Chapter 1

Question 1

What is the primary statute governing life insurance in Texas?

Answer 1

Texas Insurance Code, Title 11.

Question 2

True or False: In Texas, life insurance policies must have a grace period for premium payments.

Answer 2

True.

Question 3

Fill in the blank: The Texas Department of Insurance regulates _______ in the state.

Answer 3

life and health insurance.

Question 4

What is the minimum age to enter into a life insurance contract in Texas?

Answer 4

18 years old.

Question 5

What does ‘insurable interest’ mean in the context of life insurance?

Answer 5

The policyholder must have a legitimate interest in the life of the insured.

Question 6

Which type of life insurance is characterized by a cash value component?

Answer 6

Whole life insurance.

Question 7

True or False: Health insurance policies in Texas are required to cover pre-existing conditions.

Answer 7

False.

Question 8

What is the Texas statute that addresses the regulation of health maintenance organizations?

Answer 8

Texas Insurance Code, Chapter 843.

Question 9

What are the two main types of life insurance policies?

Answer 9

Term life insurance and whole life insurance.

Question 10

What is the purpose of the Texas Life and Health Insurance Guaranty Association?

Answer 10

To protect policyholders in the event of an insurer’s insolvency.

Question 11

Fill in the blank: Insurers in Texas must provide a _______ notice before a policy is canceled.

Answer 11

written.

Question 12

What is the term for the period during which a policyholder can reinstate a lapsed life insurance policy in Texas?

Answer 12

Reinstatement period.

Question 13

True or False: Texas law allows life insurance companies to deny claims based on suicide within the first two years.

Answer 13

True.

Question 14

What is the maximum coverage limit provided by the Texas Life and Health Insurance Guaranty Association?

Answer 14

$300,000 for life insurance death benefits.

Question 15

What is the primary purpose of the Texas Insurance Code?

Answer 15

To regulate insurance practices and protect consumers.

Question 16

Which entity is responsible for enforcing insurance laws in Texas?

Answer 16

Texas Department of Insurance.

Question 17

What must insurers provide to policyholders regarding their premium payments?

Answer 17

An annual statement of premium payments.

Question 18

Fill in the blank: The Texas Insurance Code requires that health insurance policies include _______ for preventive services.

Answer 18

coverage.

Question 19

What is the standard contestability period for life insurance policies in Texas?

Answer 19

Two years.

Question 20

True or False: An insurance agent in Texas must be licensed to sell life and health insurance.

Answer 20

True.

Question 21

What is the term used for a life insurance policy that pays a benefit upon the insured’s death?

Answer 21

Death benefit.

Question 22

What must be included in a health insurance policy according to Texas law?

Answer 22

A summary of benefits and coverage.

Question 23

What is the role of the Texas Health Insurance Pool?

Answer 23

To provide health insurance coverage to residents who are unable to obtain it elsewhere.

Question 24

Fill in the blank: Health insurance policies in Texas may include _______ provisions.

Answer 24

exclusion.

Question 25

What is the required notice period for cancelling a health insurance policy in Texas?

Answer 25

30 days.

Question 26

True or False: Life insurance policies in Texas can be transferred without the consent of the insurer.

Answer 26

False.