Rules common to health and life insurance

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as: A. Rebating B. Twisting C. False Advertising D. Coercion

A. Rebating

All of the following would be considered an insurance transaction EXCEPT: A. Negotiating coverage B. Obtaining an insurance license C. Soliciting a policy D. Advising a policyholder regarding a claim

B. Obtaining an insurance license

A participating insurance policy may do which of the following? A. Require 80% participation B. Pay dividends to the policyowner C. Provide group coverage D. Pay dividends to the stockholder

B. Pay dividends to the policyowner

Which of the following types of insurers is owned by stockholders? A. Reciprocal B. Fraternal C. Stock D. Mutual

C. Stock

All of the following are unfair claims settlement practices EXCEPT A. failing to adopt and implement reasonable standards for settling claims B. Failing to acknowledge pertinent communication pertaining to a claim C. Suggesting negotiations in settling the claim D. Refusing to pay claims without conducting a reasonable investigation

C. Suggesting negotiations in settling the claim

In Texas, how is the commissioner of insurance place in office? A. Appointed by the Governor for a term of 4 years B. Appointed by the Senate for a term of 2 years C. by election, at the same election when other state officials are chosen D. Appointed by the Governor for a term of 2 years

D. Appointed by the Governor for a term of 2 years

Which of the following is an example of an agent's fiduciary responsibilities? A. Helping clients to file claims B. Performing a review of clients' coverage C. Offering additional coverage to a client D. Forwarding premiums to the insurer

D. Forwarding premiums to the insurer

Concerning insurance, the definition of a fiduciary responsibility is A. Handling assets or money belonging to others B. Being liable for negligence with respect to clients' applications C. maintaining an agents personal funds D. Handling insurer funds in a trust capacity

D. Handling insurer funds in a trust capacity

Which of the following is another term for an authorized insurer? A. Licensed B. Legal C. Admitted D. Certified

C. Admitted

All of the following could be considered rebates if offered to an insured in the sale of insurance except: A. Stocks, securities, or bonds B. An offer to share in commissions generated by the sale C. Dividends from a mutual insurer D. An offer of employment

C. Dividends from a mutual insurer

Circulating deceptive sales material to the public is what type of Unfair Trade Practice? A. Coercion B. Misrepresentation C. False advertising D. Defamation

C. False advertising

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? A. misrepresentation B. Deceptive claim settlement practice C. There is no misconduct D. Fraud

C. There is no misconduct

The insurance commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every A. Year B. 2 years C. 3 years D. 5 years

D. 5 years

An insured purchased an insurance policy 5 years ago. Last year, the insured received a dividend check from the insurance company that was not taxable. This year, the insurer did not send a check. From what type of insurer did the insured purchase the policy? A. Reciprocal B. Nonprofit service organization C. Stock D. Mutual

D. Mutual