Texas Life and Health

An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?

Illegal

When Producer A was reviewing Bruce's insurance that is written by another company, she made several oral statements that were maliciously critical of that other insurer. Producer A could be found guilty of

Defamation

A producer who omits a statement which may mislead or decieved the persons addressed has committed

Misrepresentation.

Anyone who violates the Insurance Code of Texas may be fined up to

$25,000.

How many hours of continuing education can be carried over from one licensed period to the next?

0

Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is

A mutual insurer.

Rebating is an unfair trade practice and is regulated by law. All of the following would be considered to be rebating EXCEPT

An agent uses misrepresentation to convince a person to cancel an existing and take a new policy from him.

Who is considered a nonresident agent?

An agent who resides in another state, but is licensed to write in Texas.

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

An authorized insurer.

In Texas, how is the Commissioner of Insurance placed in office?

Appointed by the Governor for a term of 2 years.

Which of the following insurers are owned by stockholders who have the usual rights of ownership, including the right of voting and incurring profits or losses?

Stock

All of the following attributes are found in stock insurance companies EXCEPT

The board of directors is chosen by a state-based election board.

An agent receives an Emergency Cease and Desist Order for chronically misrepresenting his insurance policies. The agent knows that he did not commit the violates in the Emergency Cease and Desist Order. He wants to contest the charge in a court hearing. Which of the following is true?

The hearing must be held within 10 days of receiving a request, unless both parties agree to a later date.

What is the major difference between a Stock Company and a Mutual Company?

Ownership

An agent is trying to convince a potential insured to buy a policy from him, so he misrepresents the benefits of the policy. This is an example of

Fraud