Texas Statues and Rules Common to All Line - Ch. 5 Quiz

Which of the following is an example of a producer being involved in an unfair practice of rebating?

Telling a client that his first premium will be waived if he purchases the policy today

An agent discovers his client was the result of a referral, to show his thanks to the referring customer, the agent could?

Thank the customer. (Anything else is illegal)

An agent receives an Emergency Cease and Desist Order for chronically misrepresenting his insurance policies. The agent knows that he did not commit the violations stated int he Emergency Cease and Desist Order. He wants to contest the charges Ina court hearing. Which of the following are true?

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

All of the following must be true of an individual before a license can be issued EXCEPT that the

Applicant submitted his or her mot recent tax return to the department

All of the following are insurance transactions

-Advising a policy holder regarding a claim -Negotiating coverage -Soliciting a policy

What is required for an individual to be licensed?

-Pass the lisence examination -pay the fees -be 18 years old

Within how many years must an agent renew an insurance license?

2

The commissioner of Insurance issues a Cease and Desist ORder to an agent. If the agent wishes to contest the charges in court, how many days after the order was issued does the agent have to make the request?

30 days

How long must producers maintain records of completion of continuing education courses?

4 years

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

Admitted

All of the following must be true of an individual before a license can be issued Except that the

Applicant submitted his or her most recent tax return to the department

To legally transact insurance in this state, an insurer must obtain which of the following?

Certificate of Authority

Which of the following must an insurer obtain in order to transact insurance within a given state

Certificate of authority

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as

Coercion

When an individual obtains an insurance license for the for the primary purpose of writing insurance on himself or herself or for members of his or her immediate family or business, this is called

Controlled business

The owner of a small restaurant submits a claim to his insurer after a loss due to fire. The insurers investigation finds a policy report 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 will not be considered unfair discrimination by insurers?

Discriminating in benefits and coverages based on the insured's habits and lifestyle

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

Domestic

Which of the following occupations would NOT directing help to qualify someone for the office of Commissioner of Insurance>

Insurance agent

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

All of the following would be an insurance transaction EXCEPT

Obtaining an insurance license

What is the major difference between a stock company and a mutual company?

Ownership

Pertaining to insurance, what is the definition of a fiduciary responsibility?

Promptly forwarding premiums to the insurance company

All of the following are requirements for an individual to be licensed Except?

Providing a financial statement

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

Sexual Orientation

Which of the following insurers are owned by stockholders?

Stock

Who do agents represent?

The insurance company