#10 Texas Common L&H T

Which of the following individuals could legally receive commissions from the sale of life insurance policy?

A licensed life insurance agent

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

Department of Insurance

Which of the following entities is not an insurer but an organization formed to provide benefits for members of an affiliated lodge or religious organization?

Fraternal benefit society

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

false advertising

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

How long must producer maintain records of continuing education course completion?

4 years

No one whose license has been revoked can receive another license in Texas for

5 years

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 cliams and other operating costs are returned tothep olicowners in the form of a dividend

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid

All of the following would be considered an insurance transaction EXCEPT

Obtaining an insurance license. An insurance transaction means the carrying on of business in insurance, which could include the solicitation of a policy, advising, negotiation, or inducement related to coverage or claims. Obtaining an insurance license is a prerequisite to transacting insurance.

What is the major difference between a stock company and a mutual company?

Ownership Mutual companies are owned by policyholders, while stock companies are owned by stockholders.

Who might receive dividends from a mutual insurer?

Policyholders

An agent discovers his newest client was the result of a referral. To show his thanks to the referring customer, the agent could

Thank the customer

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

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