TEXAS GENERAL LINES LIFE, ACCIDENT AND HEALTH
INSURANCE 2 LATEST VERSION ACTUAL EXAM WITH
COMPLETE 500 QUESTIONS AND CORRECT DETAILED
ANSWERS|ALREADY GRADED A+
LIFE SECTION 1 -
9) A life insurance policy that covers two parties, but only pays when the last party
dies is known as: - ✔✔✔ ANSWER-A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
10) Which of the following contracts requires that a series of benefit payments be
made at specified intervals? - ✔✔✔ ANSWER-A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
11) If a client wants cash value life insurance with a flexible premium and an
adjustable death benefit that will allow the policy owner a choice of various cash
value investment options, he should buy: - ✔✔✔ ANSWER-A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
12) If a person wants to invest a lump sum in an annuity that may appreciate along
with market and economic conditions, they should buy a: - ✔✔✔ ANSWER-A- Flexible
premium Annuity
B- Fixed Annuity
,C- Deferred Annuity
D- Variable Annuity
13) You have a client that is a real estate agent. Which of the following types of
permanent protection is best for this type of client? - ✔✔✔ ANSWER-A- Variable life
B- Universal life
C- Survivorship life
D- Adjustable life
14) In order to sell variable life insurance you must be registered with which of the
following? - ✔✔✔ ANSWER-A- The SEC
B- The State
C- The NYSE
D- The NASD
16) An insurance producer selling a Variable Annuity whose cash value depends on
the performance of an underlying investment account must be registered with: - ✔✔✔
ANSWER-A- The National Association of Insurance Commissioners
B- The National Association of Life Underwriters
C- The Chartered Life Underwriters
D- The Financial Industry Regulatory Authority (FINRA, formerly the NASD)
17) A business owner with a fluctuating income who wants a life insurance policy
that can be changed to suit economic conditions should buy: - ✔✔✔ ANSWER-A-
Variable Life
B- Modified Whole Life
C- Adjustable Life
D- Interest-sensitive Whole Life
18) An Annuity is designed to provide which of the following financial features?
,I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate - ✔✔✔ ANSWER-A- I, II, and III
B- I and II
C- I and III
D- II and III
19) Which of the following statements about a Renewable Term policy is true? - ✔✔✔
ANSWER-A- It is renewable at the option of the 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 insurability
D- It is renewable at the option of the insured, with proof of insurability
20) Most Term Life insurance: - ✔✔✔ ANSWER-A- Is convertible to permanent Whole
Life without a physical exam
B- Has a guaranteed cash value
C- Is renewable with evidence of insurability
D- Is renewable to age 100
15) Which of the following is an example of a Limited-Pay Life policy: - ✔✔✔ ANSWER-
A- Traditional Whole Life
B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
21) A life insurance policy whose cash value will fluctuate depending upon the
performance of a separate account is: - ✔✔✔ ANSWER-A- Limited-pay Life
B- Universal Life
, C- Ordinary Life
D- Variable Life
22) A life insurance policy that combines term insurance protection, a flexible
premium, and cash value accumulation is: - ✔✔✔ ANSWER-A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life
23) Which of the following types of insurance policies would provide the greatest
amount of protection for a temporary period during which an insured will have
limited financial resources? - ✔✔✔ ANSWER-A- Term
B- Limited Pay policy
C- Whole Life
D- Annuity
24) At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer
explains that he can pay for the policy in several ways. One method is called 20-Pay
Life, and another, Straight Life. Tom wishes to know which plan will accumulate
cash value at a faster rate in the early years of the policy. Which of the following
would be the producer's most appropriate response? - ✔✔✔ ANSWER-A- "20-Pay Life
will accumulate cash value faster."
B- "The rate of cash-value accumulation depends on the profitability of the insurance
company."
C- "Straight Life will accumulate cash value faster."
D- "Both plans will accumulate cash value at the same rate."
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to
cover a 20-year-amortized $50,000 business-improvement loan. Which of the
following plans would adequately protect Ms. Timms at the minimum premium
outlay? - ✔✔✔ ANSWER-A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
INSURANCE 2 LATEST VERSION ACTUAL EXAM WITH
COMPLETE 500 QUESTIONS AND CORRECT DETAILED
ANSWERS|ALREADY GRADED A+
LIFE SECTION 1 -
9) A life insurance policy that covers two parties, but only pays when the last party
dies is known as: - ✔✔✔ ANSWER-A- Joint Life
B- Contingent Life
C- Other insured Life
D- Survivorship Life
10) Which of the following contracts requires that a series of benefit payments be
made at specified intervals? - ✔✔✔ ANSWER-A- 20-Pay Life
B- Modified Whole Life
C- Annuity
D- Ordinary Whole Life
11) If a client wants cash value life insurance with a flexible premium and an
adjustable death benefit that will allow the policy owner a choice of various cash
value investment options, he should buy: - ✔✔✔ ANSWER-A- Variable Life
B- Universal Life
C- Adjustable Life
D- Variable/Universal Life
12) If a person wants to invest a lump sum in an annuity that may appreciate along
with market and economic conditions, they should buy a: - ✔✔✔ ANSWER-A- Flexible
premium Annuity
B- Fixed Annuity
,C- Deferred Annuity
D- Variable Annuity
13) You have a client that is a real estate agent. Which of the following types of
permanent protection is best for this type of client? - ✔✔✔ ANSWER-A- Variable life
B- Universal life
C- Survivorship life
D- Adjustable life
14) In order to sell variable life insurance you must be registered with which of the
following? - ✔✔✔ ANSWER-A- The SEC
B- The State
C- The NYSE
D- The NASD
16) An insurance producer selling a Variable Annuity whose cash value depends on
the performance of an underlying investment account must be registered with: - ✔✔✔
ANSWER-A- The National Association of Insurance Commissioners
B- The National Association of Life Underwriters
C- The Chartered Life Underwriters
D- The Financial Industry Regulatory Authority (FINRA, formerly the NASD)
17) A business owner with a fluctuating income who wants a life insurance policy
that can be changed to suit economic conditions should buy: - ✔✔✔ ANSWER-A-
Variable Life
B- Modified Whole Life
C- Adjustable Life
D- Interest-sensitive Whole Life
18) An Annuity is designed to provide which of the following financial features?
,I. The liquidation of principal and interest
II. Favorable tax treatment
III. The creation of an estate - ✔✔✔ ANSWER-A- I, II, and III
B- I and II
C- I and III
D- II and III
19) Which of the following statements about a Renewable Term policy is true? - ✔✔✔
ANSWER-A- It is renewable at the option of the 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 insurability
D- It is renewable at the option of the insured, with proof of insurability
20) Most Term Life insurance: - ✔✔✔ ANSWER-A- Is convertible to permanent Whole
Life without a physical exam
B- Has a guaranteed cash value
C- Is renewable with evidence of insurability
D- Is renewable to age 100
15) Which of the following is an example of a Limited-Pay Life policy: - ✔✔✔ ANSWER-
A- Traditional Whole Life
B- Endowment at 65
C- 10 year Renewable Term Life
D- 20-Pay Life
21) A life insurance policy whose cash value will fluctuate depending upon the
performance of a separate account is: - ✔✔✔ ANSWER-A- Limited-pay Life
B- Universal Life
, C- Ordinary Life
D- Variable Life
22) A life insurance policy that combines term insurance protection, a flexible
premium, and cash value accumulation is: - ✔✔✔ ANSWER-A- Increasing Term Life
B- Variable/Universal Life
C- Universal Life
D- Variable Life
23) Which of the following types of insurance policies would provide the greatest
amount of protection for a temporary period during which an insured will have
limited financial resources? - ✔✔✔ ANSWER-A- Term
B- Limited Pay policy
C- Whole Life
D- Annuity
24) At age 30, Tom Morris wishes to purchase a Whole Life policy. His producer
explains that he can pay for the policy in several ways. One method is called 20-Pay
Life, and another, Straight Life. Tom wishes to know which plan will accumulate
cash value at a faster rate in the early years of the policy. Which of the following
would be the producer's most appropriate response? - ✔✔✔ ANSWER-A- "20-Pay Life
will accumulate cash value faster."
B- "The rate of cash-value accumulation depends on the profitability of the insurance
company."
C- "Straight Life will accumulate cash value faster."
D- "Both plans will accumulate cash value at the same rate."
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to
cover a 20-year-amortized $50,000 business-improvement loan. Which of the
following plans would adequately protect Ms. Timms at the minimum premium
outlay? - ✔✔✔ ANSWER-A- $50,000 Whole Life policy
B- $50,000 Level Term policy for 20 years
