Texas Life and Health Insurance Exam-.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
Texas Life and Health Insurance Exam
Questions & Answers
1. 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
2. Who elects the governing body of a mutual insurance company?
Answer policyhold-ers
3. An insurance applicant MUST be informed of an investigation regarding
his/her reputation and character according to the
Answer Fair Credit Reporting Act
4. What type of reinsurance contract involves two companies automatically
sharing their risk exposure?
Answer Treaty
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,Texas Life and Health Insurance Exam-.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
5. 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
6. Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated
Answer 1970 - Fair Credit ReportingAct
7. What is the consideration given by an insurer in the Consideration clauseof
a life policy?
Answer Promise to pay a death benefit
8. 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
9. 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 Exam-.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
Answer representations
10. The part of a life insurance policy guaranteed to be true is called a(n)
Answer war-ranty
11. Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent
Answer Principal
12. The Consideration clause of an insurance contract includes
Answer the scheduleand amount of premium payments
13. 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 Exam-.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.
14. Which of the following terms defines the legally enforceable promise in an
insurance contract by the insurer?
Answer Unilateral
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Texas Life and Health Insurance Exam
Questions & Answers
1. 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
2. Who elects the governing body of a mutual insurance company?
Answer policyhold-ers
3. An insurance applicant MUST be informed of an investigation regarding
his/her reputation and character according to the
Answer Fair Credit Reporting Act
4. What type of reinsurance contract involves two companies automatically
sharing their risk exposure?
Answer Treaty
1 of 51 12/16/2024, 5:42
,Texas Life and Health Insurance Exam-.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
5. 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
6. Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated
Answer 1970 - Fair Credit ReportingAct
7. What is the consideration given by an insurer in the Consideration clauseof
a life policy?
Answer Promise to pay a death benefit
8. 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
9. Statements made on an insurance application that are believed to be trueto
the best of the applicant's knowledge are called
2 of 51 12/16/2024, 5:42
,Texas Life and Health Insurance Exam-.pdf file:///C:/Users/HP/Desktop/New%20folder/Texas%20Life%20and%2
Answer representations
10. The part of a life insurance policy guaranteed to be true is called a(n)
Answer war-ranty
11. Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent
Answer Principal
12. The Consideration clause of an insurance contract includes
Answer the scheduleand amount of premium payments
13. 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.
3 of 51 12/16/2024, 5:42
,Texas Life and Health Insurance Exam-.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.
14. Which of the following terms defines the legally enforceable promise in an
insurance contract by the insurer?
Answer Unilateral
4 of 51 12/16/2024, 5:42
