Texas Statutes and Rules Pertinent to Life Insurance Only
How must a replacing producer respond to an applicant wishing to replace existing life insurance?
The producer must provided the applicant with a notice regarding replacement
What is the main purpose of the regulation on life insurance policy illustrations?
To help customers make educated decisions in buying life insurance
Which of the following CANNOT be included along with illustrations used to sell life insurance?
Vanishing premium information
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called
credit life
Which of the following is correct regarding credit life insurance?
It insures the life of a debtor
All of the following are mandatory life insurance policy provisions EXCEPT
Policy backtdating
Which of the following is TRUE regarding the insurance amount in a credit life policy?
The creditor can only insure the debtor for the amount owned
An advertisement must accurately represent which of the following?
all of the above
During replacement of life insurance, a replacing insurer must do which of the following?
Obtain a list of all insurance polices that will be replaced
Viatical settlements may be rescinding within what time period after the viator receives the proceeds?
15 days
An insured in a group policy has misstated his age on the insurance application. As a result, the insurer will most likely
Adjust the premium
All of the following information must be disclosed to the viator prior to the execution of a viatical settlement contract EXCEPT
Availability of stranger-orginated life insurance (STOLI)
Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced?
Cost comparison method
Which of the following would be the beneficiary in credit life insurance?
Creditor
Upon the submission of a death claim under a life insurance policy, when must the insurer pay the policy benefit?
Within 2 months
Is it illegal for an insurance company to advertise that it is the leader of the financial industry and therefore pays the most claims each year?
Yes, advertisements must not mislead the public in terms of financial standing
All advertisements are the responsibility of the
insurer
When possible, what should insurers strive to eliminate from illustrations?
Footnotes and caveats
What provision in a life or health insurance policy extends coverage beyond the premium due date?
Grace period
Which of the following must be included in all life insurance advertisements?
Identify of the actual insurer
An individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT
15-year level term
How long is the incontestability period in group life insurance policies issued in Texas?
2 years
Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of the termination of employment?
31
How long is the grace period in group policies?
31 days
If a policyowner surrenders his life insurance policy that has 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
All of the following statements are correct regarding credit life insurance EXCEPT
Benefits are paid to the borrower's beneficiary
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?
Creditor requiring that a debtor buys insurance from a certain insurer
If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement?
Paid endorsement
Which of the following types of insurance policies is most commonly used in credit life insurance?
Decreasing term
The usage of words or symbols that are similar to what entity is prohibited in life insurance advertisements?
Federal Government
Which of the following documents must be provided to the policyowner or applicant during policy replacement?
Notice regarding Replacement
According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT
Reduction of premium
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
The initial amount of credit life insurance may NOT exceed
The amount to be repaid under the contract
Which of the following is NOT required on an illustration used in the sale of a life insurance policy?
The name of the primary and secondary beneficiaries
