practice test chapter 5

which entity has the authority to grant a temporary insurance agent's license

commissioner of insurance

the owner of a small restaurant submits a claim to his insurer after a loss due to fire. the insurer can do which of the following

delay an acceptance or rejection decision

which of the following actions is not in violation of the unfair claims settlement practices act

denying an unsubstantiated claim

which of the following will not be considered unfair discrimination by insurers?

discriminating in benefits and coverages based on the insured's habits and lifestyle

If an agent suspects that insurance fraud is being committed, within how many days must the agent notify the Insurance Fraud Unit of the Department of Insurance?

30 days

how long must a producer maintain records of continuing education course completion?

4 years

who is considered a nonresident agent?

An agent who resides in another state, but is licensed to write insurance in texas

what is a foreign insurer?

An insurer with a home office in another state

all of the following would be considered rebating except?

an agent misrepresents policy benefits to convince a policyowner to replace policies

in texas how is the commissioner of insurance placed in office

appointed by the governor for a term of 2 years

to legally transact insurance in this state an insurer must obtain which of the following

certificate of authority

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

foreign

an insurance company is domiciled in montana and transacts insurance in wyoming. what term best describes the insurer's classification in wyoming?

foreign

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

illegal

an applicant for license in texas must include a statement with his application that provides information about all of the following except

intending to apply for another license

An agent offers his client free tickets to a sporting event in exchange for the purchase of an insurance policy. The agent is guilty of

rebating

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

the licensee's sister in law

an individual applies for a life policy the applicant suffered a head injury so they can not remember parts of their past but is otherwise competent. the insurer learns of previous medical history one year later, what will happen?

the policy will not be affected

An agent explains the details of a life insurance policy to a client. The agent does not realize, however, that the state has recently rewritten two of the provisions. As a result, the agent inadvertently misrepresents the policy, making it more attractive than it really is. What best describes this situation?

there is no misconduct

After filing a claim, an insured tells the insurer that there is more than one insurance policy in force. That insurer sets aside the claim until it hears what the other company will pay. The insurer's action will be classified as

unfair

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