LIFE INSURANCE CHAPTER 5

3. In an insurance transaction, which of the following does a licensed agent represent?

Insurer

Coercion

forceful act or threat aimed to influence a person to act against their will

Commission

payment to the agent by the insurance company for placing insurance, usually a percentage of the policy premium

Who appoints the commissioner, (2yrs)

the governor

Commissioner

the head of the State Department of Insurance

Cease and desist

to stop or discontinue

2. A life agent's license must be renewed

Every 2 years on the anniversary date of issuance.

1. A temporary license is normally valid for

. 6 months.

7. 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 how many days must the hearing be held?

10 days

14. Agents whose license has been revoked will not be able to receive another license in Texas for at least

5 years

6. Who is considered a nonresident agent?

An agent who resides in another state, but is licensed to write insurance in this state

5. An insurer who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called

Defamation.

15. How often must producers renew their licenses?

Every 2 years

4. An agent who offers a cash reward to a prospect for buying a policy is guilty of

Rebating

9. The Commissioner of Insurance is responsible for all of the following actions EXCEPT

Setting premium rates.

12. What is the main purpose of requiring licenses for persons who transact insurance?

To protect insurance companies from incompetent producers