Texas Life and Health Insurance
Exam 150 Questions and Answers
(Verified Solutions) TEXAS LIFE
LATEST UPDATE GRADED A+ At what point
must a life insurance applicant be informed of their rights that fall under
the Fair Credit Reporting Act? - ANSWER>>Upon completion of the
application
Who elects the governing body of a mutual insurance company? -
ANSWER>>policyholders
An insurance applicant MUST be informed of an investigation regarding
his/her
reputation and character according to the - ANSWER>>Fair Credit Reporting
Act
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
Which of the following requires insurers to disclose when an applicant's
consumer or
credit history is being investigated - ANSWER>>1970 - Fair Credit Reporting
Act
What is the consideration given by an insurer in the Consideration clause of a
life
policy? - ANSWER>>Promise to pay a death benefit
,When third-party ownership is involved, applicants who also happen to be the
stated
primary beneficiary are required to have - ANSWER>>insurable interest in
the proposed
insured
,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
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 of the following terms defines the legally enforceable promise in an
insurance contract by the insurer? - ANSWER>>Unilateral
When must insurable interest exist for a life insurance contract to
be valid? - ANSWER>>Inception of the contract
, Insurance contracts are known as ____ because certain future conditions or
acts must occur before any claims can be paid. - ANSWER>>conditional
Exam 150 Questions and Answers
(Verified Solutions) TEXAS LIFE
LATEST UPDATE GRADED A+ At what point
must a life insurance applicant be informed of their rights that fall under
the Fair Credit Reporting Act? - ANSWER>>Upon completion of the
application
Who elects the governing body of a mutual insurance company? -
ANSWER>>policyholders
An insurance applicant MUST be informed of an investigation regarding
his/her
reputation and character according to the - ANSWER>>Fair Credit Reporting
Act
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
Which of the following requires insurers to disclose when an applicant's
consumer or
credit history is being investigated - ANSWER>>1970 - Fair Credit Reporting
Act
What is the consideration given by an insurer in the Consideration clause of a
life
policy? - ANSWER>>Promise to pay a death benefit
,When third-party ownership is involved, applicants who also happen to be the
stated
primary beneficiary are required to have - ANSWER>>insurable interest in
the proposed
insured
,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
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 of the following terms defines the legally enforceable promise in an
insurance contract by the insurer? - ANSWER>>Unilateral
When must insurable interest exist for a life insurance contract to
be valid? - ANSWER>>Inception of the contract
, Insurance contracts are known as ____ because certain future conditions or
acts must occur before any claims can be paid. - ANSWER>>conditional
