Exam notes extras

Minimum percentage of licensees total volume of premiums in a calendar year that must come from business other than controlled business?

25%

automatic premium loan provision is activate at the end of the

grace period

Untrue statements on the application is known as

material misrepresentation

inducement

rebating

Anyone who violates the insurance code of Texas may be fine up to?

$25,000

commissioner issues a cease and desist order to an agent, how many days after the order was issued does the agent have to make a request?

30 days

self-employed IRS retirement program

Keogh, (HR-10)

Inducemnt think

Rebating

oficial name for the social security program

old age survivors disability insurance

a rider attached to al life insurance policy that provides coverage on the insured's family member is called the

other-insured's rider

in a life settlement contract, whom does the life settlement broker represent?

the owner

An individual licensed as an agent must notify the Texas Department of Insurance, on a monthly basis of all

Administrative action taken against the license holder. change in mailing address, any felony convictions

forcing a client to buy insurance forma particular lender as a condition of granting a loan is defined as?

Coercion, think forcing

Viatical settlement info must be disclosed prior to execution of a vatical settlement contract

Compensation received by an person from the vatical settlements, alternatives, tax consequences

Company claims that it has funds in its possession that are in fact not available for the payment of losses or claims

Concealment.

program for a partnership and a couple empolyees

HR-10 (Keogh Plan)

often used in business life insurance policies when the policy owner needs to change the insured under the policy

Substitute insured rider, think b for business and b is in substitute, b b.

Concealment

The deliberate hiding of or failure to disclose "material" information

Twisting

Twisting occurs when an insurance agent convinces a life insurance policyholder to replace his or her existing life insurance policy by selling a new similar policy from the agent. In order for the act to qualify as twisting, the agent must use misleading or false information to get the person to switch. (COERCION is FORCING)

Required to hold a producer license

a person who negotiates insurance contacts, solicits

illustration refers to

a presentation or depiction that includes non guaranteed elements of a party.

Guaranteed insurability option

additional coverage will be available in the future

rebates

are only allowed if specifically stated in the policy. no more than $25.

Fair credit reporting act, individuals rejected due to information contained int eh consumer report must?

be informed fo the source of the report.

part 2 of the application for life insurance provides questions regarding

family health history, alcohol and tobacco consumption, recent surgeries.

taxation of premiums in a key-person life insurance policy,

premiums are not tax deductible as a business expense

life insurance illustrations

presentations, must identify non guaranteed values, must differentiate between guaranteed, they may only be used as approved

when a whole life policy lapses or is surrendered prior to maturity, the cash value can be used to

purchase a single premium policy for a reduced face amount

who would be required to be licensed

someone who solicits

insurance contract starts, when is acceptance?

starts on the application date, accepted wen the underwrite approves.

The initial amount of credit life insurance may not exceed

the amount to be repaid

If you inadvertently (mistakenly) represent a policy

there is no misconduct

Regulations regarding replacement apply to?

think R R renewable term

producer must deliver policy when the first premium has been paid of

to help the insured understand all aspects of the contract

In termination of debt under credit life when must the creditor provide notice to the insuer?

within 60 days