Chapter 5

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 how many days must the hearing be held?

10 days

Which of the following persons is required to hold a producer license?

A nonresident agent who negotiates insurance contracts

Who is considered a nonresident agent?

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

Which of the following is NOT an example of a company's location of incorporation?

Authorized

An insurer who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called-

Defamation

How often must producers renew their licenses?

Every 2 years

A life agent's license be renewed

Every 2 years on the anniversary date of issuance

In an insurance transaction, which of the following does a licensed agent represent?

Insurer

All of the following would be considered an insurance transaction EXCEPT

Obtaining an insurance license

An agent who offers a cash reward to a prospect for buying a policy is guilty of-

Rebating

What is the main purpose of requiring licenses for persons who transacts insurance?

To protect the general public

What is the minimum required number of continuing education credits in ethics every licensing period?

2 hours

Agents whose license has been revoked will not be able to receive another license in Texas for at least

5 years

A temporary license is normally valid for

90 days

The Commissioner of Insurance is responsible for all of the following EXCEPT-

Setting premium rates