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Pearson Vue Texas State Life + Health Insurance
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- J has a life policy with the Guaranteed Insurability rider. J has just celebrat- ed their 42nd birthday and realizes that she wants to use her rider and buy more death benefit. Which of the following will apply to J's request? A: The insurer will allow J to add more insurance without proving insurability. B:The insurer will allow J to add more insurance pending a paramedical exam. C: The insurer will deny J's request to add more insurance. D: The insurer will allow J to add more coverage pending proof of insurability and extra premium.
2 / Answer: C The insurer will deny J's request to add more insurance.
- An insured has a policy with a Waiver of Premium rider. The insured has suffered an illness that will prevent them for working for two years. When will their premiums be waived? A: Immediately B: After the first nine months of disability C: After the first six months of disability D: Never, premiums cannot be waived because illness is not a disability. Answer: C After the first six months of disability
- The clause that defines and describes the scope of coverage and the limits of indemnification is known as the: A: Insuring Agreement B: Incontestable Clause C: Payor Clause D: Entire Contract Clause Answer: A Insuring Agreement
4 / B: The dividend is paid tax free C: Depending on income bracket of the insured, the dividend may be taxable D: If the company gets to keep half of the dividend it is take free Answer: B The dividend is paid tax free
- Which of the following is not true regarding a renewable option on a term policy? A: The policy must be renewed regardless of insurability. B: The rates cannot be more than standard rates at renewal. C: Premiums are based off of attained age rates. D: A policy can be renewed, however, the insured must convert to a different policy. Answer: D A policy can be renewed, however, the insured must convert to a different policy.
- Which of the following is considered to be part of the Entire Contract? A: Declarations Page B: Buyers Guide C: Copy of the Application
5 / D: All of the Above Answer: C Copy of the Application
- Company A has a partnership with Company Z. There is an agreement in place that if the CEO of either company were to die, the other company would receive money to buy out the partnership. This is an example of: A: Buy/Sell Agreement B: Crosse Purchase plan C: Business Entity Plan D: Key Person Answer: C Business Entity Plan
- All of the following are true regarding the Guaranty Association EXCEPT A claimant may receive less benefits than what they had from a policy. B: The Association is comprised of All member insurers C: The Association is comprised of All member insurers and have a right to end membership while still transacting business in IL D: There is a $250,000 limit on the present value of annuity benefits.
7 / D: Not supplying claims forms with proper instructions regarding their com- pletion. Answer: B Supplying brochures to claimants that indicate a competitor is in a precarious financial position.
- All of the following statements pertaining to a temporary license are true, EXCEPT: A: they survive the transfer of ownership of an insurance company who sponsored the licensee. B: the fee is $50. C: the Director may limit them in any manner in order to protect the public. D: a licensed sponsor may be required. Answer: A they survive the transfer of ownership of an insurance company who sponsored the licensee.
- A Temporary License (180 days) allows the holder to engage in all of the following activities, EXCEPT: A: a surviving spouse of a producer can use the authority to help effect the sale of the insurance business. B: make certain that insureds are paying renewal premiums in a timely man- ner.
8 / C: ask the Director to extend the authority if an anticipated agency sale is taking longer than 180 days. D: sell a new policy to an existing client. Answer: D sell a new policy to an existing client.
- The subject of a market conduct examination for non-financial matters may request a hearing within how many days after receiving the examination report? A: 10 days B: 15 days C: 20 days D: 30 days Answer: A 10 days
- Which of the following sales is classified as controlled business? A: A producer places a one million dollar life policy on the life of his employer B: A producer places a one million dollar life policy on the life of his son C: A producer places a one million dollar life policy on the life of his niece D: A producer places a one million dollar life policy on the life of his
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- All of the following is an example of an unfair practice EXCEPT An applicant being denied based on military experience B: An applicant being denied based off partial blindness C: An applicant being denied for being a sky dive instructor D: An applicant being denied solely for being disabled. Answer: C An applicant being denied for being a sky dive instructor
- All Viatical Settlement Providers must report on or before of every year. A: January 1st B: Depends on License Issuance C: March 1st D: Birth month of the Licensee Answer: C March 1 st
- Each of the following is a requirement for a Life, Health, Property and Casualty prelicensing course, EXCEPT: A: The licensing candidate must spend 7.5 hours in class per line. B: The licensing candidate must complete a 20 hour course
11 / per line. C: An exam proctored by a course provider must be successfully passed before a prelicensing course is successfully completed. D: An exam that is graded by a course provider must be passed before a prelicensing course is successfully completed. Answer: C An exam proctored by a course provider must be successfully passed before a prelicensing course is
- F, a producer in Illinois for twenty years failed to finish his entire continuing education requirement by his license renewal date. Which of the following will likely happen to F's producer license. A: Nothing, there is an automatic 30 day grace period. B: The producer license will lapse automatically. C: A producer holding a license in Illinois for 20 years or longer automatically is licensed for the remainder of his or her lifetime without a renewal require- ment. D: Nothing there is an automatic 12 month grace period since F has been licensed for such a long time.
13 / D: Aleatory Contract Answer: B Unilateral Contract
- Variable Whole Life requires a Flexible Premium B: Fixed and Level Premium C: A guaranteed interest rate D: All of the Above Answer: B Fixed and Level Premium
- Which of the following statements are CORRECT regarding a grace period in a life policy. A: The grace period depends on the mode of premium. B: The grace period is unlimited and the insured can pay back a policy whenever they are ready. C: The grace period is a rider and must be added to a policy for extra cost. D: If the insured dies during the grace period the proceeds are still paid but the unpaid premium is deducted from the face value. Answer: D If the insured dies during the grace period the proceeds are still paid but the unpaid premium is deducted from the face value.
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- R and D are a wealthy married couple and are planning for how their estate will be handled once they die. A concern for R and D is estate tax. Which policy would be a great option to help pay estate taxes when the last spouse dies? A: Joint Life B: Whole Life C: Annuity D: Survivorship Life Answer: D Survivorship Life
- C has a life insurance policy with an Accidental Death and Dismemberment rider. C dies of an accident. What type of benefit is paid to the named benefi- ciary? A: Principal Sum B: Capital Sum C: Double Indemnity D: Triple Indemnity Answer: A Principal Sum
- If an insured leaves a group they are allowed to convert their group coverage to an individual policy within days. A: 30 B: 15
16 / Answer: C Insuring Clause
- An annuitant has funded a annuity with a single premium payment but wants to wait a number of years before they annuitize. Which of the following best describes this scenario?
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A: SPIA
B: SPDA
C: FPDA
D: Lump Sum Answer: B SPDA
- Which of the following Settlement Options in a life insurance policy gives a beneficiary the most flexibility? A: Interest Only B: Fixed Period C: Fixed Amount D: Life Income Answer: A Interest Only
- If a producer is charged with breach of fiduciary duty, in which of the following actions did the producer most likely engage? A: The producer misappropriated premium funds. B: The producer offered to share commission with the insured. C: The producer deliberately misled the insured about the difference in cover- age between policies. D: The producer said things to injure the reputation of another producer.
19 / B: Selling C: Procuring D: Soliciting Answer: A Negotiation
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- What is the largest dollar civil penalty that will be assessed for a single act of defamation? A: $1, B: $2, C: $5, D: $10, Answer: D $10,
- Which of the following statements about producer license termination is NOT accurate? A: Revocation can also lead to imposing a civil penalty of up to $10, per cause. B: A denial of license precludes the producer from reapplying for a producer license for a minimum of three years. C: A person who has their producer license terminated would still be able to work for an insurance company in a non-sales position. D: Upon license termination, the producer is entitled to a hearing, upon written request, on the matter before the order of the Director is final. Answer: C A person who has their producer license terminated would still be able to work for an insurance company in a non-sales position.
