Texas Life Insurance exam 2026 questions with verified detailed
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solutions
What is the main source of underwriting information used by the company in the risk
|| || || || || || || || || || || || || || ||
selection process? ||
Application
An insured submits the full premium along with a completed application, and the policy is
|| || || || || || || || || || || || || || ||
issued 10 days later. When does the coverage begin?
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On the date of application
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What is the main responsibility of a company's underwriting unit?
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Risk selection and classification
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What best describes the USA PATRIOT Act with regards to the insurance industry?
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To prevent terrorism activities through monitoring of financial transactions
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If the agent feels that misrepresentation on the part of the applicant occurred for insurance,
|| || || || || || || || || || || || || || ||
what must the agent do?
|| || || ||
Inform the insurance comapny || || ||
,Representations are statements made by the applicant that are? || || || || || || || ||
Considered true to the best of the applicant's knowledge || || || || || || || ||
If an agent fails to obtain an applicants signature on the insurance application, the agent
|| || || || || || || || || || || || || || ||
must?
Return the application to the applicant for signature
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What includes information regarding a person's credit, character, reputation, and habits?
|| || || || || || || || || ||
Consumer report ||
When the insured purchased a new home, he wanted to purchase a life insurance policy
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that would protect his family against losing it should he die before the mortgage was paid.
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Which of the following policies is best suitable for that need?
|| || || || || || || || || ||
Decreasing term ||
What is an annually renewable term policy?
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Renews each year with an increased premium
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The time period during which an annuitant contributes to annuity is called?
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The accumulation period
|| ||
,An example of limited-pay life policy?
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Life paid-up at the age 65
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An individual owns an adjustable life policy. Sometime in the future he wants to increase
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the death benefit. What is correct regarding the death benefit increase?
|| || || || || || || || || ||
It can be increased by providing evidence of insurability
|| || || || || || || ||
What is true regarding a universal life policy?
|| || || || || || ||
The premiums can be decreased by the insured
|| || || || || || ||
With a traditional whole life policy, the death benefit...
|| || || || || || || ||
is guaranteed and also remains level for life
|| || || || || || ||
What are the three basic forms of whole life insurance?
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1. Straight Whole Life (Ordinary life or continuous premium whole life)
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2. Limited-pay whole life
|| || ||
3. Single premium whole life
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Whose life expectancy is taken into consideration in an annuity?
|| || || || || || || || ||
Annuitant
, An insured receives a monthly summary of his life insurability policy. The cash value this
|| || || || || || || || || || || || || || ||
month is significantly lower than it was last month. What type of policy is it?
|| || || || || || || || || || || || || ||
Variable
An individual inherited a large sum of money at age 40 and wanted to use it to provide a
|| || || || || || || || || || || || || || || || || || ||
guarantee income after his retirement at age 60. Which of the following types of annuities
|| || || || || || || || || || || || || || ||
would best meet this need?
|| || || ||
Deferred
What would be considered a disadvantage of term insurance?
|| || || || || || || ||
If the insured dies after the end of the term, there is no death benefit to the beneficiary
|| || || || || || || || || || || || || || || || ||
The renewable provision allows the policy-owner to renew the coverage at the expiration
|| || || || || || || || || || || || ||
date
Without evidence of insurability
|| || ||
Which type of life insurance policy generates immediate cash value?
|| || || || || || || || ||
Single premium Whole Life
|| || ||
*Because the policy is completely paid up with one premium
|| || || || || || || || ||
|| || || || || || || || ||
solutions
What is the main source of underwriting information used by the company in the risk
|| || || || || || || || || || || || || || ||
selection process? ||
Application
An insured submits the full premium along with a completed application, and the policy is
|| || || || || || || || || || || || || || ||
issued 10 days later. When does the coverage begin?
|| || || || || || || ||
On the date of application
|| || || ||
What is the main responsibility of a company's underwriting unit?
|| || || || || || || || ||
Risk selection and classification
|| || ||
What best describes the USA PATRIOT Act with regards to the insurance industry?
|| || || || || || || || || || || ||
To prevent terrorism activities through monitoring of financial transactions
|| || || || || || || ||
If the agent feels that misrepresentation on the part of the applicant occurred for insurance,
|| || || || || || || || || || || || || || ||
what must the agent do?
|| || || ||
Inform the insurance comapny || || ||
,Representations are statements made by the applicant that are? || || || || || || || ||
Considered true to the best of the applicant's knowledge || || || || || || || ||
If an agent fails to obtain an applicants signature on the insurance application, the agent
|| || || || || || || || || || || || || || ||
must?
Return the application to the applicant for signature
|| || || || || || ||
What includes information regarding a person's credit, character, reputation, and habits?
|| || || || || || || || || ||
Consumer report ||
When the insured purchased a new home, he wanted to purchase a life insurance policy
|| || || || || || || || || || || || || || ||
that would protect his family against losing it should he die before the mortgage was paid.
|| || || || || || || || || || || || || || || ||
Which of the following policies is best suitable for that need?
|| || || || || || || || || ||
Decreasing term ||
What is an annually renewable term policy?
|| || || || || ||
Renews each year with an increased premium
|| || || || || ||
The time period during which an annuitant contributes to annuity is called?
|| || || || || || || || || || ||
The accumulation period
|| ||
,An example of limited-pay life policy?
|| || || || ||
Life paid-up at the age 65
|| || || || ||
An individual owns an adjustable life policy. Sometime in the future he wants to increase
|| || || || || || || || || || || || || || ||
the death benefit. What is correct regarding the death benefit increase?
|| || || || || || || || || ||
It can be increased by providing evidence of insurability
|| || || || || || || ||
What is true regarding a universal life policy?
|| || || || || || ||
The premiums can be decreased by the insured
|| || || || || || ||
With a traditional whole life policy, the death benefit...
|| || || || || || || ||
is guaranteed and also remains level for life
|| || || || || || ||
What are the three basic forms of whole life insurance?
|| || || || || || || || ||
1. Straight Whole Life (Ordinary life or continuous premium whole life)
|| || || || || || || || || ||
2. Limited-pay whole life
|| || ||
3. Single premium whole life
|| || || ||
Whose life expectancy is taken into consideration in an annuity?
|| || || || || || || || ||
Annuitant
, An insured receives a monthly summary of his life insurability policy. The cash value this
|| || || || || || || || || || || || || || ||
month is significantly lower than it was last month. What type of policy is it?
|| || || || || || || || || || || || || ||
Variable
An individual inherited a large sum of money at age 40 and wanted to use it to provide a
|| || || || || || || || || || || || || || || || || || ||
guarantee income after his retirement at age 60. Which of the following types of annuities
|| || || || || || || || || || || || || || ||
would best meet this need?
|| || || ||
Deferred
What would be considered a disadvantage of term insurance?
|| || || || || || || ||
If the insured dies after the end of the term, there is no death benefit to the beneficiary
|| || || || || || || || || || || || || || || || ||
The renewable provision allows the policy-owner to renew the coverage at the expiration
|| || || || || || || || || || || || ||
date
Without evidence of insurability
|| || ||
Which type of life insurance policy generates immediate cash value?
|| || || || || || || || ||
Single premium Whole Life
|| || ||
*Because the policy is completely paid up with one premium
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