Texas Health and Life Insurance ExamFX Questions and Answers 100% Pass

Texas Health and Life Insurance ExamFX Questions and Answers 100% Pass What is the purpose of the buyer's guide? A.To Allow the consumer to compare the costs of different policies B. To provide the name and address of the agent. C. to list all policy riders. D. To provide information about the policy. - ANSWER-A.To Allow the consumer to compare the costs of different policies Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? AAdhesion BSubrogation CWarranty DAleatory - ANSWER-D. Aleatory What is the purpose of a conditional receipt? Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 2/124 AIt is given by the agent only to applicants who fully prepay all scheduled premiums in advance of policy issue. BIt is intended to provide coverage on a date earlier than the date of the issuance of the policy. CIt guarantees the applicant that a policy will be issued in the amount applied for in the application. DIt serves as proof that the agent has determined the applicant to be fully insurable for coverage by the insurance company. - ANSWER-BIt is intended to provide coverage on a date earlier than the date of the issuance of the policy. Which of the following is NOT the consideration in a policy? AThe promise to pay covered losses BThe application given to a prospective insured CSomething of value exchanged between parties DThe premium amount paid at the time of application - ANSWER-B. The application given to a prospective insured. Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 3/124 An insurer receives a report regarding a potential insured that includes the insured's financial status, hobbies and habits. What type of a report is that? AAgent's Report BUnderwriter's Report CInspection Report DMedical Information Bureau's report - ANSWER-C. Inspection Report The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy coverage become effective? AAs of the policy delivery date BAs of the first of the month after the policy issue CAs of the policy issue date DAs of the application date - ANSWER-D As of the application date. In terms of parties to a contract, which of the following does NOT describe a competent party? AThe person must be mentally competent to understand the contract. BThe person must have at least completed secondary education. CThe person must not be under the influence of drugs or alcohol. Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 4/124 DThe person must be of legal age. - ANSWER-B. The person must have at least completed secondary education. Which of the following is NOT an example of insurable interest? AEmployer in employee BChild in parent CDebtor in creditor DBusiness partners in each other - ANSWER-C. Debtor in creditor An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated? ARepresentation BAdhesion CConsideration DGood faith - ANSWER-C. Consideration Which of the following includes information regarding a person's credit, character, reputation, and habits? AConsumer history BInsurability report CAgent's report Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 5/124 DConsumer report - ANSWER-D. Consumer Report Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT AConsideration. BLegal purpose. COffer and acceptance. DConditions. - ANSWER-D. Conditions The Federal Fair Credit Reporting Act ARegulates telemarketing. BPrevents money laundering. CRegulates consumer reports. DProtects customer privacy. - ANSWER-C. Regulates consumer reports If an applicant for a life insurance policy and person to be insured by the policy are two different people, the underwriter would be concerned about AWhich individual will pay the premium. BWhether an insurable interest exists between the individuals. CThe gender of the applicant. Copyright ©SOPHIABENNETT 2025 ACADEMIC YEARALL RIGHTS RESERVED. Page 6/124 DThe type of policy requested. - ANSWER-B. Whether an insurable interest exist between the individuals. All of the following are duties and responsibilities of producers at the time of application EXCEPT AChange any incorrect statement on the application by personally initialing next to the corrected statement. BExplain the nature and type of any receipt the producer is giving to the applicant. CProbe beyond the stated questions if the producer feels the applicant is misrepresenting or concealing information. DCheck to make sure that there are no unanswered questions on the application. - ANSWER-A. Change any incorrect statement on the application by personally initialing next to the corrected statement