Texas Statues and Rules Pertinent to Life Insurance Only
If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement?
Paid endorsement
According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT A.) Shortened benefit period B.) Reduction of premium C.) Reduced paid-up D.) Extended term
Reduction of premium
The regulations regarding replacement apply to which of the following?
Renewable term
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance?
Replacement rule
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
When possible, what should insurers strive to eliminate from illustrations?
Footnotes and caveats
Which of the following must be included in all life insurance advertisements?
Identity of the actual insurer
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor
How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer?
60 days
If a policyowner surrenders his life insurance policy that had been in force for 5 years within 60 days after the premium due date, what will the insurer be required to pay?
A cash surrender value
To which of the following situations does the Replacement Regulation apply?
A whole life policy reissued with reduction in cash value
The type of insurance sold to a debtor and designed to pay the amount due on a loan of the debtor dies before the loan is repaid is called
Credit life
Which of the following is TRUE regarding the insurance amount in a credit life policy?
Creditor can only insure the debtor for the amount owed.
Which of the following is TRUE about credit life insurance?
Creditor is the policyowner.
Which of the following is NOT allowed in credit life insurance? A.) Creditor requiring that a debtor buys insurance from a certain insurer B.) Creditor having a collateral assignment on the policy C.) Creditor requiring that a debtor has life insurance D.) Creditor becoming a policy beneficiary
Creditor requiring that a debtor buys insurance from a certain insurer
