Free Life Insurance Basics Practice Questions
Texas Life Agent exam (series InsTX-Life01) — 133 practice questions.
Subtopics: Insurable interest, Consent requirement, Life settlements, Illustrations, STOLI, Backdating, Representations, Consideration, Trustee as beneficiary, Corporate beneficiary, Life settlement brokers, Insurable interest parties, Personal uses, Liquidity, Human life value, Needs approach, Buy-sell funding, Key person, Term vs permanent, Participating policies, Separate account, Variable products licensing, Premium factors, Mortality, Interest assumption, Premium mode, Advertising, Field underwriting, Application accuracy, Sources of underwriting, Risk classification, Substandard risk, Effective date, Statement of good health, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index, Net amount at risk, Legal reserve, CSO mortality table, Level premium funding, Cash value accumulation, Endowment maturity, Free look period, Policy replacement rules, Twisting, Churning, Rebating, Defamation, Binding receipt, Insuring clause, Consideration clause, Owner vs insured, Stranger-originated life insurance, Suitability, Sales illustration, Producer appointment, Paramedical exam, Inspection report, Nonmedical limit, Split-dollar plan, Section 162 executive bonus, Dependency period need, Social Security blackout period, Capital retention approach, Final expense need, Insurance age, Flat extra premium, Postponed risk, Agent's report, Policy summary, Material misrepresentation, Estate creation, Cash accumulation, Charitable giving, Buy-sell cross purchase, Buy-sell entity purchase, Cross purchase count, Key person beneficiary, Deferred compensation, Split dollar collateral assignment, Executive bonus taxation, Business overhead uses, Information for needs analysis, Group vs individual class, Nonparticipating policy, Fixed vs variable, Variable minimum death benefit, Gross vs net premium, Modal factors, Mortality table use, Gender and mortality, Producer delivery duties, Constructive delivery, Rated policy delivery, Conditional receipt insurability, No premium with application, Application signatures, Application corrections, Insurable interest third party, Self insurable interest, Attending physician statement, MIB adverse decisions, MIB pre-notice, HIV testing consent, Underwriting prohibited factor, Rated policy, Standard risk, Prescription database, Social Security fully insured, Currently insured, Survivor benefits children, Spouse caring for child, Blackout period end, Lump-sum death benefit, Full retirement age, Social Security disability, Social Security as offset, Producer report purpose
Read the Life Insurance Basics study guide
Sample questions & answers
1. In Texas life insurance, insurable interest must exist:
At the time the policy is applied for
Insurable interest is tested when the policy is applied for; once a beneficiary or owner is properly designated, that person has an insurable interest at all times after the designation.
2. Under Texas law, a third party may apply for or buy a life policy on an adult's life when:
The insured consents in writing
An individual of legal age may, in a single written document, consent to the purchase of or application for a life policy on his or her life by a third party.
3. The sale of an existing life policy to a third party for less than the death benefit is a:
Life settlement
A life settlement is the sale of an existing policy to a third party for a lump sum less than the face amount.
4. A Texas life insurance illustration showing nonguaranteed values must:
Clearly distinguish guaranteed from nonguaranteed elements
Illustrations must clearly label nonguaranteed elements and may not base them on a scale more favorable than the insurer's illustrated scale.
Practice: Life Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
