TEXAS LIFE HEALTH INSURANCE Exam 2024-2025 Latest
Version With 150+Questions And Correct Answers
The stated amount or percent of liquid assets that an
insurer must have on hand that will satisfy future
obligations to its policyholders. - ANSWER>> Reserves
At what point must a life insurance applicant be
informed of their rights that fall under the Fair Credit
Reporting Act? - ANSWER>> Upon the completion of the
application
Which of these describe a participating insurance policy?
- ANSWER>> Policyowners are entitled to receive
dividends
An insurance applicant MUST be informed of an
investigation regarding his/her reputation and character
according to the: - ANSWER>> Fair Credit Reporting Act
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a: - ANSWER>> Risk Retention Group
Dividends payable to a policyowner are - ANSWER>>
1
Page
Declared by the insurance company
, What is the name of the law that requires insurers to
disclose information gathering practices and where the
information was obtained? - ANSWER>> Fair Credit
Reporting Act
Who elects the governing body of a mutual insurance
company? - ANSWER>> Policyholders
What year was the McCarran-Ferguson Act enacted? -
ANSWER>> 1945
A nonprofit incorporated society that does not have
capital stock and operates for the sole benefit of its
members is known as : - ANSWER>> A fraternal benefit
society
When a policy pays dividends to its policyholders, it is
said to be : - ANSWER>> Participating
What type of reinsurance contract involves two
companies automatically sharing their risk exposure? -
ANSWER>> Treaty
Which of the following insurers to disclose when an
2
applicant's consumer or credit history is being
Page
, investigated: - ANSWER>> 1970 - Fair Credit Reporting
Act
A policy of adhesion can only be modified by whom? -
ANSWER>> The Insurance company
Which of the following consists of an offer, acceptance,
and consideration? - ANSWER>> Contract
When must insurable interest exist for a life insurance
contract to be valid? - ANSWER>> Inception of the
contract
A contract where one party either accepts or rejects the
terms of a contract written by another party is called a
contract of - ANSWER>> Adhesion
Who makes the legally enforceable promises in a
unilateral insurance policy? - ANSWER>> Insurance
Company
When must insurable interest be present in order for a
life insurance policy to be valid? - ANSWER>> When the
application is made
3
Page
Version With 150+Questions And Correct Answers
The stated amount or percent of liquid assets that an
insurer must have on hand that will satisfy future
obligations to its policyholders. - ANSWER>> Reserves
At what point must a life insurance applicant be
informed of their rights that fall under the Fair Credit
Reporting Act? - ANSWER>> Upon the completion of the
application
Which of these describe a participating insurance policy?
- ANSWER>> Policyowners are entitled to receive
dividends
An insurance applicant MUST be informed of an
investigation regarding his/her reputation and character
according to the: - ANSWER>> Fair Credit Reporting Act
A group-owned insurance company that is formed to
assume and spread the liability risks of its members is
known as a: - ANSWER>> Risk Retention Group
Dividends payable to a policyowner are - ANSWER>>
1
Page
Declared by the insurance company
, What is the name of the law that requires insurers to
disclose information gathering practices and where the
information was obtained? - ANSWER>> Fair Credit
Reporting Act
Who elects the governing body of a mutual insurance
company? - ANSWER>> Policyholders
What year was the McCarran-Ferguson Act enacted? -
ANSWER>> 1945
A nonprofit incorporated society that does not have
capital stock and operates for the sole benefit of its
members is known as : - ANSWER>> A fraternal benefit
society
When a policy pays dividends to its policyholders, it is
said to be : - ANSWER>> Participating
What type of reinsurance contract involves two
companies automatically sharing their risk exposure? -
ANSWER>> Treaty
Which of the following insurers to disclose when an
2
applicant's consumer or credit history is being
Page
, investigated: - ANSWER>> 1970 - Fair Credit Reporting
Act
A policy of adhesion can only be modified by whom? -
ANSWER>> The Insurance company
Which of the following consists of an offer, acceptance,
and consideration? - ANSWER>> Contract
When must insurable interest exist for a life insurance
contract to be valid? - ANSWER>> Inception of the
contract
A contract where one party either accepts or rejects the
terms of a contract written by another party is called a
contract of - ANSWER>> Adhesion
Who makes the legally enforceable promises in a
unilateral insurance policy? - ANSWER>> Insurance
Company
When must insurable interest be present in order for a
life insurance policy to be valid? - ANSWER>> When the
application is made
3
Page
