Texas Life and Health Insurance Exam
Questions and Answers Guide
(Guaranteed Succes) Latest 2025
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - Correct
Answers ✅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 Answers ✅reserves
When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to
have - Correct Answers ✅insurable interest
Statements made on an insurance application that are
believed to be true to the best of the applicant's knowledge
are called - Correct Answers ✅representations
The part of a life insurance policy guaranteed to be true is
called a(n) - Correct Answers ✅warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - Correct Answers ✅Principal
,Texas Life and Health Insurance Exam
Questions and Answers Guide
(Guaranteed Succes) Latest 2025
The Consideration clause of an insurance contract includes -
Correct Answers ✅the 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 Answers ✅In this situation, the proceeds from E's
life insurance policy will go to F.
Which term defines the legally enforceable promise in an
insurance contract by the insurer? - Correct Answers
✅Unilateral
Insurance contracts are known as ____ because certain future
conditions or acts must occur before any claims can be paid. -
Correct Answers ✅conditional
Which of these require an offer, acceptance, and
consideration? - Correct Answers ✅Contract
, Texas Life and Health Insurance Exam
Questions and Answers Guide
(Guaranteed Succes) Latest 2025
Which of these is NOT considered to be an element of an
insurance contract?
the offer
acceptance
negotiating
consideration - Correct Answers ✅negotiating
An agent is an individual that represents whom? - Correct
Answers ✅Insurer
Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling? -
Correct Answers ✅Variable Life
Which of the following actions require a policy owner to
provide proof of insurability in an Adjustable Life policy? -
Correct Answers ✅increase face amount
When a policy owner exchanges a term policy for a whole life
policy without providing proof of good health, which of these
apply? - Correct Answers ✅Conversion provision
What type of life insurance are credit policies issued as? -
Correct Answers ✅Term
Questions and Answers Guide
(Guaranteed Succes) Latest 2025
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - Correct
Answers ✅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 Answers ✅reserves
When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to
have - Correct Answers ✅insurable interest
Statements made on an insurance application that are
believed to be true to the best of the applicant's knowledge
are called - Correct Answers ✅representations
The part of a life insurance policy guaranteed to be true is
called a(n) - Correct Answers ✅warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - Correct Answers ✅Principal
,Texas Life and Health Insurance Exam
Questions and Answers Guide
(Guaranteed Succes) Latest 2025
The Consideration clause of an insurance contract includes -
Correct Answers ✅the 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 Answers ✅In this situation, the proceeds from E's
life insurance policy will go to F.
Which term defines the legally enforceable promise in an
insurance contract by the insurer? - Correct Answers
✅Unilateral
Insurance contracts are known as ____ because certain future
conditions or acts must occur before any claims can be paid. -
Correct Answers ✅conditional
Which of these require an offer, acceptance, and
consideration? - Correct Answers ✅Contract
, Texas Life and Health Insurance Exam
Questions and Answers Guide
(Guaranteed Succes) Latest 2025
Which of these is NOT considered to be an element of an
insurance contract?
the offer
acceptance
negotiating
consideration - Correct Answers ✅negotiating
An agent is an individual that represents whom? - Correct
Answers ✅Insurer
Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling? -
Correct Answers ✅Variable Life
Which of the following actions require a policy owner to
provide proof of insurability in an Adjustable Life policy? -
Correct Answers ✅increase face amount
When a policy owner exchanges a term policy for a whole life
policy without providing proof of good health, which of these
apply? - Correct Answers ✅Conversion provision
What type of life insurance are credit policies issued as? -
Correct Answers ✅Term
