chapter 18 texas laws and rules pertinent to insurance Flashcards
in texas an individual life insurance policy is required to have a grace period of
31 days
an employee is covered under a company group life plan with a. $50,000 death benefit. what is the MAX amount a spouse may be insured for under this program
$25,000
spouse may not exceed 1/2 of the amount of the insurance
which of the following is a valid reason for an enrollee to be cancelled by a health maintenance organization (HMO) plan
nonpayment of coverage
which of these is NOT an example of doing insurance business
selling shares of stocks
if an insureds age was misstated of a life insurance contract, the misstatement of age provision requires that any death benefit payable would be
an amount that the premiums paid would have purchased at the current age
when will a hearing be held after a notice of hearing, alleging participation in an unfair or deceptive act, is served to a licensee or insurer by the commissioner
no sooner than 6 days
with whom may an agent legally share commissions
an agent with the same line of insurance
which of the following statements about health coverage for newborns is not true
coverage is limited to only congenital defects
an insurance agent has a fiduciary responsibility to all of the following except
other agents
_________ of continuing education must be completed int he classroom or classroom equivalent
50%
an insurance company organized under new york laws and licensed to do business in texas is considered an
foreign company
how long can a cash surrender value payment be deferred by the insurance company under the nonforfeiture law
6 months
to terminate an agents appointment an insurance company must
send termination notice to the texas department of insurance
in texas how long must a policy be in force before an insurance company must pay death benefits for suicide
2 years
which of the following is not included in a life insurance illustration
companys mortality table
an example of an unfair claims settlement practice is
turning down a claim without providing the basis of denial
a promotional advertising item is not considered a rebate unless it has a value equal to or less than what amount
$25
an evidence of coverage form may be issued by a health maintenance organization after being approved by the
commissioner
which of the following actions does the commissioner of insurance not have the power to conduct
activate insurance companies financial reserves
B, an insurance agent tells his clients that their rights may be impaired if they fail to complete a release form within a given period of time. B may be found guilty of
coercion
what is the minimum benefit period that must be offered by a long term care policy
12 months
every 12 months after the initial enrollment period an HMO must hold an open enrollment period of
31 days
a certificate of _________ permits an insurance company to transact business in texas
authority
a medicare supplement policy may be cancelled for which of the following reasons
the premium has not been paid by the insured
as a condition for a loan a bank requires the borrower to purchase credit insurance from a specific company, what is the bank guilty of
coercion
why would the insurance commissioner examine the records of an insurance company
to determine the solvency of the company
in texas which of these statments regarding the suicide clause is true
an insurer may not use suicide as a defense against payment after the second year
who owns a stock insurance company
stockholders
which of the following benefits is not required under a group health plan for drug and alcohol treatment
transportation to and from a treatment facility
which of the following is NOT a required provision in group life policies
right to loan
what is an organization that solicits insurance only to its members
fraternal benefit society
a plan through the marketplace may be purchased by
any legal resident (except those imprisoned)
an insurer is not required to provide information on fraudulent claims if requested by
an insured
on the written request of an authorized government entity they will provide any relevant information
an insured may assign up to _______ of policy owenrship under an individual life insurance policy
100%
the phrase “transacting business” includes
collecting premiums
an applicant must receive an outline of coverage when an application is taken for an
medicare supplement policy
how long does an insurance company appointment remain in force
until terminated
which unfair trade practice involves an agent telling a prospective client that a policy dividends are guaranteed
misrepresentation
a temporary agents license issued by the commissioner of insurance is valid up to _____ days
90 days
a domestic insurance company in texas is considered a company that
is incorporated and formed in texas
