1|Page
TEXAS INSURANCE LICENSE EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) LATEST 2025/2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
||BRANDNEW!!!||
K applies for a life insurance policy on herself and submits the
initial premium with the application. She is given a receipt by the
agent stating that coverage begins immediately if the application
is approved. What kind of receipt was used? - ANSWER-
Conditional
Q applied for life insurance and submitted the initial premium on
January 1. The policy was issued February 1, but it was not
delivered by the agent until February 7. Q is dissatisfied and
returns the policy February 13. How will the insurer handle this
situation? - ANSWER-Policy was returned within the free-look
period, premium will be fully refunded
The reason for backdating a policy is - ANSWER-to obtain a
premium rate based on an earlier age
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When an insurance application is taken by a producer, which of
these statements is true? - ANSWER-Any changes made on the
application require the applicant's intitials
When does a life insurance contract become effective if the initial
premium is not collected during the application process? -
ANSWER-When producer delivers policy and collects initial
premium
Consumer reports requested by an underwriter during the
application process of a life insurance policy can be used to
determine: - ANSWER-probability of making timely premium
payments
Which of these do NOT constitute policy delivery? - ANSWER-
Policy issued with a rating
A statement made by an insured in an insurance application that
must be true to the best of one's knowledge and which becomes
a part of the contract is known as: - ANSWER-a representation
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The underwriting process involves all of these, EXCEPT for: -
ANSWER-Policy loan
P has recently signed an application for insurance. The insurer
MUST advise her in writing that an investigate consumer report
may be conducted according to the - ANSWER-Fair Credit
Reporting Act
What is the initial source of underwriting for an insurance policy? -
ANSWER-Application containing statements from the insured
An agent gives a conditional receipt to a client for an insurance
policy after collecting the initial premium. When will the policy
become effective? - ANSWER-When the conditions of the receipt
are met
Information obtained from a phone conversation to the proposed
insured can be found in which of these reports? - ANSWER-
Inspection Report
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ABC Insurance Company has accepted a life insurance
application which contains unanswered questions. The company
then makes the application part of the life contract. In this
situation, the insurer has: - ANSWER-waived one of its legal
rights
An underwriter determines that a life insurance applicant's risk
should be reclassified due to a health issue. This policy may be
issued with a(n): - ANSWER-Extra premium
Which of these terms accurately defines an underwriter's
assessment of information on a life insurance application? -
ANSWER-Risk Classification
T is given a receipt after completing a life insurance application
and paying the initial premium. Under this situation, T's coverage
is - ANSWER-conditional, depending on the insurer's underwriting
guidelines
What is the purpose of the USA Patriot Act? - ANSWER-detect
and deter terrorism
TEXAS INSURANCE LICENSE EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) LATEST 2025/2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
||BRANDNEW!!!||
K applies for a life insurance policy on herself and submits the
initial premium with the application. She is given a receipt by the
agent stating that coverage begins immediately if the application
is approved. What kind of receipt was used? - ANSWER-
Conditional
Q applied for life insurance and submitted the initial premium on
January 1. The policy was issued February 1, but it was not
delivered by the agent until February 7. Q is dissatisfied and
returns the policy February 13. How will the insurer handle this
situation? - ANSWER-Policy was returned within the free-look
period, premium will be fully refunded
The reason for backdating a policy is - ANSWER-to obtain a
premium rate based on an earlier age
,2|Page
When an insurance application is taken by a producer, which of
these statements is true? - ANSWER-Any changes made on the
application require the applicant's intitials
When does a life insurance contract become effective if the initial
premium is not collected during the application process? -
ANSWER-When producer delivers policy and collects initial
premium
Consumer reports requested by an underwriter during the
application process of a life insurance policy can be used to
determine: - ANSWER-probability of making timely premium
payments
Which of these do NOT constitute policy delivery? - ANSWER-
Policy issued with a rating
A statement made by an insured in an insurance application that
must be true to the best of one's knowledge and which becomes
a part of the contract is known as: - ANSWER-a representation
,3|Page
The underwriting process involves all of these, EXCEPT for: -
ANSWER-Policy loan
P has recently signed an application for insurance. The insurer
MUST advise her in writing that an investigate consumer report
may be conducted according to the - ANSWER-Fair Credit
Reporting Act
What is the initial source of underwriting for an insurance policy? -
ANSWER-Application containing statements from the insured
An agent gives a conditional receipt to a client for an insurance
policy after collecting the initial premium. When will the policy
become effective? - ANSWER-When the conditions of the receipt
are met
Information obtained from a phone conversation to the proposed
insured can be found in which of these reports? - ANSWER-
Inspection Report
, 4|Page
ABC Insurance Company has accepted a life insurance
application which contains unanswered questions. The company
then makes the application part of the life contract. In this
situation, the insurer has: - ANSWER-waived one of its legal
rights
An underwriter determines that a life insurance applicant's risk
should be reclassified due to a health issue. This policy may be
issued with a(n): - ANSWER-Extra premium
Which of these terms accurately defines an underwriter's
assessment of information on a life insurance application? -
ANSWER-Risk Classification
T is given a receipt after completing a life insurance application
and paying the initial premium. Under this situation, T's coverage
is - ANSWER-conditional, depending on the insurer's underwriting
guidelines
What is the purpose of the USA Patriot Act? - ANSWER-detect
and deter terrorism
