Life Insurance Missed Questions

What is the main purpose of the Seven-pay Test?

If an insured withdraws a portion of the face amount in the form of accelerated benefits because of a terminal illness, how will that affect the payable death benefit from the policy?

What is the benefit of choosing extended term as a nonforfeiture option?

An insured committed suicide one year after his life insurance policy was issued. The insurer will

All of the following are TRUE of the federal tax advantages of a qualified plan EXCEPT

An insured purchased a Life Insurance policy. The agent told him that depending upon the company's investments and expense factors, the cash values could change from those shown in the policy at issue time. The policy is a/an

Which of the following settlement options in life insurance is known as straight life?

What is the number of credits required for fully insured status for Social Security disability benefits?

Which policy component decreases in decreasing term insurance?

Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or become disabled?

Social Security was created to provide all of the following benefits EXCEPT

The life insurance policy clause that prevents an insurance company from denying payment of a death claim after a specified period of time is known as the

When the insured selects the extended term nonforfeiture option, the cash value will be used to purchase term insurance with what face amount?

Which of the following is the required number of participants in a contributory group plan?

Which of the following is NOT true regarding a Variable Universal Life policy?

The insured had his wife named as the beneficiary of his life insurance policy. To ensure that his wife had income for life after the insured's death, he chose the life income settlement option. The amount of payments will be determined by taking into account all of the following EXCEPT

Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?

What is the advantage of reinstating a policy instead of applying for a new one?

An agent selling variable annuities must be registered with

A Return of Premium term life policy is written as what type of term coverage?

Which of the following determines the length of time that benefits will be received under the Fixed-Amount settlement option?

Who is the owner and who is the beneficiary on a Key Person Life Insurance policy?

Which of the following is true about the premium on the children's rider in a life insurance policy?

An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?

if a life insurance policy has an irrevocable beneficiary designation,

Which of the following products requires a securities license?

Your client wants both protection and savings from the insurance, and is willing to pay premiums until retirement at age 65. What would be the right policy for this client?

Under which of the following circumstances would an insurer pay accelerated benefits?

In a direct rollover, how is the money transferred from one plan to the new one?

A rider attached to a life insurance policy that provides coverage on the insured's family members is called the

When would a 20-pay whole life policy endow?

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)

A domestic insurer issuing variable contracts must establish one or more

If an insured continually uses the automatic premium loan option to pay the policy premium,

Under an extended term nonforfeiture option, the policy cash value is converted to

Which of the following statements about a suicide clause in a life insurance policy is TRUE?

Which rider, when attached to a permanent life insurance policy, provides an amount of insurance on every family member?

All of the following statements about the continuing education requirement in this state are true EXCEPT

When an individual obtains an insurance license for the primary purpose of writing insurance on him- or herself, or for members of his or her immediate family, or business, this is called

If a licensed agent in Texas receives a criminal conviction, that information must be reported to

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

Which of the following actions is NOT in violation of the Unfair Claims Settlement Practices Act?

Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting?

An insurer advertises a health policy that is covered by the Life and Health Insurance Guaranty Association. The advertisement includes a short list of benefits and approximate rates. The end of the advertisement includes statement that protection is provided by the Guaranty Association. Which of the following is true?

A participating insurance policy may do which of the following?

Viatical settlements may be rescinding within what time period after the viator receives the proceeds?

Within how many years must an agent renew an insurance license?

To become a Texas insurance agent, an individual must

Circulating deceptive sales material to the public is what type of Unfair Trade Practice?

The term "illustration" in a life insurance policy refers to

An agent holds an insurance license in the state of Kansas and would like to transact insurance in Texas. The agent became licensed before written examinations were required. Therefore, the agent has not actually passed any kind of examination. Which of the following is true?

An applicant properly notifies her insurer of a straightforward claim, but the insurer waits an exceedingly long time to process it. Which of the below terms best describes the behavior of the insurer?

The Commissioner of Insurance issues a Cease and Desist Order to an agent. If the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?

During replacement of life insurance, a replacing insurer must do which of the following?

Which of the following is NOT required on an illustration used in the sale of a life insurance policy?

An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied?

All of the following are dividend options except

An insurance policy that only requires a payment of premium at its inception

The minimum interest rate on an equity indexed annuity is often based on

Under which nonforfeiture option does the company pay the surrender value and have no further obligations to the policyowner?

Which of the following is not the consideration in a policy

WOF products requires a securities license

The ownership provision entitles the policyowner to do all of the following except

All of the following are true about variable products except

Who bears all of the investment risk in a fixed annuity?

Which of the following is NOT the consideration in a policy?

Which of the following is an eligibility requirement for all Social Security Disability Income benefits?

Who can make a fully deductible contribution to a traditional IRA?

A father owns a life insurance policy on his 15-year-old daughter. The policy contains the optional Payor Benefit rider. If the father becomes disabled, what will happen to the life insurance premiums?

The Ownership provision entitles the policyowner to do all of the following EXCEPT

All of the following are true about variable products EXCEPT

An insured will be allowed to reactivate her lapsed life insurance policy if action is taken within a certain period of time, and proof of insurability is provided. Which policy provision allows this?

An employee quits his job on May 15 and doesn't convert his Group Life policy to an individual policy for 2 weeks. He dies in a freak accident on June 1. Which of the following statements best describes what will happen?

An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?

Which of the following information will be stated in the consideration clause of a life insurance policy?

In a case where the primary beneficiary predeceases the insured, in the event of the insured's death, the death benefit proceeds will be paid to

An insured purchased a life policy in 2010 and died in 2017. The insurance company discovers at that time that the insured had concealed information during the application process. What can they do?

As a field underwriter, a producer is responsible for all of the following tasks EXCEPT

An individual is purchasing a permanent life insurance policy with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Which is true about a spouse term rider?

Another name for a substandard risk classification is

An individual wants to purchase a life insurance policy. His agent asks if the transaction will involve replacing any existing life insurance policies. If the customer replies, "Yes," which of the following best describes the agent's next step?

Which of the following is NOT true regarding a Certificate of Authority?

If a policyowner surrenders his life insurance policy that has been in force for 5 years within 60 days after the premium due date, what will the insurer be required to pay?

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Which of the following is TRUE for both equity indexed annuities and fixed annuities?

Which option is being utilized when the insurer accumulates dividends at interest and then uses the accumulated dividends, plus interest, and the policy cash value to pay the policy up early?

An employer has sponsored a qualified retirement plan for its employees where the employer will contribute money whenever a profit is realized. What is this called?`

Which of the following information about the applicant is NOT included in the General Information section of the application for insurance?

In order to qualify for conversion from a group life policy that has been terminated to an individual policy of the same coverage, a person must have been insured under the group plan for how many years?

If a life policy allows the policyowner to make periodic additions to the face amount at standard rates, without proving insurability, the policy includes a

What percentage of a company's employees must take part in a noncontributory group life plan?

The paid-up addition option uses the dividend

All of the following entities regulate variable life policies EXCEPT

Which of the following determines the cash value of a variable life policy?

All of the following benefits are available under Social Security EXCEPT

Which of the following statements is TRUE about a policy assignment?

The rider in a whole life policy that allows the company to forgo collecting the premium if the insured is disabled is called

What happens when a policy is surrendered for its cash value?

A life insurance policy has a legal purpose if both of which of the following elements exist?

Which of the following is TRUE regarding variable annuities?

If an immediate annuity is purchased with the face amount at death or with the cash value at surrender, this would be considered a

The type of policy that can be changed from one that does not accumulate cash value to the one that does is a

All of the following statements are true regarding tax-qualified annuities EXCEPT

All of the following are true regarding a decreasing term policy EXCEPT

Which of the following protects the insured from an unintentional policy lapse due to a nonpayment of premium?

What is the term for how frequently a policyowner is required to pay the policy premium?

If an agent fails to obtain an applicant's signature on the application, the agent must

An insured has a life insurance policy from a participating company and receives quarterly dividends. He has instructed the company to apply the policy dividends to increase the death benefit. The dividend option that the insured has chosen is called

On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of

The initial amount of credit life insurance may NOT exceed

Which of the following best describes a misrepresentation?

Is it illegal for an insurance company to advertise that it is the leader of the financial industry and therefore pays the most claims each year?

No one whose license has been revoked can receive another license in Texas for

All of the following would be considered an insurance transaction EXCEPT

Which members of a corporation or partnership are required to obtain an individual insurance agent's license in order for the association to be licensed?

Which of the following is TRUE about credit life insurance?

An individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT

All of the following information must be disclosed to the viator prior to the execution of a viatical settlement contract EXCEPT

How long must producer maintain records of continuing education course completion?

The Commissioner of Insurance issues a Cease and Desist Order and immediately receives a request for the charges to be reviewed in a hearing. Within what number of days must the hearing be held?

All of the following are requirements for life insurance illustrations EXCEPT

What is the clause that describes the method of paying the death benefit in the event that the insured and beneficiary are both killed in the same accident?

A business owner was trying to obtain a bank loan to fund the purchase of a new business facility, but the bank required proof of additional assets to secure the loan. The business owner then decided to use her $250,000 life insurance policy to secure the loan. Which provision makes this possible?

When an employer offers to give an employee a wage increase in the amount of the premium on a new life insurance policy, this is called a(n)

A policyowner fails to pay the premium due on his whole life policy after the grace period passes, but the policy remains in force. This is due to what provision?

Which of the following named beneficiaries would NOT be able to receive the death benefit directly from the insurer in the event of the insureds' death?

The automatic premium loan provision is activated at the end of the

A 40-year old man buys a whole life policy and names his wife as his only beneficiary. His wife dies 10 years later. He never remarries and dies at age 61, leaving 2 grown-up children. Assuming he never changed the beneficiary, the policy proceeds will go to

Which of the following statements about the reinstatement provision is true?

Which of the following would be considered a nonqualified retirement plan?

When is the earliest a policy may go into effect?

In life insurance policies, cash value increases

An individual has been making periodic premium payments on an annuity. The annuity income payments are scheduled to begin after 1 year since the annuity was purchased. What type of annuity is it?

An individual has been diagnosed with Alzheimer's disease. He is insured under a life insurance policy with the accelerated benefits rider. Which of the following is true regarding taxation of the accelerated benefits?

When an annuity is written, whose life expectancy is taken into account?

All of the following statements about equity index annuities are correct EXCEPT

What is the main purpose of the regulation on life insurance policy illustrations?

Which of the following will NOT be considered unfair discrimination by insurers?