Texas Life and Health Insurance Exam 3 (Latest 2023-2024)
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- What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Answer: 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
Answer: reserves
- When third-party ownership is involved, applicants who also
happen to be the stated primary beneficiary are required to have
Answer: insurable interest
- Statements made on an insurance application that are believed to
be true to the best of the applicant's knowledge are called
Answer: representations
- The part of a life insurance policy guaranteed to be true is called
a(n)
Answer: war ranty
- Which of these is NOT a type of agent authority?
Express Implied Principal Apparent
Answer: Principal 1 / 3
- The Consideration clause of an insurance contract includes
Answer: the schedule and amount of premium payments
- E and F are business partners. Each takes out a $500,000 life
- However, an insurable interest no longer exists. Where will the
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
proceeds from E's life insurance policy be directed to?
Answer: 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 con- tract by the insurer?
Answer: Unilateral
- Insurance contracts are known as because certain future
conditions or acts must occur before any claims can be paid.
Answer: conditional
- Which of these require an offer, acceptance, and consideration?
Answer: Contract
- Which of these is NOT considered to be an element of an
insurance contract?the offer acceptance negotiating consideration
Answer: negotiating
- An agent is an individual that represents whom?
Answer: Insurer 2 / 3
- Which policy requires an agent to register with the National
Association of Securities Dealers (NASD) before selling?
Answer: Variable Life
- Which of the following actions require a policy owner to
provide proof of insurability in an Adjustable Life policy?
Answer: 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?
Answer: Conversion provision
- What type of life insurance are credit policies issued as?
Answer: Term
- How long does the coverage normally remain on a limited-pay
life poli cy?
Answer: age 100
- All of these statements about Equity Indexed Life Insurance are
- Cash value has a minimum rate of accumulation
- If the gain on the index goes beyond the policy's minimum rate of
correct EXCEPT
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
Answer: The premiums can be lowered or raised, based on
investment performance
- / 3