1 Exampromax - Stuvia US
Texas Life and Health Insurance Exam
Questions and Answers 100% Correct Answers
Already Graded A+
Q: What type of reinsurance contract involves two companies automatically
sharing their risk exposure?
Ans: Treaty
Q: 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
Exampromax - Stuvia US
Ans: reserves
Q: When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have
Ans: insurable interest
Q: Statements made on an insurance application that are believed to be true
to the best of the applicant's knowledge are called
Ans: representations
Q: The part of a life insurance policy guaranteed to be true is called a(n)
Ans: warranty
Q: Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent
, 2 Exampromax - Stuvia US
Ans: Principal
Q: The Consideration clause of an insurance contract includes
Ans: the schedule and amount of premium payments
Q: 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?
Ans: In this situation, the proceeds from E's life insurance policy will go to F.
Exampromax - Stuvia US
Q: Which term defines the legally enforceable promise in an insurance
contract by the insurer?
Ans: Unilateral
Q: Insurance contracts are known as ____ because certain future conditions
or acts must occur before any claims can be paid.
Ans: conditional
Q: Which of these require an offer, acceptance, and consideration?
Ans: Contract
Q: Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration
Ans: negotiating
Q: An agent is an individual that represents whom?
, 3 Exampromax - Stuvia US
Ans: Insurer
Q: Which policy requires an agent to register with the National Association
of Securities Dealers (NASD) before selling?
Ans: Variable Life
Q: Which of the following actions require a policy owner to provide proof
of insurability in an Adjustable Life policy?
Ans: increase face amount
Q: When a policy owner exchanges a term policy for a whole life policy
without providing proof of good health, which of these apply?
Ans: Conversion provision
Exampromax - Stuvia US
Q: What type of life insurance are credit policies issued as?
Ans: Term
Q: How long does the coverage normally remain on a limited-pay life
policy?
Ans: age 100
Q: All of these statements about Equity Indexed Life Insurance are correct
EXCEPT
- Cash value has a minimum rate of accumulation
- If the gain on the index goes beyond the policy's minimum rate of return,
the cash value will mirror that of the index
-The premiums can be lowered or raised, based on investment performance
-Tied to an equity index such as the S&P 500
Ans: The premiums can be lowered or raised, based on investment performance
Q: What type of life insurance incorporates flexible premiums and an
adjustable death benefit?
Texas Life and Health Insurance Exam
Questions and Answers 100% Correct Answers
Already Graded A+
Q: What type of reinsurance contract involves two companies automatically
sharing their risk exposure?
Ans: Treaty
Q: 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
Exampromax - Stuvia US
Ans: reserves
Q: When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have
Ans: insurable interest
Q: Statements made on an insurance application that are believed to be true
to the best of the applicant's knowledge are called
Ans: representations
Q: The part of a life insurance policy guaranteed to be true is called a(n)
Ans: warranty
Q: Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent
, 2 Exampromax - Stuvia US
Ans: Principal
Q: The Consideration clause of an insurance contract includes
Ans: the schedule and amount of premium payments
Q: 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?
Ans: In this situation, the proceeds from E's life insurance policy will go to F.
Exampromax - Stuvia US
Q: Which term defines the legally enforceable promise in an insurance
contract by the insurer?
Ans: Unilateral
Q: Insurance contracts are known as ____ because certain future conditions
or acts must occur before any claims can be paid.
Ans: conditional
Q: Which of these require an offer, acceptance, and consideration?
Ans: Contract
Q: Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration
Ans: negotiating
Q: An agent is an individual that represents whom?
, 3 Exampromax - Stuvia US
Ans: Insurer
Q: Which policy requires an agent to register with the National Association
of Securities Dealers (NASD) before selling?
Ans: Variable Life
Q: Which of the following actions require a policy owner to provide proof
of insurability in an Adjustable Life policy?
Ans: increase face amount
Q: When a policy owner exchanges a term policy for a whole life policy
without providing proof of good health, which of these apply?
Ans: Conversion provision
Exampromax - Stuvia US
Q: What type of life insurance are credit policies issued as?
Ans: Term
Q: How long does the coverage normally remain on a limited-pay life
policy?
Ans: age 100
Q: All of these statements about Equity Indexed Life Insurance are correct
EXCEPT
- Cash value has a minimum rate of accumulation
- If the gain on the index goes beyond the policy's minimum rate of return,
the cash value will mirror that of the index
-The premiums can be lowered or raised, based on investment performance
-Tied to an equity index such as the S&P 500
Ans: The premiums can be lowered or raised, based on investment performance
Q: What type of life insurance incorporates flexible premiums and an
adjustable death benefit?
