Texas Life and Health Insurance Exam questions with correct answers

What type of reinsurance contract involves two companies automatically sharing their risk exposure? ans 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 ans reserves When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have ans insurable interest Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called ans representations The part of a life insurance policy guaranteed to be true is called a(n) ans warranty Which of these is NOT a type of agent authority? Express Implied Principal Apparent ans Principal The Consideration clause of an insurance contract includes ans the schedule and amount of premium payments