Texas Life Insurance Exam Question and

Answers with Certified Solutions

P completes an application for a $10,000 life policy, but does not give the producer the initial

premium. P's coverage becomes effective when ✔✔P receives the policy and pays the premium

A potential client, age 40, would like to purchase a Whole Life policy that will accumulate cash

value at a faster rate in the early years of the policy. Which of these statements made by the

producer would be carrer? ✔✔20-Pay Life accumulates cash value faster than Straight Life

How does an indexed annuity differ from a fixed annuity ? ✔✔Indexed annuity owners receive

credited interest tied to the fluctuations of the linked index

During a sales presentation for a participating life insurance policy, an agent MUST ✔✔make a

prospect understand that dividends are NOT guaranteed

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