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Free Life Insurance Basics Practice Questions

Texas Life Agent exam (series InsTX-Life01) — 39 practice questions.

Subtopics: Insurable interest, Consent requirement, Life settlements, Illustrations, 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, Backdating, MIB, Unfair discrimination underwriting, Group vs individual, Warranties vs representations, Disclosure statement, Estate conservation, Executive compensation, Expense factor, Declined risk, Surrender comparison index

Sample questions & answers

1. In Texas life insurance, insurable interest must exist:

At the time the policy is applied for

For life insurance, insurable interest must exist at the inception (application) of the policy.

2. Texas generally requires that the insured give written consent before another person procures life insurance on the insured's life under:

The insurable interest and consent provisions of Chapter 1103

Chapter 1103 governs insurable interest and the consent of the insured for life insurance.

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

Illustration rules require that guaranteed and nonguaranteed values be clearly labeled to avoid deception.

All Life Agent topics

Practice: Life Insurance Basics

Take a randomized, timed-style practice test. Answer choices are shuffled and your results are scored instantly with an explanation for every question.

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 Pennsylvania Insurance Department and the exam administrator before relying on it.