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TEXAS LIFE AND HEALTH INSURANCE EXAM
2026| BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. What type of reinsurance contract involves two companies automatically
sharing their risk exposure? - correct answer - Treaty
2. 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 -
correct answer - reserves
3. When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have - correct answer -
insurable interest
4. Statements made on an insurance application that are believed to be
true to the best of the applicant's knowledge are called - correct answer
- representations
5. The part of a life insurance policy guaranteed to be true is called a(n) -
correct answer - warranty
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6. Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - correct answer - Principal
7. The Consideration clause of an insurance contract includes - correct
answer - the schedule and amount of premium payments
8. 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? - correct answer - In this situation, the proceeds from E's life
insurance policy will go to F.
9. Which term defines the legally enforceable promise in an insurance
contract by the insurer? - correct answer - Unilateral
10. Insurance contracts are known as because certain future
conditions or acts must occur before any claims can be paid. - correct
answer - conditional
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11. Which of these require an offer, acceptance, and consideration? -
correct answer - Contract
12. Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration - correct answer - negotiating
13. An agent is an individual that represents whom? - correct answer -
Insurer
14. Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling? - correct
answer - Variable Life
15. Which of the following actions require a policy owner to provide proof
of insurability in an Adjustable Life policy? - correct answer - increase
face amount
TEXAS LIFE AND HEALTH INSURANCE EXAM
2026| BRAND NEW ACTUAL EXAM WITH 100%
VERIFIED QUESTIONS AND CORRECT
SOLUTIONS| GUARANTEED VALUE PACK| ACE
YOUR GRADES.
1. What type of reinsurance contract involves two companies automatically
sharing their risk exposure? - correct answer - Treaty
2. 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 -
correct answer - reserves
3. When third-party ownership is involved, applicants who also happen to
be the stated primary beneficiary are required to have - correct answer -
insurable interest
4. Statements made on an insurance application that are believed to be
true to the best of the applicant's knowledge are called - correct answer
- representations
5. The part of a life insurance policy guaranteed to be true is called a(n) -
correct answer - warranty
, Page | 2
6. Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent - correct answer - Principal
7. The Consideration clause of an insurance contract includes - correct
answer - the schedule and amount of premium payments
8. 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? - correct answer - In this situation, the proceeds from E's life
insurance policy will go to F.
9. Which term defines the legally enforceable promise in an insurance
contract by the insurer? - correct answer - Unilateral
10. Insurance contracts are known as because certain future
conditions or acts must occur before any claims can be paid. - correct
answer - conditional
, Page | 3
11. Which of these require an offer, acceptance, and consideration? -
correct answer - Contract
12. Which of these is NOT considered to be an element of an insurance
contract?
the offer
acceptance
negotiating
consideration - correct answer - negotiating
13. An agent is an individual that represents whom? - correct answer -
Insurer
14. Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling? - correct
answer - Variable Life
15. Which of the following actions require a policy owner to provide proof
of insurability in an Adjustable Life policy? - correct answer - increase
face amount
