Texas Prearrangement Life Insurance |\ |\ |\ |\
Agent License exam questions with |\ |\ |\ |\ |\
answers
Prepaid Funeral Benefits Contract - CORRECT ANSWERS ✔✔"any
|\ |\ |\ |\ |\ |\ |\ |\
written contract or agreement, whether funded by insurance
|\ |\ |\ |\ |\ |\ |\ |\
policies or annuity contracts,...or by trust deposits, which has for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
its purpose the furnishing or delivery of prepaid funeral benefits
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
in connection with the final disposition of a human corpse at a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
time determinable by the death of such person."
|\ |\ |\ |\ |\ |\ |\
Joint Memo or JMOU - CORRECT ANSWERS ✔✔In 1995, Texas Civil
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Statutes mandated that the Texas Department of Banking, the
|\ |\ |\ |\ |\ |\ |\ |\ |\
Texas Funeral Service Commission and the Texas Department of
|\ |\ |\ |\ |\ |\ |\ |\ |\
Insurance adopt a Joint Memorandum of Understanding (Joint
|\ |\ |\ |\ |\ |\ |\ |\
Memo or JMOU), regarding prepaid funeral services. This
|\ |\ |\ |\ |\ |\ |\ |\
Memorandum outlined the responsibilities of each agency in |\ |\ |\ |\ |\ |\ |\ |\
regulating prepaid funeral contract sales and services. |\ |\ |\ |\ |\ |\
Agent - CORRECT ANSWERS ✔✔an "authorized representative" of
|\ |\ |\ |\ |\ |\ |\
one of the parties to a contract
|\ |\ |\ |\ |\ |\ |\
Agency - CORRECT ANSWERS ✔✔The relationship which is
|\ |\ |\ |\ |\ |\ |\ |\
established in the insurance company's contract with an agent is |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
normally referred to as the "power of agency." a group of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
insurance agents, most often managed by a "general agent."
|\ |\ |\ |\ |\ |\ |\ |\
, Life Insurance - CORRECT ANSWERS ✔✔a contract between an
|\ |\ |\ |\ |\ |\ |\ |\ |\
insurance company and a policy owner which provides a death
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
benefit, immediately or in the future, that is usually higher than
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the initial premiums paid to purchase the policy.
|\ |\ |\ |\ |\ |\ |\
Annuity - CORRECT ANSWERS ✔✔a contract which allows the
|\ |\ |\ |\ |\ |\ |\ |\ |\
steady accumulation of premiums at interest. annuities will return
|\ |\ |\ |\ |\ |\ |\ |\
premiums paid and interest earned, but do not produce a death
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
benefit like |\
life insurance.
|\
Trust Account - CORRECT ANSWERS ✔✔a non-insurance account,
|\ |\ |\ |\ |\ |\ |\ |\
normally held at a bank or trust institution, created and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
maintained for the benefit of a prepaid funeral customer. |\ |\ |\ |\ |\ |\ |\ |\
Trustee - CORRECT ANSWERS ✔✔An individual referred to as the
|\ |\ |\ |\ |\ |\ |\ |\ |\
"trustee" administers and supervises a trust account
|\ |\ |\ |\ |\ |\ |\
Insurance Funded Contract - CORRECT ANSWERS ✔✔When the
|\ |\ |\ |\ |\ |\ |\ |\
TDI and the DOB regulations address prepaid funeral contract
|\ |\ |\ |\ |\ |\ |\ |\ |\
conversions (from trust to insurance funding), "insurance funded |\ |\ |\ |\ |\ |\ |\ |\
contract" refers to annuity products only, not to life insurance.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Permit Holder or Seller - CORRECT ANSWERS ✔✔Any individual or
|\ |\ |\ |\ |\ |\ |\ |\ |\
business-entity licensed in Texas to sell prepaid funeral contracts
|\ |\ |\ |\ |\ |\ |\ |\ |\
to the public
|\ |\ |\
Agent License exam questions with |\ |\ |\ |\ |\
answers
Prepaid Funeral Benefits Contract - CORRECT ANSWERS ✔✔"any
|\ |\ |\ |\ |\ |\ |\ |\
written contract or agreement, whether funded by insurance
|\ |\ |\ |\ |\ |\ |\ |\
policies or annuity contracts,...or by trust deposits, which has for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
its purpose the furnishing or delivery of prepaid funeral benefits
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
in connection with the final disposition of a human corpse at a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
time determinable by the death of such person."
|\ |\ |\ |\ |\ |\ |\
Joint Memo or JMOU - CORRECT ANSWERS ✔✔In 1995, Texas Civil
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
Statutes mandated that the Texas Department of Banking, the
|\ |\ |\ |\ |\ |\ |\ |\ |\
Texas Funeral Service Commission and the Texas Department of
|\ |\ |\ |\ |\ |\ |\ |\ |\
Insurance adopt a Joint Memorandum of Understanding (Joint
|\ |\ |\ |\ |\ |\ |\ |\
Memo or JMOU), regarding prepaid funeral services. This
|\ |\ |\ |\ |\ |\ |\ |\
Memorandum outlined the responsibilities of each agency in |\ |\ |\ |\ |\ |\ |\ |\
regulating prepaid funeral contract sales and services. |\ |\ |\ |\ |\ |\
Agent - CORRECT ANSWERS ✔✔an "authorized representative" of
|\ |\ |\ |\ |\ |\ |\
one of the parties to a contract
|\ |\ |\ |\ |\ |\ |\
Agency - CORRECT ANSWERS ✔✔The relationship which is
|\ |\ |\ |\ |\ |\ |\ |\
established in the insurance company's contract with an agent is |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
normally referred to as the "power of agency." a group of
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
insurance agents, most often managed by a "general agent."
|\ |\ |\ |\ |\ |\ |\ |\
, Life Insurance - CORRECT ANSWERS ✔✔a contract between an
|\ |\ |\ |\ |\ |\ |\ |\ |\
insurance company and a policy owner which provides a death
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
benefit, immediately or in the future, that is usually higher than
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
the initial premiums paid to purchase the policy.
|\ |\ |\ |\ |\ |\ |\
Annuity - CORRECT ANSWERS ✔✔a contract which allows the
|\ |\ |\ |\ |\ |\ |\ |\ |\
steady accumulation of premiums at interest. annuities will return
|\ |\ |\ |\ |\ |\ |\ |\
premiums paid and interest earned, but do not produce a death
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
benefit like |\
life insurance.
|\
Trust Account - CORRECT ANSWERS ✔✔a non-insurance account,
|\ |\ |\ |\ |\ |\ |\ |\
normally held at a bank or trust institution, created and
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
maintained for the benefit of a prepaid funeral customer. |\ |\ |\ |\ |\ |\ |\ |\
Trustee - CORRECT ANSWERS ✔✔An individual referred to as the
|\ |\ |\ |\ |\ |\ |\ |\ |\
"trustee" administers and supervises a trust account
|\ |\ |\ |\ |\ |\ |\
Insurance Funded Contract - CORRECT ANSWERS ✔✔When the
|\ |\ |\ |\ |\ |\ |\ |\
TDI and the DOB regulations address prepaid funeral contract
|\ |\ |\ |\ |\ |\ |\ |\ |\
conversions (from trust to insurance funding), "insurance funded |\ |\ |\ |\ |\ |\ |\ |\
contract" refers to annuity products only, not to life insurance.
|\ |\ |\ |\ |\ |\ |\ |\ |\
Permit Holder or Seller - CORRECT ANSWERS ✔✔Any individual or
|\ |\ |\ |\ |\ |\ |\ |\ |\
business-entity licensed in Texas to sell prepaid funeral contracts
|\ |\ |\ |\ |\ |\ |\ |\ |\
to the public
|\ |\ |\
