Texas Life and Health Insurance
Exam Questions and Answers
100% PASS
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
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, 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
How long does the coverage normally remain on a limited-pay life policy? -
CORRECT ANSWER-age 100
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
Exam Questions and Answers
100% PASS
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
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, 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
How long does the coverage normally remain on a limited-pay life policy? -
CORRECT ANSWER-age 100
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
