Texas Life and Health Insurance Exam with accurate
|| || || || || || || ||
detailed solutions ||
What type of reinsurance contract involves two companies automatically sharing their risk
|| || || || || || || || || || || ||
exposure? - ✔✔Treaty || ||
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 - ✔✔reserves
|| || || || || || || || ||
When third-party ownership is involved, applicants who also happen to be the stated
|| || || || || || || || || || || || ||
primary beneficiary are required to have - ✔✔insurable interest
|| || || || || || || ||
Statements made on an insurance application that are believed to be true to the best of the
|| || || || || || || || || || || || || || || || ||
applicant's knowledge are called - ✔✔representations || || || || ||
The part of a life insurance policy guaranteed to be true is called a(n) - ✔✔warranty
|| || || || || || || || || || || || || || ||
Which of these is NOT a type of agent authority?
|| || || || || || || || ||
|| Express
|| Implied
|| Principal
|| Apparent - ✔✔Principal || ||
The Consideration clause of an insurance contract includes - ✔✔the schedule and amount
|| || || || || || || || || || || || ||
of premium payments
|| ||
,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. However, an insurable interest no longer exists. Where will
|| || || || || || || || || || || || || ||
the proceeds from E's life insurance policy be directed to? - ✔✔In this situation, the
|| || || || || || || || || || || || || || || ||
proceeds from E's life insurance policy will go to F.
|| || || || || || || || ||
Which term defines the legally enforceable promise in an insurance contract by the insurer?
|| || || || || || || || || || || || ||
- ✔✔Unilateral
|| ||
Insurance contracts are known as ____ because certain future conditions or acts must occur
|| || || || || || || || || || || || ||
before any claims can be paid. - ✔✔conditional
|| || || || || || || ||
Which of these require an offer, acceptance, and consideration? - ✔✔Contract
|| || || || || || || || || ||
Which of these is NOT considered to be an element of an insurance contract?
|| || || || || || || || || || || || ||
|| the offer ||
|| acceptance
|| negotiating
|| consideration - ✔✔negotiating || ||
An agent is an individual that represents whom? - ✔✔Insurer
|| || || || || || || || ||
Which policy requires an agent to register with the National Association of Securities
|| || || || || || || || || || || || ||
Dealers (NASD) before selling? - ✔✔Variable Life
|| || || || || ||
Which of the following actions require a policy owner to provide proof of insurability in an
|| || || || || || || || || || || || || || || ||
Adjustable Life policy? - ✔✔increase face amount || || || || || ||
, When a policy owner exchanges a term policy for a whole life policy without providing
|| || || || || || || || || || || || || || ||
proof of good health, which of these apply? - ✔✔Conversion provision
|| || || || || || || || || ||
What type of life insurance are credit policies issued as? - ✔✔Term
|| || || || || || || || || || ||
How long does the coverage normally remain on a limited-pay life policy? - ✔✔age 100
|| || || || || || || || || || || || || ||
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
|| || || || || || || || || || ||
- Cash value has a minimum rate of accumulation
|| || || || || || || ||
- If the gain on the index goes beyond the policy's minimum rate of return, the cash value
|| || || || || || || || || || || || || || || || || ||
will mirror that of the index
|| || || || ||
|| -The premiums can be lowered or raised, based on investment performance
|| || || || || || || || || ||
-Tied to an equity index such as the S&P 500 - ✔✔The premiums can be lowered or raised,
|| || || || || || || || || || || || || || || || || || ||
based on investment performance|| || ||
What type of life insurance incorporates flexible premiums and an adjustable death benefit?
|| || || || || || || || || || || || ||
- ✔✔Universal Life
|| ||
What type of life policy covers 2 lives and pays the face amount after the first one dies? -
|| || || || || || || || || || || || || || || || || || ||
✔✔Joint Life Policy || ||
Life insurance that covers an insured's whole life with level premiums paid over a limited
|| || || || || || || || || || || || || || ||
time is called - ✔✔Limited-Pay Life
|| || || || ||
What kind of life insurance product covers children under their parent's policy? - ✔✔Term
|| || || || || || || || || || || || || ||
rider
|| || || || || || || ||
detailed solutions ||
What type of reinsurance contract involves two companies automatically sharing their risk
|| || || || || || || || || || || ||
exposure? - ✔✔Treaty || ||
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 - ✔✔reserves
|| || || || || || || || ||
When third-party ownership is involved, applicants who also happen to be the stated
|| || || || || || || || || || || || ||
primary beneficiary are required to have - ✔✔insurable interest
|| || || || || || || ||
Statements made on an insurance application that are believed to be true to the best of the
|| || || || || || || || || || || || || || || || ||
applicant's knowledge are called - ✔✔representations || || || || ||
The part of a life insurance policy guaranteed to be true is called a(n) - ✔✔warranty
|| || || || || || || || || || || || || || ||
Which of these is NOT a type of agent authority?
|| || || || || || || || ||
|| Express
|| Implied
|| Principal
|| Apparent - ✔✔Principal || ||
The Consideration clause of an insurance contract includes - ✔✔the schedule and amount
|| || || || || || || || || || || || ||
of premium payments
|| ||
,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. However, an insurable interest no longer exists. Where will
|| || || || || || || || || || || || || ||
the proceeds from E's life insurance policy be directed to? - ✔✔In this situation, the
|| || || || || || || || || || || || || || || ||
proceeds from E's life insurance policy will go to F.
|| || || || || || || || ||
Which term defines the legally enforceable promise in an insurance contract by the insurer?
|| || || || || || || || || || || || ||
- ✔✔Unilateral
|| ||
Insurance contracts are known as ____ because certain future conditions or acts must occur
|| || || || || || || || || || || || ||
before any claims can be paid. - ✔✔conditional
|| || || || || || || ||
Which of these require an offer, acceptance, and consideration? - ✔✔Contract
|| || || || || || || || || ||
Which of these is NOT considered to be an element of an insurance contract?
|| || || || || || || || || || || || ||
|| the offer ||
|| acceptance
|| negotiating
|| consideration - ✔✔negotiating || ||
An agent is an individual that represents whom? - ✔✔Insurer
|| || || || || || || || ||
Which policy requires an agent to register with the National Association of Securities
|| || || || || || || || || || || || ||
Dealers (NASD) before selling? - ✔✔Variable Life
|| || || || || ||
Which of the following actions require a policy owner to provide proof of insurability in an
|| || || || || || || || || || || || || || || ||
Adjustable Life policy? - ✔✔increase face amount || || || || || ||
, When a policy owner exchanges a term policy for a whole life policy without providing
|| || || || || || || || || || || || || || ||
proof of good health, which of these apply? - ✔✔Conversion provision
|| || || || || || || || || ||
What type of life insurance are credit policies issued as? - ✔✔Term
|| || || || || || || || || || ||
How long does the coverage normally remain on a limited-pay life policy? - ✔✔age 100
|| || || || || || || || || || || || || ||
All of these statements about Equity Indexed Life Insurance are correct EXCEPT
|| || || || || || || || || || ||
- Cash value has a minimum rate of accumulation
|| || || || || || || ||
- If the gain on the index goes beyond the policy's minimum rate of return, the cash value
|| || || || || || || || || || || || || || || || || ||
will mirror that of the index
|| || || || ||
|| -The premiums can be lowered or raised, based on investment performance
|| || || || || || || || || ||
-Tied to an equity index such as the S&P 500 - ✔✔The premiums can be lowered or raised,
|| || || || || || || || || || || || || || || || || || ||
based on investment performance|| || ||
What type of life insurance incorporates flexible premiums and an adjustable death benefit?
|| || || || || || || || || || || || ||
- ✔✔Universal Life
|| ||
What type of life policy covers 2 lives and pays the face amount after the first one dies? -
|| || || || || || || || || || || || || || || || || || ||
✔✔Joint Life Policy || ||
Life insurance that covers an insured's whole life with level premiums paid over a limited
|| || || || || || || || || || || || || || ||
time is called - ✔✔Limited-Pay Life
|| || || || ||
What kind of life insurance product covers children under their parent's policy? - ✔✔Term
|| || || || || || || || || || || || || ||
rider
