Texas Life Agent Exam Questions
Which of the following is NOT correct regarding Ordinary Whole Life policies? -
*answers *The cash value grows more quickly in the beginning years of the policy.
A life insurance police that combines term insurance protection, a flexible premium, and
cash value accumulation is: - *answers *Universal Life
Which of the following is an example of a Limited-Pay Life policy: - *answers *20-Pay
Life
John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash
value will equal the face amount of the policy when he reaches the age of: - *answers
*100
Which of the following individual policy conversions is usually permitted without any
evidence of insurability? - *answers *Conversion from a term policy to a whole life
whole life policy
Which of the following statements is true about the premium amount schedule for a
Whole Life policy? - *answers *Premiums are payable throughout the insured's lifetime,
and coverage continues until the insured's death
You have a client that is a real estate agent. Which of the following types of permanent
protection is best for this type of client? - *answers *Adjustable life
Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover
a 20-year-amortized $50,000 business-improvement loan. Which of the following plans
would adequately protect Ms. Timms at the minimum premium outlay? - *answers *A
$50,000 decreasing term policy for 20 years.
Which of the following statements about a renewable term policy is true? - *answers *It
is renewable at the option of the insured
A life insurance policy that covers two parties, but only pays when the last party dies is
known as: - *answers *Survivorship Life
A business owner with a fluctuating income who wants a life insurance policy that can
be changed to suit economic conditions should buy: - *answers *Adjustable Life
An annuity is designed to provide which of the of following financial features?
I: the liquidation of principle and interest
II: favorable tax treatment
III: the creation of an estate - *answers *I and II
If a person wants to invest in a lump sum in an annuity that may appreciate along with
market and economic conditions, they should buy a: - *answers *Variable annuity
, Texas Life Agent Exam Questions
Which of the following contracts require that a series of benefit payments be made at
specified intervals? - *answers *Annuity
In order to sell variable life insurance you must be registered with which of the
following? - *answers *The NASD (FINRA)
Most term life insurance: - *answers *Is convertible to permanent Whole Life without a
physical exam
Which of the following types of insurance policies would provide the greatest amount of
protection for a temporary period during which an insured will have limited financial
resources? - *answers *Term
A 45-year old customer who is seeking to supplement his retirement income at age 65
would not buy a: - *answers *Immediate annuity
An insurance producer selling a variable annuity whose cash value depends on the
performance of an underlying investment account must be registered with - *answers
*The Financial Industry Regulatory Authority (FINRA, formerly NASD)
Which of the following policies provides the greatest amount of protection for an
insured's premium dollar as well as some cash accumulation? - *answers *Whole Life
A life insurance policy whose cash value will fluctuate depend upon the performance of
a separate account is: - *answers *Variable life
If a client wants ash value life insurance with a flexible premium and an adjustable
death benefit that will allow the policy owner a choice of various cash value investment
options, he should buy: - *answers *Variable/Universal Life
Which of the following is an example of a limited-pay life policy? - *answers *Life paid-
up at age 65
At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer explains
that he can pay for the policy in several ways. One method is called 20-Pay Life, and
another, Straight Life. Tom wishes to know which plan will accumulate cash value at a
faster rate in the early years of the policy. Which of the following would be the
producer's most appropriate response? - *answers *20-Pay life will accumulate cash
value faster
Which of these is a rider that would ensure you can purchase additional insurance
coverage, at specified ages, regardless of health? - *answers *Guaranteed insurability
rider
Which of the following settlement options might provide payments that exceed the
proceeds of the policy and the interest earned? - *answers *Life annuity
Which of the following is NOT correct regarding Ordinary Whole Life policies? -
*answers *The cash value grows more quickly in the beginning years of the policy.
A life insurance police that combines term insurance protection, a flexible premium, and
cash value accumulation is: - *answers *Universal Life
Which of the following is an example of a Limited-Pay Life policy: - *answers *20-Pay
Life
John Livingston owns a 30-Pay Life policy that he purchased at the age of 30. The cash
value will equal the face amount of the policy when he reaches the age of: - *answers
*100
Which of the following individual policy conversions is usually permitted without any
evidence of insurability? - *answers *Conversion from a term policy to a whole life
whole life policy
Which of the following statements is true about the premium amount schedule for a
Whole Life policy? - *answers *Premiums are payable throughout the insured's lifetime,
and coverage continues until the insured's death
You have a client that is a real estate agent. Which of the following types of permanent
protection is best for this type of client? - *answers *Adjustable life
Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover
a 20-year-amortized $50,000 business-improvement loan. Which of the following plans
would adequately protect Ms. Timms at the minimum premium outlay? - *answers *A
$50,000 decreasing term policy for 20 years.
Which of the following statements about a renewable term policy is true? - *answers *It
is renewable at the option of the insured
A life insurance policy that covers two parties, but only pays when the last party dies is
known as: - *answers *Survivorship Life
A business owner with a fluctuating income who wants a life insurance policy that can
be changed to suit economic conditions should buy: - *answers *Adjustable Life
An annuity is designed to provide which of the of following financial features?
I: the liquidation of principle and interest
II: favorable tax treatment
III: the creation of an estate - *answers *I and II
If a person wants to invest in a lump sum in an annuity that may appreciate along with
market and economic conditions, they should buy a: - *answers *Variable annuity
, Texas Life Agent Exam Questions
Which of the following contracts require that a series of benefit payments be made at
specified intervals? - *answers *Annuity
In order to sell variable life insurance you must be registered with which of the
following? - *answers *The NASD (FINRA)
Most term life insurance: - *answers *Is convertible to permanent Whole Life without a
physical exam
Which of the following types of insurance policies would provide the greatest amount of
protection for a temporary period during which an insured will have limited financial
resources? - *answers *Term
A 45-year old customer who is seeking to supplement his retirement income at age 65
would not buy a: - *answers *Immediate annuity
An insurance producer selling a variable annuity whose cash value depends on the
performance of an underlying investment account must be registered with - *answers
*The Financial Industry Regulatory Authority (FINRA, formerly NASD)
Which of the following policies provides the greatest amount of protection for an
insured's premium dollar as well as some cash accumulation? - *answers *Whole Life
A life insurance policy whose cash value will fluctuate depend upon the performance of
a separate account is: - *answers *Variable life
If a client wants ash value life insurance with a flexible premium and an adjustable
death benefit that will allow the policy owner a choice of various cash value investment
options, he should buy: - *answers *Variable/Universal Life
Which of the following is an example of a limited-pay life policy? - *answers *Life paid-
up at age 65
At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer explains
that he can pay for the policy in several ways. One method is called 20-Pay Life, and
another, Straight Life. Tom wishes to know which plan will accumulate cash value at a
faster rate in the early years of the policy. Which of the following would be the
producer's most appropriate response? - *answers *20-Pay life will accumulate cash
value faster
Which of these is a rider that would ensure you can purchase additional insurance
coverage, at specified ages, regardless of health? - *answers *Guaranteed insurability
rider
Which of the following settlement options might provide payments that exceed the
proceeds of the policy and the interest earned? - *answers *Life annuity
