TEXAS LIFE INSURANCE EXAM FULL
QUESTIONS AND CORRECT ANSWERS
CERTIFICATION EVALUATION SET
UPDATED RESOURCE
⩥ Passing Score.
Answer: 70%
⩥ Time Limit.
Answer: 2 Hours
⩥ Exam Fee.
Answer: ~$50
⩥ Insurance.
Answer: Risk Transfer. The policyholder pays premiums, and the insurer
promises to pay a death benefit.
⩥ Pure Risk.
Answer: Insurable, only loss
⩥ Speculative Risk.
, Answer: Gambling, not insurable
⩥ Stock Companies.
Answer: Owned by shareholders
⩥ Mutual Companies.
Answer: Owned by policyholders
⩥ Fraternal Insurers.
Answer: Nonprofit, religious/org-based
⩥ Self-Insurers.
Answer: Big companies funding their own risks
⩥ Law of Large Numbers.
Answer: The more people insured, the easier it is to predict losses.
⩥ Adverse Selection.
Answer: High-risk people (e.g., sick individuals) are more likely to
apply for insurance, so insurers use underwriting to avoid losses.
⩥ Term Life Insurance.
QUESTIONS AND CORRECT ANSWERS
CERTIFICATION EVALUATION SET
UPDATED RESOURCE
⩥ Passing Score.
Answer: 70%
⩥ Time Limit.
Answer: 2 Hours
⩥ Exam Fee.
Answer: ~$50
⩥ Insurance.
Answer: Risk Transfer. The policyholder pays premiums, and the insurer
promises to pay a death benefit.
⩥ Pure Risk.
Answer: Insurable, only loss
⩥ Speculative Risk.
, Answer: Gambling, not insurable
⩥ Stock Companies.
Answer: Owned by shareholders
⩥ Mutual Companies.
Answer: Owned by policyholders
⩥ Fraternal Insurers.
Answer: Nonprofit, religious/org-based
⩥ Self-Insurers.
Answer: Big companies funding their own risks
⩥ Law of Large Numbers.
Answer: The more people insured, the easier it is to predict losses.
⩥ Adverse Selection.
Answer: High-risk people (e.g., sick individuals) are more likely to
apply for insurance, so insurers use underwriting to avoid losses.
⩥ Term Life Insurance.
