TEXAS State Insurance License Exam
Questions And Answers
/. 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? - Answer-
✅Consideration
/.Which of the following statements regarding HIV testing for insurance purposes is NOT
true? - Answer-✅Insurers are barred from requesting HIV testing.
/.All of the following are dividend options EXCEPT - Answer-✅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? - Answer-✅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? - Answer-✅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? - Answer-
✅It's Level Term Insurance
/.Which of the following policies would be classified as a traditional level premium
contract? - Answer-✅Straight Life
/.Which option is being utilized when the insurer accumulates dividends at interest and
then uses the accumulated dividends, plus interest, and the policy cash value to pay the
policy up early? - Answer-✅Paid Up Option
/.A couple owns a life insurance policy with a Children's Term rider. Their daughter is
reaching the maximum age of dependent coverage, so she will have to convert to
permanent insurance in the near future. Which of the following will she need to provide
for proof of insurability? - Answer-✅Proof Of Insurability is not required
/.When a whole life policy lapses or is surrendered prior to maturity, the cash value can
be used to - Answer-✅Purchase a single premium policy for a reduced face amount.
/.All of the following are examples of third-party ownership of a life insurance policy
EXCEPT - Answer-✅An insured borrows money from the bank and makes a collateral
assignment of a part of the death benefit to secure the loan.
Questions And Answers
/. 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? - Answer-
✅Consideration
/.Which of the following statements regarding HIV testing for insurance purposes is NOT
true? - Answer-✅Insurers are barred from requesting HIV testing.
/.All of the following are dividend options EXCEPT - Answer-✅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? - Answer-✅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? - Answer-✅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? - Answer-
✅It's Level Term Insurance
/.Which of the following policies would be classified as a traditional level premium
contract? - Answer-✅Straight Life
/.Which option is being utilized when the insurer accumulates dividends at interest and
then uses the accumulated dividends, plus interest, and the policy cash value to pay the
policy up early? - Answer-✅Paid Up Option
/.A couple owns a life insurance policy with a Children's Term rider. Their daughter is
reaching the maximum age of dependent coverage, so she will have to convert to
permanent insurance in the near future. Which of the following will she need to provide
for proof of insurability? - Answer-✅Proof Of Insurability is not required
/.When a whole life policy lapses or is surrendered prior to maturity, the cash value can
be used to - Answer-✅Purchase a single premium policy for a reduced face amount.
/.All of the following are examples of third-party ownership of a life insurance policy
EXCEPT - Answer-✅An insured borrows money from the bank and makes a collateral
assignment of a part of the death benefit to secure the loan.
