General insurance Ch 14

A licensed agent is required to obtain which of the following before transacting insurance in Texas?

An appointment from an insurer

According to the Texas Insurance Code, an insurance company incorporated in New Mexico is a(n):

Foreign insurer

If an insurer requires an individual to be tested for AIDS, all of the following are required, if applicable, except:

Gather statistical information that identifies the applicant to share with other insurers

An enrollee may have coverage cancelled or non-renewed by an HMO for which of the following?

Nonpayment of premium

The Commissioner may examine the records of an insurance company for the purpose of:

determining solvency

General life, accident, and health agents must complete a minimum of _______ continuing education hours per renewal period.

24

An individual life insurance policy must have a grace period of at least ______ days.

31

An HMO must hold an open-enrollment period at lease annually for:

31 days

An individual who was denied a license must wait to reapply for a license a minimum of:

5 years

Under Nonforfeiture Law, a cash surrender payment may be deferred up to:

6 months

An individual may be denied a license by the department for all of the following reasons, except if the individual has:

Actively engaged in soliciting and writing insurance for the general public

A license may be suspended or revoked for which of the following?

An agent is actively engaged in soliciting insurance only to family members

Which one of the following scenarios would not require a person to pass a written exam in Texas in order to receive a license?

An applicant who is seeking to obtain a temporary license

Which of the following is considered false advertising?

An insurer exaggerates its dividends in statements published in a newspaper

Coverage for newborns must begin:

At birth

The Texas Department of Insurance requires all licensees to:

Be honest, trustworthy, and reliable

All medicare supplement policies must offer coverage for all of the following, except:

Disability income

Under the ACA, a catastrophic plan may be purchased by any of the following, except an individual:

Enrolled in Medicaid

A long-term care policy issued in Texas must, at a minimum, be offered as:

Guaranteed renewable

What prohibited trade practice is committed if an agent provides misleading information regarding guaranteed dividends, terms, advantages, or disadvantages of a policy?

Misrepresentation

Which of the following is not a prohibited claims practice?

Requiring a claimant's income tax return while investigating an arson fire

A small employer health insurer may not offer coverage to an eligible employee unless the employee has:

Satisfied the applicable waiting period

An agent's license expires on the _____ anniversary of the date the license was issued.

Second

All of the following regarding Evidence of Coverage are correct, except: q

The evidence of coverage must be delivered in writing

Which of the following is a true statement about the regulation of advertising?

A basic illustration shows both guaranteed and non-guaranteed elements

Which type of insurance company is owned by its policyholders?

Mutual insurer

To terminate an agent's appointment, the insurer must:

Notify the Texas Department of Insurance of the termination of appointment

A licensed life insurance agent in Texas can share commissions with which of the following?

Another licensed life insurance agent in Texas who assisted with the sale

Which of the following statements about continuing education is true?

At least 50% of of continuing education hours must be completed in a classroom or classroom equivalent setting

A corporation applying for an agency license must meet which of the following requirements?

At least one officer or active partner are individually licensed in the same line of authority as the agency

All of the following statements about life insurance policy provisions are correct, except:

If a policy lapses due to unpaid premiums, it may only be reinstated up to 2 years after the lapse

Which of the following is not included in a Summary of Benefits and Coverage?

Premiums

Which of the following does not describe an eligible group for group life insurance?

A group consisting exclusively of persons related by marriage or blood

Which of the following is a method used by an HMO to compensate a physician or provider for providing a defined set of health care services and is based on a predetermined payment per enrollee:

Capitation

All of the following are required to be included in a life insurance illustration, except:

Company specific mortality tables

An insurance agent does NOT owe a fiduciary duty to:

Insurance counselors

The Certificate of Authority is issued to an insurer for which of the following reasons?

It certifies the insurer is authorized to transact insurance in this state

Publishing or circulating information that is maliciously derogatory to the financial condition of an insurance company with the intent to insure is known as:

Defamation

With respect to advertising requirements, all of the following are allowable unless the insurer:

Includes the terms investment, savings plan, or profit sharing

Which of the following is not a duty of the Commissioner?

Make state insurance laws

When taking an application for a medicare supplement policy, an agent must provide the applicant with a(n):

Outline of coverage

An agent's appointment:

Remains in force until terminated or withdrawn

Which of the following is NOT transacting insurance?

Selling stocks, bonds, and mutual funds

Which of the following statements regarding the suicide clause is correct?

Suicide may not be a defense against payment after the second year the policy is issued

The Commissioner is authorized to perform all of the following duties, except:

Suspend insurance licenses for up to 5 years

An agent's license can be suspended for which of the following reasons?

Transacting insurance with only family members