Texas General Lines - Life, accident and health insurance PRACTICE EXA
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1. LIFE SECTION 1 LIFE SECTION 1
2. 1) Sandra Timms, age 27, is advised by her A- $50,000 Whole Life policy
producer to purchase Life insurance to cov- B- $50,000 Level Term policy for 20
er a 20-year-amortized $50,000 business-im- years
provement loan. Which of the following plans C- $50,000 20 Pay Life policy
would adequately protect Ms. Timms at the D- $50,000 Decreasing Term policy for
minimum premium outlay? 20 years
3. 2) A 45-year old customer who is seeking to A- Deferred Annuity
supplement his retirement income at age 65 B- Equity Indexed Annuity
would not buy a: C- Variable Annuity
D- Immediate Annuity
4. 3) John Livingston owns a 30-Pay Life policy A- 60
that he purchased at the age of 30. The cash B- 70
value will equal the face amount of the policy C- 100
when he reaches the age of: D- 30
5. 4) Which of the following is an example of a A- Universal life
Limited-Pay Life policy? B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
6. 5) Which of the following policies provides the A- Annuity
greatest amount of protection for an insured's B- Whole Life
premium dollar as well as some cash accumu- C- Term
lation? D- Limited-Pay Life
7. 6) Which of the following individual policy con- A- Conversion to a lower-premium
versions is usually permitted without any evi- plan
dence of insurability? B- Conversion from a Whole Life policy
to a Term policy
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
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C- Conversion from a Term policy to a
Whole Life policy
D- Conversion to a larger amount of
insurance
8. 7) Which of the following is NOT correct re- A- The premiums payments are owed
garding Ordinary Whole Life policies? annually until you die or reach age
100
B- The cash value grows more quickly
in the beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of
permanent insurance
9. 8) Which of the following statements is true A- Premiums are payable for a desig-
about the premium payment schedule for a nated period of time only, after which
Whole Life policy? coverage is no longer provided
B- Premiums are payable until the in-
sured's retirement only, after which
coverage is continued automatically
until the insured's death
C- One premium, in the amount of the
insured's choice, is payable at the time
of application, and the balance of the
premiums is deducted from the face
amount of the policy at the time of the
insured's death
D- Premiums are payable throughout
the insured's lifetime, and coverage
continues until the insured's death
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
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10. 9) A life insurance policy that covers two par- A- Joint Life
ties, but only pays when the last party dies is B- Contingent Life
known as: C- Other insured Life
D- Survivorship Life
11. 10) Which of the following contracts requires A- 20-Pay Life
that a series of benefit payments be made at B- Modified Whole Life
specified intervals? C- Annuity
D- Ordinary Whole Life
12. 11) If a client wants cash value life insurance A- Variable Life
with a flexible premium and an adjustable B- Universal Life
death benefit that will allow the policy owner C- Adjustable Life
a choice of various cash value investment op- D- Variable/Universal Life
tions, he should buy:
13. 12) If a person wants to invest a lump sum A- Flexible premium Annuity
in an annuity that may appreciate along with B- Fixed Annuity
market and economic conditions, they should C- Deferred Annuity
buy a: D- Variable Annuity
14. 13) You have a client that is a real estate agent. A- Variable life
Which of the following types of permanent B- Universal life
protection is best for this type of client? C- Survivorship life
D- Adjustable life
15. 14) In order to sell variable life insurance you A- The SEC
must be registered with which of the follow- B- The State
ing? C- The NYSE
D- The NASD
16.
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
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15) Which of the following is an example of a A- Traditional Whole Life
Limited-Pay Life policy: B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
17. 16) An insurance producer selling a Variable A- The National Association of Insur-
Annuity whose cash value depends on the ance Commissioners
performance of an underlying investment ac- B- The National Association of Life Un-
count must be registered with: derwriters
C- The Chartered Life Underwriters
D- The Financial Industry Regulatory
Authority (FINRA, formerly the NASD)
18. 17) A business owner with a fluctuating in- A- Variable Life
come who wants a life insurance policy that B- Modified Whole Life
can be changed to suit economic conditions C- Adjustable Life
should buy: D- Interest-sensitive Whole Life
19. 18) An Annuity is designed to provide which of A- I, II, and III
the following financial features? B- I and II
C- I and III
I. The liquidation of principal and interest D- II and III
II. Favorable tax treatment
III. The creation of an estate
20. 19) Which of the following statements about a A- It is renewable at the option of the
Renewable Term policy is true? insurance company
B- It is renewable at the option of the
insured
C- It is renewable at the option of the
insurance company, with proof of in-
surability
Study online at https://quizlet.com/_2sekxk
1. LIFE SECTION 1 LIFE SECTION 1
2. 1) Sandra Timms, age 27, is advised by her A- $50,000 Whole Life policy
producer to purchase Life insurance to cov- B- $50,000 Level Term policy for 20
er a 20-year-amortized $50,000 business-im- years
provement loan. Which of the following plans C- $50,000 20 Pay Life policy
would adequately protect Ms. Timms at the D- $50,000 Decreasing Term policy for
minimum premium outlay? 20 years
3. 2) A 45-year old customer who is seeking to A- Deferred Annuity
supplement his retirement income at age 65 B- Equity Indexed Annuity
would not buy a: C- Variable Annuity
D- Immediate Annuity
4. 3) John Livingston owns a 30-Pay Life policy A- 60
that he purchased at the age of 30. The cash B- 70
value will equal the face amount of the policy C- 100
when he reaches the age of: D- 30
5. 4) Which of the following is an example of a A- Universal life
Limited-Pay Life policy? B- Whole Life
C- Life Paid-Up at Age 65
D- Renewable Term to Age 70
6. 5) Which of the following policies provides the A- Annuity
greatest amount of protection for an insured's B- Whole Life
premium dollar as well as some cash accumu- C- Term
lation? D- Limited-Pay Life
7. 6) Which of the following individual policy con- A- Conversion to a lower-premium
versions is usually permitted without any evi- plan
dence of insurability? B- Conversion from a Whole Life policy
to a Term policy
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_2sekxk
C- Conversion from a Term policy to a
Whole Life policy
D- Conversion to a larger amount of
insurance
8. 7) Which of the following is NOT correct re- A- The premiums payments are owed
garding Ordinary Whole Life policies? annually until you die or reach age
100
B- The cash value grows more quickly
in the beginning years of the policy
C- Coverage lasts for your own life
D- Ordinary Whole Life is a type of
permanent insurance
9. 8) Which of the following statements is true A- Premiums are payable for a desig-
about the premium payment schedule for a nated period of time only, after which
Whole Life policy? coverage is no longer provided
B- Premiums are payable until the in-
sured's retirement only, after which
coverage is continued automatically
until the insured's death
C- One premium, in the amount of the
insured's choice, is payable at the time
of application, and the balance of the
premiums is deducted from the face
amount of the policy at the time of the
insured's death
D- Premiums are payable throughout
the insured's lifetime, and coverage
continues until the insured's death
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_2sekxk
10. 9) A life insurance policy that covers two par- A- Joint Life
ties, but only pays when the last party dies is B- Contingent Life
known as: C- Other insured Life
D- Survivorship Life
11. 10) Which of the following contracts requires A- 20-Pay Life
that a series of benefit payments be made at B- Modified Whole Life
specified intervals? C- Annuity
D- Ordinary Whole Life
12. 11) If a client wants cash value life insurance A- Variable Life
with a flexible premium and an adjustable B- Universal Life
death benefit that will allow the policy owner C- Adjustable Life
a choice of various cash value investment op- D- Variable/Universal Life
tions, he should buy:
13. 12) If a person wants to invest a lump sum A- Flexible premium Annuity
in an annuity that may appreciate along with B- Fixed Annuity
market and economic conditions, they should C- Deferred Annuity
buy a: D- Variable Annuity
14. 13) You have a client that is a real estate agent. A- Variable life
Which of the following types of permanent B- Universal life
protection is best for this type of client? C- Survivorship life
D- Adjustable life
15. 14) In order to sell variable life insurance you A- The SEC
must be registered with which of the follow- B- The State
ing? C- The NYSE
D- The NASD
16.
, Texas General Lines - Life, accident and health insurance PRACTICE EXA
Study online at https://quizlet.com/_2sekxk
15) Which of the following is an example of a A- Traditional Whole Life
Limited-Pay Life policy: B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
17. 16) An insurance producer selling a Variable A- The National Association of Insur-
Annuity whose cash value depends on the ance Commissioners
performance of an underlying investment ac- B- The National Association of Life Un-
count must be registered with: derwriters
C- The Chartered Life Underwriters
D- The Financial Industry Regulatory
Authority (FINRA, formerly the NASD)
18. 17) A business owner with a fluctuating in- A- Variable Life
come who wants a life insurance policy that B- Modified Whole Life
can be changed to suit economic conditions C- Adjustable Life
should buy: D- Interest-sensitive Whole Life
19. 18) An Annuity is designed to provide which of A- I, II, and III
the following financial features? B- I and II
C- I and III
I. The liquidation of principal and interest D- II and III
II. Favorable tax treatment
III. The creation of an estate
20. 19) Which of the following statements about a A- It is renewable at the option of the
Renewable Term policy is true? insurance company
B- It is renewable at the option of the
insured
C- It is renewable at the option of the
insurance company, with proof of in-
surability
