Texas State Insurance License Exam with solutions
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? - Ans: Consideration Which of the following statements regarding HIV testing for insurance purposes is NOT true? - Ans: Insurers are barred from requesting HIV testing. All of the following are dividend options EXCEPT - Ans: Fixed period installments Which of the following documents delivered to the policyowner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years? - Ans: A Policy Summary A 60-year-old participant in a 401(k) plan takes a distribution and rolls it over to an IRA within 60 days. Which of the following is true? - Ans: The amount of the distribution is reduced by the amount of a 20% withholding tax. Which of the following best describes annually renewable term insurance? - Ans: It's Level Term Insurance Which of the following policies would be classified as a traditional level premium contract? - Ans: Straight Life What is the advantage of reinstating a policy instead of applying for a new one? - Ans: The original age is used for premium determination Variable Life insurance is based on what kind of premium? - Ans: Level Fixed Which is NOT true about beneficiary designations? - Ans: The beneficiary must have insurable interest in the insured. An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen? - Ans: The Policy will not be affected
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state insurance license
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texas state insurance license exam