Chapter 8 Pt 3

Question 1

Anyone who violates the inns code of texas may be fined up to
5000
10000
25000

Answer 1

25000

Question 2

Insurer or agent must respond to ccommissioner within

Answer 2

15 days

Question 3

Person who violates a cease and desist order of commissioner

2000 for each or 6000 for all
1000 for each violation or 5000 for all violations
3000 for each violation or 9000 for all violations

Answer 3

1000 for each violation or 5000 for all violations

Question 4

Hours of continuing education can be carried over form one licensing period to the nex

0
2
5
Any excess

Answer 4

0

Question 5

If licensed agent recs criminal conviction that info must be reported to

Naic
Agent’s clients
Department of ins

Answer 5

Department of ins

Question 6

What percentage of continuing education hours must be in a classroom setting

25
50
75
100

Answer 6

50

Question 7

All statements are true re confusing education requirement in this state except

Hours May be completed using independent self study courses or classroom study

Requires satisfactory completion of 24 hours of approved training every 2 years

All licensed agents must compost by January 1 of even numbered years

It does not allow excess credit hours to be carried forward to the next reporting period

Answer 7

All licensed agents must comply by January 1 of even numbered years

Question 8

Continuing education reporting period coincides with th license renewal date of

Answer 8

Every 2 years

Question 9

In texas the state’s continuing education requirement

Consists of completing 24 hours of CE each biennium
Cannot be extended or waived under any circumstances
Must be completed by all licensed resident and nonresident agents

Answer 9

Consist of completing 24 hours of CE

Question 10

How long must producer maintain records of continuing education course completion

1
3
4
5

Answer 10

4 years

Question 11

Agent licensed in texas is moving to Kansas

Which applies

Agent must refrain from writing ins policies until after the move

Agent has 30 days to notify department of ins of new address

Agent must inform all clients of move and recommend a new agent

Answer 11

Agent has 30 days to notify department of ins of new address

Question 12

If agent completed 35 hours of CE this renewal period how many next renewal period

24
11
0
35

Answer 12

24

Question 13

Licensed as agent must notify texas department of ins on a monthly basis of all of the following except

Change of mailing address
Any felony conviction
Any change in business name
Any administrative action taken against license holder by ins regulator of texas

Answer 13

Any change in biz name

Question 14

Upon revocation of license producer cannot rec another license for

1 year
2 year
5 year

Answer 14

5 years

Question 15

Causes for insurance commissioner to suspend or impose conditions upon agents license except

Obtaining license through fraud
Conviction of a felony involving moral turpitude
Appplicant has been shown to be a poor personal credit risk
Misappropriation or illegal withholding of policyholder’s money

Answer 15

Applicant has shown to be a poor personal credit risk

Question 16

Occurs when an oral or written statement is made intended to injure a person engaged i ins bsiness

Rebate
Coercion
Defamation

Answer 16

Defamation

Question 17

Any inducement offered to the insured in sale of ins products that is not specified in the policy

Rebating
Defamation
Commingling
Discrimination

Answer 17

Rebating

Question 18

Someone in a position of trust

Answer 18

Fiduciary

Question 19

Following are considered unfair trade practices in the biz of ins except

Boycott
Rebating
Defamation
Sharing commissions

Answer 19

Sharing commissions

Question 20

Two in same risk and age class; charged diff rates for their ins policies due to an insignificant factor. Called…

Discrimination
Misrepresentation
Rebating

Answer 20

Discrimination

Question 21

All considered rebates if offered to insured in sale of ins except

Dividends from a mutual insurer
Offer of employment
Stocks securities or bonds

Answer 21

Dividends from a mutual insurer

Question 22

Legal to limit coverages based on which marital status

Excessive number of divorces re ins code
Legal separation during application process
Never legal to limit coverage based on marital status

Answer 22

Never legal to limit coverage based on marital status

Question 23

All of the following rebating except

Agent offers to share commission with a policyholder

Agent offers tickets to a baseball game as an inducement to buy ins

Agent misrepresents policy benefit to convince a policyowner to replace policies

An agent offers use of his lake house to a client as inducement to buy ins policy from him

Answer 23

Agent misrepresents policy benefits to coinvince a policyowner to replace policies

Question 24

Example of producer being involved in unfair trade practice of rebating

Charging client a higher premium for same policy as another client in same insuring class

Making deceptive statements out competitor
Telling client that his premium will be waived if he purchases the ins policy today

Inducing insured to drop policy in favor of another one when it is not in the insured’s best interest

Answer 24

Telling a client that his first premium will be waived if he purchases the ins policy today

Question 25

Maximum allowed value of gift that agent can give insured without violating regulation on rebating

10
15
25
100

Answer 25

25

Question 26

Unfair discrimination ro ask applicant which of the following and use as rating factor

Sexual orientation
Age
Occupation
Address

Answer 26

Sexual orientation

Question 27

Offers client free tickets to sporting event in exchange for purchase of ins policy

Agent is guilty of

Controlled biz
Rebating
Coercion
Twisting

Answer 27

Rebating

Question 28

Which would not be considered rebating

Sharing commission with insured
Collecting lower premium than what’s specified in policy as token of client appreciation
Giving client a 25 pen with insurer’s logo during ins application process
Sending a 50 gift certificate to insured’s employee after ins has been effected as thank you for referral

Answer 28

Giving client a 25 pen with insurer’s logo during ins application process

Question 29

Forcing client to but ins from particular lender as condition of granting a loan is defined as

Coercion
Rebating
Defamation

Answer 29

Coercion

Question 30

To devise an intimidation strategy in order to corner s large portion of the ins market

Illegal
A legal advertising strategy
Unfair discrimination

Answer 30

Illegal

Question 31

Which of following is example of being involved in unfair trade practice of rebating

Charging higher premium for same policy as another client in same insuring class
Making deceptive statements about a competitor
Telling client that his first premium will benefit waived if he purchases the ins policy today

Answer 31

Telling client that his first premium will be waived if he purchases the ins policy today

Question 32

One twin applied for ins from company a and company found while neither of them smoked and both had similar lifestyle one twin was in stronger financial position than other. Bc of this company charged him a higher rate for his ins. This is

Discrimination
Twisting
Controlled biz

Answer 32

Discrimination