Texas Life and Health Insurance Exam-with 100% verified solutions-2023-2024, Exams of Business Ethics

Download Texas Life and Health Insurance Exam-with 100% verified solutions-2023-2024 and more Exams Business Ethics in PDF only on Docsity! Texas Life and Health Insurance Exam-with 100% verified solutions-2023-2024 At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? A. Before the appointment is scheduled B. Upon completion of the application C. At the policy's delivery D. When the insurer receives the MIB report B. Upon completion of the application Who elects the governing body of a mutual insurance company? A. chairman of the board B. bondholders C. stockholders D. policyholders D. policyholders A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a: A. treaty insurer B. risk retention group C. risk assumption group D. captive insurer B. risk retention group What year was the McCarran-Ferguson Act enacted? A. 1944 B. 1945 C. 1946 D. 1947 B. 1945 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: A. credits B. reserves C. surplus D. retention B. reserves Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated: A. 1970 - Fair Credit Reporting Act B. 1959 - Intervention by (SEC) The Securities and Exchange Commission C. 1999 - Financial Services Modernization Act D. 1945 - The McCarran-Ferguson Act A. 1970 - Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? A. Arbitrage B. Facultative C. Excess D. Treaty D. Treaty The Consideration clause of an insurance contract includes: A. the buyer's guide B. a summary of the coverage provided A. consideration B. unilateral C. aleatory D. conditional D. conditional Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values reflects which of the following insurance contract features? A. Aleatory B. Adhesion C. Unilateral D. Consideration A. Aleatory Which of these is NOT a type of agent authority? A. Express B. Implied C. Principal D. Apparent C. Principal What is the consideration given by an insurer in the Consideration clause of a life policy? A. Promise to never cancel coverage B. Promise to pay a death benefit to a named beneficiary C. Promise to not raise premiums D. Promise to accept an insured's assignment of benefits B. Promise to pay a death benefit to a named beneficiary Which of these is NOT considered to be an element of an insurance contract? A. the offer B. acceptance C. negotiating D. consideration C. negotiating The part of a life insurance policy guaranteed to be true is called a(n): A. representation B. exclusion C. warranty D. waiver C. warranty