Texas Life And Health Insurance Exam
Texas Life and Health Insurance Exam Questions
And Answers.
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - ✔️✔️✔️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 - ✔️✔️✔️reserves
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have - ✔️✔️✔️insurable interest
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called - ✔️✔️✔️representations
The part of a life insurance policy guaranteed to be true is called a(n) - ✔️✔️✔️warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - ✔️✔️✔️Principal
The Consideration clause of an insurance contract includes - ✔️✔️✔️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
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, Texas Life And Health Insurance Exam
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? - ✔️✔️✔️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?
- ✔️✔️✔️Unilateral
Insurance contracts are known as ____ because certain future conditions or acts must occur
before any claims can be paid. - ✔️✔️✔️conditional
Which of these require an offer, acceptance, and consideration? - ✔️✔️✔️Contract
Which of these is NOT considered to be an element of an insurance contract?
the offer
acceptance
negotiating
consideration - ✔️✔️✔️negotiating
An agent is an individual that represents whom? - ✔️✔️✔️Insurer
Which policy requires an agent to register with the National Association of Securities
Dealers (NASD) before selling? - ✔️✔️✔️Variable Life
Which of the following actions require a policy owner to provide proof of insurability in an
Adjustable Life policy? - ✔️✔️✔️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? - ✔️✔️✔️Conversion provision
Texas Life And Health Insurance Exam Page 2
Texas Life and Health Insurance Exam Questions
And Answers.
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - ✔️✔️✔️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 - ✔️✔️✔️reserves
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have - ✔️✔️✔️insurable interest
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called - ✔️✔️✔️representations
The part of a life insurance policy guaranteed to be true is called a(n) - ✔️✔️✔️warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - ✔️✔️✔️Principal
The Consideration clause of an insurance contract includes - ✔️✔️✔️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
Texas Life And Health Insurance Exam Page 1
, Texas Life And Health Insurance Exam
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? - ✔️✔️✔️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?
- ✔️✔️✔️Unilateral
Insurance contracts are known as ____ because certain future conditions or acts must occur
before any claims can be paid. - ✔️✔️✔️conditional
Which of these require an offer, acceptance, and consideration? - ✔️✔️✔️Contract
Which of these is NOT considered to be an element of an insurance contract?
the offer
acceptance
negotiating
consideration - ✔️✔️✔️negotiating
An agent is an individual that represents whom? - ✔️✔️✔️Insurer
Which policy requires an agent to register with the National Association of Securities
Dealers (NASD) before selling? - ✔️✔️✔️Variable Life
Which of the following actions require a policy owner to provide proof of insurability in an
Adjustable Life policy? - ✔️✔️✔️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? - ✔️✔️✔️Conversion provision
Texas Life And Health Insurance Exam Page 2
