Texas Life and Health Insurance Exam Questions and Answers (Verified Solutions)

Texas Life and Health Insurance Exam Questions and Answers (Verified Solutions)
Question 1: What type of reinsurance contract involves two
companies automatically sharing their risk exposure?
CORRECT ANSWER: Treaty
Question 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
Question 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
Question 4: Statements made on an insurance application that
are believed to be true to the best of the applicant's knowledge
are called

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