Texas Life Insurance Exam with
Complete Solutions
Who is considered a field underwriter? - ANS-An agent
When must insurable interest exist in life insurance? - ANS-Application or issue date
If no receipt is issued at the time of application, a statement of good health is usually
required at the time of? - ANS-Policy delivery
The Medical Information Bureau is?(MIB) - ANS-a source of medical information to alert
insurers to adverse medical history
A substandard risk compared to a standard risk would pay? - ANS-a higher premium
Which document describes specific information about policy provisions and benefits? -
ANS-Policy summary
Does not have an insurable interest? - ANS-Insured's best friend
What is the main source of underwriting information used by the company in the risk
selection process? - ANS-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? - ANS-On the date of
application
What is the main responsibility of a company's underwriting unit? - ANS-Risk selection
and classification
What best describes the USA PATRIOT Act with regards to the insurance industry? -
ANS-To prevent terrorism activities through monitoring of financial transactions
If the agent feels that could misrepresentation on the part of the applicant for insurance,
what must the agent do? - ANS-Inform the insurance comapny
Representations are statements made by the applicant that are? - ANS-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? - ANS-Return the application to the applicant for signature
, If a life insurance policy has irrevocable beneficiary designation, - ANS-The beneficiary
can only be changed with written permission of the beneficiary
Because of an injury, an insured has been unable to work for 7 months. He wasn't able
to pay his life insurance policy premium, yet the policy remained in force. The policy
includes - ANS-Waiver of premium rider
What is not TRUE about the guaranteed insurability rider? - ANS-it is available
automatically, for no extra premium
Generally, the premium paid for personal life insurance is? - ANS-Not tax deductible
What is NOT true regarding policy loans? - ANS-Money borrowed from the cash value
is taxable.
What is NOT a requirement of a qualified plan? - ANS-it must be temporary
If a life policy does not pass the 7-pay test, that policy... - ANS-Becomes a Modified
Endowment Contract
The 10% early withdrawal penalty from an IRA can be waived for... - ANS-Catastrophic
medical expenses
The number of Quarters required to obtain a fully insured status to receive Social
Security benefits is... - ANS-40
What kind of person would not be eligible to set up contribution to a traditional IRA? -
ANS-Age 72, a nurse
What is the requirement for a number of employees in a SIMPLE plan - ANS-No more
than 100
The advantage of qualified plans to employers is - ANS-Tax-deductible contributions
With personal life insurance, the lump-sum death is received by the beneficiary... - ANS-
Tax free.
In group life policies, individual certificates are given to.. - ANS-Each insured person
What insurance arrangement will be appropriate for a parent buying a life insurance
policy on a child where the parent is the policy-owner? - ANS-Third-party ownership
Social Security benefits - ANS-Retirement, disability, and survivors
Complete Solutions
Who is considered a field underwriter? - ANS-An agent
When must insurable interest exist in life insurance? - ANS-Application or issue date
If no receipt is issued at the time of application, a statement of good health is usually
required at the time of? - ANS-Policy delivery
The Medical Information Bureau is?(MIB) - ANS-a source of medical information to alert
insurers to adverse medical history
A substandard risk compared to a standard risk would pay? - ANS-a higher premium
Which document describes specific information about policy provisions and benefits? -
ANS-Policy summary
Does not have an insurable interest? - ANS-Insured's best friend
What is the main source of underwriting information used by the company in the risk
selection process? - ANS-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? - ANS-On the date of
application
What is the main responsibility of a company's underwriting unit? - ANS-Risk selection
and classification
What best describes the USA PATRIOT Act with regards to the insurance industry? -
ANS-To prevent terrorism activities through monitoring of financial transactions
If the agent feels that could misrepresentation on the part of the applicant for insurance,
what must the agent do? - ANS-Inform the insurance comapny
Representations are statements made by the applicant that are? - ANS-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? - ANS-Return the application to the applicant for signature
, If a life insurance policy has irrevocable beneficiary designation, - ANS-The beneficiary
can only be changed with written permission of the beneficiary
Because of an injury, an insured has been unable to work for 7 months. He wasn't able
to pay his life insurance policy premium, yet the policy remained in force. The policy
includes - ANS-Waiver of premium rider
What is not TRUE about the guaranteed insurability rider? - ANS-it is available
automatically, for no extra premium
Generally, the premium paid for personal life insurance is? - ANS-Not tax deductible
What is NOT true regarding policy loans? - ANS-Money borrowed from the cash value
is taxable.
What is NOT a requirement of a qualified plan? - ANS-it must be temporary
If a life policy does not pass the 7-pay test, that policy... - ANS-Becomes a Modified
Endowment Contract
The 10% early withdrawal penalty from an IRA can be waived for... - ANS-Catastrophic
medical expenses
The number of Quarters required to obtain a fully insured status to receive Social
Security benefits is... - ANS-40
What kind of person would not be eligible to set up contribution to a traditional IRA? -
ANS-Age 72, a nurse
What is the requirement for a number of employees in a SIMPLE plan - ANS-No more
than 100
The advantage of qualified plans to employers is - ANS-Tax-deductible contributions
With personal life insurance, the lump-sum death is received by the beneficiary... - ANS-
Tax free.
In group life policies, individual certificates are given to.. - ANS-Each insured person
What insurance arrangement will be appropriate for a parent buying a life insurance
policy on a child where the parent is the policy-owner? - ANS-Third-party ownership
Social Security benefits - ANS-Retirement, disability, and survivors
