INSURANCE LICENSE TEXAS EXAM LATEST 2024
WITH ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS/ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS(ALL WHAT YOU
NEED) LATEST EDITION 2024
Insurance - (answers)a device for the transfer of risk from an individual to a large group
Insurer - (answers)the company that sells the insurance and as a party to the contract agrees to
indemnify an insured.
Insured - (answers)is the individual or entity that purchases insurance.
the Law of Numbers - (answers)this states that the larger the number of similar risks, the more
accurate and reliable a prediction of loss will be.
Speculative Risks - (answers)this involves the possibility of both gain and loss. Traditional
insurance policies cannot be used to cover these.
Ex: stocks, bonds, gambling.
Pure Risks - (answers)this involves the possibility of loss, gain is not possible.
Ex: flooding, injuries, fires.
,To transfer risk, peace of mind, required by law, required by vendor - (answers)Why do people
purchase insurance? (4)
Domestic Insurance - (answers)a company that is incorporated and is formed under the laws of
the state in which it is located.
Foreign Insurance - (answers)a company located and organized under the laws of another sate,
but licensed to do business elsewhere.
Ex: Headquarters are in California, but business is done in Kansas.
Alien Insurance - (answers)a company formed under the laws of another country, other than the
United States.
Offer, Acceptance, Consideration, Competent Parties, Legal Purpose, Insurable Interest. -
(answers)What are the Essential Elements of a Contract? (Calico)
Consideration - (answers)the insurance contract or policy is not a legally binding instrument
unless supported by some form of legal consideration, or possibly goods and services of tangible
values.
The promise to pay is this.
, Contract of Adhesion - (answers)This contract is drafted by the insurer with the insured having
no involvement in the preparation. They either take it or leave it.
Aleatory - (answers)this is based on the exchange of unequal amounts or uncertain events.
Personal Contract - (answers)the identities of the parties involved in the insurance contract are
very important to the insurer.
Ex: the insurer has the right to select the customers it wishes to insure.
Indemnity - (answers)the process of restoring the customer to the same financial condition that
they were prior to the loss.
Good Faith - (answers)the courts require that the insurer operate in this manner because the
insurance contract revolves around an intangible object.
This is expected from both the customer and the insurer.
Representation - (answers)A written or verbal statement that applicant makes that is true to the
best of their knowledge.
Peril - (answers)The actual cause of the loss.
WITH ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS/ALREADY GRADED A+ 100%
GUARANTEED TO PASS CONCEPTS(ALL WHAT YOU
NEED) LATEST EDITION 2024
Insurance - (answers)a device for the transfer of risk from an individual to a large group
Insurer - (answers)the company that sells the insurance and as a party to the contract agrees to
indemnify an insured.
Insured - (answers)is the individual or entity that purchases insurance.
the Law of Numbers - (answers)this states that the larger the number of similar risks, the more
accurate and reliable a prediction of loss will be.
Speculative Risks - (answers)this involves the possibility of both gain and loss. Traditional
insurance policies cannot be used to cover these.
Ex: stocks, bonds, gambling.
Pure Risks - (answers)this involves the possibility of loss, gain is not possible.
Ex: flooding, injuries, fires.
,To transfer risk, peace of mind, required by law, required by vendor - (answers)Why do people
purchase insurance? (4)
Domestic Insurance - (answers)a company that is incorporated and is formed under the laws of
the state in which it is located.
Foreign Insurance - (answers)a company located and organized under the laws of another sate,
but licensed to do business elsewhere.
Ex: Headquarters are in California, but business is done in Kansas.
Alien Insurance - (answers)a company formed under the laws of another country, other than the
United States.
Offer, Acceptance, Consideration, Competent Parties, Legal Purpose, Insurable Interest. -
(answers)What are the Essential Elements of a Contract? (Calico)
Consideration - (answers)the insurance contract or policy is not a legally binding instrument
unless supported by some form of legal consideration, or possibly goods and services of tangible
values.
The promise to pay is this.
, Contract of Adhesion - (answers)This contract is drafted by the insurer with the insured having
no involvement in the preparation. They either take it or leave it.
Aleatory - (answers)this is based on the exchange of unequal amounts or uncertain events.
Personal Contract - (answers)the identities of the parties involved in the insurance contract are
very important to the insurer.
Ex: the insurer has the right to select the customers it wishes to insure.
Indemnity - (answers)the process of restoring the customer to the same financial condition that
they were prior to the loss.
Good Faith - (answers)the courts require that the insurer operate in this manner because the
insurance contract revolves around an intangible object.
This is expected from both the customer and the insurer.
Representation - (answers)A written or verbal statement that applicant makes that is true to the
best of their knowledge.
Peril - (answers)The actual cause of the loss.
