1|Page
TEXAS LIFE AND HEALTH INSURANCE EXAM 2026
BANK 2 VERSIONS AND STUDY GUIDE CURRENTLY
TESTING COMPLETE VERIFIED EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS /EXPERT
VERIFIED /ALREADY GRADED A+||NEWEST EXAM!!!
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - Answer-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 - Answer-reserves
When third-party ownership is involved, applicants who
also happen to be the stated primary beneficiary are
required to have - Answer-insurable interest
Statements made on an insurance application that are
believed to be true to the best of the applicant's knowledge
are called - Answer-representations
The part of a life insurance policy guaranteed to be true is
called a(n) - Answer-warranty
,2|Page
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - Answer-Principal
The Consideration clause of an insurance contract
includes - Answer-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? - Answer-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? - Answer-Unilateral
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Insurance contracts are known as ____ because certain
future conditions or acts must occur before any claims can
be paid. - Answer-conditional
Which of these require an offer, acceptance, and
consideration? - Answer-Contract
Which of these is NOT considered to be an element of an
insurance contract?
the offer
acceptance
negotiating
consideration - Answer-negotiating
An agent is an individual that represents whom? - Answer-
Insurer
Which policy requires an agent to register with the
National Association of Securities Dealers (NASD) before
selling? - Answer-Variable Life
TEXAS LIFE AND HEALTH INSURANCE EXAM 2026
BANK 2 VERSIONS AND STUDY GUIDE CURRENTLY
TESTING COMPLETE VERIFIED EXAM QUESTIONS
WITH DETAILED VERIFIED ANSWERS /EXPERT
VERIFIED /ALREADY GRADED A+||NEWEST EXAM!!!
What type of reinsurance contract involves two companies
automatically sharing their risk exposure? - Answer-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 - Answer-reserves
When third-party ownership is involved, applicants who
also happen to be the stated primary beneficiary are
required to have - Answer-insurable interest
Statements made on an insurance application that are
believed to be true to the best of the applicant's knowledge
are called - Answer-representations
The part of a life insurance policy guaranteed to be true is
called a(n) - Answer-warranty
,2|Page
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - Answer-Principal
The Consideration clause of an insurance contract
includes - Answer-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? - Answer-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? - Answer-Unilateral
, 3|Page
Insurance contracts are known as ____ because certain
future conditions or acts must occur before any claims can
be paid. - Answer-conditional
Which of these require an offer, acceptance, and
consideration? - Answer-Contract
Which of these is NOT considered to be an element of an
insurance contract?
the offer
acceptance
negotiating
consideration - Answer-negotiating
An agent is an individual that represents whom? - Answer-
Insurer
Which policy requires an agent to register with the
National Association of Securities Dealers (NASD) before
selling? - Answer-Variable Life
