Texas Laws And Rules Pertinent To Insurance Exam
Newest 2025/2026 / Texas Laws And Rules
Pertinent To Insurance Practice Exam With
Complete Questions And 100%Correct Detailed
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Which of the following is NOT a required provision in
group life policies?
Incontestable
Conversion
Right to loan
Free look - ANSWER-Right to Loan
,Which of these statements describe a Modified
Endowment Contract (MEC)?
A. The 7-pay test is used to determine the minimum death
benefit of the policy
B. The 7-pay test is used to determine the maximum death
benefit of the policy
C. Falls below the minimum amount of premium that can
be paid into a policy and still have it recognized as a life
insurance contract
D. Exceeds the maximum amount of premium that can be
paid into a policy and still have it recognized as a life
insurance contract - ANSWER-D. Exceeds the maximum
amount of premium that can be paid into a policy and still
have it recognized as a life insurance contract
,When an individual is planning to protect his family with
life insurance, one method of doing so is called needs
analysis. What exactly does needs analysis involve?
A. Establishes the investment risk level acceptable to the
individual
B. Places a dollar value on the life of the individual
C. Takes into account the present value of future income
earned by the breadwinner
D. Establishes the needs of the individual and his
dependents - ANSWER-Establishes the needs of the
individual and his dependents
, Which of these is NOT a reason for purchasing life
insurance on the life of a minor?
A. Provides living benefits for the child's college education
B. Provides child with insurance now, in case the child
becomes uninsurable later
C. Provides funds for final expenses if the child were to die
D. If both parents were to die, it would provide death
benefits to the child - ANSWER-If both parents were to
die, it would provide death benefits to the child
A policy loan is made possible by which of these life
insurance policy features?
A. Consideration clause
B. Cash value provision
Newest 2025/2026 / Texas Laws And Rules
Pertinent To Insurance Practice Exam With
Complete Questions And 100%Correct Detailed
Answers |Already
Graded A+|Newest Versions!!
Which of the following is NOT a required provision in
group life policies?
Incontestable
Conversion
Right to loan
Free look - ANSWER-Right to Loan
,Which of these statements describe a Modified
Endowment Contract (MEC)?
A. The 7-pay test is used to determine the minimum death
benefit of the policy
B. The 7-pay test is used to determine the maximum death
benefit of the policy
C. Falls below the minimum amount of premium that can
be paid into a policy and still have it recognized as a life
insurance contract
D. Exceeds the maximum amount of premium that can be
paid into a policy and still have it recognized as a life
insurance contract - ANSWER-D. Exceeds the maximum
amount of premium that can be paid into a policy and still
have it recognized as a life insurance contract
,When an individual is planning to protect his family with
life insurance, one method of doing so is called needs
analysis. What exactly does needs analysis involve?
A. Establishes the investment risk level acceptable to the
individual
B. Places a dollar value on the life of the individual
C. Takes into account the present value of future income
earned by the breadwinner
D. Establishes the needs of the individual and his
dependents - ANSWER-Establishes the needs of the
individual and his dependents
, Which of these is NOT a reason for purchasing life
insurance on the life of a minor?
A. Provides living benefits for the child's college education
B. Provides child with insurance now, in case the child
becomes uninsurable later
C. Provides funds for final expenses if the child were to die
D. If both parents were to die, it would provide death
benefits to the child - ANSWER-If both parents were to
die, it would provide death benefits to the child
A policy loan is made possible by which of these life
insurance policy features?
A. Consideration clause
B. Cash value provision
