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
