Texas Life (Primerica)
All of the following are true regarding the federal Fair Credit Reporting Act EXCEPT
Reports may be sent to anyone who requests one
As it relates to life settlements, the term "owner" means
The owner of the original life policy
When an insured terminates membership in the insured group, the insured can convert to
Whole life without proof of insurability
The death proceeds for life insurance policies must be paid to the claimant within what time period after due proof of death of the insured?
2 months
Which of the following would NOT trigger the payment of Accelerated Death Benefit?
Being permanently disabled
What type of life policies requires a nonforfeiture provision?
Cash value
If a license is revoked, the licensee will NOT be eligible for a new license
For 5 years
Which of the following best defines the unfair trade practice of rebating?
Offering an inducement of something of value not specified in the policy
Which dividend option will increase the death benefit?
Paid-up additions
A life insurance policy has a face value of $100,000. The insured took out a policy loan for $10,000 and never paid it back. Policy cash value equals $50,000. If the insured dies, how much will the beneficiary receive?
$90,000
The entire contract includes all of the following EXCEPT
A buyer's guide
All of the following statements are true regarding an Ordinary (Straight) Life policy EXCEPT
It does not have a guaranteed death benefit
An illustration used in the sale of a life insurance policy must include a label stating
Life insurance illustration
If an applicant's health is poorer than that of an average applicant, the policy may be issued
Substandard
Which of the following statements regarding HIV testing is NOT true?
Test results must be sent to the department of insurance
Which of the following is INCORRECT regarding insurance advertisements?
Testimonials used in advertisements may or may not apply to the policy advertised
All of the following are consideration in an insurance policy EXCEPT
The cash value in the policy
In order for a business partner to be eligible for a Keogh plan, he/she must work full-time and own at least how much of the business?
10%
If an insured dies, and it is discovered that the insured misstated his/her age or gender, the life insurance company will
Adjust the death benefit to what the premium would have purchased at the actual age or gender
A new homebuyer wants to purchase a life insurance policy that would protect his family against losing the home, should he die before the mortgage was inexpensive type of policy that would accomplish this need would be
Decreasing term
What is the difference between a straight life policy and a 20-pay whole life policy?
Premium payment period
The Guaranteed Insurability Rider allows the owner to purchase additional amounts of life insurance without proof of insurability at all of the following EXCEPT
Purchase of a new home
According the common disaster clause, if the insured and primary beneficiary are killed in the same accident and it cannot be determined who died first, which of the following will be assumed?
The primary beneficiary died before the insured
Among the applicant in the same class and life expectancy, which of the following factors can be used to influence premium rates?
Occupation
Which statement best describes agreement as it relates to insurance contracts?
One party accepts the exact terms of the other party's offer
Variable insurance and variable annuities are regulated by
SEC, FINRA and Departments of Insurance
Which of the following would NOT constitute a policy replacement?
Converting group coverage to individual coverage
All of the following are true of a nonqualified deferred compensation plan EXCEPT
Contributions are tax deductible
In contrasting stock insurers with mutual insurers, which statement is true?
Stock insurers are owned by the shareholders and issue nonparticipating policies
All of the following about mutual insurance companies are correct EXCEPT
Policy dividends issued by mutual companies are guaranteed and not taxable
A whole life policy that will generate immediate cash value is a
Single premium policy
Under what circumstances will the contingent beneficiary receive the death benefit?
If the primary beneficiary dies before the insured
If a loan request is for payment of due premiums on the policy, how soon must the insurer issue a loan?
Immediately
An example of an alien insurer doing business in this state is one formed under the laws of
Mexico
In order to reinstate a life insurance policy the insured must do all of the following EXCEPT
Pay next year's premium in advance
Which of the following would NOT be eligible for coverage under key person?
The owner of a shop
Unfair claims practices will be assumed to be intentional if
They occur with such frequency as to indicate a general business practice
S set up an individual retirement account that her employer is now contributing to. Her employer's contributions are not included in her gross income. What kind of retirement plan does S have?
Simplified employee Pension (SEP)
With adjustable Life, the owner can change all of the following EXCEPT
The insured
In Texas, nonforfeiture law applies to which of the following insurance policies?
Whole life insurance
Dividends received on participating life insurance policies are
Not taxable because they are a return of unused premiums
Reports required by the Texas Department of Insurance based on complaints about unfair settlement practices must contain information about all of the following EXCEPT
The resident state of the claimants
A married couple purchase a life insurance policy on their newborn baby. They are concerned about what would happen to the policy if either one of them continue making premium payments due to death or disability. Which policy rider should their agent recommend?
Payor benefit
To obtain a Texas producer license, an applicant must do all of the following EXCEPT
Complete prelicensing training
All of the following are true of group life insurance EXCEPT
The insureds each own their own contract
