Chapter 1 Flashcards
What is the primary statute governing life insurance in Texas?
Texas Insurance Code, Title 11.
True or False: In Texas, life insurance policies must have a grace period for premium payments.
True.
Fill in the blank: The Texas Department of Insurance regulates _______ in the state.
life and health insurance.
What is the minimum age to enter into a life insurance contract in Texas?
18 years old.
What does ‘insurable interest’ mean in the context of life insurance?
The policyholder must have a legitimate interest in the life of the insured.
Which type of life insurance is characterized by a cash value component?
Whole life insurance.
True or False: Health insurance policies in Texas are required to cover pre-existing conditions.
False.
What is the Texas statute that addresses the regulation of health maintenance organizations?
Texas Insurance Code, Chapter 843.
What are the two main types of life insurance policies?
Term life insurance and whole life insurance.
What is the purpose of the Texas Life and Health Insurance Guaranty Association?
To protect policyholders in the event of an insurer’s insolvency.
Fill in the blank: Insurers in Texas must provide a _______ notice before a policy is canceled.
written.
What is the term for the period during which a policyholder can reinstate a lapsed life insurance policy in Texas?
Reinstatement period.
True or False: Texas law allows life insurance companies to deny claims based on suicide within the first two years.
True.
What is the maximum coverage limit provided by the Texas Life and Health Insurance Guaranty Association?
$300,000 for life insurance death benefits.
What is the primary purpose of the Texas Insurance Code?
To regulate insurance practices and protect consumers.
Which entity is responsible for enforcing insurance laws in Texas?
Texas Department of Insurance.
What must insurers provide to policyholders regarding their premium payments?
An annual statement of premium payments.
Fill in the blank: The Texas Insurance Code requires that health insurance policies include _______ for preventive services.
coverage.
What is the standard contestability period for life insurance policies in Texas?
Two years.
True or False: An insurance agent in Texas must be licensed to sell life and health insurance.
True.
What is the term used for a life insurance policy that pays a benefit upon the insured’s death?
Death benefit.
What must be included in a health insurance policy according to Texas law?
A summary of benefits and coverage.
What is the role of the Texas Health Insurance Pool?
To provide health insurance coverage to residents who are unable to obtain it elsewhere.
Fill in the blank: Health insurance policies in Texas may include _______ provisions.
exclusion.
What is the required notice period for cancelling a health insurance policy in Texas?
30 days.
True or False: Life insurance policies in Texas can be transferred without the consent of the insurer.
False.
