1/11/26, 5:19 PM Texas Life and Health Insurance Exam (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026 (com…
Texas Life and Health Insurance Exam (updated
2026) Questions & Answers | Latest Already
Graded A+ UPDATE 2025|2026 (complete
solutions) ASSURED SUCCESS/GRADED A+!!!
Save
Terms in this set (227)
At what point must a life insurance Upon completion of the application
applicant be informed of their rights
that fall under the Fair Credit
Reporting Act?
Who elects the governing body of a policyholders
mutual insurance company?
An insurance applicant MUST be Fair Credit Reporting Act
informed of an investigation
regarding his/her reputation and
character according to the
What type of reinsurance contract Treaty
involves two companies
automatically sharing their risk
exposure?
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,1/11/26, 5:19 PM Texas Life and Health Insurance Exam (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026 (com…
The stated amount or percent of reserves
liquid assets that an insurer must
have on hand that will satisfy future
obligations to its policyholders is
called
Which of the following requires 1970 - Fair Credit Reporting Act
insurers to disclose when an
applicant's consumer or credit
history is being investigated
What is the consideration given by Promise to pay a death benefit
an insurer in the Consideration
clause of a life policy?
When third-party ownership is insurable interest in the proposed insured
involved, applicants who also
happen to be the stated primary
beneficiary are required to have
Statements made on an insurance representations
application that are believed to be
true to the best of the applicant's
knowledge are called
The part of a life insurance policy warranty
guaranteed to be true is called a(n)
Which of these is NOT a type of Principal
agent authority?
Express
Implied
Principal
Apparent
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,1/11/26, 5:19 PM Texas Life and Health Insurance Exam (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026 (com…
The Consideration clause of an the schedule and amount of premium payments
insurance contract includes
E and F are business partners. Each In this situation, the proceeds from E's life insurance
takes out a $500,000 life insurance policy will go to F.
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?
Which of the following terms defines Unilateral
the legally enforceable promise in
an insurance contract by the insurer?
When must insurable interest exist Inception of the contract
for a life insurance contract to be
valid?
Insurance contracts are known as ____ conditional
because certain future conditions or
acts must occur before any claims
can be paid.
Which of these require an offer, Contract
acceptance, and consideration?
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, 1/11/26, 5:19 PM Texas Life and Health Insurance Exam (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026 (com…
Which of these arrangements allows Investor-Originated Life Insurance
one to bypass insurable interest
laws? Investor-originated life insurance (or IOLI),
sometimes called stranger-originated life insurance
(or STOLI) is used to circumvent state insurable
interest statutes. This is done when an investor (or
stranger) persuades an individual to take out life
insurance specifically for the purpose of selling the
policy to the investor. The investor compensates
the insured and makes the premiums, then collects
the death benefit when the insured dies.
Which of these is NOT considered to negotiating
be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration
An agent is an individual that Insurer
represents whom?
Insurable interest must exist at what at the time of application
time?
Which policy requires an agent to Variable Life
register with the National Association
of Securities Dealers (NASD) before
selling?
https://quizlet.com/1129307846/texas-life-and-health-insurance-exam-updated-2026-questions-answers-latest-already-graded-a-update-20252026-co… 4/37
Texas Life and Health Insurance Exam (updated
2026) Questions & Answers | Latest Already
Graded A+ UPDATE 2025|2026 (complete
solutions) ASSURED SUCCESS/GRADED A+!!!
Save
Terms in this set (227)
At what point must a life insurance Upon completion of the application
applicant be informed of their rights
that fall under the Fair Credit
Reporting Act?
Who elects the governing body of a policyholders
mutual insurance company?
An insurance applicant MUST be Fair Credit Reporting Act
informed of an investigation
regarding his/her reputation and
character according to the
What type of reinsurance contract Treaty
involves two companies
automatically sharing their risk
exposure?
https://quizlet.com/1129307846/texas-life-and-health-insurance-exam-updated-2026-questions-answers-latest-already-graded-a-update-20252026-co… 1/37
,1/11/26, 5:19 PM Texas Life and Health Insurance Exam (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026 (com…
The stated amount or percent of reserves
liquid assets that an insurer must
have on hand that will satisfy future
obligations to its policyholders is
called
Which of the following requires 1970 - Fair Credit Reporting Act
insurers to disclose when an
applicant's consumer or credit
history is being investigated
What is the consideration given by Promise to pay a death benefit
an insurer in the Consideration
clause of a life policy?
When third-party ownership is insurable interest in the proposed insured
involved, applicants who also
happen to be the stated primary
beneficiary are required to have
Statements made on an insurance representations
application that are believed to be
true to the best of the applicant's
knowledge are called
The part of a life insurance policy warranty
guaranteed to be true is called a(n)
Which of these is NOT a type of Principal
agent authority?
Express
Implied
Principal
Apparent
https://quizlet.com/1129307846/texas-life-and-health-insurance-exam-updated-2026-questions-answers-latest-already-graded-a-update-20252026-co… 2/37
,1/11/26, 5:19 PM Texas Life and Health Insurance Exam (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026 (com…
The Consideration clause of an the schedule and amount of premium payments
insurance contract includes
E and F are business partners. Each In this situation, the proceeds from E's life insurance
takes out a $500,000 life insurance policy will go to F.
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?
Which of the following terms defines Unilateral
the legally enforceable promise in
an insurance contract by the insurer?
When must insurable interest exist Inception of the contract
for a life insurance contract to be
valid?
Insurance contracts are known as ____ conditional
because certain future conditions or
acts must occur before any claims
can be paid.
Which of these require an offer, Contract
acceptance, and consideration?
https://quizlet.com/1129307846/texas-life-and-health-insurance-exam-updated-2026-questions-answers-latest-already-graded-a-update-20252026-co… 3/37
, 1/11/26, 5:19 PM Texas Life and Health Insurance Exam (updated 2026) Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026 (com…
Which of these arrangements allows Investor-Originated Life Insurance
one to bypass insurable interest
laws? Investor-originated life insurance (or IOLI),
sometimes called stranger-originated life insurance
(or STOLI) is used to circumvent state insurable
interest statutes. This is done when an investor (or
stranger) persuades an individual to take out life
insurance specifically for the purpose of selling the
policy to the investor. The investor compensates
the insured and makes the premiums, then collects
the death benefit when the insured dies.
Which of these is NOT considered to negotiating
be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration
An agent is an individual that Insurer
represents whom?
Insurable interest must exist at what at the time of application
time?
Which policy requires an agent to Variable Life
register with the National Association
of Securities Dealers (NASD) before
selling?
https://quizlet.com/1129307846/texas-life-and-health-insurance-exam-updated-2026-questions-answers-latest-already-graded-a-update-20252026-co… 4/37
