TEXAS LIFE AND HEALTH INSURANCE EXAM QUESTIONS AND ANSWERS REAL EXAM 2025

TEXAS LIFE AND HEALTH INSURANCE EXAM
QUESTIONS AND ANSWERS REAL EXAM 2025

AtTwhatTpointTmustTaTlifeTinsuranceTapplicantTbeTinformedTofTtheirTrightsTthatTfallTunderTtheTFairTCreditTR
eportingTAct?T-TcorrectTanswer-UponTcompletionTofTtheTapplication


WhoTelectsTtheTgoverningTbodyTofTaTmutualTinsuranceTcompany?T-TcorrectTanswer-policyholders


AnTinsuranceTapplicantTMUSTTbeTinformedTofTanTinvestigationTregardingThis/herTreputationTandTcharacter
TaccordingTtoTtheT-TcorrectTanswer-FairTCreditTReportingTAct




WhatTtypeTofTreinsuranceTcontractTinvolvesTtwoTcompaniesTautomaticallyTsharingTtheirTriskTexposure?T-
TcorrectTanswer-Treaty




TheTstatedTamountTorTpercentTofTliquidTassetsTthatTanTinsurerTmustThaveTonThandTthatTwillTsatisfyTfutureTob
ligationsTtoTitsTpolicyholdersTisTcalledT-TcorrectTanswer-reserves


WhichTofTtheTfollowingTrequiresTinsurersTtoTdiscloseTwhenTanTapplicant'sTconsumerTorTcreditThistoryTisTbei
ngTinvestigatedT-TcorrectTanswer-1970T-TFairTCreditTReportingTAct


WhatTisTtheTconsiderationTgivenTbyTanTinsurerTinTtheTConsiderationTclauseTofTaTlifeTpolicy?T-
TcorrectTanswer-PromiseTtoTpayTaTdeathTbenefit




WhenTthird-
partyTownershipTisTinvolved,TapplicantsTwhoTalsoThappenTtoTbeTtheTstatedTprimaryTbeneficiaryTareTrequire
dTtoThaveT-TcorrectTanswer-insurableTinterestTinTtheTproposedTinsured


StatementsTmadeTonTanTinsuranceTapplicationTthatTareTbelievedTtoTbeTtrueTtoTtheTbestTofTtheTapplicant'sTkn
owledgeTareTcalledT-TcorrectTanswer-representations


TheTpartTofTaTlifeTinsuranceTpolicyTguaranteedTtoTbeTtrueTisTcalledTa(n)T-TcorrectTanswer-warranty


WhichTofTtheseTisTNOTTaTtypeTofTagentTauthority?

,T Express
T Implied
T Principal
T ApparentT-TcorrectTanswer-Principal


TheTConsiderationTclauseTofTanTinsuranceTcontractTincludesT-TcorrectTanswer-
theTscheduleTandTamountTofTpremiumTpayments


ETandTFTareTbusinessTpartners.TEachTtakesToutTaT$500,000TlifeTinsuranceTpolicyTonTtheTother,TnamingThims
elfTasTprimaryTbeneficiary.TETandTFTeventuallyTterminateTtheirTbusiness,TandTfourTmonthsTlaterTETdies.TAlt
houghTETwasTmarriedTwithTthreeTchildrenTatTtheTtimeTofTdeath,TtheTprimaryTbeneficiaryTisTstillTF.THowever,
TanTinsurableTinterestTnoTlongerTexists.TWhereTwillTtheTproceedsTfromTE'sTlifeTinsuranceTpolicyTbeTdirected

Tto?T-TcorrectTanswer-InTthisTsituation,TtheTproceedsTfromTE'sTlifeTinsuranceTpolicyTwillTgoTtoTF.




WhichTofTtheTfollowingTtermsTdefinesTtheTlegallyTenforceableTpromiseTinTanTinsuranceTcontractTbyTtheTins
urer?T-TcorrectTanswer-Unilateral


WhenTmustTinsurableTinterestTexistTforTaTlifeTinsuranceTcontractTtoTbeTvalid?T-TcorrectTanswer-
InceptionTofTtheTcontract


InsuranceTcontractsTareTknownTasT____TbecauseTcertainTfutureTconditionsTorTactsTmustToccurTbeforeTanyTcl
aimsTcanTbeTpaid.T-TcorrectTanswer-conditional


WhichTofTtheseTrequireTanToffer,Tacceptance,TandTconsideration?T-TcorrectTanswer-Contract


WhichTofTtheseTarrangementsTallowsToneTtoTbypassTinsurableTinterestTlaws?T-TcorrectTanswer-Investor-
OriginatedTLifeTInsurance


Investor-originatedTlifeTinsuranceT(orTIOLI),TsometimesTcalledTstranger-
originatedTlifeTinsuranceT(orTSTOLI)TisTusedTtoTcircumventTstateTinsurableTinterestTstatutes.TThisTisTdoneT
whenTanTinvestorT(orTstranger)TpersuadesTanTindividualTtoTtakeToutTlifeTinsuranceTspecificallyTforTtheTpurp
oseTofTsellingTtheTpolicyTtoTtheTinvestor.TTheTinvestorTcompensatesTtheTinsuredTandTmakesTtheTpremiums,Tt
henTcollectsTtheTdeathTbenefitTwhenTtheTinsuredTdies.


WhichTofTtheseTisTNOTTconsideredTtoTbeTanTelementTofTanTinsuranceTcontract?

, T theToffer
T acceptance
T negotiating
T considerationT-TcorrectTanswer-negotiating


AnTagentTisTanTindividualTthatTrepresentsTwhom?T-TcorrectTanswer-Insurer


InsurableTinterestTmustTexistTatTwhatTtime?T-TcorrectTanswer-atTtheTtimeTofTapplication


WhichTpolicyTrequiresTanTagentTtoTregisterTwithTtheTNationalTAssociationTofTSecuritiesTDealersT(NASD)Tb
eforeTselling?T-TcorrectTanswer-VariableTLife


WhichTofTtheTfollowingTactionsTrequireTaTpolicyTownerTtoTprovideTproofTofTinsurabilityTinTanTAdjustableTL
ifeTpolicy?T-TcorrectTanswer-increaseTfaceTamount


WhenTaTpolicyTownerTexchangesTaTtermTpolicyTforTaTwholeTlifeTpolicyTwithoutTprovidingTproofTofTgoodThe
alth,TwhichTofTtheseTapply?T-TcorrectTanswer-ConversionTprovision


WhatTtypeTofTlifeTinsuranceTareTcreditTpoliciesTissuedTas?T-TcorrectTanswer-Term


HowTlongTdoesTtheTcoverageTnormallyTremainTonTaTlimited-payTlifeTpolicy?T-TcorrectTanswer-ageT100


AllTofTtheseTstatementsTaboutTEquityTIndexedTLifeTInsuranceTareTcorrectTEXCEPT
T CashTvalueThasTaTminimumTrateTofTaccumulation
T IfTtheTgainTonTtheTindexTgoesTbeyondTtheTpolicy'sTminimumTrateTofTreturn,TtheTcashTvalueTwillTmirrorTthat
T ofTtheTindex
T TheTpremiumsTcanTbeTloweredTorTraised,TbasedTonTinvestmentTperformance
TiedTtoTanTequityTindexTsuchTasTtheTS&PT500T-TcorrectTanswer-
T

TheTpremiumsTcanTbeTloweredTorTraised,TbasedTonTinvestmentTperformance


WhichTofTtheseTisTanTelementTofTaTVariableTLifeTpolicy?T-TcorrectTanswer-ATfixed,TlevelTpremium