Texas Life and Health Insurance Exam In-class activity

An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the - ANSWER-Fair Credit Reporting Act 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 Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated - ANSWER-1970 - Fair Credit Reporting Act What is the consideration given by an insurer in the Consideration clause of a life policy? - 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 - 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 - 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