chapter 18 texas laws and rules pertinent to insurance

Question 1

in texas an individual life insurance policy is required to have a grace period of

Answer 1

31 days

Question 2

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

Answer 2

$25,000

spouse may not exceed 1/2 of the amount of the insurance

Question 3

which of the following is a valid reason for an enrollee to be cancelled by a health maintenance organization (HMO) plan

Answer 3

nonpayment of coverage

Question 4

which of these is NOT an example of doing insurance business

Answer 4

selling shares of stocks

Question 5

if an insureds age was misstated of a life insurance contract, the misstatement of age provision requires that any death benefit payable would be

Answer 5

an amount that the premiums paid would have purchased at the current age

Question 6

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

Answer 6

no sooner than 6 days

Question 7

with whom may an agent legally share commissions

Answer 7

an agent with the same line of insurance

Question 7

which of the following statements about health coverage for newborns is not true

Answer 7

coverage is limited to only congenital defects

Question 8

an insurance agent has a fiduciary responsibility to all of the following except

Answer 8

other agents

Question 9

_________ of continuing education must be completed int he classroom or classroom equivalent

Answer 9

50%

Question 9

an insurance company organized under new york laws and licensed to do business in texas is considered an

Answer 9

foreign company

Question 9

how long can a cash surrender value payment be deferred by the insurance company under the nonforfeiture law

Answer 9

6 months

Question 10

to terminate an agents appointment an insurance company must

Answer 10

send termination notice to the texas department of insurance

Question 11

in texas how long must a policy be in force before an insurance company must pay death benefits for suicide

Answer 11

2 years

Question 12

which of the following is not included in a life insurance illustration

Answer 12

companys mortality table

Question 13

an example of an unfair claims settlement practice is

Answer 13

turning down a claim without providing the basis of denial

Question 14

a promotional advertising item is not considered a rebate unless it has a value equal to or less than what amount

Answer 14

$25

Question 15

an evidence of coverage form may be issued by a health maintenance organization after being approved by the

Answer 15

commissioner

Question 16

which of the following actions does the commissioner of insurance not have the power to conduct

Answer 16

activate insurance companies financial reserves

Question 17

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

Answer 17

coercion

Question 18

what is the minimum benefit period that must be offered by a long term care policy

Answer 18

12 months

Question 18

every 12 months after the initial enrollment period an HMO must hold an open enrollment period of

Answer 18

31 days

Question 19

a certificate of _________ permits an insurance company to transact business in texas

Answer 19

authority

Question 20

a medicare supplement policy may be cancelled for which of the following reasons

Answer 20

the premium has not been paid by the insured

Question 21

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

Answer 21

coercion

Question 21

why would the insurance commissioner examine the records of an insurance company

Answer 21

to determine the solvency of the company

Question 22

in texas which of these statments regarding the suicide clause is true

Answer 22

an insurer may not use suicide as a defense against payment after the second year

Question 23

who owns a stock insurance company

Answer 23

stockholders

Question 24

which of the following benefits is not required under a group health plan for drug and alcohol treatment

Answer 24

transportation to and from a treatment facility

Question 25

which of the following is NOT a required provision in group life policies

Answer 25

right to loan

Question 26

what is an organization that solicits insurance only to its members

Answer 26

fraternal benefit society

Question 27

a plan through the marketplace may be purchased by

Answer 27

any legal resident (except those imprisoned)

Question 28

an insurer is not required to provide information on fraudulent claims if requested by

Answer 28

an insured

on the written request of an authorized government entity they will provide any relevant information

Question 29

an insured may assign up to _______ of policy owenrship under an individual life insurance policy

Answer 29

100%

Question 30

the phrase “transacting business” includes

Answer 30

collecting premiums

Question 31

an applicant must receive an outline of coverage when an application is taken for an

Answer 31

medicare supplement policy

Question 32

how long does an insurance company appointment remain in force

Answer 32

until terminated

Question 33

which unfair trade practice involves an agent telling a prospective client that a policy dividends are guaranteed

Answer 33

misrepresentation

Question 33

a temporary agents license issued by the commissioner of insurance is valid up to _____ days

Answer 33

90 days

Question 34

a domestic insurance company in texas is considered a company that

Answer 34

is incorporated and formed in texas