Texas Health and Life Insurance ExamFX.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Health%20and
Texas Health and Life Insurance ExamFX
Questions & Answers
1. What is the purpose of the buyer's guide?
A. To Allow the consumer to compare the costs of different policies
B. To provide the name and address of the agent.
C. to list all policy riders.
D. To provide information about the policy.
Answer A.To Allow the consumer to compare the costs of different policies
2. Which of the following best describes the concept that the insured pays a
small amount of premium for a large amount of risk on the part of the
insurance company?
AAdhesion
BSubrogation
CWarranty DAleatory
Answer D. Aleatory
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3. What is the purpose of a conditional receipt?
AIt is given by the agent only to applicants who fully prepay all scheduled
premiums in advance of policy issue.
BIt is intended to provide coverage on a date earlier than the date of the
issuance of the policy.
CIt guarantees the applicant that a policy will be issued in the amount applied for
in the application.
DIt serves as proof that the agent has determined the applicant to be fully
insurable for coverage by the insurance company.
Answer BIt is intended to provide coverage on a date earlier than the date of the
issuance of the policy.
4. Which of the following is NOT the consideration in a policy?
AThe promise to pay covered losses
BThe application given to a prospective insured
CSomething of value exchanged between parties
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DThe premium amount paid at the time of application
Answer B. The application given to a prospective insured.
5. An insurer receives a report regarding a potential insured that includes the
insured's financial status, hobbies and habits. What type of a report is that?
AAgent's Report
BUnderwriter's Report
CInspection Report
DMedical Information Bureau's report
Answer C. Inspection Report
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6. The full premium was submitted with the application for life insurance, and
the policy was issued two weeks later as requested. When does the policy
coverage become effective?
AAs of the policy delivery date
BAs of the first of the month after the policy issue CAs
of the policy issue date
DAs of the application date
Answer D As of the application date.
7. In terms of parties to a contract, which of the following does NOT describe a
competent party?
AThe person must be mentally competent to understand the contract.
BThe person must have at least completed secondary education.
CThe person must not be under the influence of drugs or alcohol.
DThe person must be of legal age.
Answer B. The person must have at least completed secondary education.
8. Which of the following is NOT an example of insurable interest?
AEmployer in employee
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Texas Health and Life Insurance ExamFX
Questions & Answers
1. What is the purpose of the buyer's guide?
A. To Allow the consumer to compare the costs of different policies
B. To provide the name and address of the agent.
C. to list all policy riders.
D. To provide information about the policy.
Answer A.To Allow the consumer to compare the costs of different policies
2. Which of the following best describes the concept that the insured pays a
small amount of premium for a large amount of risk on the part of the
insurance company?
AAdhesion
BSubrogation
CWarranty DAleatory
Answer D. Aleatory
1 of 176 12/16/2024, 5:41
,Texas Health and Life Insurance ExamFX.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Health%20and
3. What is the purpose of a conditional receipt?
AIt is given by the agent only to applicants who fully prepay all scheduled
premiums in advance of policy issue.
BIt is intended to provide coverage on a date earlier than the date of the
issuance of the policy.
CIt guarantees the applicant that a policy will be issued in the amount applied for
in the application.
DIt serves as proof that the agent has determined the applicant to be fully
insurable for coverage by the insurance company.
Answer BIt is intended to provide coverage on a date earlier than the date of the
issuance of the policy.
4. Which of the following is NOT the consideration in a policy?
AThe promise to pay covered losses
BThe application given to a prospective insured
CSomething of value exchanged between parties
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,Texas Health and Life Insurance ExamFX.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Health%20and
DThe premium amount paid at the time of application
Answer B. The application given to a prospective insured.
5. An insurer receives a report regarding a potential insured that includes the
insured's financial status, hobbies and habits. What type of a report is that?
AAgent's Report
BUnderwriter's Report
CInspection Report
DMedical Information Bureau's report
Answer C. Inspection Report
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,Texas Health and Life Insurance ExamFX.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Health%20and
6. The full premium was submitted with the application for life insurance, and
the policy was issued two weeks later as requested. When does the policy
coverage become effective?
AAs of the policy delivery date
BAs of the first of the month after the policy issue CAs
of the policy issue date
DAs of the application date
Answer D As of the application date.
7. In terms of parties to a contract, which of the following does NOT describe a
competent party?
AThe person must be mentally competent to understand the contract.
BThe person must have at least completed secondary education.
CThe person must not be under the influence of drugs or alcohol.
DThe person must be of legal age.
Answer B. The person must have at least completed secondary education.
8. Which of the following is NOT an example of insurable interest?
AEmployer in employee
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