Chapter 10 Quiz

Which of the following is the closest term to an authorized insurer?

Admitted

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

Defamation

The owner of a small restaurant submits a claim to his insurer after a loss due to fire. The insurer's investigation finds a police report that shows that a fire may have been of suspicious origin. The insurer can do which of the following?

Delay an acceptance or rejection decision

Which of the following best describes an insurance company that has been formed under the laws of this state?

Domestic

The Commissioner has full power and authority to do all of the following EXCEPT

Draft insurance laws

Temporary licenses issued in Texas

Expire in 90 days

Which of the following entities is not an insurer but an organization formed to provide benefits for members of an affiliated lodge or religious organization?

FRATERNAL BENEFIT SOCIETY

An insurance company is domiciled in Montana and transacts insurance in Wyoming. Which term best describes the insurer's classification in Wyoming?

Foreign

An individual applies for a life policy. Two years ago he suffered a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen?

The policy will not be affected

What is the purpose of the Life Insurance Guaranty Association?

To help protect policyowners and beneficiaries against financial loss caused by the insolvency of an insurance company

The Insurance Commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every

5 years

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 insurer. From what type of insurer did the insured purchase the polcy?

Mutual

If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be

Authorized

An insurer that holds a Certificate of Authority in the state in which it transact business is considered an

Authorized insurer

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy

False advertising

An agent holds an insurance license in the state of Kansas and would like to transact insurance in Texas. The agent became licensed before written examination were required. Therefore, the agent has not actually passed any kind of examination. Which of the following is true?

The written examination requirement will be waived

all of the following would be considered rebating EXCEPT

An agent misrepresents policy benefits to convice a policyowner to replace policies

In Texas, how long is the commissioner of insurance placed in office

Appointed by the Governor for a term of 2 years

It would be considered unfair discrimination to ask an insurance applicant about which of the following and then use that information as a rating factor to determine insurability

Sexual Orientation

All of the following are unfair claims settlement practices EXCEPT

Suggesting negotiations in settling the claim