Texas Life Insurance exam
Questions and Answer well
revised
Insurance
(General concept) - correct answers-- transfers the risk of
loss from an individual to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
insurable interest
(General Concept) - correct answers-- must exist at the
time of the application
- insuring one's own life, family member, or a business
partner
Solicitation and sales presentation - correct answers--
illustration- presentation of nonguaranteed elements
- buyer's guide is generic information about life polices
which must be provided at the time of application
- policy summary is a description of features and benefits
of the policy being issued and must be provided when the
policy is delivered.
Underwriting (Field underwriting (by agent) - correct
answers-- application completed and signed
,- agent's report: agent's observation about the
application that can assist in underwriting
-premiums with application and conditional receipts
underwriting ( company underwriting) - correct answers--
multiple sources of information: applications, consumer
reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard,
substandard, preferred
Underwriting (Federal Regulation) - correct answers-- Fair
Credit Reporting Act: protect consumers against
circulations of inaccurate or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and
Suspicious Activity Reports Rules
Premium Determination - correct answers-- 3 key Factors
for life insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher
the premium
Policy Issue and Delivery - correct answers-Effective date
of coverage - if the premium is not paid with the
application, the agent must obtain the premium and a
statement of continued good health at the time of the
policy delivery
, Agent/ Producer - correct answers-a legal representative
of an insurance company; the classification of producers
usually includes agents and brokers' agents are the
agents of the insurer
Applicant of proposed insured - correct answers-a person
applying for insurance
Beneficiary - correct answers-a person who receives the
benefits of an insurance policy
Broker - correct answers-an insurance producer who is
not appointed by an insurance company and who
represents the client
Death benefits - correct answers-the amount paid upon
death of the insured in a life insurance policy
Estate - correct answers-a person's net worth
Insurance policy - correct answers-a contact between a
policyowner (and/or insured) and an insurance company
which agrees to pay insured or the beneficiary for loss
caused by specific events.
Questions and Answer well
revised
Insurance
(General concept) - correct answers-- transfers the risk of
loss from an individual to an insurer
- based on the principle of indemnity
- based on the principle of risk (risk pooling)
insurable interest
(General Concept) - correct answers-- must exist at the
time of the application
- insuring one's own life, family member, or a business
partner
Solicitation and sales presentation - correct answers--
illustration- presentation of nonguaranteed elements
- buyer's guide is generic information about life polices
which must be provided at the time of application
- policy summary is a description of features and benefits
of the policy being issued and must be provided when the
policy is delivered.
Underwriting (Field underwriting (by agent) - correct
answers-- application completed and signed
,- agent's report: agent's observation about the
application that can assist in underwriting
-premiums with application and conditional receipts
underwriting ( company underwriting) - correct answers--
multiple sources of information: applications, consumer
reports, MIB (Medical Information Burea)
- Risk Classification: 3 types of risk : standard,
substandard, preferred
Underwriting (Federal Regulation) - correct answers-- Fair
Credit Reporting Act: protect consumers against
circulations of inaccurate or obsolete information
- USE PATRIOT Act/ Anti-money Laundering and
Suspicious Activity Reports Rules
Premium Determination - correct answers-- 3 key Factors
for life insurance: mortality, interest, and expense
- Mode: the more frequently premium is paid, the higher
the premium
Policy Issue and Delivery - correct answers-Effective date
of coverage - if the premium is not paid with the
application, the agent must obtain the premium and a
statement of continued good health at the time of the
policy delivery
, Agent/ Producer - correct answers-a legal representative
of an insurance company; the classification of producers
usually includes agents and brokers' agents are the
agents of the insurer
Applicant of proposed insured - correct answers-a person
applying for insurance
Beneficiary - correct answers-a person who receives the
benefits of an insurance policy
Broker - correct answers-an insurance producer who is
not appointed by an insurance company and who
represents the client
Death benefits - correct answers-the amount paid upon
death of the insured in a life insurance policy
Estate - correct answers-a person's net worth
Insurance policy - correct answers-a contact between a
policyowner (and/or insured) and an insurance company
which agrees to pay insured or the beneficiary for loss
caused by specific events.
