Texas Statues & Rules Common to Life and Health Quiz Questions

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? A Nonadmitted B Foreign C Domestic D Alien

B Foreign

What is a foreign insurer? A An insurer with licensed agents doing business in other countries B An insurer with licensed agents who are citizens in more than one country C An insurer with a home office in another state D An insurer with a home office in another country

C An insurer with a home office in another state

An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act? A Illegal until endorsed by the Guaranty Association B Legal, provided that the other insurers are paid royalties for the usage of their names C illegal under any circumstances D Legal, provided that the information can be verified

C illegal under any circumstances

Which of the following persons is required to hold a producer license? A A person who takes messages related to claims B A person who creates insurance advertisements C A person who administers employee benefits D A person who negotiates insurance contracts

D A person who negotiates insurance contracts Persons who perform clerical tasks that are not related to soliciting or negotiating insurance contracts are not required to be licensed.

In Texas, how is the Commissioner of Insurance placed in office? A Appointed by the Governor for a term of 4 years B Appointed by the Senate for a term of 2 years C By election, at the same election when other state officials are chosen. D Appointed by the Governor for a term of 2 Years

D Appointed by the Governor for a term of 2 years

The Commissioner of Insurance issues a Cease and Desist Order and immediately receives a request for the charges to be reviewed in a hearing. Within what number of days must the hearing be held? A 10 B 14 C 30 D 60

A 10

Who might receive dividends from a mutual insurer? A Stockholders B Agents C Policyholders D Subscribers

C Policyholders

Which of the following insurers are owned by stockholders? A Reciprocal B Fraternal C Stock D Mutual

C Stock

Which of the following individuals could legally receive commissions from the sale of a life insurance policy? A A licensed insurance consultant B An employee for a life insurance company who is not licensed C A life and Health insurance counselor D A licensed life insurance agent

D A licensed life insurance agent

In Texas, the Commissioner of Insurance is A Appointed by the Governor. B Appointed by the Insurance and Industry Committee of the state legislature. C Elected by the state legislature's Banking and Insurance Committee. D Elected by Texas voters.

A Appointed by the Governor. The Commissioner is appointed to office by the Governor, with the advice and consent of the Senate, for a 2-year period. The Commissioner's appointment ends on February 1 of each odd numbered year.

An insurer must acknowledge receipt of a Notice of Claim within how many days? A 5 B 15 C 20 D 30

B 15

What is the maximum allowed value of a gift that an agent can give to an insured without violating the regulation on rebating? A $10 B $15 C $25 D $200

C $25

How long must producer maintain records of continuing education course completion? A 1 year B 3 years C 4 Years D 5 Years

C 4 years

Two individuals are in the same risk and age class; yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called? A Misrepresentation B Adverse selection C Discrimination D Law of Large numbers

C Discrimination Permitting individuals of the same class to be charged a different rate for the same insurance is the unfair trade practice of discrimination.

A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of A Coercion. B Loading C Defamation D Twisting

A Coercion