Licensing Requirements class 2
To set up a corporation to transact insurance in Texas requires all the following EXCEPT:
For a business entity to obtain an insurance license, it must maintain an errors and omissions policy with a face amount of at least $250,000 or a $25,000 bond.
In Texas, holders of limited lines and county mutual licenses must complete how many hours of continuing education (CE) every two years?
10 hours Because Holders of limited lines and county mutual licenses must complete 10 hours every two years with two hours of ethics. Only five hours may be self-study.
Terry is licensed in Texas as a life and health insurance agent. To maintain his license, how many hours of continuing education must he complete during each license period?
24 Because Terry must complete 24 hours of continuing education during each two-year license period. Two of the hours must be on ethics.
Tom, Henry, Stacey, and Alison are licensed agents in Texas. Given the following circumstances, which of them will NOT be subject to disciplinary action by the Texas Department Insurance?
Alison, who was convicted of a misdemeanor traffic violation Because The Texas Department of Insurance can discipline a license holder who has been convicted of a felony but not for committing a misdemeanor traffic violation.
Molly, Lisa, Andy, and Chris want to become licensed agents in Texas. Which of them would be eligible to obtain a license?
Andy, who only wants to work part-time as an agent but otherwise meets the licensing requirements Because Only Andy is eligible to obtain a license. The Texas Department of Insurance cannot deny a license application solely because the applicant will act only part-time as an agent.
Larry, Brian, Susan, and Jennifer just started working for AllPro Insurance Company in Texas. Based on their job descriptions below, which of them is NOT an agent?
Brian, who is a vice president in AllPro's human resources department and does not receive commissions because A regular salaried officer or employee of an insurer who devotes substantially all of his or her time to activities other than soliciting insurance applications and who does not receive a commission based upon the amount of insurance business transacted is not acting as an agent.
Janet is a licensed life insurance agent in Texas and was so busy with her insurance practice that she forgot to complete all of her continuing education credits. How long is the grace period she has to make up the missing credits?
She cannot make up the missing credits. Because Generally, once the expiration date has passed for continuing education credits, a violation exists. Continuing education cannot be made up after the expiration date.
Which of the following persons must obtain a life and health insurance counselor's license?
a financial advisor who offers insurance recommendations for a fee Because A mortgage broker who offers insurance advice on life, health, annuity, or endowment policies for a fee must get a life and health insurance counselor's license.
Mike is a licensed agent but forgot to renew his license this year. If his license has been expired for 30 days, what must Mike do to renew his license?
file a renewal application and pay the renewal fee plus an additional fee Because Because Mike's license has been expired for 90 days or less, he can renew that license by filing a renewal application and paying the renewal fee of $50 plus an additional fee of half of the renewal fee.
Agents who willfully violate a Texas insurance law may be subject to disciplinary action. Which of the following is NOT a remedy available to the insurance commissioner?
imposing a jail sentence Because While the insurance commissioner has the authority to suspend, deny, and revoke licenses, the commissioner cannot impose criminal penalties on people who violate Texas's insurance laws.
Which of the following is NOT a penalty that TDI may impose?
imprisonment for up to 5 years Because While TDI can impose a broad array of penalties based on the infraction the agent committed, imprisonment is NOT one of them.
Janet has been continuously licensed as an agent in Texas for the past 25 years. Her friend Steven is a nonresident licensee in Texas and every year completes his state's continuing education requirements. When they ask you for advice on meeting the Texas continuing education requirements, you inform them that:
neither Steven nor Janet needs to comply with Texas's continuing education requirements Because Janet is exempt from Texas's continuing education requirements because she has continuously held a license for at least 20 years. Steven is also exempt, provided that he has complied with his resident state's continuing education requirements.
In Texas, a person is considered to be an agent (producer) if he or she does any of the following on behalf of an insurance company, EXCEPT:
processes applications as a salaried employee in the insurer's home office Because While people who write and submit insurance applications to their home office are considered agents, home office employees who process those applications are not.
Samantha has a life insurance license in Missouri and wants to sell life insurance part-time in Texas. Which of the following describes what she can or cannot do given her licenses?
She must submit a letter of certification and an application. Because Texas waives the requirements for a nonresident license applicant with a valid license from his or her home state, provided that the applicant's home state awards nonresident licenses to residents of Texas on the same basis. The applicant must still submit the application fee and a letter of certification.
Abby, who lives in New Mexico where she is a licensed life insurance agent, wants to apply for a nonresident license in Texas. To do so, she must submit which of the following to TDI?
an application, fee and letter of certification from her home state Because As a nonresident applicant in good standing in her home state, Abby needs only to submit an application, fee and a letter of certification from her home state's licensing authority.