Chap 10 Texas Statutes and rules common to life and health insurance

What is the maximum allowed value of a gift that an agent can give to an insured without violating the regulation on rebating?

$25

Anyone who violates the Insurance Code of Texas may be fined up to

$25,000

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?

10

Within how many years must an agent renew an insurance license?

2 years

An agent completed a CE course in 2019. Until what year must the agent keep the records of completion?

2023

Which of the following individuals could legally receive commissions from the sale of a life insurance policy?

A licensed life insurance agent

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

Coercion

All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT

Dividends from a mutual insurer

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy?

Mutual

Which of the following is NOT a possible penalty for a violation of the Insurance Code?

a fine up to $100,000

In Texas, the state's continuing education requirement

consists of completing 244 hours of CE each biennium

A license may NOT be denied, suspended, or revoked if the licensee

submits an unsigned insurance policy application

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid