TEXAS LIFE HEALTH INSURANCE EXAM QUESTIONS

TEXAS LIFE HEALTH INSURANCE EXAM QUESTIONS

AND CORRECT VERIFIED ANSWERS 2024 NEW EDIT

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• At what point must a life insurance

applicant be informed of their rights that fall under the Fair Credit Re- porting Act?

• Who elects the governing body of a

mutual insurance company?

• An insurance applicant MUST be in-

formed of an investigation regard- ing his/her reputation and character according to the

• What type of reinsurance contract

involves two companies automati- cally sharing their risk exposure?

• 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

• Which of the following requires in-

surers to disclose when an appli- cant's consumer or credit history is being investigated

• What is the consideration given

by an insurer in the Consideration clause of a life policy?

• When third-party ownership is in-

volved, applicants who also happen to be the stated primary beneficiary are required to have

• Statements made on an insurance

application that are believed to be Upon completion of the application

policyholders

Fair Credit Reporting Act

Treaty

reserves

1970 - Fair Credit Reporting Act

Promise to pay a death benefit

insurable interest in the proposed in- sured

representations

TEXAS LIFE HEALTH INSURANCE EXAM QUESTIONS

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true to the best of the applicant's knowledge are called

• The part of a life insurance policy

guaranteed to be true is called a(n)

• Which of these is NOT a type of

agent authority?Express Implied Principal Apparent

• The Consideration clause of an in-

surance contract includes

• E and F are business partners. Each

takes out a $500,000 life insurance policy on the other, naming him- self as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Al- though E was married with three children at the time of death, the primary beneficiary is still F. How- ever, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to?

• Which of the following terms

defines the legally enforceable promise in an insurance contract by the insurer?

• When must insurable interest exist

for a life insurance contract to be valid?

warranty Principal

the schedule and amount of premium payments In this situation, the proceeds from E's life insurance policy will go to F.

Unilateral

Inception of the contract

• conditional

TEXAS LIFE HEALTH INSURANCE EXAM QUESTIONS

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Insurance contracts are known as because certain future condi- tions or acts must occur before any claims can be paid.

• Which of these require an offer, ac-

ceptance, and consideration?

• Which of these arrangements al-

lows one to bypass insurable inter- est laws?

• Which of these is NOT considered

to be an element of an insurance contract?the offer acceptance negotiating consideration

• An agent is an individual that repre-

sents whom?

• Insurable interest must exist at what

time?

• Which policy requires an agent to

register with the National Associ-

Contract

Investor-Originated Life Insurance

Investor-originated life insurance (or IOLI), sometimes called stranger-originated life insurance (or STOLI) is used to circumvent state in- surable interest statutes. This is done when an investor (or stranger) per- suades an individual to take out life insurance specifically for the purpose of selling the policy to the investor.The investor compensates the in- sured and makes the premiums, then collects the death benefit when the insured dies.negotiating

Insurer at the time of application Variable Life

TEXAS LIFE HEALTH INSURANCE EXAM QUESTIONS

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ation of Securities Dealers (NASD) before selling?

• Which of the following actions re-

quire a policy owner to provide proof of insurability in an Ad- justable Life policy?

• When a policy owner exchanges a

term policy for a whole life poli- cy without providing proof of good health, which of these apply?

• What type of life insurance are cred-

it policies issued as?

• How long does the coverage nor-

mally remain on a limited-pay life policy?

• All of these statements about Equity

Indexed Life Insurance are correct

EXCEPT

Cash value has a minimum rate of accumulation If the gain on the index goes beyond the policy's minimum rate of return, the cash value will mirror that of the index The premiums can be lowered or raised, based on investment perfor- mance Tied to an equity index such as the S&P 500

• Which of these is an element of a

Variable Life policy?

increase face amount

Conversion provision

Term age 100

The premiums can be lowered or raised, based on investment perfor- mance

A fixed, level premium

• Universal Life