Texas Life and Health Insurance Exam
latest 2023
What type of reinsurance contract involves two companies automatically sharing
their risk exposure? -
✅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 -
✅reserves
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have -
✅insurable interest
Statements made on an insurance application that are believed to be true to the best
of the applicant's knowledge are called -
✅representations
The part of a life insurance policy guaranteed to be true is called a(n) -
✅warranty
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent -
✅Principal
The Consideration clause of an insurance contract includes -
✅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? -
✅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? -
✅Unilateral
Insurance contracts are known as ____ because certain future conditions or acts
must occur before any claims can be paid. -
✅conditional
