Texas Life and Health Insurance Exam
Question & Answers ( Latest 2025)
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - CORRECT 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 -
CORRECT ANSWERS ✔✔reserves
When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have - CORRECT
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 - CORRECT
ANSWERS ✔✔representations
The part of a life insurance policy guaranteed to be true is called a(n) -
CORRECT ANSWERS ✔✔warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
,Texas Life and Health Insurance Exam
Question & Answers ( Latest 2025)
Apparent - CORRECT ANSWERS ✔✔Principal
The Consideration clause of an insurance contract includes - CORRECT
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? - CORRECT 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? - CORRECT ANSWERS ✔✔Unilateral
Insurance contracts are known as ____ because certain future
conditions or acts must occur before any claims can be paid. - CORRECT
ANSWERS ✔✔conditional
Which of these require an offer, acceptance, and consideration? -
CORRECT ANSWERS ✔✔Contract
, Texas Life and Health Insurance Exam
Question & Answers ( Latest 2025)
Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration - CORRECT ANSWERS ✔✔negotiating
An agent is an individual that represents whom? - CORRECT ANSWERS
✔✔Insurer
Which policy requires an agent to register with the National Association
of Securities Dealers (NASD) before selling? - CORRECT ANSWERS
✔✔Variable Life
Which of the following actions require a policy owner to provide proof
of insurability in an Adjustable Life policy? - CORRECT 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? -
CORRECT ANSWERS ✔✔Conversion provision
Question & Answers ( Latest 2025)
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - CORRECT 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 -
CORRECT ANSWERS ✔✔reserves
When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have - CORRECT
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 - CORRECT
ANSWERS ✔✔representations
The part of a life insurance policy guaranteed to be true is called a(n) -
CORRECT ANSWERS ✔✔warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
,Texas Life and Health Insurance Exam
Question & Answers ( Latest 2025)
Apparent - CORRECT ANSWERS ✔✔Principal
The Consideration clause of an insurance contract includes - CORRECT
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? - CORRECT 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? - CORRECT ANSWERS ✔✔Unilateral
Insurance contracts are known as ____ because certain future
conditions or acts must occur before any claims can be paid. - CORRECT
ANSWERS ✔✔conditional
Which of these require an offer, acceptance, and consideration? -
CORRECT ANSWERS ✔✔Contract
, Texas Life and Health Insurance Exam
Question & Answers ( Latest 2025)
Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration - CORRECT ANSWERS ✔✔negotiating
An agent is an individual that represents whom? - CORRECT ANSWERS
✔✔Insurer
Which policy requires an agent to register with the National Association
of Securities Dealers (NASD) before selling? - CORRECT ANSWERS
✔✔Variable Life
Which of the following actions require a policy owner to provide proof
of insurability in an Adjustable Life policy? - CORRECT 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? -
CORRECT ANSWERS ✔✔Conversion provision
