Texas Life and Health Insurance Exam 2026 UPDATE Verified
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What type of reinsurance contract involves two companies automatically
sharing their risk exposure? - (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 -
(ANSWERS)reserves
When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have - (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 -
(ANSWERS)representations
The part of a life insurance policy guaranteed to be true is called a(n) -
(ANSWERS)warranty
Which of these is NOT a type of agent authority?
Express
Implied
,Texas Life and Health Insurance Exam 2026 UPDATE Verified
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Principal
Apparent - (ANSWERS)Principal
The Consideration clause of an insurance contract includes -
(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? -
(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? - (ANSWERS)Unilateral
Insurance contracts are known as ____ because certain future conditions or
acts must occur before any claims can be paid. - (ANSWERS)conditional
, Texas Life and Health Insurance Exam 2026 UPDATE Verified
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Which of these require an offer, acceptance, and consideration? -
(ANSWERS)Contract
Which of these is NOT considered to be an element of an insurance
contract?
The offer
Acceptance
Negotiating
Consideration - (ANSWERS)negotiating
An agent is an individual that represents whom? - (ANSWERS)Insurer
Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling? - (ANSWERS)Variable Life
Which of the following actions require a policy owner to provide proof of
insurability in an Adjustable Life policy? - (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? -
Questions And Answers | Guaranteed Success!!
What type of reinsurance contract involves two companies automatically
sharing their risk exposure? - (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 -
(ANSWERS)reserves
When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have - (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 -
(ANSWERS)representations
The part of a life insurance policy guaranteed to be true is called a(n) -
(ANSWERS)warranty
Which of these is NOT a type of agent authority?
Express
Implied
,Texas Life and Health Insurance Exam 2026 UPDATE Verified
Questions And Answers | Guaranteed Success!!
Principal
Apparent - (ANSWERS)Principal
The Consideration clause of an insurance contract includes -
(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? -
(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? - (ANSWERS)Unilateral
Insurance contracts are known as ____ because certain future conditions or
acts must occur before any claims can be paid. - (ANSWERS)conditional
, Texas Life and Health Insurance Exam 2026 UPDATE Verified
Questions And Answers | Guaranteed Success!!
Which of these require an offer, acceptance, and consideration? -
(ANSWERS)Contract
Which of these is NOT considered to be an element of an insurance
contract?
The offer
Acceptance
Negotiating
Consideration - (ANSWERS)negotiating
An agent is an individual that represents whom? - (ANSWERS)Insurer
Which policy requires an agent to register with the National Association of
Securities Dealers (NASD) before selling? - (ANSWERS)Variable Life
Which of the following actions require a policy owner to provide proof of
insurability in an Adjustable Life policy? - (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? -
