Texas Life and Health Insurance Exam WITH COMPLETE SOLUTIONS 2023

Texas Life and Health Insurance Exam WITH
COMPLETE SOLUTIONS 2023

, Texas Life and Health Insurance Exam WITH
COMPLETE SOLUTIONS 2023



What type of reinsurance contract involves two companies automatically sharing their risk exposure?
correct answerTreaty



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 answerreserves



When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have correct answerinsurable interest



Statements made on an insurance application that are believed to be true to the best of the applicant's
knowledge are called correct answerrepresentations



The part of a life insurance policy guaranteed to be true is called a(n) correct answerwarranty



Which of these is NOT a type of agent authority?

Express

Implied

Principal

Apparent correct answerPrincipal



The Consideration clause of an insurance contract includes correct answerthe 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? correct answerIn this situation, the proceeds from E's life insurance policy will go to F.