TEXAS LIFE AND HEALTH INSURANCE
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS L LATEST
VERSION 2025/2026.
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - ANS 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 - ANS reserves
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have - ANS insurable interest
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called - ANS representations
The part of a life insurance policy guaranteed to be true is called a(n) - ANS warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Apparent - ANS Principal
The Consideration clause of an insurance contract includes - ANS 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? - ANS 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? -
ANS Unilateral
Insurance contracts are known as ____ because certain future conditions or acts must occur
before any claims can be paid. - ANS conditional
Which of these require an offer, acceptance, and consideration? - ANS Contract
Which of these is NOT considered to be an element of an insurance contract?
the offer
acceptance
negotiating
consideration - ANS negotiating
An agent is an individual that represents whom? - ANS Insurer
Which policy requires an agent to register with the National Association of Securities Dealers
(NASD) before selling? - ANS Variable Life
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
EXAM QUESTIONS WITH 100%
CORRECT ANSWERS L LATEST
VERSION 2025/2026.
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - ANS 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 - ANS reserves
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have - ANS insurable interest
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called - ANS representations
The part of a life insurance policy guaranteed to be true is called a(n) - ANS warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Apparent - ANS Principal
The Consideration clause of an insurance contract includes - ANS 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? - ANS 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? -
ANS Unilateral
Insurance contracts are known as ____ because certain future conditions or acts must occur
before any claims can be paid. - ANS conditional
Which of these require an offer, acceptance, and consideration? - ANS Contract
Which of these is NOT considered to be an element of an insurance contract?
the offer
acceptance
negotiating
consideration - ANS negotiating
An agent is an individual that represents whom? - ANS Insurer
Which policy requires an agent to register with the National Association of Securities Dealers
(NASD) before selling? - ANS Variable Life
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
