Chapter 10 Quz
Anyone who violates the insurance code of Texas may be fined up to
$25,000
Who might receive dividends from a mutual insurer
Policyholders
Which of the following individuals could legally receive commissions from the sale of a life insurance policy?
Life insurance agent
On a participating insurance policy issued by a mutual insurance company, dividends paid to policy holders are
Not taxable since the IRS treats them as a return of a portion of the premium paid
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
An applicant properly notifies her insurer of a straightforward claim, but the insurer waits an exceedingly long time to process it. Which of the below terms best describes the behavior of the insurer?
Unfair claims settlement practice
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
coercion
What is the major difference between a stock company and a mutual company?
ownership
Which of the following insurers are owned by stockholders
stock
The Commissioner of Insurance issues a Cease and Desist Order to an agent. If the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?
30 days
Which of the following will NOT be considered unfair discrimination by insurers?
Discriminating in benefits and coverages based on the insured's habits and lifestyle
Two individuals are in the same risk and age class, yet, they are charged different rates for their insurance policies due to an insignificant factor. What is this called?
Discrimination
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 heald?
10
In Texas, the Commissioner of Insurance is
Appointed by the Governor
All of the following are considered unfair or deceptive acts in connection with the sale of insurance EXCEPT
Attempting to settle a claim in which liability is clear
Circulating deceptive sales material to the public is what type of Unfair Trade practice?
False Advertising
Which of the following occupations would NOT directly help to qualify someone for the office of Commissioner of Insurance?
Insurance agent
An insurer advertises a health policy that is covered by the Life and Health Insurance Guaranty Association. The advertisement includes a short list of benefits and approximate rates. The end of the advertisement includes statement that protection is provided by the Guaranty Association. Which of the following is true?
Mentioning the Guaranty Association in advertisements is considered to be unfair trade practice.
In Texas, the state's continuing education requirement
Consists of completing 24 hours of CE each biennium
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstances
Which of the following is NOT a possible penalty for a violation of the Insurance Code?
A fine up to $100,000
