Texas statutes and rules pertinent to life insurance only questions
During the replacement of life insurance, a replacing insurer must do which of the following? Send a copy of the Notice Regarding Replacement to the Department of Insurance Obtain a list of all life insurance policies that will be replaced Guarantee a replacement for each existing policy Designate a new producer for a replaced policy
Obtain a list of all life insurance policies that will be replaced
During the replacement of life insurance, a replacing insurer must do which of the following? Send a copy of the Notice Regarding Replacement to the Department of Insurance Obtain a list of all life insurance policies that will be replaced Guarantee a replacement for each existing policy Designate a new producer for a replacement policy
Obtain a list of all life insurance policies that will be replaced
If a person is compensated for a testimonial in an advertisement, which of the following statements should be included in the advertisement? The author is the employee of the insurer Commissioned advertisement Paid endorsement Insurer is not responsible for the contents of the testimonial
Paid endorsement
All of the following are mandatory life insurance policy provisions EXCEPT Policy backdating Misstatement of age Incontestability Grace period
Policy backdating
According to the state nonforfeiture law for life insurance policies, insurers must offer at least one of the following nonforfeiture options EXCEPT Shortened benefit period Reduction of premium Reduced paid-up Extended term
Reduction of premium
The regulations regarding replacement apply to which of the following Replacement of existing policy by the same insurer Credit life Group life Renewable term
Renewable term
The regulations regarding replacement apply to which of the following? Renewable term Replacement of existing policy by the same insurer Credit life Group life
Renewable term
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the funds to purchase new insurance? Reinstatement rule Conversion rule Disclosure rule Replacement rule
Replacement rule
Which of the following may be included on an insurance advertisement? Claims settlement illustrations which imply special treatment Words and symbols similar to those of government agencies Testimonials from compensated individuals Trade names in palace of the insurer's name
Testimonials from compensated individuals
The initial amount of credit life insurance may NOT exceed The borrower's annual income The amount to be repaid under the contract An amount set by statute and adjusted regularly for inflation The borrower's monthly income
The amount to be repaid under the contract
The initial- amount of credit life insurance may NOT exceed The borrower's annual income The amount to be repaid under the contract An amount set by statute and adjusted regularly for inflation The borrower's monthly income
The amount to be repaid under the contract
Which of the following is TRUE regarding the insurance amount in a credit life policy? The amount of coverage can be greater than the amount owed The creditor can only insure the debtor for the amount owed The creditor may insure the debtor for an unlimited amount of coverage Allowable amount of coverage is determined by the State Insurance
The creditor can only insure the debtor for the amount owed
Which of the following is TRUE regarding the insurance amount in a credit life policy? The amount of coverage can be greater than the amount owed The creditor can only insure the debtor for the amount owed The creditor may insure the debtor for an unlimited amount of coverage Allowable amount of coverage is determined by the State Insurance Commissioner
The creditor can only insure the debtor for the amount owed
Which of the following is NOT required on an illustration used in the sale of a life insurance policy? Generic name of policy Name of insurer Underwriting or rating classification upon which the illustration is based The name of the primary and secondary beneficiaries
The name of the primary and secondary beneficiaries
How must a replacing producer respond to an applicant wishing to replace existing life insurance? The producer must request the permission of the existing insurer The producer has no specific duties The producer must provide the applicant with a Notice Regarding Replacement The producer must collect the existing policies and turn them over to the replacing insurer
The producer must provide the applicant with a Notice Regarding Replacement
What is the main purpose of the regulation on life insurance policy illustrations? To compare life policies To help producers submit proper reports to the department of insurance To present a life policy in a visual way To help customers make educated decisions in buying life insurance
To help customers make educated decisions in buying life insurance
Which of the following CANNOT be included along with illustrations used for self-life insurance? Vanishing premium information Name of the insurer Rating information Original death benefit
Vanishing premium information
Upon the submission of a death claim under a life insurance policy, when must the insurer pay the policy benefit? Immediately after receiving written proof of loss On the next anniversary of the policy Within 30 days Within 2 months
Within 2 months
Which of the following types of insurance policies is most commonly used in credit life insurance? Equity indexed life Decreasing term Increasing term Whole life
Decreasing term
The usage of words or symbols that are similar to what entity is prohibited in life insurance advertisements? Insurer Department of insurance Stock Federal government
Federal government
When possible, what should insurers strive to eliminate from illustrations? Words they don't know Footnotes and caveats References to other products Policy amendments more than a page long
Footnotes and caveats
What provision in a life or health insurance policy extends coverage beyond the premium due date? Grace period Free look Automatic premium loan Waiver of premium
Grace period
Which of the following must be included in all life insurance advertisements? Names of any parent companies Contact information for the Commissioner of Insurance Contact information for each local office of the insurer Identity of the actual insurer
Identity of the actual insurer
All advertisements are the responsibility of the Soliciting agent Advertising agency Department of insurance Insurer
Insurer
Which of the following is correct regarding credit life insurance? It insures the life of a creditor It has a maximum term of 20 years It insures the life of a debtor It is purchased on an installment basis
It insures the life of a debtor
An individual covered under a group life insurance policy may convert the policy to any of the following EXCEPT Universal life Variable universal life Whole life Level term
Level term
Which of the following documents must be provided to the policyowner or applicant during policy replacement? Policy illustrations Notice Regarding Replacement Disclosure Authorization Form Disclosure Authorization Form Buyer's Guide and Policy summary
Notice Regarding Replacement
During replacement of life insurance, a replacing insurer must do which of the following? Send a copy of the Notice Regarding Replacement to the Department of Insurance Obtain a list of all life insurance policies that will be replaced Guarantee a replacement for each existing policy Designate a new producer for a replaced policy
Obtain a list of all life insurance policies that will be replaced
How long is the incontestability period in group life insurance policies issued in Texas? 1 year 2 years 3 years Indefinitely
2 years
Conversion to an individual whole life policy is permitted without evidence of insurability within how many days of the termination of employment? 14 days 28 days 30 days 31 days
31 days
How long is the grace period in group policies? 10 days 21 days 31 days 90 days
31 days
How soon from the termination of debt under a credit life insurance policy must a creditor provide notice to the insurer? 7 days 10 days 30 days 60 days
60 days
If a policyowner surrenders his life insurance policy that has been in force for 5 years within 60 days after the premium due date, what will the insurer be required to pay? A paid-up nonforfeiture benefit Nothing The death benefit A cash surrender value
A cash surrender value
To which of the following situations does the Replacement Regulation apply? Coverage under a binding receipt issued by the same company A whole life policy reissued with reduction in cash value Group life insurance An immediate annuity purchased with proceeds from an existing policy
A whole life policy reissued with reduction in cash value
To which of the following situations does the Replacement Regulation apply? Coverage under a binding receipt issued by the same company A whole-life policy reissued with a reduction in cash value Group life insurance An immediate annuity purchased with proceeds from an existing policy
A whole-life policy reissued with a reduction in cash value
An insured in a group policy has misstated his age on the insurance application. As a result, the insurer will most likely Cancel the coverage Impose a fine on the insured Issue an amended policy Adjust the premium
Adjust the premium
All of the following statements are correct regarding credit life insurance EXCEPT Benefits are paid to the borrower's beneficiary The amount of insurance permissible is limited per borrower Premiums are usually paid by the borrower Benefits are paid to the creditor
Benefits are paid to the borrower's beneficiary
Which of the following is used to compare the cost of one life insurance policy against another in order to guide prospective purchasers to policies that are competitively priced? Consumer price indices Policy cost indices Cost comparison methods Policy cost guides
Cost comparison methods
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called Credit health Decreasing whole life Multiple protection insurance Credit life
Credit life
The type of insurance sold to a debtor and designed to pay the amount due on a loan if the debtor dies before the loan is repaid is called Decreasing whole life Multiple Protection Insurance Credit life Credit health
Credit life
Regarding credit life insurance, who is responsible for reporting termination of debt to the insurer? Creditor The Department Debtor Beneficiary
Creditor
Which of the following would be the beneficiary in credit life insurance? Borrower Creditor Insured Company
Creditor
Which of the following is TRUE about credit life insurance? Creditor is the policyowner Debtor is the annuitant Creditor is the insured Debtor is the policy beneficiary
Creditor is the policyowner
Which of the following is NOT allowed in credit life insurance? Creditor requiring that a debtor buys insurance from a certain insurer A creditor having a collateral assignment on the policy Creditor requiring that a debtor has life insurance Creditor becoming a policy beneficiary
Creditor requiring that a debtor buys insurance from a certain insurer
Which of the following is NOT allowed in credit life insurance? Creditor requiring that a debtor buys insurance from a certain insurer Creditor having a collateral assignment on the policy Creditor requiring that a debtor has life insurance Creditor becoming a policy beneficiary
Creditor requiring that a debtor buys insurance from a certain insurer
