PRACTICE EXAM OF TEXAS LIFE & HEALTH INSURANCE. "SECTION 2- TEXAS LIFE LAW"

1) Conversion of a Group Life Insurance policy may not be made to: A- 15 year level term B- 20-pay life C- Life paid up at age 65 D- Whole Life

A- 15 year level term

1) Which of the following is NOT true regarding the replacement of Life insurance: A- It is unlawful B- It may be detrimental C- It may lead to liability for Errors and Omissions D- Both the agent and the customer must sign the Notice Regarding Replacement

A- It is unlawful

1) Credit Life Insurance: A- Shall not exceed the total amount of the indebtedness Texas Accident And Health B- Shall not exceed the total amount of the unpaid installments C- Has a maximum suicide clause of six months D- All answer options are correct

D- All answer options are correct

1) The Life Insurance Replacement Rule does not apply to which of the following: A- 10 year Convertible and Renewable Level Term B- Credit Life C- Whole Life Insurance D- Endowment

B- Credit Life

1) Conversion to an Individual Whole Life Insurance policy written by the same company is permitted without a physical exam for ______days after termination of your employment: A- Group Life is not convertible B- 28 C- 31 D- 30

C- 31

1) Which of the following is an unfair or deceptive act in connection with the sale of a life insurance policy: A- Referring to the guarantees available in the event of insurer insolvency B- Making a misleading statement concerning the financial condition of the insurer C- All answer options are correct D- Using a name or title that misrepresents the true nature of the policy

C- All answer options are correct

1) In the replacement of existing life insurance policies, regulations mandate disclosure of relevant information to all of the following EXCEPT: A- The existing insurer B- The beneficiaries of the existing policy C- The applicant D- The replacing insurer

B- The beneficiaries of the existing policy

1) All of the following are true about Group Life insurance EXCEPT: A- The employer is the beneficiary B- The employee is the insured C- It is usually written as annual renewable term insurance D- There must be a minimum of 2 employees

A- The employer is the beneficiary

1) "Twisting" is a commonly-used term describing: A- The making of misleading representations as to the financial condition of any insurer B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insurance C- Unfair avoidance of payment of policy benefits to which a claimant is entitled D- Giving, or promising to give, tangible or intangible items of value or service in order to induce a prospect to buy a policy of insurance

B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insurance

1) All of the following are true about Credit Life insurance EXCEPT: A- It must be written as group insurance B- It is usually decreasing term insurance C- It may not be written for more than the amount of the loan D- It may not be written in connection with loans of more than 10 years

A- It must be written as group insurance

1) False advertising includes which of the following: A- Stating that the policy you are selling has limitations and reductions B- Implying that you are the insurer rather than the agent C- Failing to include the premium in sales material you are disseminating D- Stating to a client that there is a difference in benefits between Whole Life Insurance and Term Life Insurance

B- Implying that you are the insurer rather than the agent

1) All are true about variable products sold in this state EXCEPT: A- Customers must bear the investment risk B- Agents must have a state Life insurance license and a federal Securities license C- Insurers invest the customer's premiums in their general account D- Rates of return are not guaranteed

C- Insurers invest the customer's premiums in their general account

1) Where there is no unconditional refund provision of at least 10 days, a Buyer's Guide and a policy summary must be delivered to the prospective life insurance purchaser: A- Prior to filling out an application for insurance B- With the policy C- Prior to accepting an initial premium D- Upon issuance of the policy

C- Prior to accepting an initial premium

1) Which of the following is true about the Texas Life, Accident, Health and Hospital Service Insurance Guaranty Association: A- Coverage is unlimited B- Agents may use it's presence as an inducement to the sale C- All insurers must participate D- It protects the customers of insolvent insurance companies

D- It protects the customers of insolvent insurance companies

1) Under what circumstances may a partially or totally blind person be offered life insurance at rates different from those applying to persons with unimpaired sight: A- When the risk is placed under the Guarantee Association B- No such discrimination is permitted C- Upon application by the insurer to the Commissioner D- When such handicap is relevant to the risk of loss

D- When such handicap is relevant to the risk of loss