Texas Life and Health Insurance Exam (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?