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