Texas health and life insurance
(basic principles) Exam
Questions and Answers 100%
PASS
reserve - CORRECT ANSWER-funds held by the company to help fulfill
future claims
stock companies - CORRECT ANSWER-insurance companies owned and
controlled by a group of stockholders whose investment in the company
provides a safety margin necessary in issuance of guaranteed, fixed
premium, nonparticipating policies
nonparticipating plan - CORRECT ANSWER-insurance under which the
policy owner receives shares (dividends) of the divisible surplus of the
company
reinsurer - CORRECT ANSWER-a company that provides financial
protection to insurance companies
handle risks that are too large for insurance companies to handle on their
own
, fraternal Benefit Society - CORRECT ANSWER-a nonprofit or benevolent
organization that provides insurance to its members
agents who sell within their society do not receive commission & stay under
a specific premium threshold often have less stringent licensing
requirements
fair credit reporting act - CORRECT ANSWER-law requiring an individual to
be informed if she is being investigated by an inspection company
law outlines the sharing & impact of such information & requires
individuals to be notified prior to being investigated
buyers guide - CORRECT ANSWER-explains insurance policies and
concepts
many states require these to be given to applicants when considering types
of coverage
used with life insurance, long-term care insurance & annuities
policy summary - CORRECT ANSWER-summary of terms for an insurance
policy including: conditions, coverage limitations & premiums
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
(basic principles) Exam
Questions and Answers 100%
PASS
reserve - CORRECT ANSWER-funds held by the company to help fulfill
future claims
stock companies - CORRECT ANSWER-insurance companies owned and
controlled by a group of stockholders whose investment in the company
provides a safety margin necessary in issuance of guaranteed, fixed
premium, nonparticipating policies
nonparticipating plan - CORRECT ANSWER-insurance under which the
policy owner receives shares (dividends) of the divisible surplus of the
company
reinsurer - CORRECT ANSWER-a company that provides financial
protection to insurance companies
handle risks that are too large for insurance companies to handle on their
own
, fraternal Benefit Society - CORRECT ANSWER-a nonprofit or benevolent
organization that provides insurance to its members
agents who sell within their society do not receive commission & stay under
a specific premium threshold often have less stringent licensing
requirements
fair credit reporting act - CORRECT ANSWER-law requiring an individual to
be informed if she is being investigated by an inspection company
law outlines the sharing & impact of such information & requires
individuals to be notified prior to being investigated
buyers guide - CORRECT ANSWER-explains insurance policies and
concepts
many states require these to be given to applicants when considering types
of coverage
used with life insurance, long-term care insurance & annuities
policy summary - CORRECT ANSWER-summary of terms for an insurance
policy including: conditions, coverage limitations & premiums
© 2026 Copyright. All Rights Reserved. This document is
protected by copyright law
