Texas Health and Life Insurance
ExamFX Questions and Answers
100% PASS
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. - CORRECT ANSWER-A.To Allow
the consumer to compare the costs of different policies
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 - CORRECT ANSWER-D. Aleatory
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. - CORRECT ANSWER-BIt is
intended to provide coverage on a date earlier than the date of the issuance of the
policy.
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 - CORRECT ANSWER-B.
The application given to a prospective insured.
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 - CORRECT ANSWER-C. Inspection
Report
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 - CORRECT ANSWER-D As of the application date.
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. - CORRECT ANSWER-B. The person must
have at least completed secondary education.
Which of the following is NOT an example of insurable interest?
AEmployer in employee
BChild in parent
CDebtor in creditor
DBusiness partners in each other - CORRECT ANSWER-C. Debtor in creditor
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated?
ARepresentation
BAdhesion
CConsideration
DGood faith - CORRECT ANSWER-C. Consideration
Which of the following includes information regarding a person's credit, character,
reputation, and habits?
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
ExamFX Questions and Answers
100% PASS
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. - CORRECT ANSWER-A.To Allow
the consumer to compare the costs of different policies
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 - CORRECT ANSWER-D. Aleatory
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. - CORRECT ANSWER-BIt is
intended to provide coverage on a date earlier than the date of the issuance of the
policy.
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
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
,DThe premium amount paid at the time of application - CORRECT ANSWER-B.
The application given to a prospective insured.
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 - CORRECT ANSWER-C. Inspection
Report
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 - CORRECT ANSWER-D As of the application date.
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. - CORRECT ANSWER-B. The person must
have at least completed secondary education.
Which of the following is NOT an example of insurable interest?
AEmployer in employee
BChild in parent
CDebtor in creditor
DBusiness partners in each other - CORRECT ANSWER-C. Debtor in creditor
An insurer neglects to pay a legitimate claim that is covered under the terms of the
policy. Which of the following insurance principles has the insurer violated?
ARepresentation
BAdhesion
CConsideration
DGood faith - CORRECT ANSWER-C. Consideration
Which of the following includes information regarding a person's credit, character,
reputation, and habits?
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
