1
TEXAS LIFE AND HEALTH INSURANCE EXAM
QUESTIONS & ANSWERS 2026-27
LATEST UPDATED VERSION
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - Answer ✓✓Treaty
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?
,2
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
, 3
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
TEXAS LIFE AND HEALTH INSURANCE EXAM
QUESTIONS & ANSWERS 2026-27
LATEST UPDATED VERSION
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? - Answer ✓✓Treaty
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?
,2
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
, 3
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
