texas law and rules
A promotional advertising item is not considered a rebate unless it has a value equal to or less than what amount?
$25
an example of false advertising would be
An insurer exaggerating its dividends in a magazine advertisement
an agent in texas cannot issue an insurance policy with an eligible surplus lines insurer unless the agent
possesses surplus lines license
when revoking an insurer's authority, the department of insurance must provide the insurer a at least how long before hand
10 days
an individual who holds a limited life, accident and health license must complete
10 hours of continued training every 2 years
An insured may assign up to ___ of policy ownership under an individual life insurance policy.
100%
during each license renewal period, every licensee must complete
2 hrs of continuing education in ethics
agents must renew their license every
2 years
an individual who holds a general life, accident and health license must complete a
24hr of continuing education every 2 years
texas grace period
30 days
the commissioner requires fingerprinting of applying for a residents license within
30 days
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
every insurance agent must maintain all records, books, and documents for insurance transactions for atleast
5 years
___ of continuing education MUST be completed in the classroom or classroom equivalent.
50%
how long can a cash surrender value payment be deferred by the insurance company under the nonforfeiture law
6 months
A temporary agent's license issued by the commissioner of insurance is valid for up to ___ days
90
In Texas, which of these statements regarding the Suicide clause is TRUE?
An insurer may not use suicide as a defense against payment after the second year
With whom may an agent legally share commissions?
Another agent with the same line of insurance
A plan through the Marketplace may be purchased by
Any legal resident (except those imprisoned)
An applicant MUST receive an Outline of Coverage when an application is taken for a(n)
Medicare Supplement policy
if the buyer's guide and disclosure document required are not provided at or before application,
a free look period of atleast 15 days must be provided
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?
agent
department of insurance may examine or audit newly incorporated or issuer
arleast once during the insurer's first, third, and fifth years and at least once every five years after that
to transact insurance businesses in texas, an insurer must apply for and receive a
certificate of authority
as a condition for a loan, a bank requires the borrow to purchase credit insurance from a specific company. what is this bank guilty of?
coercion
the phrase "transacting business" includes
collecting premiums
An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the
commissioner
the commissioner has the power to
conduct investigations of the operations of insurers
in texas, a group life insurance policy must contain a
conversion provision
Why would the Insurance Commissioner examine the records of an insurance company?
determine the solvency of the company
an adjuster is a person who
determines or settles losses to property on behalf on client
foreign domestic alien explained
foreign- authorized in one state but principal office in another alien- office located outside of us domestic- home office in state where authorized
what is an organization that solicits insurance only to its members?
fraternal benefit society
credit life insurance is
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
settlement provision/ payment of claims
must be made no later than two months after the insurer receives proof of death
backdating in texas
no life insurance policy may be issued if it any provision that says the policy was issued more thsn 6 months before the application was made
what is a valid reason for an enrolled to be canceled by a health maintenance organization plan?
nonpayment of coverage
fraternals provide benefits
only for its members
the commissioner may place an agent on disability probation rather than
revoke their license if the agent is sueffering from mental or physical condition
an advertisement for a life insurance policy, endowment, or annuity may not include the terms
savings, investments, or other similar terms.
stock and mutual companies
stock companies are owned by stockholders mutual companies are owned by policy holders
a risk manager manages the pure risks
to which a company right might be subjected
An example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
what is required for an agent whose license has been revoked?
wait at least five years before applying for a new license