Exam simulator texas life and health QUESTION AND ANSWERS GRADED A+

A 42-year-old executive wants to purchase life insurance that will allow for increases or decreases to coverage as his/her needs change. Which of the following policies will best meet this need? -Endowment at Age 75 -Universal Life -Graded Benefit Whole Life - Modified Whole Life - Answer- Universal Life A policy of adhesion can only be modified by whom? -The agent -The applicant -The primary beneficiary -The insurance company - Answer- The insurance company S is close to retiring and would like to purchase a policy that will yield greater gains than bonds, but will still protect the principal with a minimum level or risk. Which product would S be advised to purchase? - Equity index insurance - Endowment - Graded whole life policy -Return of premium policy - Answer- Equity index insurance An insurance company may NOT reject a prospective insured's life application on the basis of which of the following factors? -Hobbies -Weight -Gender -Medical history - Answer- Gender Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Texas Insurance Code covering -rebating -false advertising -discrimination -unfair methods of competition - Answer- unfair methods of competition An insurance company must do which of the following to terminate an agent's appointment? - Send notice of the termination to the Texas Department of Insurance - Request that the Texas Department of Insurance cancel the agent's license -Notify the agent of the termination at least 30 days before the effective date of termination -Request a hearing before the Commissioner of Insurance - Answer- Send notice of the termination to the Texas Department of Insurance Which of the following correctly explains the actions an agent should take if a customer wants to apply for an insurance policy? - Have the customer sign a blank application, then take the application back to his office to complete prior to sending it off to the insurance company -Complete the application over the phone with the customer, sign the application for the customer, then send the application off to the insurance company -Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company - Have the customer fill out the application and send it to his office for him to sign, then send it off to the insurance company - Answer- Complete the application and review the information with the customer prior to obtaining the customer's signature, then send the application off to the insurance company What year was the McCarran-Ferguson Act enacted?