Exam Laws and Rules
a new agent must complete at least ________ hours of continuing education within 24 months of initial licensure
24 hours
in texas how long must a policy be in force before an insurance company must pay death benefits for suicide
2 years.
__________ of continuing education must be completed in the classroom or classroom equivalent
50%
a temporary agent's license issued by the commissioner of insurance is valid for up to
90 days
an insurer is not required to provide information on fraudulent claims if requested by attorney general
INSURED.
the commissioner of insurance does not have the power to conduct:
activation insurance companies financial reserves
what is required for an agent whose license has been revoked?
at least 5 years before applying for a new license
as a condition for a loan a bank requires the borrower to purchase credit insurance from a specific company. what is the bank guilty of?
coercion. a creditor who requires a debtor to obtain insurance from a particular company is guilty of coercion
the phrase transacting business includes
collecting premiums
an evidence of coverage form may be issued by a health maintenance organization after being approved by the
commissioner
which of the following is not included in a life insurance illustration
company's mortality table
credit life insurance
insurance issued on a debtor to cover outstanding loan balances
a domestic insurance company in texas is considered a company that
is incorporated and formed in Texas
Right to loan
is not a required provision in group life policies
during a sales presentation for a participating life insurance policy an agent must
make a prospect understand that dividends are not guaranteed
which of the following is a valid reason for an enrollee to be cancelled by a health maintenance organization plan?
nonpayment of coverage
extended term
not required in life insurance policies
who owns stock insurance company
stockholders
who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in Texas?
the agent and the company
why would the insurance commissioner examine the records of an insurance company
to determine the solvency of the company
an example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
abc insurance company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. abc is committing a prohibited act under Texas Insurance laws covering
unfair methods of competition
how long does an insurance company appointment remain in force?
until terminated or withdrawn
an insured may assign up to _________ of policy ownership under an individual life insurance policy
100%
Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed? *Coercion *Fraud *Misrepresentation *Sliding *rebating
Misrepresentation
if an insured's age was misstated on a life insurance contract the misstatement of age provision requires that any death benefit payable would be
an amount that the premiums paid would have purchased at the current age
in texas regarding the suicide clause is true when
an insurer may not use suicide as a defense against payment after the second year.
what is an organization that solicits insurance only to its members
fraternal benefit society
a foreign insurance company conducting insurance business in texas
was formed under the laws of another state
an employee is covered under a company group life plan with a $50,000 death benefit. what is the maximum amount a spouse may be insured for under this program?
$25,000
every 12 months after the initial enrollment period an hmo must hold an open enrollment period of
31 days
in texas an individual life insurance policy is Required to have a grace period of
31 days
how long can a cash surrender value payment be deferred by the insurance company under the nonforfeiture law?
6 months. a company shall reserve the right to defer payment of any cash surrender value for a period of six months
all of these statements about the commissioner of insurance are true except a. the commissioner must be elected b. the commissioner regulates the business of insurance in this state c. the commissioner ensures that texas insurance laws are executed d. the commissioner protects and ensures the fair treatment of consumers
A. the commissioner must be elected. The governor appoints the commissioner to a two year term
which of the following may NOT charge fees for insurance advice? a. legal reserve agents b. managing general agents c. life and health insurance counselors d. financial planners
Legal reserve agent
which of the following benefits is not required under a group health plan for drug and alcohol treatment? a. inpatient treatment b. transportation to and from a treatment facility c. group therapy d. outpatient treatment
b. transportation to and from a treatment facility
to terminate an agent's appointment an insurance company must
send termination notice to the texas dept of insurance
a certificate of ____________ permits an insurance company to transact business in Texas.
authority
B the insurance agent tells his clients that their rights may be impaired if they fail to complete a release form within a given period of time. B may be found guilty of
coercion
an applicant must receive an outline of coverage when an application is taken for a(n)
medicare supplement policy
which action will life insurance company most likely take if an insured dies and it is discovered the insured's age was misstated on the application
pay an amount the premiums would have purchased at the insured's actual age
