Chapter 5

A temporary license holder can receive a commission from a sale made to all of the following except

The license holder's sister in law

When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of

Defamation

If a license agent in Texas receives a criminal conviction, that information must be reported to

Department of Insurance

Which of the following is an example of a producer being involved in an unfair trade practice of rebating?

Telling a client that his first premium will be waived if he purchased the insurance policy today

An applicant properly notifies her insurer of a straightforward claim, but the insurer waits an exceedingly long time to process it. Which of the below terms best describes the behavior of the insurer?

Unfair claims settlement practice

What is a foreign insurer?

An insurer with a home office in another state

Which members of a corporation or partnership are required to obtain an individual insurances agent's license in order for the association to be licensed

At least one officer or partner and any other person acting as an agent

Which entity has the authority to grant a temporary life insurance agent's license?

Commissioner of Insurance only

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as

Rebating

An insurer must acknowledge receipt of a Notice of Claim within how many days

15

Which of the following is a true statement about a temporary license in this state ?

It can only be issued once in a 6-month period.

In which of the following situations is it legal to limit coverage based on marital status?

It is never legal to limit coverage based on marital status

Which of the following best describes the unfair trade practice of defamation?

Making derogatory oral statements about another insurer's financial condition

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 advertisement is considered to be unfair trade practice

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 Funds not paid out after paying claims and other operating costs are returned to the policyowners in the form of a dividend. If all funds are paid out, no dividends are paid.

An agent completed a CE course in 2019. Until what year must the agent keep the records of completion?

2023

If an agent has completed 35 hours of continuing education in one renewal period, How many CE hours will the agent have to complete in the next renewal period?

24

The lnsurance Commissioner may examine the affairs of any insurer as often as necessary but not less frequently than once every

5 years

All of the following are considered unfair or deceptive acts in connection with the sale of insurance EXCEPT

Attempting to settle a claim in which liability is clear

Which of the following is the closest term to an authorized insurer?

Admitted Insurers who meet the state's financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer.

Which of the following would be required to be licensed as an insurance producer?

A salaried employee who advertises and solicits insurance

In Texas, the state's continuing education requirement

Consists of completing 24 hours of CE each biennium

In Texas, the commissioner of insurance is

Appointed by the governor

Which of the following is an example of a producer being involved in an unfair trade practice of rebating

Telling a client that his first premium will be waived if he purchased the insurance policy today

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