Texas Funeral Prearrangement Life Insurance License

Name of brochure for prospective consumers when funeral services are discussed.

"Facts About Funerals"

People that work in funeral service in Texas must hold what type of license to sell funeral or burial insurance?

"Limited" Funeral Prearrangement Life License or "Full" Texas Legal Reserve Life Agent license

The following document(s) is/are required by the TDOB on all death claims where the contracted funeral home performs services:

1) preneed contract 2) insurance policy schedule pages 3) preneed to at need reconciliation signed by the funeral provider 4) ALL OF THE ABOVE

The person charged with the disposition of the contract beneficiary's remains can make changes to the funeral merchandise and services under a fully paid prepaid funeral contract

1) up to 25% of the total contract amount 2) unless the purchaser requested no change be made 3) only the method of disposition can be changed after death 4) ALL OF THE ABOVE

A funeral prearrangement life insurance agent in Texas has ____ days to report fraudulent, deceptive or discriminatory acts to the Texas Commissioner of Insurance.

30 days

The aggregate initial face value of one or more insurance policies issued to fund a prepaid funeral contract may not exceed the total contract price by more than

5%

Telephone solicitations may not be made after

9pm

An insurance policy intended to fund preneed contract must be issued within _______ days of when the contract was signed by the purchaser.

?

If no premium payment was submitted with an application, coverage will not become effective until _______.

?

Which of the following is true about changes to a life insurance application?

Changes must be initialed by the applicant.

Which of the following whole life plans requires premiums payable throughout the life of the policy?

Continuous-premium whole life insurance.

In most deferred annuity contracts, surrender charges _______.

Decrease gradually and finally disappear.

Cash values in whole life policies are created by _______.

Excess premiums.

All of the following are examples of areas of common Funeral Rule misrepresentation, except _______.

Grave Opening and Closing

All of the following risks might require an underwriting rider, except _______.

Old age

If the insurance company's performance improves, the owner of an interest-sensitive whole life policy may _______.

Pay lower premiums for the same benefits.

Which of the following payments from a life insurance policy would normally be received with no federal income taxation?

Payment to the beneficiary at the death of the insured

The guaranteed minimum interest rate on an annuity is _______.

Stated in the contract and remains unchanged for the life of the policy.

If an applicant has a somewhat lower than average life expectancy, they may be issued _______.

Substandard coverage with a higher premium.

All of the following are true statements about the Texas Funeral Prearrangement Life Insurance Agents except

TEPLI agent may sell up to $10,000 of initial death benefit. (correct answer is $15,000)

Insurance products which may be used to fund funeral prearrangement contracts must be approved by the

Texas Department of Banking

The federal regulatory agency which exercises authority over preneed contract sales is the

Texas Department of Banking

The most important source of information about a life insurance applicant is _______.

The MIB

After the prepaid funeral contract is executed, all of the following parties must receive copies except

The TDOB (yes to provider, purchaser, insurance company)

The Casket and OBC Price List must include all of the following, except _______.

The prices of special order units

Purchase payments for a deferred annuity can be made only during the _______.

accumulation period

Limited payment whole life policies have a _____ payment period than a standard whole life policy, and the guaranteed cash value must equal the face amount of the policy by the insured's age _____.

shorter/100

The agent's power to solicit insurance is granted in

the agent's contract with the insurer

Which of the following sources of application information may be asked to provide a written statement?

the applicant's agent

A preneed contract is required to contain all of the following except

the insurance policy number

Which of the following parties in an annuity contract must be an individual, not a corporation?

the owner

An employee of the funeral home must disclose all pricing information to a consumer who asks during a telephone call.

true

An insurance-funded prepaid funeral contract must be executed at the same time as the application for insurance.

true

The length of the contestable period for a preneed life insurance policy is

two years

Whole life insurance is designed to provide protection up to _______.

Age 100

An entire contract includes the life insurance policy and _______.

An attached copy of the application.

All of the following statements are true of life insurance beneficiary designations, except _______.

Designations may be changed if irrevocable.

The death proceeds may be paid in all of the following ways, except _______.

Dividends only

What is the time period called where the client can examine the policy before deciding if he/she wishes to keep the contract and receive a full refund?

Free look

During the vesting period on a deferred whole life policy, the death benefit _______.

Increases

An accidental death rider will pay a benefit if death results from which of the following?

Injury from car accident

The owner of a life insurance policy has all of the following rights, except _______.

Issue the policy

The owner of an annuity contract may do any of the following, except _______.

Make themselves the beneficiary of the contract.

All of the following could cause payments to be made from an annuity contract, except ___________.

Purchase payments stopped by the owner.

If an insured surrenders their policy for permanent coverage with a lower face amount than the original policy, they have chosen which option?

Reduced paid-up

During the accumulation period of a deferred annuity, interest earnings are _______.

Retained in the contract with taxes deferred.

The Funeral Rule prohibits funeral providers from doing all of the following, except

Selling a price-guaranteed preneed contract prior to 1984.

All Texas prepaid funeral contracts must be approved by

The Texas Department of Banking

Which department is responsible for regulating any person performing the acts of an insurance agent?

The Texas Department of Insurance

The death benefit of an annuity contract is normally equal to the greater of _______.

The current cash values or the total premiums paid.

If paid-up additions are purchased with policy dividends or excess credits, which of the following increases?

The death benefit

All of the following are true of single premium whole life policies, except _______.

They may require occasional premium deposits.

In the event a funeral home goes out of business, the permit holder/seller must make an attempt to locate a successor funeral home who is willing to assume their contracts.

True

The authorized representative who solicits preneed insurance, takes applications, receives or transmits premium and receives or delivers policies is the

agent

The insurance funding product which holds premium dollars at interest but does not provide a life insurance death benefit is an

annuity

When an agent's actions appear logical, although the power to perform them is neither expressed nor implied, it is called

apparent

In a trust to insurance funded conversion, the purchasers of the funeral contracts:

can request that all money in their account be refunded without penalty.

If an annuity policy allows the policy holder/owner to delay the dispersal of annuity funds indefinitely, it is generally known as a _________ annuity. If the policy begins the periodic dispersal of the annuity premium almost immediately, it is generally referred to as a _________ annuity.

deferred/immediate

Which of the following has the greatest impact on the current interest rate on a fixed annuity?

earnings of the insurance company

The GPL must include descriptions and prices for each of the following items, except

embalming

The TDI may suspend or revoke an agent's license for the conviction of a ______ or for _____ commissions to a client.

felony...rebating

Agent rebating is _______ away or _______ commissions with a buyer, applicant, or policy owner and is illegal in Texas.

giving...splitting

The agent's power to collect premiums is commonly referred to as

implied

Which of the following would not be considered an "advertisement" in a sales presentation?

impromptu answers given during questioning

The rules that standardize the content of prepaid funeral contracts and establish procedures for their sale to the general public can be found

in the Texas Administrative Code (TAC)

The income tax exempt status of life insurance death proceeds may be lost if the policy _________________.

is sold to a new owner.

All of the following are true of a life insurance policy except

it pays a benefit to the insured in case of death

A __________ refers to a grouping of multiple funeral goods and services offered to the purchaser at a single price.

package sale

A policy summary provides information about

policy costs and benefits

For the purpose of this training course, the following terms will be used interchangeably to refer to the same process: prepaid, prearrangement and

preneed

A funeral prearrangement life insurance agent who knowingly presents false and misleading financial information about a competing company may be guilty of all of the following except:

rebating

The main event that triggers the offering of the GPL to a consumer is _______.

A face-to-face meeting at any location

Which of the following is true of the General Price List (GPL)?

A copy must be physically offered to every consumer to keep.

Which of the following has an insurable interest in a life insurance applicant?

A business partner

If an application is denied or revoked by TDI, how many months must the agent wait before reapplying?

12 months

If both the primary and contingent beneficiary are living when the insured dies, the death proceeds of a life insurance policy are paid to the _________ beneficiary only.

?