Texas Funeral Prearrangement Test 2025 with Recently Tested Exam Questions and
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The people at the insurance company who determine the risk and accept or reject the risk are called -
(answer)Underwriters
A ______ risk is one where the proposed insured exceeds the basic standards so the company may offer
more coverage or a lesser premium for the coverage applied for to the applicant. - (answer)Preferred
The amount the insurer needs to cover the risk it has assumed is called the: Mortality charge, Reserve,
Standard risk, Liability account - (answer)Mortality Charge
When the applicant has more to gain by the insured's continued life, the applicant has an ___ in the
insured. - (answer)Insurable Interest
The policy owner cannot change the beneficiary to another person or entity without the beneficiary's
prior consent when the beneficiary is listed as: The primary beneficiary, The contingent beneficiary, The
irrevocable beneficiary, The default beneficiary - (answer)The irrevocable beneficiary
___ is when the effective date of the policy is set at an earlier date than when the application is
completed in order to save age. - (answer)Backdating
The payment method that allows the premium payer to authorize the premium payer's bank to
automatically pay the insurance policy's premiums from the premium payer's account without
generating a paper check is: Direct bil, Pre-Authorized Checking (PAC), Electronic Funds Transfer (EFT),
Money order - (answer)Pre-Authorized Checking (PAC)
If premiums are not made to keep the insurance policy in force, the policy is said to ____. -
(answer)Lapse
An insurance contract is a ___ contract. - (answer)Unilateral
The provision that provides that the policy owner has a certain period of time to examine the policy is
the: Grace period, Facility of payment, Insuring clause, Free look - (answer)Free Look
, Texas Funeral Prearrangement Test 2025 with Recently Tested Exam Questions and
Correct Verified Answers/ TX Funeral Prearrangement Exam Prep (Brand New!)
The entire contract provision lists all of the documents that make up the insurance policy. These
documents include: The insurance policy, The application for the insurance policy, Riders attached to the
policy, All of the above - (answer)All of the above
The incontestability clause provides that after a certain period of time, the insurance company cannot
contest the policy's validity for any reason. What is the period of time?: 90 days, 2 years, 45 days, 4
years - (answer)2 years
The rider that provides that the company will waive the payment of premiums should the premium
payer become totally disabled and will continue the waiver of premium during the time of the total
disablement is called:Double indemnity rider, Waiver of premium benefit rider, Accidental death benefit
rider, Guaranteed insurability option rider - (answer)Waiver of premium benefit rider
The _____ loan provision provides that the cash value of the policy can automatically be used to pay
overdue policy premiums. - (answer)Automatic Premium
When a premium payer has stopped making scheduled premium payments and the policy goes into
reduced paid-up insurance (RPU), the cash value of the policy is used to purchase a single premium
whole life insurance policy for a ____ amount of coverage with no further payments due. Greater,
Lesser, or Equal - (answer)Lesser
If the insurance company is a mutual company, the profits credited to a policy are called ____. -
(answer)Dividends
When the insured dies, the beneficiary of the policy usually receives the policy proceeds in a single ____
payment. Dividend, Lump sum, Annuity - (answer)Lump Sum
An agent who holds a Funeral Prearrangement Life Insurance License may not write any coverage or
combination of coverages with an initial guaranteed death benefit that exceeds ____. - (answer)$15,000
Correct Verified Answers/ TX Funeral Prearrangement Exam Prep (Brand New!)
The people at the insurance company who determine the risk and accept or reject the risk are called -
(answer)Underwriters
A ______ risk is one where the proposed insured exceeds the basic standards so the company may offer
more coverage or a lesser premium for the coverage applied for to the applicant. - (answer)Preferred
The amount the insurer needs to cover the risk it has assumed is called the: Mortality charge, Reserve,
Standard risk, Liability account - (answer)Mortality Charge
When the applicant has more to gain by the insured's continued life, the applicant has an ___ in the
insured. - (answer)Insurable Interest
The policy owner cannot change the beneficiary to another person or entity without the beneficiary's
prior consent when the beneficiary is listed as: The primary beneficiary, The contingent beneficiary, The
irrevocable beneficiary, The default beneficiary - (answer)The irrevocable beneficiary
___ is when the effective date of the policy is set at an earlier date than when the application is
completed in order to save age. - (answer)Backdating
The payment method that allows the premium payer to authorize the premium payer's bank to
automatically pay the insurance policy's premiums from the premium payer's account without
generating a paper check is: Direct bil, Pre-Authorized Checking (PAC), Electronic Funds Transfer (EFT),
Money order - (answer)Pre-Authorized Checking (PAC)
If premiums are not made to keep the insurance policy in force, the policy is said to ____. -
(answer)Lapse
An insurance contract is a ___ contract. - (answer)Unilateral
The provision that provides that the policy owner has a certain period of time to examine the policy is
the: Grace period, Facility of payment, Insuring clause, Free look - (answer)Free Look
, Texas Funeral Prearrangement Test 2025 with Recently Tested Exam Questions and
Correct Verified Answers/ TX Funeral Prearrangement Exam Prep (Brand New!)
The entire contract provision lists all of the documents that make up the insurance policy. These
documents include: The insurance policy, The application for the insurance policy, Riders attached to the
policy, All of the above - (answer)All of the above
The incontestability clause provides that after a certain period of time, the insurance company cannot
contest the policy's validity for any reason. What is the period of time?: 90 days, 2 years, 45 days, 4
years - (answer)2 years
The rider that provides that the company will waive the payment of premiums should the premium
payer become totally disabled and will continue the waiver of premium during the time of the total
disablement is called:Double indemnity rider, Waiver of premium benefit rider, Accidental death benefit
rider, Guaranteed insurability option rider - (answer)Waiver of premium benefit rider
The _____ loan provision provides that the cash value of the policy can automatically be used to pay
overdue policy premiums. - (answer)Automatic Premium
When a premium payer has stopped making scheduled premium payments and the policy goes into
reduced paid-up insurance (RPU), the cash value of the policy is used to purchase a single premium
whole life insurance policy for a ____ amount of coverage with no further payments due. Greater,
Lesser, or Equal - (answer)Lesser
If the insurance company is a mutual company, the profits credited to a policy are called ____. -
(answer)Dividends
When the insured dies, the beneficiary of the policy usually receives the policy proceeds in a single ____
payment. Dividend, Lump sum, Annuity - (answer)Lump Sum
An agent who holds a Funeral Prearrangement Life Insurance License may not write any coverage or
combination of coverages with an initial guaranteed death benefit that exceeds ____. - (answer)$15,000
