Texas Life and Health
What is the maximum penalty for habitual willful noncompliance with the Credit Reporting act?
$2,500
Which of the following documents delivered to the policy owner includes information about premium amounts, cash values, surrender values and death benefits for specific policy years?
A policy summary
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
Consideration
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
Consideration
Health contracts are prepared by insurers and must be accepted by the insured on an 'as is' basis. This describes what aspect of a health insurance contract?
Contract of Adhesion
Which of the following is not an essential element of an insurance contract?
Counter Offer
What is the purpose of a conditional report?
It is intended to provide coverage on a date prior to the policy issue.
If a consumer request additional information concerning an investigative consumer report , how long does the insurer or reporting agency have to comply?
5 Days
When both parties to a contract must preform certain duties and follow rules of conduct to make the contact enforceable, the contract is
Conditional
In classifying a risk, the Home Office underwriting department will look at all of the following except
Applicant past income
Which of the following is the primary source of information used for insurance underwriting?
Application
An insurance contract must contain all of the following to be considered legally binding except
Beneficiary's consent
A producer agent must do all of the following when delivering a new policy to the insured except?
Disclose commissions earned from the sale of the policy
If a change needs to be made to the application for insurance, the agent may do all of the following EXCEPT
Erase the incorrect answer and record the correct answer.
An underwriter may obtain information on an applicant's hobbies, financial status, and habits by ordering an
Inspection Report
Stranger-Originated Life Insurance (STOLI) are in direct opposition to the principle of
Insurable interest
When Y applied for insurance and paid the initial premium on August 14, he was issued a conditional receipt. During the underwriting process, the insurance company found no reason to reject the risk or classify it other than as standard. Y was killed in an automobile accident on August 22, before the policy was issued. In this case, the insurance company will
Issue the policy anyway and pay the face value to the beneficiary.
An applicant who receives a preferred risk classification qualifies for
Lower premium than a person who receives a standard risk
Part 2 of the application for life insurance provides questions regarding all of the following EXCEPT
Other insurance coverage's
A prospective insured receives a conditional receipt but dies before the policy is issued. The insurer will:
Pay the policy only if it would have issued the policy
How can health insurance policies be delivered to the insured?
Personally delivered by the agent or mailed
Which of the following will be included in a policy summary?
Premium amounts and surrender values
If an agent fails to obtain the applicant's signature on the insurance application, the agent must
Return the application to the applicant for a signature
Upon delivery, the producer may be required to obtain any of the following except?
Signed waiver of premium.
Which of the following is a risk classification used by underwriters for life insurance?
Standard
Which of the following statements is correct about a standard risk classification in the same age group and similar lifestyles?
Standard risk is representative of the majority of people
An individual applied for an insurance policy and paid the initial premium. The insurer issued a conditional receipt. Five days later the applicant had to submit to a medical exam. If the policy is issued, what would be the policy's effective date?
The date of medical exam
Insurance is the transfer of
risk
Which of the following protects consumers against the circulation of inaccurate or personal or financial information?
The fair credit reporting act
What is the purpose of the buyer's guide?
To allow the consumer to compare the cost of different polices
Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?
Warranty
When is the earliest a policy may go into effect?
When the application is signed and a check is given to the agent
