Ch 14 (state laws)

24 hrs every 2 yrs

General life and health agents must complete ______ credit hours of continuing education each renewal period.

Chartered Life Underwriter (CLU)

Holding which of the following professional designations will exempt a person from taking the life licensing examination?

Obtain an appointment from an insurer Licensed agents are not permitted to transact insurance as an agent until they have been appointed by an insurer authorized to transact insurance in this state.

A licensed agent is required do which of the following before transacting insurance in Texas?

To a licensed agent for the sale of insurance to a non-related individual An agent may not receive an additional fee, except a legally permissible reimbursement or payment, for services from the same client. A commission may not be paid to the holder of a temporary license on a sale made to an individual with whom the licensee has a family, employment, or business relationship. An insurer may pay a commission only to a licensed agent.

Commissions may be paid:

Defamation is the publication or circulation of a statement that is false, maliciously critical of, or derogatory to the financial condition of an insurance company if it is intended to injure any individual or organization engaged in the business of insurance.

Publishing or circulating information that is maliciously derogatory to the financial condition of an insurance company with the intent to injure is known as:

Offering a premium discount or credit not specified in the policy constitutes rebating and not boycott, coercion, or intimidation.

The following are examples of boycott, coercion, or intimidation, except:

Remains in force until terminated or withdrawn An agent's appointment remains in force until terminated or withdrawn by the insurer.

An agent's appointment:

24

General life and health agents must complete ______ credit hours of continuing education each renewal period.

It authorizes an insurer to transact insurance business An organization must submit an application for a Certificate of Authority to transact insurance in Texas. If the Department finds the applicant has complied with state law, it will approve the application and issue the Certificate of Authority. When issued, a Certificate of Authority is effective until suspended or revoked and must state the specific lines of insurance for which the insurer is authorized to transact business.

What is the purpose of a Certificate of Authority?

Misrepresentation

What prohibited trade practice is committed if an agent provides misleading information regarding guaranteed dividends, terms, advantages, or disadvantages of a policy?

Misrepresentation Misrepresentation involves a false statement made to a policyholder about a policy to induce the policyholder to lapse, cancel, or surrender an existing policy.

What prohibited trade practice is committed if an agent provides misleading information regarding guaranteed dividends, terms, advantages, or disadvantages of a policy?

A group consisting exclusively of persons related by marriage or blood

Which of the following does not describe an eligible group for group life insurance?

Before using any advertisement, an agent must file it with the Commissioner for written approval

Which of the following is a true statement about the regulation of advertising?

Addressing policyholder complaints Addressing policyholder complaints does not constitute an insurance transaction.

Which of the following is false regarding acts considered as insurance transactions?

The policy may not include a provision for reinstatement A life policy must have a provision that provides for reinstatement of the policy within 3 years.

Which of the following is false regarding provisions for life policies?

Contingent paid-up

Which of the following is not a valid nonforfeiture benefit option required when the nonforfeiture provision is included in a long-term care policy?

Every licensee must complete 2 continuing education hours on the topic of ethics

Which of the following statements about continuing education is true?

It certifies the insurer is authorized to transact insurance in this state It certifies the insurer is authorized to transact insurance in this stateThe Certificate of Authority that gives the insurer approval to act as an insurer is effective until suspended or revoked.

A Certificate of Authority is issued to an insurer for which of the following reasons?

Notify the Texas Department of Insurance of the termination of appointment

To terminate an agent's appointment, the insurer must:

Under Nonforfeiture Law, the insurer reserves the right to defer payment of any cash surrender value for a period of 6 months after demand for payment and surrender of the policy.

Under Nonforfeiture Law, a cash surrender payment may be deferred up to:

24

General life, accident, and health agents must complete a minimum of ______ continuing education hours per renewal period.

15 business days

It is an Unfair Claims Settlement Practice to fail to acknowledge a claim how long after receiving it?

Suspend insurance licenses for up to 5 years Can suspend for 1 year

The Commissioner is authorized to perform all of the following duties, except:

Be honest, trustworthy, and reliable Since the relationship between licensees and the public is one of trust, the Department requires all licensees to be honest, trustworthy and reliable.

The Texas Department of Insurance requires all licensees to:

Misrepresentation Misrepresentation involves a false statement made to a policyholder about a policy to induce the policyholder to lapse, cancel, or surrender an existing policy.

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?

Includes the terms investment, savings plan, or profit sharing An advertisement may not include the terms savings, investment, investment plan, profit, profit sharing, interest plan, or other similar terms that imply that the product advertised is something other than life insurance or an annuity.

With respect to advertising requirements, all of the following are allowable unless the insurer:

Actively engaged in soliciting and writing insurance for the general public A license will not be denied for soliciting or writing insurance for the general public. This only applies when NOT actively engaged in soliciting or writing insurance to the general public.

An individual may be denied a license by the Department for all of the following reasons, except if the individual has:

Insurance counselors An agent owes a fiduciary responsibility to its insurer, insurance applicants, insureds, but not insurance counselors or other agents.

An insurance agent does NOT owe a fiduciary duty to:

15

If the Texas Department of Insurance addresses a reasonable inquiry made to an insurer, the insurer must respond in writing no later than how many days after receipt?

The title 'counselor' implies that this person gives advice

Which of the following statements is true regarding a Life and Health Insurance Counselor?

The title 'counselor' implies that this person gives advice This person publicly uses a title, such as insurance adviser, analyst, specialist, policyholders' adviser, or counselor that indicates that this person gives advice or other information to any person interested in a life, accident, or health policy, health benefit plan, or annuity or pure endowment contract.

Which of the following statements is true regarding a Life and Health Insurance Counselor?

A group of individuals formed solely for purchasing life insurance A group of individuals formed solely for purchasing life insurance does not constitute an eligible group for group life insurance.

Which of the following would NOT be an eligible group for group life insurance?