Texas Life and Health Insurance Exam with verified
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answers
What |type |of |reinsurance |contract |involves |two |companies |automatically |sharing |their |risk |
exposure? |- |correct |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 |- |correct |answer |reserves
When |third-party |ownership |is |involved, |applicants |who |also |happen |to |be |the |stated |primary |
beneficiary |are |required |to |have |- |correct |answer |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 |answer |representations
The |part |of |a |life |insurance |policy |guaranteed |to |be |true |is |called |a(n) |- |correct |answer |
warranty
Which |of |these |is |NOT |a |type |of |agent |authority?
| Express
| Implied
| Principal
| Apparent |- |correct |answer |Principal
The |Consideration |clause |of |an |insurance |contract |includes |- |correct |answer |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 |answer |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 |answer |Unilateral
Insurance |contracts |are |known |as |____ |because |certain |future |conditions |or |acts |must |occur |
before |any |claims |can |be |paid. |- |correct |answer |conditional
Which |of |these |require |an |offer, |acceptance, |and |consideration? |- |correct |answer |Contract
Which |of |these |is |NOT |considered |to |be |an |element |of |an |insurance |contract?
| the |offer
| acceptance
| negotiating
| consideration |- |correct |answer |negotiating
An |agent |is |an |individual |that |represents |whom? |- |correct |answer |Insurer
Which |policy |requires |an |agent |to |register |with |the |National |Association |of |Securities |Dealers |
(NASD) |before |selling? |- |correct |answer |Variable |Life
Which |of |the |following |actions |require |a |policy |owner |to |provide |proof |of |insurability |in |an |
Adjustable |Life |policy? |- |correct |answer |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 |answer |Conversion |provision
What |type |of |life |insurance |are |credit |policies |issued |as? |- |correct |answer |Term
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answers
What |type |of |reinsurance |contract |involves |two |companies |automatically |sharing |their |risk |
exposure? |- |correct |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 |- |correct |answer |reserves
When |third-party |ownership |is |involved, |applicants |who |also |happen |to |be |the |stated |primary |
beneficiary |are |required |to |have |- |correct |answer |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 |answer |representations
The |part |of |a |life |insurance |policy |guaranteed |to |be |true |is |called |a(n) |- |correct |answer |
warranty
Which |of |these |is |NOT |a |type |of |agent |authority?
| Express
| Implied
| Principal
| Apparent |- |correct |answer |Principal
The |Consideration |clause |of |an |insurance |contract |includes |- |correct |answer |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 |answer |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 |answer |Unilateral
Insurance |contracts |are |known |as |____ |because |certain |future |conditions |or |acts |must |occur |
before |any |claims |can |be |paid. |- |correct |answer |conditional
Which |of |these |require |an |offer, |acceptance, |and |consideration? |- |correct |answer |Contract
Which |of |these |is |NOT |considered |to |be |an |element |of |an |insurance |contract?
| the |offer
| acceptance
| negotiating
| consideration |- |correct |answer |negotiating
An |agent |is |an |individual |that |represents |whom? |- |correct |answer |Insurer
Which |policy |requires |an |agent |to |register |with |the |National |Association |of |Securities |Dealers |
(NASD) |before |selling? |- |correct |answer |Variable |Life
Which |of |the |following |actions |require |a |policy |owner |to |provide |proof |of |insurability |in |an |
Adjustable |Life |policy? |- |correct |answer |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 |answer |Conversion |provision
What |type |of |life |insurance |are |credit |policies |issued |as? |- |correct |answer |Term
