Texas Life Agent Test Prep

when an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? a. legal purpose b. contract of adhesion c. acceptance d. consideration

d. consideration

Which of the following would be the beneficiary in credit life insurance? a. insured b. company c. borrower d. creditor

d. creditor

Which of the following is TRUE regarding the accumulation period of an annuity? a. it is also referred to as the annuity period. b. it is a period of time during which the beneficiary receives income. c. it is limited to 10 years. d. it is a period during which the payments earn interest and grow tax deferred

d. it is the period during which the payments earn interest and grow tax deferred

Which of the following policies would have an IRS required corridor or gap between the cash value and the death benefit? a. universal life - option b. b. equity indexed universal life. c. variable universal life. d. universal life - option a

d. universal life - option a

Under the submission of a death claim under a life insurance policy, when must the insurer pay the policy benefit? a. immediately after receiving written proof of loss b. on the next anniversary of the policy c. within 30 days d. within two months

d. within 2 months

If an insurance company wishes to order a consumer report on an application to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following EXCEPT the applicants a. ancestry b. credit history c. habits d. prior insurance

a. ancestry

All of the following information must be disclosed to the Viator prior to the execution of a vatical settlement contract EXCEPT a. availability of stranger-oriented life insurance b. alternatives to the vatical statements c. tax consequences resulting from entering into the settlement. d. the amount of compensation received by any person from the vatical statement

a. availability of stranger-oriented life insurance

Which type of life insurance policy generates immediate cash value? a. single premium b. level term. c. decreasing term. d. continuous premium

a. single premium

An individual applied for an insured policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy was issued, what would be the policies effective date? a. The date of medical exam b. The date of policy delivery c. The date of issue d. The date of application

a. the date of medical exam

How long are the grace periods in GROUP policies? a. 10 days b. 31 days c. 21 days d. 90 days

b. 31 days

Which of the following types of Insurance Policies is most commonly used in credit life insurance? a. equity indexed life. b. decreased term. c. increasing term. d. whole life

b. decreased term

When possible, what should insurers strive to eliminate from illustrations? a. Words they don't know b. footnotes and caveats c. references to other products d. policy amendments more than a page long

b. footnotes and caveats

Another name for a substandard risk classification is? a. elevated b. rated. c. controlled. d. declined

b. rated

When is the earliest a policy may go into effect? a. after the underwriter reviews the policy. b. when the application is signed and a check is given to the agent c. when the first premium is paid and the policy has been delivered d. when the insurer approves the application

b. when the application is signed and a check is given to the agent

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 to $10,000. If the insured dies, how much will be paid out? a. $10,000. b. $40,000. c. $50,000. d. $60,000

c. $50,000

An Individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT a. life paid up at age 65 b. whole life c. 15 year level term d. 20-pay life

c. 15 year level term

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company? a. conditional receipt b. disclosure rule c. fair credit reporting act d. consumer privacy act

c. fair credit reporting act

Which part of an insurance application would contain information regarding the cause of death of the applicants deceased relatives? a. agents report b. general information c. medical information d. inspection report

c. medical information

Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles? a. standard risk requires extra rating b. standard risk is representative of the majority of people c. standard risk is representative of the majority of people d. standard risk pays a higher premium than a substandard risk

c. standard risk is representative of the majority of people

the term illustration in a life insurance policy refers to a. a depiction of policy benefits and guarantees b. pictures accompanying a policy c. charts and graphs d. a presentation of non guaranteed elements of a policy

d. a presentation of non guaranteed elements of a policy