Texas Health and Life Insurance ExamFX (2026)
comprehensive questions and verified detailed
solutions ( MULTIPLE CHOICES) |100% CORRECT!!
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Terms in this set (339)
What is the purpose of the buyer's A.To Allow the consumer to compare the costs of
guide? different policies
A.To Allow the consumer to compare
the costs of different policies
B. To provide the name and address
of the agent.
C. to list all policy riders.
D. To provide information about the
policy.
Which of the following best D. Aleatory
describes the concept that the
insured pays a small amount of
premium for a large amount of risk
on the part of the insurance
company?
AAdhesion
BSubrogation
CWarranty
DAleatory
,What is the purpose of a conditional BIt is intended to provide coverage on a date
receipt? earlier than the date of the issuance of the policy.
AIt is given by the agent only to
applicants who fully prepay all
scheduled premiums in advance of
policy issue.
BIt is intended to provide coverage
on a date earlier than the date of the
issuance of the policy.
CIt guarantees the applicant that a
policy will be issued in the amount
applied for in the application.
DIt serves as proof that the agent
has determined the applicant to be
fully insurable for coverage by the
insurance company.
Which of the following is NOT the B. The application given to a prospective insured.
consideration in a policy?
AThe promise to pay covered losses
BThe application given to a
prospective insured
CSomething of value exchanged
between parties
DThe premium amount paid at the
time of application
,An insurer receives a report C. Inspection Report
regarding a potential insured that
includes the insured's financial status,
hobbies and habits. What type of a
report is that?
AAgent's Report
BUnderwriter's Report
CInspection Report
DMedical Information Bureau's
report
The full premium was submitted with D As of the application date.
the application for life insurance, and
the policy was issued two weeks
later as requested. When does the
policy coverage become effective?
AAs of the policy delivery date
BAs of the first of the month after the
policy issue
CAs of the policy issue date
DAs of the application date
In terms of parties to a contract, B. The person must have at least completed
which of the following does NOT secondary education.
describe a competent party?
AThe person must be mentally
competent to understand the
contract.
BThe person must have at least
completed secondary education.
CThe person must not be under the
influence of drugs or alcohol.
DThe person must be of legal age.
, Which of the following is NOT an C. Debtor in creditor
example of insurable interest?
AEmployer in employee
BChild in parent
CDebtor in creditor
DBusiness partners in each other
An insurer neglects to pay a C. Consideration
legitimate claim that is covered
under the terms of the policy. Which
of the following insurance principles
has the insurer violated?
ARepresentation
BAdhesion
CConsideration
DGood faith
Which of the following includes D. Consumer Report
information regarding a person's
credit, character, reputation, and
habits?
AConsumer history
BInsurability report
CAgent's report
DConsumer report
Because an insurance policy is a D. Conditions
legal contract, it must conform to the
state laws governing contracts which
require all of the following elements
EXCEPT
AConsideration.
BLegal purpose.
COffer and acceptance.
DConditions.
comprehensive questions and verified detailed
solutions ( MULTIPLE CHOICES) |100% CORRECT!!
Save
Terms in this set (339)
What is the purpose of the buyer's A.To Allow the consumer to compare the costs of
guide? different policies
A.To Allow the consumer to compare
the costs of different policies
B. To provide the name and address
of the agent.
C. to list all policy riders.
D. To provide information about the
policy.
Which of the following best D. Aleatory
describes the concept that the
insured pays a small amount of
premium for a large amount of risk
on the part of the insurance
company?
AAdhesion
BSubrogation
CWarranty
DAleatory
,What is the purpose of a conditional BIt is intended to provide coverage on a date
receipt? earlier than the date of the issuance of the policy.
AIt is given by the agent only to
applicants who fully prepay all
scheduled premiums in advance of
policy issue.
BIt is intended to provide coverage
on a date earlier than the date of the
issuance of the policy.
CIt guarantees the applicant that a
policy will be issued in the amount
applied for in the application.
DIt serves as proof that the agent
has determined the applicant to be
fully insurable for coverage by the
insurance company.
Which of the following is NOT the B. The application given to a prospective insured.
consideration in a policy?
AThe promise to pay covered losses
BThe application given to a
prospective insured
CSomething of value exchanged
between parties
DThe premium amount paid at the
time of application
,An insurer receives a report C. Inspection Report
regarding a potential insured that
includes the insured's financial status,
hobbies and habits. What type of a
report is that?
AAgent's Report
BUnderwriter's Report
CInspection Report
DMedical Information Bureau's
report
The full premium was submitted with D As of the application date.
the application for life insurance, and
the policy was issued two weeks
later as requested. When does the
policy coverage become effective?
AAs of the policy delivery date
BAs of the first of the month after the
policy issue
CAs of the policy issue date
DAs of the application date
In terms of parties to a contract, B. The person must have at least completed
which of the following does NOT secondary education.
describe a competent party?
AThe person must be mentally
competent to understand the
contract.
BThe person must have at least
completed secondary education.
CThe person must not be under the
influence of drugs or alcohol.
DThe person must be of legal age.
, Which of the following is NOT an C. Debtor in creditor
example of insurable interest?
AEmployer in employee
BChild in parent
CDebtor in creditor
DBusiness partners in each other
An insurer neglects to pay a C. Consideration
legitimate claim that is covered
under the terms of the policy. Which
of the following insurance principles
has the insurer violated?
ARepresentation
BAdhesion
CConsideration
DGood faith
Which of the following includes D. Consumer Report
information regarding a person's
credit, character, reputation, and
habits?
AConsumer history
BInsurability report
CAgent's report
DConsumer report
Because an insurance policy is a D. Conditions
legal contract, it must conform to the
state laws governing contracts which
require all of the following elements
EXCEPT
AConsideration.
BLegal purpose.
COffer and acceptance.
DConditions.
