PEARSON VUE TEXAS LIFE AND HEALTH
INSURANCE EXAM SCRIPT 2026 FULL
SOLUTION QUESTIONS AND ANSWERS
BUNDLED EXAMS GRADED A+
●● The stated amount or percent of liquid assets that an insurer must
have on hand that will satisfy future obligations to its policyholders is
called.
Answer: reserves
●● When third-party ownership is involved, applicants who also happen
to be the stated primary beneficiary are required to have.
Answer: insurable interest
●● Statements made on an insurance application that are believed to be
true to the best of the applicant's knowledge are called.
Answer: representations
●● The part of a life insurance policy guaranteed to be true is called
a(n).
Answer: warranty
●● Which of these is NOT a type of agent authority?
,Express
Implied
Principal
Apparent.
Answer: Principal
●● The Consideration clause of an insurance contract includes.
Answer: the schedule and amount of premium payments
●● E and F are business partners. Each takes out a $500,000 life
insurance policy on the other, naming himself as primary beneficiary. E
and F eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the
primary beneficiary is still F. However, an insurable interest no longer
exists. Where will the proceeds from E's life insurance policy be directed
to?.
Answer: In this situation, the proceeds from E's life insurance policy will
go to F.
●● Which term defines the legally enforceable promise in an insurance
contract by the insurer?.
Answer: Unilateral
, ●● Insurance contracts are known as ____ because certain future
conditions or acts must occur before any claims can be paid..
Answer: conditional
●● Which of these require an offer, acceptance, and consideration?.
Answer: Contract
●● Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration.
Answer: negotiating
●● An agent is an individual that represents whom?.
Answer: Insurer
●● Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling?.
Answer: Variable Life
INSURANCE EXAM SCRIPT 2026 FULL
SOLUTION QUESTIONS AND ANSWERS
BUNDLED EXAMS GRADED A+
●● The stated amount or percent of liquid assets that an insurer must
have on hand that will satisfy future obligations to its policyholders is
called.
Answer: reserves
●● When third-party ownership is involved, applicants who also happen
to be the stated primary beneficiary are required to have.
Answer: insurable interest
●● Statements made on an insurance application that are believed to be
true to the best of the applicant's knowledge are called.
Answer: representations
●● The part of a life insurance policy guaranteed to be true is called
a(n).
Answer: warranty
●● Which of these is NOT a type of agent authority?
,Express
Implied
Principal
Apparent.
Answer: Principal
●● The Consideration clause of an insurance contract includes.
Answer: the schedule and amount of premium payments
●● E and F are business partners. Each takes out a $500,000 life
insurance policy on the other, naming himself as primary beneficiary. E
and F eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the
primary beneficiary is still F. However, an insurable interest no longer
exists. Where will the proceeds from E's life insurance policy be directed
to?.
Answer: In this situation, the proceeds from E's life insurance policy will
go to F.
●● Which term defines the legally enforceable promise in an insurance
contract by the insurer?.
Answer: Unilateral
, ●● Insurance contracts are known as ____ because certain future
conditions or acts must occur before any claims can be paid..
Answer: conditional
●● Which of these require an offer, acceptance, and consideration?.
Answer: Contract
●● Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration.
Answer: negotiating
●● An agent is an individual that represents whom?.
Answer: Insurer
●● Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling?.
Answer: Variable Life
