7/30/25, 9:16 AM Texas Life and Health Insurance EXAM QUESTIONS WITH Detailed Answer Key For (2025|2026) Exam, A+ Solutions Flashcards |…
Texas Life and Health Insurance EXAM
QUESTIONS WITH Detailed Answer Key For
(2025|2026) Exam, A+ Solutions
Save
Terms in this set (227)
At what point must a life Upon completion of the application
insurance applicant be
informed of their rights
that fall under the Fair
Credit Reporting Act?
Who elects the governing policyholders
body of a mutual
insurance company?
An insurance applicant Fair Credit Reporting Act
MUST be informed of an
investigation regarding
his/her reputation and
character according to the
What type of reinsurance Treaty
contract involves two
companies automatically
sharing their risk
exposure?
https://quizlet.com/1062997299/texas-life-and-health-insurance-exam-questions-with-detailed-answer-key-for-20252026-exam-a-solutions-flash-card… 1/43
,7/30/25, 9:16 AM Texas Life and Health Insurance EXAM QUESTIONS WITH Detailed Answer Key For (2025|2026) Exam, A+ Solutions Flashcards |…
The stated amount or reserves
percent of liquid assets
that an insurer must have
on hand that will satisfy
future obligations to its
policyholders is called
Which of the following 1970 - Fair Credit Reporting Act
requires insurers to
disclose when an
applicant's consumer or
credit history is being
investigated
What is the consideration Promise to pay a death benefit
given by an insurer in the
Consideration clause of a
life policy?
When third-party insurable interest in the proposed insured
ownership is involved,
applicants who also
happen to be the stated
primary beneficiary are
required to have
Statements made on an representations
insurance application that
are believed to be true to
the best of the applicant's
knowledge are called
The part of a life insurance warranty
policy guaranteed to be
true is called a(n)
https://quizlet.com/1062997299/texas-life-and-health-insurance-exam-questions-with-detailed-answer-key-for-20252026-exam-a-solutions-flash-card… 2/43
,7/30/25, 9:16 AM Texas Life and Health Insurance EXAM QUESTIONS WITH Detailed Answer Key For (2025|2026) Exam, A+ Solutions Flashcards |…
Which of these is NOT a Principal
type of agent authority?
Express
Implied
Principal
Apparent
The Consideration clause the schedule and amount of premium payments
of an insurance contract
includes
E and F are business In this situation, the proceeds from E's life insurance
partners. Each takes out a policy will go to F.
$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?
Which of the following Unilateral
terms defines the legally
enforceable promise in an
insurance contract by the
insurer?
https://quizlet.com/1062997299/texas-life-and-health-insurance-exam-questions-with-detailed-answer-key-for-20252026-exam-a-solutions-flash-card… 3/43
, 7/30/25, 9:16 AM Texas Life and Health Insurance EXAM QUESTIONS WITH Detailed Answer Key For (2025|2026) Exam, A+ Solutions Flashcards |…
When must insurable Inception of the contract
interest exist for a life
insurance contract to be
valid?
Insurance contracts are conditional
known as ____ because
certain future conditions
or acts must occur before
any claims can be paid.
Which of these require an Contract
offer, acceptance, and
consideration?
Investor-Originated Life Insurance
Investor-originated life insurance (or IOLI), sometimes
called stranger-originated life insurance (or STOLI) is
Which of these
used to circumvent state insurable interest statutes.
arrangements allows one
This is done when an investor (or stranger) persuades
to bypass insurable
an individual to take out life insurance specifically for
interest laws?
the purpose of selling the policy to the investor. The
investor compensates the insured and makes the
premiums, then collects the death benefit when the
insured dies.
Which of these is NOT negotiating
considered to be an
element of an insurance
contract?
the offer
acceptance
negotiating
consideration
An agent is an individual Insurer
that represents whom?
https://quizlet.com/1062997299/texas-life-and-health-insurance-exam-questions-with-detailed-answer-key-for-20252026-exam-a-solutions-flash-card… 4/43
Texas Life and Health Insurance EXAM
QUESTIONS WITH Detailed Answer Key For
(2025|2026) Exam, A+ Solutions
Save
Terms in this set (227)
At what point must a life Upon completion of the application
insurance applicant be
informed of their rights
that fall under the Fair
Credit Reporting Act?
Who elects the governing policyholders
body of a mutual
insurance company?
An insurance applicant Fair Credit Reporting Act
MUST be informed of an
investigation regarding
his/her reputation and
character according to the
What type of reinsurance Treaty
contract involves two
companies automatically
sharing their risk
exposure?
https://quizlet.com/1062997299/texas-life-and-health-insurance-exam-questions-with-detailed-answer-key-for-20252026-exam-a-solutions-flash-card… 1/43
,7/30/25, 9:16 AM Texas Life and Health Insurance EXAM QUESTIONS WITH Detailed Answer Key For (2025|2026) Exam, A+ Solutions Flashcards |…
The stated amount or reserves
percent of liquid assets
that an insurer must have
on hand that will satisfy
future obligations to its
policyholders is called
Which of the following 1970 - Fair Credit Reporting Act
requires insurers to
disclose when an
applicant's consumer or
credit history is being
investigated
What is the consideration Promise to pay a death benefit
given by an insurer in the
Consideration clause of a
life policy?
When third-party insurable interest in the proposed insured
ownership is involved,
applicants who also
happen to be the stated
primary beneficiary are
required to have
Statements made on an representations
insurance application that
are believed to be true to
the best of the applicant's
knowledge are called
The part of a life insurance warranty
policy guaranteed to be
true is called a(n)
https://quizlet.com/1062997299/texas-life-and-health-insurance-exam-questions-with-detailed-answer-key-for-20252026-exam-a-solutions-flash-card… 2/43
,7/30/25, 9:16 AM Texas Life and Health Insurance EXAM QUESTIONS WITH Detailed Answer Key For (2025|2026) Exam, A+ Solutions Flashcards |…
Which of these is NOT a Principal
type of agent authority?
Express
Implied
Principal
Apparent
The Consideration clause the schedule and amount of premium payments
of an insurance contract
includes
E and F are business In this situation, the proceeds from E's life insurance
partners. Each takes out a policy will go to F.
$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?
Which of the following Unilateral
terms defines the legally
enforceable promise in an
insurance contract by the
insurer?
https://quizlet.com/1062997299/texas-life-and-health-insurance-exam-questions-with-detailed-answer-key-for-20252026-exam-a-solutions-flash-card… 3/43
, 7/30/25, 9:16 AM Texas Life and Health Insurance EXAM QUESTIONS WITH Detailed Answer Key For (2025|2026) Exam, A+ Solutions Flashcards |…
When must insurable Inception of the contract
interest exist for a life
insurance contract to be
valid?
Insurance contracts are conditional
known as ____ because
certain future conditions
or acts must occur before
any claims can be paid.
Which of these require an Contract
offer, acceptance, and
consideration?
Investor-Originated Life Insurance
Investor-originated life insurance (or IOLI), sometimes
called stranger-originated life insurance (or STOLI) is
Which of these
used to circumvent state insurable interest statutes.
arrangements allows one
This is done when an investor (or stranger) persuades
to bypass insurable
an individual to take out life insurance specifically for
interest laws?
the purpose of selling the policy to the investor. The
investor compensates the insured and makes the
premiums, then collects the death benefit when the
insured dies.
Which of these is NOT negotiating
considered to be an
element of an insurance
contract?
the offer
acceptance
negotiating
consideration
An agent is an individual Insurer
that represents whom?
https://quizlet.com/1062997299/texas-life-and-health-insurance-exam-questions-with-detailed-answer-key-for-20252026-exam-a-solutions-flash-card… 4/43
