Texas Life Insurance exam
1. Who is considered a field underwriter?: An agent
2. When must insurable interest exist in life insurance?: Application or issue
date
3. If no receipt is issued at the time of application, a statement of good health
is usually required at the time of?: Policy delivery
4. The Medical Information Bureau is?(MIB): a source of medical information to
alert insurers to adverse medical history
5. A substandard risk compared to a standard risk would pay?: a higher premi-
um
6. Which document describes specific information about policy provisions
and benefits?: Policy summary
7. Does not have an insurable interest?: Insured's best friend
8. What is the main source of underwriting information used by the company
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,in the risk selection process?: Application
9. An insured submits the full premium along with a completed application,
and the policy is issued 10 days later. When does the coverage begin?: On the
date of application
10. What is the main responsibility of a company's underwriting unit?: Risk
selection and classification
11. What best describes the USA PATRIOT Act with regards to the insurance
industry?: To prevent terrorism activities through monitoring of financial transac-
tions
12. If the agent feels that could misrepresentation on the part of the applicant
for insurance, what must the agent do?: Inform the insurance comapny
13. Representations are statements made by the applicant that are?: Consid-
ered true to the best of the applicant's knowledge
14. If an agent fails to obtain an applicants signature on the insurance appli-
cation, the agent must?: Return the application to the applicant for signature
15. What includes information regarding a person's credit, character, reputa-
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, tion, and habits?: Consumer report
16. When the insured purchased a new home, he wanted to purchase a life
insurance policy that would protect his family against losing it should he die
before the mortgage was paid. Which of the following policies is best suitable
for that need?: Decreasing term
17. An annually renewable term policy?: Renews each year with an increased
premium
18. The time period during which an annuitant contributes to annuity is
called?: The accumulation period
19. An example of limited-pay life policy?: Life paid-up at the age 65
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1. Who is considered a field underwriter?: An agent
2. When must insurable interest exist in life insurance?: Application or issue
date
3. If no receipt is issued at the time of application, a statement of good health
is usually required at the time of?: Policy delivery
4. The Medical Information Bureau is?(MIB): a source of medical information to
alert insurers to adverse medical history
5. A substandard risk compared to a standard risk would pay?: a higher premi-
um
6. Which document describes specific information about policy provisions
and benefits?: Policy summary
7. Does not have an insurable interest?: Insured's best friend
8. What is the main source of underwriting information used by the company
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,in the risk selection process?: Application
9. An insured submits the full premium along with a completed application,
and the policy is issued 10 days later. When does the coverage begin?: On the
date of application
10. What is the main responsibility of a company's underwriting unit?: Risk
selection and classification
11. What best describes the USA PATRIOT Act with regards to the insurance
industry?: To prevent terrorism activities through monitoring of financial transac-
tions
12. If the agent feels that could misrepresentation on the part of the applicant
for insurance, what must the agent do?: Inform the insurance comapny
13. Representations are statements made by the applicant that are?: Consid-
ered true to the best of the applicant's knowledge
14. If an agent fails to obtain an applicants signature on the insurance appli-
cation, the agent must?: Return the application to the applicant for signature
15. What includes information regarding a person's credit, character, reputa-
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, tion, and habits?: Consumer report
16. When the insured purchased a new home, he wanted to purchase a life
insurance policy that would protect his family against losing it should he die
before the mortgage was paid. Which of the following policies is best suitable
for that need?: Decreasing term
17. An annually renewable term policy?: Renews each year with an increased
premium
18. The time period during which an annuitant contributes to annuity is
called?: The accumulation period
19. An example of limited-pay life policy?: Life paid-up at the age 65
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