Chapter 5: Texas Statues and Rules Common to Life and Health Insurance

when transacting business in this state an insurer formed under the laws of another country is known as a/an

alien insurer

all of the following must be true of an individual before a license can be issued except that the

applicant submitted his or her most recent tax return to the department (TO ISSUE A LICENSE: applicant passed the required licensing examination in the last 12 months, candidate has paid the required fees to the department, and individual is at least 18 years old)

in texas, the state's continuing education requirement

consists of completing 24 hours of CE each biennium

which of the following terms describes making false statements about the financial condition of any insurer that intended to injure any person engaged in the business of insurance?

defamation

who might receive dividends from a mutual insurer?

policyholders

all of the following are unfair claims settlement practices except

suggesting negotiations in settling the claim (UNFAIR CLAIMS SETTLEMENT PRACTICES: failing to adopt and implement reasonable standards for settling claims, failing to acknowledge pertinent communication pertaining to a claim, and refusing to pay claims without conducting a reasonable investigation)

what is the purpose of the life insurance guaranty association?

to help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance compant

the commissioner of insurance issues a cease and desist order to an agent. if the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?

30 days

which of the following best describes an insurance company that has been formed under the laws of this state?

domestic

the commissioner has full power and authority to do all of the following except

draft insurance laws

which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

fraternal benefit society

an insurer advertises a health policy that is covered by the life and health insurance guaranty association. the advertisement includes a short list of benefits and approximate rates. the end of the advertisement includes statement that protection is provided by the guaranty association. which of the following is true?

mentioning the guaranty association in advertisements is considered to be unfair trade practice

an insurance agent wants for a client to replace her current annuities plan with another one. he presents the new one in an incomplete and dishonest way, which makes the new contract seem far more appealing than the original one. the policyowner ends up surrendering her original contract and replacing it with the new one. which term best describes what the agent did?

twisting

an insured purchased an insurance policy 5 years ago. last year, she received a dividend check from the insurance company that was not taxable. this year, she did not receive a check from the insurer. from what type of insurer did the insured purchase the policy?

mutual

which of the following would not be considered rebating?

giving a client a $25 pen with the insurer's logo during the insurance application process (WOULD BE CONSIDERED REBATING: sending a $50 gift certificate to the insured's employee after the insurance has been effected as a thank you for the referral, sharing commission with the insured, and collecting a lower premium than what's specified in a policy as a token of client appreciation)

all of the following would be considered an insurance transaction except

obtaining an insurance license (CONSIDERED AN INSURANCE TRANSACTION: soliciting a policy, advising a policyholder regarding a claim, negotiating coverage, and obtaining an insurance license)