Texas Funeral Prearrangement Life
Insurance License – Questions and
Answers,
Question 1
A funeral prearrangement life insurance agent must be supervised by:
A) Any licensed insurance agent
B) A legal reserve life insurance agent whose company holds a seller's permit
C) The Texas Department of Insurance
D) A funeral home director
Correct ,,,ANSWER,,,: B
Rationale: Texas law requires that funeral prearrangement life insurance agents be
supervised by a legal reserve life insurance agent whose company holds a seller's
permit .
Question 2
The maximum initial guaranteed death benefit that a funeral prearrangement life
insurance agent may sell is:
A) $10,000
B) $15,000
,C) $20,000
D) $25,000
Correct ,,,ANSWER,,,: B
Rationale: Texas regulations limit the maximum initial guaranteed death benefit
for a funeral prearrangement life insurance agent to $15,000 on any life .
Question 3
A funeral prearrangement life insurance agent license expires when the agent:
A) Reaches age 65
B) Changes employers
C) Fails to submit a biannual renewal application and fee
D) Moves to a different county
Correct ,,,ANSWER,,,: C
Rationale: The license expires when the agent fails to submit the required renewal
application and fee every two years .
Question 4
When an application for an insurance agent license is denied, except for failure to
pass the examination, the applicant may NOT re-apply for at least:
,A) 12 months
B) 24 months
C) 48 months
D) 60 months
Correct ,,,ANSWER,,,: D
Rationale: If an application is denied for reasons other than exam failure, the
applicant must wait 60 months before reapplying .
Question 5
An agent's insurance license could be suspended or revoked if the agent:
A) Fails to remit premiums
B) Changes their address
C) Sells less than $20,000 in premium annually
D) Works part-time
Correct ,,,ANSWER,,,: A
Rationale: Failure to remit premiums is grounds for license suspension or
revocation .
Question 6
, What must be offered at the beginning of a sales presentation for funeral goods and
services?
A) The casket price list
B) The general price list
C) The burial contract
D) The insurance application
Correct ,,,ANSWER,,,: B
Rationale: The general price list (GPL) must be offered at the beginning of any
sales presentation for funeral goods and services .
Question 7
What must be given to the consumer to keep?
A) The burial permit
B) The general price list
C) The death certificate application
D) The insurance policy
Correct ,,,ANSWER,,,: B
Rationale: The consumer must be given the general price list to keep for their
records .
Insurance License – Questions and
Answers,
Question 1
A funeral prearrangement life insurance agent must be supervised by:
A) Any licensed insurance agent
B) A legal reserve life insurance agent whose company holds a seller's permit
C) The Texas Department of Insurance
D) A funeral home director
Correct ,,,ANSWER,,,: B
Rationale: Texas law requires that funeral prearrangement life insurance agents be
supervised by a legal reserve life insurance agent whose company holds a seller's
permit .
Question 2
The maximum initial guaranteed death benefit that a funeral prearrangement life
insurance agent may sell is:
A) $10,000
B) $15,000
,C) $20,000
D) $25,000
Correct ,,,ANSWER,,,: B
Rationale: Texas regulations limit the maximum initial guaranteed death benefit
for a funeral prearrangement life insurance agent to $15,000 on any life .
Question 3
A funeral prearrangement life insurance agent license expires when the agent:
A) Reaches age 65
B) Changes employers
C) Fails to submit a biannual renewal application and fee
D) Moves to a different county
Correct ,,,ANSWER,,,: C
Rationale: The license expires when the agent fails to submit the required renewal
application and fee every two years .
Question 4
When an application for an insurance agent license is denied, except for failure to
pass the examination, the applicant may NOT re-apply for at least:
,A) 12 months
B) 24 months
C) 48 months
D) 60 months
Correct ,,,ANSWER,,,: D
Rationale: If an application is denied for reasons other than exam failure, the
applicant must wait 60 months before reapplying .
Question 5
An agent's insurance license could be suspended or revoked if the agent:
A) Fails to remit premiums
B) Changes their address
C) Sells less than $20,000 in premium annually
D) Works part-time
Correct ,,,ANSWER,,,: A
Rationale: Failure to remit premiums is grounds for license suspension or
revocation .
Question 6
, What must be offered at the beginning of a sales presentation for funeral goods and
services?
A) The casket price list
B) The general price list
C) The burial contract
D) The insurance application
Correct ,,,ANSWER,,,: B
Rationale: The general price list (GPL) must be offered at the beginning of any
sales presentation for funeral goods and services .
Question 7
What must be given to the consumer to keep?
A) The burial permit
B) The general price list
C) The death certificate application
D) The insurance policy
Correct ,,,ANSWER,,,: B
Rationale: The consumer must be given the general price list to keep for their
records .
