Texas Life and Health Insurance Exa.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
Texas Life and Health Insurance Exam
Questions & Answers
1. What type of reinsurance contract involves two companies automatically
sharing their risk exposure?
Answer Treaty
2. 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
3. When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have
Answer insurable interest
4. Statements made on an insurance application that are believed to be trueto
the best of the applicant's knowledge are called
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,Texas Life and Health Insurance Exa.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
Answer representations
5. The part of a life insurance policy guaranteed to be true is called a(n)
Answer war-ranty
6. Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent
Answer Principal
7. The Consideration clause of an insurance contract includes
Answer the scheduleand amount of premium payments
8. 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.
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,Texas Life and Health Insurance Exa.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
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'slife insurance policy will go to F.
9. Which term defines the legally enforceable promise in an insurance contractby
the insurer?
Answer Unilateral
10. Insurance contracts are known as because certain future conditions
or acts must occur before any claims can be paid.
Answer conditional
11. Which of these require an offer, acceptance, and consideration?
Answer Contract
12. Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
3/9
3 of 28 12/16/2024, 5:42
Texas Life and Health Insurance Exam
Questions & Answers
1. What type of reinsurance contract involves two companies automatically
sharing their risk exposure?
Answer Treaty
2. 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
3. When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have
Answer insurable interest
4. Statements made on an insurance application that are believed to be trueto
the best of the applicant's knowledge are called
1/9
1 of 28 12/16/2024, 5:42
,Texas Life and Health Insurance Exa.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
Answer representations
5. The part of a life insurance policy guaranteed to be true is called a(n)
Answer war-ranty
6. Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent
Answer Principal
7. The Consideration clause of an insurance contract includes
Answer the scheduleand amount of premium payments
8. 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.
2/9
2 of 28 12/16/2024, 5:42
,Texas Life and Health Insurance Exa.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
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'slife insurance policy will go to F.
9. Which term defines the legally enforceable promise in an insurance contractby
the insurer?
Answer Unilateral
10. Insurance contracts are known as because certain future conditions
or acts must occur before any claims can be paid.
Answer conditional
11. Which of these require an offer, acceptance, and consideration?
Answer Contract
12. Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
3/9
3 of 28 12/16/2024, 5:42
