TEXAS LIFEANDHEALTH INSURANCE
n n n n n
EXAM | QUESTIONS &ANSWERS (VERIF
n n n n n
IED) |LATESTUPDATE|GRADED A+
n n n n n n
Atnwhatnpointnmustnanlifeninsurancenapplicantnbeninformednof ntheirnrightsnthatnfall nundernthe
n FairnCreditnReportingnAct?
CorrectnAnswer: Upon ncompletion nof nthenapplication
Whonelectsnthengoverningnbodynof nanmutual ninsurancencompany?
CorrectnAnswer: policyholders
An ninsurancenapplicantnMUSTnbeninformednofnanninvestigationnregardingnhis/hernreputatio
n nandncharacternaccordingntonthe
CorrectnAnswer: FairnCreditnReportingnAct
Whatntypenof nreinsurancencontractninvolvesntwoncompaniesnautomaticallynsharingntheirnris
knexposure?
CorrectnAnswer: Treaty
1
,Thenstatednamountnornpercentnof nliquidnassetsnthatnanninsurernmustnhavenonnhandnthatnwilln
satisfynfuturenobligationsntonitsnpolicyholdersnisncalled
CorrectnAnswer: reserves
Which nofnthenfollowingnrequiresninsurersntondisclosenwhennannapplicant'snconsumernorncre
ditnhistorynisnbeingninvestigated
CorrectnAnswer: 1970n-nFairnCreditnReportingnAct
WhatnisnthenconsiderationngivennbynanninsurerninnthenConsiderationnclausenofnanlifenpolicy?
CorrectnAnswer: Promisentonpaynandeath nbenefit
When nthird-
partynownershipnisninvolved,napplicantsnwhonalsonhappenntonbenthenstatednprimarynbenefic
iarynarenrequiredntonhave
CorrectnAnswer: insurableninterestnin nthenproposedninsured
Statementsnmadenon nanninsurancenapplicationnthatnarenbelievedntonbentruentonthenbestnof nt
henapplicant'snknowledgenarencalled
CorrectnAnswer: representations
Thenpartnof nanlifeninsurancenpolicynguaranteedntonbentruenisncalledna(n)
CorrectnAnswer: warranty
Which nof nthesenisnNOTnantypenof nagentnauthority?
2
,ExpressnI
mpliednP
rincipal nA
pparent
CorrectnAnswer: Principal
ThenConsideration nclausenof nan ninsurancencontractnincludes
CorrectnAnswer: thenschedulenandnamountnof npremiumnpayments
EnandnFnarenbusinessnpartners.nEachntakesnoutnan$500,000nlifeninsurancenpolicynon nthenot
her,nnamingnhimselfnasnprimarynbeneficiary.nEnandnFneventuallynterminatentheirnbusiness,n
andnfournmonthsnlaternEndies.nAlthoughnEnwasnmarriednwithnthreenchildren natnthentimenof nd
eath,nthenprimarynbeneficiarynisnstill nF.nHowever,nan ninsurableninterestnnonlongernexists.nW
herenwill nthenproceedsnfromnE'snlifeninsurancenpolicynbendirectednto?
CorrectnAnswer:
In nthisnsituation,nthenproceedsnfromnE'snlifeninsurancenpolicynwillngonton
F.
Which nofnthenfollowingntermsndefinesnthenlegallynenforceablenpromiseninnanninsurancencont
ractnbyntheninsurer?
CorrectnAnswer: Unilateral
When nmustninsurableninterestnexistnfornanlifeninsurancencontractntonbenvalid?
CorrectnAnswer: Inception nof nthencontract
, 3
n n n n n
EXAM | QUESTIONS &ANSWERS (VERIF
n n n n n
IED) |LATESTUPDATE|GRADED A+
n n n n n n
Atnwhatnpointnmustnanlifeninsurancenapplicantnbeninformednof ntheirnrightsnthatnfall nundernthe
n FairnCreditnReportingnAct?
CorrectnAnswer: Upon ncompletion nof nthenapplication
Whonelectsnthengoverningnbodynof nanmutual ninsurancencompany?
CorrectnAnswer: policyholders
An ninsurancenapplicantnMUSTnbeninformednofnanninvestigationnregardingnhis/hernreputatio
n nandncharacternaccordingntonthe
CorrectnAnswer: FairnCreditnReportingnAct
Whatntypenof nreinsurancencontractninvolvesntwoncompaniesnautomaticallynsharingntheirnris
knexposure?
CorrectnAnswer: Treaty
1
,Thenstatednamountnornpercentnof nliquidnassetsnthatnanninsurernmustnhavenonnhandnthatnwilln
satisfynfuturenobligationsntonitsnpolicyholdersnisncalled
CorrectnAnswer: reserves
Which nofnthenfollowingnrequiresninsurersntondisclosenwhennannapplicant'snconsumernorncre
ditnhistorynisnbeingninvestigated
CorrectnAnswer: 1970n-nFairnCreditnReportingnAct
WhatnisnthenconsiderationngivennbynanninsurerninnthenConsiderationnclausenofnanlifenpolicy?
CorrectnAnswer: Promisentonpaynandeath nbenefit
When nthird-
partynownershipnisninvolved,napplicantsnwhonalsonhappenntonbenthenstatednprimarynbenefic
iarynarenrequiredntonhave
CorrectnAnswer: insurableninterestnin nthenproposedninsured
Statementsnmadenon nanninsurancenapplicationnthatnarenbelievedntonbentruentonthenbestnof nt
henapplicant'snknowledgenarencalled
CorrectnAnswer: representations
Thenpartnof nanlifeninsurancenpolicynguaranteedntonbentruenisncalledna(n)
CorrectnAnswer: warranty
Which nof nthesenisnNOTnantypenof nagentnauthority?
2
,ExpressnI
mpliednP
rincipal nA
pparent
CorrectnAnswer: Principal
ThenConsideration nclausenof nan ninsurancencontractnincludes
CorrectnAnswer: thenschedulenandnamountnof npremiumnpayments
EnandnFnarenbusinessnpartners.nEachntakesnoutnan$500,000nlifeninsurancenpolicynon nthenot
her,nnamingnhimselfnasnprimarynbeneficiary.nEnandnFneventuallynterminatentheirnbusiness,n
andnfournmonthsnlaternEndies.nAlthoughnEnwasnmarriednwithnthreenchildren natnthentimenof nd
eath,nthenprimarynbeneficiarynisnstill nF.nHowever,nan ninsurableninterestnnonlongernexists.nW
herenwill nthenproceedsnfromnE'snlifeninsurancenpolicynbendirectednto?
CorrectnAnswer:
In nthisnsituation,nthenproceedsnfromnE'snlifeninsurancenpolicynwillngonton
F.
Which nofnthenfollowingntermsndefinesnthenlegallynenforceablenpromiseninnanninsurancencont
ractnbyntheninsurer?
CorrectnAnswer: Unilateral
When nmustninsurableninterestnexistnfornanlifeninsurancencontractntonbenvalid?
CorrectnAnswer: Inception nof nthencontract
, 3
