TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH INSURANCE
Texas General Lines - Life, accident and health insurance PRACTICE EXA
EXAM Study
A, online
B AND STUDY GUIDE LATEST UPDATE THIS YEAR WITH
at https://quizlet.com/_90bu4g
OVER 600 QUESTIONS AND CORRECT ANSWERS JUST RELEASED
1. LIFE SECTION 1 LIFE SECTION 1
2. 1) Sandra Timms, age 27, is advised by her D—A $50,000 Decreasing Term policy
producer to purchase Life insurance to cov- for 20 years
er a 20-year-amortized $50,000 business-im-
provement loan. Which of the following plans Explanation: The key here is "mini-
would adequately protect Ms. Timms at the mum premium". Term is the most in-
minimum premium outlay? expensive type of coverage. Since San-
dra's $50,000 loan will be paid off
A- $50,000 Whole Life policy over 20 years and the loan balance will
B- $50,000 Level Term policy for 20 years decrease each year, Decreasing Term
C- $50,000 20 Pay Life policy makes sense. Decreasing Term is not
D- $50,000 Decreasing Term policy for 20 renewable.
years
3. 2) A 45-year old customer who is seeking to B- Equity Indexed Annuity
supplement his retirement income at age 65
would not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
4. 3) John Livingston owns a 30-Pay Life policy C- 100
that he purchased at the age of 30. The cash
value will equal the face amount of the policy Explanation: Limited Pay Life insur-
when he reaches the age of: ance policies such as Life Paid Up at
A- 60 65 or 20-Pay Life are simply variations
B- 70 of Whole Life policies. The cash value
C- 100 will equal face amount of the policy
D- 30 (at least) at the maturity of the policy,
which is always age 100 on Whole Life
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_90bu4g
policies. These limited-pay policies are
designed so that the insured may pay
his or her premiums faster and be
"paid up" at a certain age. However,
just because the premiums are paid
up doesn't mean the policy has ma-
tured.
5. 4) Which of the following is an example of a C- Life Paid-Up at Age 65
Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
6. 5) Which of the following policies provides the B- Whole Life
greatest amount of protection for an insured's
premium dollar as well as some cash accumu- If we had not mentioned cash accu-
lation? mulation, the answer would have been
A- Annuity Term. However, Term has no cash val-
B- Whole Life ue, so the answer is Whole Life, which
C- Term is the most inexpensive type of perma-
D- Limited-Pay Life nent insurance and is required to have
a cash value after the third policy year.
Although Limited Pay Life is a type of
Whole Life, it is incorrect since it is usu-
ally quite expensive due to the short-
ened pay-in period. Annuities have no
cash value except the money the an-
nuitant paid in. Since there is no death
benefit, no protection is offered.
7.
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_90bu4g
6) Which of the following individual policy con- C- Conversion from a Term policy to a
versions is usually permitted without any evi- Whole Life policy
dence of insurability?
8. 7) Which of the following is NOT correct re- D- Ordinary Whole Life is a type of
garding Ordinary Whole Life policies? permanent insurance
A- The premiums payments are owed annual-
ly until you die or reach age 100
B- The cash value grows more quickly in the
beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent
insurance
9. 8) Which of the following statements is true D- Premiums are payable throughout
about the premium payment schedule for a the insured's lifetime, and coverage
Whole Life policy? continues until the insured's death
A- Premiums are payable for a designated pe-
riod of time only, after which coverage is no
longer provided
B- Premiums are payable until the insured's
retirement only, after which coverage is con-
tinued automatically until the insured's death
C- One premium, in the amount of the in-
sured's choice, is payable at the time of ap-
plication, and the balance of the premiums is
deducted from the face amount of the policy
at the time of the insured's death
D- Premiums are payable throughout the in-
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_90bu4g
sured's lifetime, and coverage continues until
the insured's death
10. 9) A life insurance policy that covers two par- D- Survivorship Life
ties, but only pays when the last party dies is
known as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
11. 10) Which of the following contracts requires C- Annuity
that a series of benefit payments be made at
specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
12. 11) If a client wants cash value life insurance D- Variable/Universal Life
with a flexible premium and an adjustable
death benefit that will allow the policy owner
a choice of various cash value investment op-
tions, he should buy:
A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
13. 12) If a person wants to invest a lump sum D- Variable Annuity
in an annuity that may appreciate along with
market and economic conditions, they should
buy a:
Texas General Lines - Life, accident and health insurance PRACTICE EXA
EXAM Study
A, online
B AND STUDY GUIDE LATEST UPDATE THIS YEAR WITH
at https://quizlet.com/_90bu4g
OVER 600 QUESTIONS AND CORRECT ANSWERS JUST RELEASED
1. LIFE SECTION 1 LIFE SECTION 1
2. 1) Sandra Timms, age 27, is advised by her D—A $50,000 Decreasing Term policy
producer to purchase Life insurance to cov- for 20 years
er a 20-year-amortized $50,000 business-im-
provement loan. Which of the following plans Explanation: The key here is "mini-
would adequately protect Ms. Timms at the mum premium". Term is the most in-
minimum premium outlay? expensive type of coverage. Since San-
dra's $50,000 loan will be paid off
A- $50,000 Whole Life policy over 20 years and the loan balance will
B- $50,000 Level Term policy for 20 years decrease each year, Decreasing Term
C- $50,000 20 Pay Life policy makes sense. Decreasing Term is not
D- $50,000 Decreasing Term policy for 20 renewable.
years
3. 2) A 45-year old customer who is seeking to B- Equity Indexed Annuity
supplement his retirement income at age 65
would not buy a:
A- Deferred Annuity
B- Equity Indexed Annuity
C- Variable Annuity
D- Immediate Annuity
4. 3) John Livingston owns a 30-Pay Life policy C- 100
that he purchased at the age of 30. The cash
value will equal the face amount of the policy Explanation: Limited Pay Life insur-
when he reaches the age of: ance policies such as Life Paid Up at
A- 60 65 or 20-Pay Life are simply variations
B- 70 of Whole Life policies. The cash value
C- 100 will equal face amount of the policy
D- 30 (at least) at the maturity of the policy,
which is always age 100 on Whole Life
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_90bu4g
policies. These limited-pay policies are
designed so that the insured may pay
his or her premiums faster and be
"paid up" at a certain age. However,
just because the premiums are paid
up doesn't mean the policy has ma-
tured.
5. 4) Which of the following is an example of a C- Life Paid-Up at Age 65
Limited-Pay Life policy?
A- Universal life
B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
6. 5) Which of the following policies provides the B- Whole Life
greatest amount of protection for an insured's
premium dollar as well as some cash accumu- If we had not mentioned cash accu-
lation? mulation, the answer would have been
A- Annuity Term. However, Term has no cash val-
B- Whole Life ue, so the answer is Whole Life, which
C- Term is the most inexpensive type of perma-
D- Limited-Pay Life nent insurance and is required to have
a cash value after the third policy year.
Although Limited Pay Life is a type of
Whole Life, it is incorrect since it is usu-
ally quite expensive due to the short-
ened pay-in period. Annuities have no
cash value except the money the an-
nuitant paid in. Since there is no death
benefit, no protection is offered.
7.
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_90bu4g
6) Which of the following individual policy con- C- Conversion from a Term policy to a
versions is usually permitted without any evi- Whole Life policy
dence of insurability?
8. 7) Which of the following is NOT correct re- D- Ordinary Whole Life is a type of
garding Ordinary Whole Life policies? permanent insurance
A- The premiums payments are owed annual-
ly until you die or reach age 100
B- The cash value grows more quickly in the
beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of permanent
insurance
9. 8) Which of the following statements is true D- Premiums are payable throughout
about the premium payment schedule for a the insured's lifetime, and coverage
Whole Life policy? continues until the insured's death
A- Premiums are payable for a designated pe-
riod of time only, after which coverage is no
longer provided
B- Premiums are payable until the insured's
retirement only, after which coverage is con-
tinued automatically until the insured's death
C- One premium, in the amount of the in-
sured's choice, is payable at the time of ap-
plication, and the balance of the premiums is
deducted from the face amount of the policy
at the time of the insured's death
D- Premiums are payable throughout the in-
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_90bu4g
sured's lifetime, and coverage continues until
the insured's death
10. 9) A life insurance policy that covers two par- D- Survivorship Life
ties, but only pays when the last party dies is
known as:
A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
11. 10) Which of the following contracts requires C- Annuity
that a series of benefit payments be made at
specified intervals?
A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
12. 11) If a client wants cash value life insurance D- Variable/Universal Life
with a flexible premium and an adjustable
death benefit that will allow the policy owner
a choice of various cash value investment op-
tions, he should buy:
A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
13. 12) If a person wants to invest a lump sum D- Variable Annuity
in an annuity that may appreciate along with
market and economic conditions, they should
buy a:
