Chapter 6: Texas statutes and rules pertaining to life and health insurance

On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are

Not taxable since the IRS treats them as a return of a portion of the premium paid

On its advertisement, a company claims that it has funds in its possession that are infact not available for the payment of losses or claims. The company is guilty of

Misrepresentation

Noone whos license has been revoked can recieve another license in texas for

5 years

In texas the states continuing education requirement

consists of completing 24 hours of CE each biennium

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

dividends from a mutual insurer

Anyone who violates the insurance code of texas may be fined up to

25,000

Which of the following terms best describes making false statements about the financial condition of any insurer that are intended to injurer any person engaged in the business of insurance?

Defamation

Which of the following insurers are owned by stockholders?

Stock

All insurers that provide life or accident and health insurance coverage in texas must be members of what association?

The life and Health insurance guaranty association

An agent's license will terminate within how how many days from the due date an obligatory fees and continuing education requirements?

90 days

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

Alien insurer

An insurer must acknowlege reciept of a notice of claim within how many days?

15 days

Which of the following is a TRUE statement about a temporary liscense issued in this state

it can only be issued once in any 6 month period

All of the following are requirements for an individual to be liscensed EXCEPT

provide a financial statement

All of the following are true regarding rebates EXCEPT

rebates are allowed if it's in the best interest of the client