Texas Life and Health Insurance Exam Questions with 100% Correct Answers

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Correct Answer Upon completion of the application Who elects the governing body of a mutual insurance company? Correct Answer policyholders An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the Correct Answer Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? Correct 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 Correct Answer reserves Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated Correct Answer 1970 - Fair Credit Reporting Act What is the consideration given by an insurer in the Consideration clause of a life policy? Correct Answer Promise to pay a death benefit When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have Correct Answer insurable interest in the proposed insured Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called Correct Answer representations The part of a life insurance policy guaranteed to be true is called a(n) Correct Answer warranty Which of these is NOT a type of agent authority? Express Implied Principal Apparent Correct Answer Principal The Consideration clause of an insurance contract includes Correct Answer the schedule and amount of premium payments