Texas Life Insurance State Exam Simulator 200 questions with precise
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detailed solutions ||
In a life insurance policy, which provision states who may select policy options, designate
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and name a beneficiary, and be the recipient of any financial benefits from the policy -
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correct answer✔✔Owner's Rights || ||
All of the following statements are true regarding a policy's Grace period, EXCEPT: - correct
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answer✔✔Past due premiums are waived
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An architecture firm would stand to lose a lot of money in the event of the death of its
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project manager. Which type of policy should the firm purchase on its project manager? -
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correct answer✔✔key person insurance
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Which of these terms accurately defines an underwriter's assessment of information on a
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life insurance application? - correct answer✔✔Risk classification
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A policyowner's rights are limited under which beneficiary designation? - correct
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answer✔✔irrevocable
K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and
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starts receiving payments August 1. These payments will continue for as long as she and her
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spouse lives. Which type of annuity did K purchase? - correct answer✔✔Single premium
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immediate joint with survivor annuity || || || ||
What is an organization that solicits insurance only to its members? - correct
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answer✔✔fraternal benefit society || ||
,Which of these provisions is NOT required in life insurance policies? - correct
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answer✔✔Extended term ||
Life insurance that covers an insured's whole life with level premiums paid over a limited
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time is called: - correct answer✔✔Limited Pay Life
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Life and health insurance policies are - correct answer✔✔unilateral contracts
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A domestic insurance company in Texas is considered a company that? - correct
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answer✔✔is incorporated and formed in Texas || || || || ||
With whom may an agent legally share commissions? - correct answer✔✔Another agent
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with the same line of insurance|| || || || ||
A 15-year mortgage is best protected by what kind of life policy? - correct answer✔✔15-year
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decreasing term
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If a contract of adhesion contains complicated language, to whom would the interpretation
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be in favor of? - correct answer✔✔insured
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K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in
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a fatal accident where K dies before P. Under the Common Disaster provision, which of
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these statements is true? - correct answer✔✔Proceeds will be payable to K's estate if P dies
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within a specified time || || ||
M has an insurance policy that also has an outstanding policy loan at the time of M's death.
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The insurer will deduct the outstanding loan balance from the: - correct answer✔✔policy
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proceeds
, Information obtained from a phone conversation to the proposed insured can be found in
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which of these reports? - correct answer✔✔Inspection report
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A Life insurance policyowner would like to take out a policy loan against the cash value in
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his Whole Life policy. The interest rate applied to this loan may vary over time. This is
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referred to as a(n) ____ rate loan. - correct answer✔✔variable
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An insured is past due on his life insurance premium, but is still within the Grace Period.
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What will the beneficiary receive if the insured dies during this Grace Period? - correct
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answer✔✔Full face amount minus any past due premiums || || || || || || ||
All of these statements concerning Settlement Options are true, EXCEPT: - correct
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answer✔✔Only the beneficiary may select || || || ||
An applicant's medical information received from the Medical Information Bureau (MIB)
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may be furnished to the - correct answer✔✔applicant's physician
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Stranger-Owned Life Insurance (STOLI) is when a person purchases life insurance only to || || || || || || || || || || || || ||
sell to a(n): - correct answer✔✔third-party with no insurable interest
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Which of the following are Equity Indexed annuities typically invested in? - correct
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answer✔✔S&P 500 ||
K's whole life insurance policy lapsed two months ago due to nonpayment. She would now
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like to reinstate the policy. All of these statements are correct about the policy's
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reinstatement EXCEPT - correct answer✔✔K will forfeit the right to use the automatic loan || || || || || || || || || || || || || ||
provision upon reinstatement || ||
L takes out a life insurance policy and dies 10 years later. During the claim process, the
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insurer discovers that L had understated her age on the application. Under the
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detailed solutions ||
In a life insurance policy, which provision states who may select policy options, designate
|| || || || || || || || || || || || || ||
and name a beneficiary, and be the recipient of any financial benefits from the policy -
|| || || || || || || || || || || || || || || ||
correct answer✔✔Owner's Rights || ||
All of the following statements are true regarding a policy's Grace period, EXCEPT: - correct
|| || || || || || || || || || || || || ||
answer✔✔Past due premiums are waived
|| || || || ||
An architecture firm would stand to lose a lot of money in the event of the death of its
|| || || || || || || || || || || || || || || || || || ||
project manager. Which type of policy should the firm purchase on its project manager? -
|| || || || || || || || || || || || || || ||
correct answer✔✔key person insurance
|| || ||
Which of these terms accurately defines an underwriter's assessment of information on a
|| || || || || || || || || || || || ||
life insurance application? - correct answer✔✔Risk classification
|| || || || || ||
A policyowner's rights are limited under which beneficiary designation? - correct
|| || || || || || || || || || ||
answer✔✔irrevocable
K has inherited a large sum of money. K purchases an annuity with this sum on July 1, and
|| || || || || || || || || || || || || || || || || || ||
starts receiving payments August 1. These payments will continue for as long as she and her
|| || || || || || || || || || || || || || ||
spouse lives. Which type of annuity did K purchase? - correct answer✔✔Single premium
|| || || || || || || || || || || || || ||
immediate joint with survivor annuity || || || ||
What is an organization that solicits insurance only to its members? - correct
|| || || || || || || || || || || || ||
answer✔✔fraternal benefit society || ||
,Which of these provisions is NOT required in life insurance policies? - correct
|| || || || || || || || || || || || ||
answer✔✔Extended term ||
Life insurance that covers an insured's whole life with level premiums paid over a limited
|| || || || || || || || || || || || || || ||
time is called: - correct answer✔✔Limited Pay Life
|| || || || || || ||
Life and health insurance policies are - correct answer✔✔unilateral contracts
|| || || || || || || || ||
A domestic insurance company in Texas is considered a company that? - correct
|| || || || || || || || || || || || ||
answer✔✔is incorporated and formed in Texas || || || || ||
With whom may an agent legally share commissions? - correct answer✔✔Another agent
|| || || || || || || || || || || ||
with the same line of insurance|| || || || ||
A 15-year mortgage is best protected by what kind of life policy? - correct answer✔✔15-year
|| || || || || || || || || || || || || ||
decreasing term
|| ||
If a contract of adhesion contains complicated language, to whom would the interpretation
|| || || || || || || || || || || || ||
be in favor of? - correct answer✔✔insured
|| || || || || ||
K is the insured and P is the sole beneficiary on a life insurance policy. Both are involved in
|| || || || || || || || || || || || || || || || || || ||
a fatal accident where K dies before P. Under the Common Disaster provision, which of
|| || || || || || || || || || || || || || ||
these statements is true? - correct answer✔✔Proceeds will be payable to K's estate if P dies
|| || || || || || || || || || || || || || || ||
within a specified time || || ||
M has an insurance policy that also has an outstanding policy loan at the time of M's death.
|| || || || || || || || || || || || || || || || || ||
The insurer will deduct the outstanding loan balance from the: - correct answer✔✔policy
|| || || || || || || || || || || || ||
proceeds
, Information obtained from a phone conversation to the proposed insured can be found in
|| || || || || || || || || || || || || ||
which of these reports? - correct answer✔✔Inspection report
|| || || || || || ||
A Life insurance policyowner would like to take out a policy loan against the cash value in
|| || || || || || || || || || || || || || || || ||
his Whole Life policy. The interest rate applied to this loan may vary over time. This is
|| || || || || || || || || || || || || || || || ||
referred to as a(n) ____ rate loan. - correct answer✔✔variable
|| || || || || || || || ||
An insured is past due on his life insurance premium, but is still within the Grace Period.
|| || || || || || || || || || || || || || || || ||
What will the beneficiary receive if the insured dies during this Grace Period? - correct
|| || || || || || || || || || || || || || ||
answer✔✔Full face amount minus any past due premiums || || || || || || ||
All of these statements concerning Settlement Options are true, EXCEPT: - correct
|| || || || || || || || || || || ||
answer✔✔Only the beneficiary may select || || || ||
An applicant's medical information received from the Medical Information Bureau (MIB)
|| || || || || || || || || || ||
may be furnished to the - correct answer✔✔applicant's physician
|| || || || || || || ||
Stranger-Owned Life Insurance (STOLI) is when a person purchases life insurance only to || || || || || || || || || || || || ||
sell to a(n): - correct answer✔✔third-party with no insurable interest
|| || || || || || || || ||
Which of the following are Equity Indexed annuities typically invested in? - correct
|| || || || || || || || || || || || ||
answer✔✔S&P 500 ||
K's whole life insurance policy lapsed two months ago due to nonpayment. She would now
|| || || || || || || || || || || || || || ||
like to reinstate the policy. All of these statements are correct about the policy's
|| || || || || || || || || || || || || ||
reinstatement EXCEPT - correct answer✔✔K will forfeit the right to use the automatic loan || || || || || || || || || || || || || ||
provision upon reinstatement || ||
L takes out a life insurance policy and dies 10 years later. During the claim process, the
|| || || || || || || || || || || || || || || || ||
insurer discovers that L had understated her age on the application. Under the
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