Group 1
Group life policies MUST include all of the following provisions EXCEPT
Right to loan proceeds
General life, accident, and health agents must complete a minimum of ______ continuing education hours per renewal period. A 15 B 20 C 40 D 24
D
If an insurer requires an individual to be tested for the AIDS virus, all of the following are required, if applicable, except: A Obtain notice of the requirement to test and written authorization from a parent or guardian of a proposed insured B Written authorization from the applicant on a Notice of Consent form C Notice to the proposed insured of the requirement prior to testing D Gather statistical information that identifies the applicant to share with other insurers
D
What is the minimum required size for a group applying for group insurance?
a true group has at least 10 people covered under one master contract
A long-term care policy issued in Texas must, at a minimum, be offered as: A Conditionally renewable B Guaranteed renewable C Noncancellable D Optionally renewable
B
A participating life insurance policy has a long-term care rider. The insured qualifies for the benefit. Where does the initial benefit money come from? A From the cash values of the policy B It is an advance of the face amount of the policy C From the policy's dividends D From the insurance company by policy loan
B
An enrollee may have coverage cancelled or nonrenewed by an HMO for which of the following? A Excessive claims B Nonpayment of premium C Failing to quit smoking D Being diagnosed with heart disease
B
The Commissioner is authorized to perform all of the following duties, except: A Adopt reasonable rules and regulations to enforce insurance laws B Suspend insurance licenses for up to 5 years C Issue cease and desist orders D Conduct investigations
B (can suspend for 1 yr)
A licensed agent is required to obtain which of the following before transacting insurance in Texas? A A CLU designation B A Certificate of Authority C An appointment from an insurer D An insurance counselor's license
C
Gatekeeper
describes the person in charge of a patient's treatment. Anyone who receives health insurance coverage in the form of a managed care plan, specifically a health maintenance organization (HMO) plan, is assigned a gatekeeper or allowed to choose one
Z suffers a total and permanent disability. The policy he has requires a premium payment of $100 per month. He is on claim for 100 months. Initially, how much did Z have to pay before the waiver of premium benefit on his policy started? A $600 B $1,200 C $10,000 D $1,800
A
The Commissioner may examine the records of an insurance company for the purpose of: A Approving coverages B Approving claims C Setting rates D Determining solvency
D
An individual life insurance policy must have a grace period of at least ______ days. A 60 B 31 C 90 D 45
B
An individual who was denied a license must wait to reapply for a license a minimum of: A 6 months B 5 years C 2 years D 90 days
B
An individual may be denied a license by the Department for all of the following reasons, except if the individual has: A Offered a premium rebate to an insured B Been convicted of a felony C Obtained a license by fraud or misrepresentation D Actively engaged in soliciting and writing insurance for the general public
D
Under Nonforfeiture Law, a cash surrender payment may be deferred up to: A 2 years B 12 months C 3 months D 6 months
D
All of the following regarding Evidence of Coverage are correct, except: A Approval by the Commissioner of Insurance is required before delivery B The evidence of coverage must be delivered in writing C The name, address, and phone number of the HMO must be included D Health care services and benefits available must be stated
B
Publishing or circulating information that is maliciously derogatory to the financial condition of an insurance company with the intent to injure is known as: A Defamation B Misrepresentation C Boycott, Coercion, and Intimidation D False advertising
A
The Texas Department of Insurance requires all licensees to: A Be honest, trustworthy, and reliable B Complete 40 hours of prelicensing education C Engage in the business of insurance for the sole purpose of transacting insurance with family members D Obtain a Certificate of Authority
A
A Certificate of Authority is issued to an insurer for which of the following reasons? A It recognizes the insurer for excellence in handling claims B It certifies the insurer is authorized to transact insurance in this state C It certifies the insurer has passed a market conduct exam in this state D It certifies the agent is authorized to transact insurance in this state
B
Which of the following is considered false advertising? A An insurance applicant misrepresents material information on an application for a license B A counselor charges a fee for advice in addition to commission for the sale of a policy C An agent misrepresents a policy provision relating to coverage at the time of issue D An insurer exaggerates its dividends in statements published in a newspaper
D
Which of the following is not a prohibited claims settlement practice? A Denying a claim without providing the basis for the denial B Requiring a claimant's income tax return while investigating a fire C Misrepresenting a material fact to a claimant D Refusing to pay a claim without reasonably investigating it
B
The value within a permanent life insurance policy that the policyowner can access through a policy loan or policy surrender is known as the ___________. A Cash Value B Endowment Value C Rider Value D Annuity Value
A
What prohibited trade practice does an agent commit when he lies about policy terms in order to convince a policyholder to cancel an existing policy in order to buy a new policy? A Misrepresentation B Rebating C False advertising D Defamation
A
An HMO must hold an open-enrollment period at least annually for: A 60 days B 31 days C 45 days D 10 days
B
Holding which of the following professional designations will exempt a person from taking the life licensing examination? A Chartered Financial Consultant (ChFC) B Chartered Life Underwriter (CLU) C Certified Financial Analyst (CFA) D Certified Insurance Consultant (CIC)
B
Which of these statements is INCORRECT regarding the federal income tax treatment of life insurance?
Entire cash surrender value is taxable
Which of the following does not describe an eligible group for group life insurance? A Creditor groups insuring its debtors B A group consisting exclusively of persons related by marriage or blood C An employer group with at least 2 employees covered under the policy D Labor unions that insure members actively engaged in the same occupation
B
All of the following statements about life insurance policy provisions are correct, except: A Suicide may not be used as a defense to deny payment after the second year B An individual may assign up to 100% of policy ownership C If a policy lapses due to unpaid premiums, it may only be reinstated up to 2 years after lapse D If it is discovered that an insured's age is misstated at the time of a loss, the amount payable is based on the amount of coverage the premiums paid would have purchased at the correct age
C (3 Yrs)
A licensed life insurance agent in Texas can share commissions with which of the following? A Another licensed life insurance agent in Texas who assisted with the sale B A licensed property and casualty agent who referred the client C A person holding a temporary license D An insurance counselor who charged a fee for recommending the policy
A
To terminate an agent's appointment, the insurer must: A Notify the Texas Department of Insurance of the termination of appointment B Require the agent to cancel the license with the Texas Department of Insurance C Notify the Texas Department of insurance to cancel the license D Request a hearing through the Department of Insurance
A
Under the ACA, a catastrophic plan may be purchased by any of the following, except an individual: A Enrolled in Medicaid B Unable to afford other coverage C With a hardship exemption D Under age 30
A
Which of the following is NOT transacting insurance? A Selling stocks, bonds, and mutual funds B Delivering an insurance contract C Collecting an insurance payment D Indirectly acting as an agent
A
Which of the following is designed for someone with a large insurance need but with limited cash flow? A Term Life Insurance B Whole Life Insurance C Variable Life Insurance D Home Service Life Insurance
A
Which of the following is not a duty of the Commissioner? A Issue an insurance license for a producer B Make state insurance laws C Handle insurance-related consumer complaints D Enforce state insurance laws
B
Which of the following statements about continuing education is true? A Continuing education hours must be completed after the expiration date of the license B At least 50% of continuing education hours must be completed in a classroom or classroom equivalent setting C Every licensee must complete 3 continuing education hours on the topic of ethics D Licensees must complete 24 continuing education hours for each license held
B
Who is NOT eligible for an agent license in this state? A An applicant intending to solicit insurance to the general public B A 17-year-old who passed the licensing exam 6 months ago C An applicant intending to be actively engaged in the business of insurance D A 43-year-old who submitted the appropriate application and fees 1 month ago
B
With respect to advertising requirements, all of the following are allowable unless the insurer: A Solicits nonpaid testimonials representing the personal opinion of the author B Includes the terms investment, savings plan, or profit sharing C Uses the term "invitation to contract" D Advertises preferred rates to classes of policyholders based on certain qualifications
B
According to the Texas Insurance Code, an insurance company incorporated in New Mexico is a(n): A Domestic insurer B Admitted insurer C Foreign insurer D Alien insurer
C
All Medicare supplement policies must offer coverage for all of the following, except: A Hospitalization B The reasonable cost of the first 3 pints of blood C Disability income D Physicians' services
C
All of the following are characteristics of Ordinary Whole Life Insurance, except: A Premiums remain uniform B Premiums are designed to be paid throughout the life of the insured C If insured lives to age 100, the total amount of premium paid over the lifetime of the insured is returned to the policyowner D The policy pays the face value if the insured dies before age 100
C
An insurance agent does NOT owe a fiduciary duty to: A Insurance applicants B Insureds C Insurance counselors D Insurers
C
When taking an application for a Medicare supplement policy, an agent must provide the applicant with a(n): A Summary of Benefits B Copy of the agent's insurance license C Outline of Coverage D Certificate of Authority
C
Which of the following is a method used by an HMO to compensate a physician or provider for providing a defined set of health care services and is based on a predetermined payment per enrollee: A Copayment B Fee-for-service C Capitation D Enrollment fee
C
Which of the following is not included in a Summary of Benefits and Coverage? A Limitations B Covered benefits C Premiums D Deductibles, copayments and coinsurance
C
Which of the following statements is true regarding a Life and Health Insurance Counselor? A The counselor receives a salary from the insurer rather than a commission B The counselor can charge a service fee for his advice in addition to a commission on the sale. C The title 'counselor' implies that this person gives advice D The counselor reviews life, health, property, and casualty policies
C
Which type of insurance company is owned by its policyholders? A Stock insurer B Admitted insurer C Mutual insurer D Non-admitted insurer
C
A license may be suspended or revoked for which of the following? A An agent obtains a nonresident license in another state B A licensee completed 24 continuing education hours, including 2 hours of ethics before the expiration date C A licensed insurance counselor charges a fee to review a policy and provide advice D An agent is actively engaged in soliciting insurance only to family members
D
A small employer health insurer may not offer coverage to an eligible employee unless the employee has: A Satisfied a pre-existing condition waiting period of 6 months B Paid 100% of the first year's premium to the employer C Been eligible for at least 6 months D Satisfied the applicable waiting period
D
All of the following are required to be included in a life insurance illustration, except: A Rating classification upon which the illustration is based B Proposed insured's name C Initial death benefit D Company specific mortality tables
D
An agent's appointment: A Must be renewed before the license expires B Is valid for a maximum of 2 years C Can only be canceled if the agent fails to write new business D Remains in force until terminated or withdrawn
D
What prohibited trade practice is committed if an agent provides misleading information regarding guaranteed dividends, terms, advantages, or disadvantages of a policy? A Rebating B False advertising C Defamation D Misrepresentation
D
Which rider waives the cost of insurance and expenses if an insured becomes disabled? A Return of Premium B Accelerated Death Benefit C Payor Benefit D Waiver of Monthly Deduction
D
