Finance quiz 5
What is the maximum allowed value of a gift that an agent can give to an insured without violating the regulation on rebating?
$25
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
An agent's license will terminate within how many days from the duration date of the obligatory fees and continuing education requirements?
90 days
two brothers, one brother got charged more because he makes more.
Discrimination
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 insure, From what type of insure did the insured purchase the policy?
Mutual
Who might receive dividends from a mutual insurer?
Policyholders
Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting?
Stock
In Texas, the commissioner of insurance is
appointed by the governor
After filing a claim, an insured tells the insurer the there Is more than one insurance policy in force. The insure sets aside the claim until it hears what the other company will pay. The insurer's action will be classified as
unfair
A license may not be denied, suspended, or revoked if the licensee
Submits an unsigned insurance policy application
All of the following would be considered an insurance transaction expect
obtaining an insurance license
A participating insurance oilily may do which of the following?
pay dividends to the policyholder
How many hours of continuing education can be carried over from one licensing period to the next
0
What is the major difference between a stock company and a mutual company?
Ownership (mutual companies are owned by policyholders, while stock companies are owned by stockholders)
Anyone who violates the insurance code of Texas may be fined up to
$25,000
What percentage of continuing education hours must be in a classroom setting?
50%
An agent explains the details of a life insurance policy to a client. The agent does not realize, however, that the state has recently rewritten two of the provisions. As a result, the agent inadvertently misrepresents the policy, making it more attractive than it really is. What best describes this situation?
There is no misconduct
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 premium paid
All of the following could be considered rebates if offered to an insured in the sale of insurance except
Dividends from a mutual insurer
An insurance professional advises a client regarding the benefits of her life insurance policy, in exchange for a fee
Counselor
Which of the following is the closest term to an authorized insurer?
Admitted (insurers who meet the state's financial requirements and are approved to transact business in the state are considered authorized or admitted into the state as a legal insurer)
