insurer issued a policy based on the application that had unanswered question, which would be true?

The policy will be interpreted as if the insurer waived its right to answer on the application

How must a replacing producer respond to an applicant wishing to replace existing life insurance?

The producer must provide the applicant with a Notice Regarding Replacement

Which of the following is NOT true regarding Equity Indexed Annuities

They earn lower interest rates than fixed annuities

Joint and survivor

Type of settlement option which pays throughout the lifetime of 2 or more beneficiaries

Material misrepresentations

Untrue statements on the application unintentionally made by insureds that, if discovered, would alter the underwriting decision of the insurance company, are called

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

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

Application

Which is the primary source of info used for insurance underwriting?

Policyowner

Which of the following has the right to convert the existing term coverage to permanent insurance?

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

other-insured rider

An individual buys a 100,000 joint life policy on himself and his wife. 8 yrs later he dies in a car accident. how much will the wife receive?

$100,000

If an agent suspects that insurance fraud is being committed, within how many days must the agent notify the Insurance Fraud Unit of the Department of Insurance?

30 days

The Commissioner of Insurance issues a Cease and Desist Order to an agent. If the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?

60 days

An agent's license will terminate within how many days from the due date of obligatory fees and continuing education requirements?

90 days

An individual had been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. What is true regarding taxation of the accelerated benefits?

A portion of the benefits up to a limit is tax free; the rest is taxable income

The term "illustration" in life insurance policy refers to

A presentation of nonguaranteed elements of a policy

current assumption whole life insurance

Another name for interest-sensitive whole life insurance

What is not true regarding an annuity certain?

Benefits stop at the annuitant's death

An insured receives an annual life insurance dividend check. What term best describes this?

Cash option

Regarding credit life insurance, who is responsible for reporting termination of debt to the insurer?

Creditor

The death benefit in a variable universal life policy

Depends on the performance of a separate account

Term used to name the nontaxed return of unused premiums?

Dividend

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

False advertising

When possible, what should insurers strive to eliminate from illustrations?

Footnotes and caveats

Incontestability Clause

Life insurance policy clause that prevents an insurance company from denying payments of a death claim after a specified period of time is known as

Is NOT true regarding the annuitant

The annuitant can't be the same person as the annuity owner