Chapter 8 Pt 2 Flashcards
A participating ins policy may do which of the following
Pay dividends to the policyowner
Provide group coverage
Pay dividends to the stockholder
Pay dividends to the policyholder
On participating policy issued by mutual ins company dividends paid to policyholders are
Taxable as ordinary income
Guaranteed
Not taxable since the IRS treats them as a refund of portion of the premium paid
Major difference between a stock company and a mutual company
Number of producers
Types of policies issued
Ownership
Ownership
Insurer that holds a certificate of authority in the state in which it transacts biz is considered a
Authorized insurer
Local insurer
Certified insurer
Authorized insurer
Not an insurer but an organization formed to provide ins benefits for members of an affiliated lodge or religious organization
Mutual company
Stock company
Fraternal benefit society
Fraternal benefit society
Notice given from commissioner to insurer prior to suspending insurer’s certificate of authority
10 days
30 days
60 days
10
Which is not true re certificate of authority
It is issued by state department of ins
It is issued to group ins participants
It may be nec for transacting biz in a spec state
It is equivalent to ins license
It is issued to group insurance participants
Which of the following is another term for an authorized insurer
Admitted
Certified
Licensed
Legal
Admitted
In texas how is the commissioner of ins placed in office
Appointed by the governor for a term of 2 years
Appointed by the governor for a term of 4 years
Appointed by the senate for a term of 2 years
Appointed by the governor for a term of 2 years
Which would NOT directly help to qualify someone for the office of commissioner of ins
Certified public accountant
Practicing attorney
Executivein business administration
Ins agent
Ins agent
Must have at least five years in one of the aforementioned
Ins commissioner may examine the affairs of any insurer as often as necessary but not less frequently than once every
Five years
Two years
Three years
Year
Five years
The commissioner of ins is
Elected by texas voters
Appointed by governor
Elected by executive insurers
Appointed by governor
With the advice of the senate for a two year period
Appointment ends on 2/1 every odd numbered year
Authority responsive for examining operations of ins companies in this state
Naic
Governor
Commissioner
Commissioner
Certificate of authority in state transacting in=
Authorized insurer
The commissioner has full power and authority to do all of the following except
Draft ins laws
Issue certificates of authority
Enforce ins code
Issue cease and desist orders
Draft ins laws
Which is NOT a possible penalty for violation of the ins code
Cease and desist order
Fine up to 100000
Administrative penalty
Payment of restitution
Fine of up to 100000
Penalty may not exceed 25000
In texas an insurer or agent must respond to commissioner re complaint brought against within
10 days
15 days
20 days
15 days
The commissioner of ins issues a cease and desist order to an agent. If agent wishes to contest charges how many days after order was issued does agent have it make request
60 days
10 days
30 days
60 days
Responsible for creating rules for the electronic transfer of fees guaranteeing funds or money that department is responsible for an aging; any amount over 500000 must be transferred electronically
Commissioner
During exam commissioner reviews all business records occurring between last day of previous exam and
December 31 of year preceding current exam year
Cost of exams is responsibility of the
School board
Ins company being examined
Executive office of dc
Insurance company being examined
If commissioner isssues cease and desist order and immediately receives request for charges to be reviewed in hearing how many days must hearing be held (within)
10
14
30
30
insurer respond to commissioner re complaint within
15
Contest charges=
60 days
Hearing must be held no later than how many days after date commissioner recs request for hearing
30
May not be prosecuted or rec a penalty on acct of testimony or
Documents produced
Paperwork missing
Ins witnesses
Documents produced
Person may be prosecuted or punished for what committed while testifying or during providing documents
File folder disorganized
Perjury
Stonewalling
Perjury
