Chapter 8 Pt 3 Flashcards
Anyone who violates the inns code of texas may be fined up to
5000
10000
25000
25000
Insurer or agent must respond to ccommissioner within
15 days
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
1000 for each violation or 5000 for all violations
Hours of continuing education can be carried over form one licensing period to the nex
0
2
5
Any excess
0
If licensed agent recs criminal conviction that info must be reported to
Naic
Agent’s clients
Department of ins
Department of ins
What percentage of continuing education hours must be in a classroom setting
25
50
75
100
50
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
All licensed agents must comply by January 1 of even numbered years
Continuing education reporting period coincides with th license renewal date of
Every 2 years
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
Consist of completing 24 hours of CE
How long must producer maintain records of continuing education course completion
1
3
4
5
4 years
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
Agent has 30 days to notify department of ins of new address
If agent completed 35 hours of CE this renewal period how many next renewal period
24
11
0
35
24
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
Any change in biz name
Upon revocation of license producer cannot rec another license for
1 year
2 year
5 year
5 years
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
Applicant has shown to be a poor personal credit risk
Occurs when an oral or written statement is made intended to injure a person engaged i ins bsiness
Rebate
Coercion
Defamation
Defamation
Any inducement offered to the insured in sale of ins products that is not specified in the policy
Rebating
Defamation
Commingling
Discrimination
Rebating
Someone in a position of trust
Fiduciary
Following are considered unfair trade practices in the biz of ins except
Boycott
Rebating
Defamation
Sharing commissions
Sharing commissions
Two in same risk and age class; charged diff rates for their ins policies due to an insignificant factor. Called…
Discrimination
Misrepresentation
Rebating
Discrimination
All considered rebates if offered to insured in sale of ins except
Dividends from a mutual insurer
Offer of employment
Stocks securities or bonds
Dividends from a mutual insurer
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
Never legal to limit coverage based on marital status
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
Agent misrepresents policy benefits to coinvince a policyowner to replace policies
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
Telling a client that his first premium will be waived if he purchases the ins policy today
Maximum allowed value of gift that agent can give insured without violating regulation on rebating
10
15
25
100
25
Unfair discrimination ro ask applicant which of the following and use as rating factor
Sexual orientation
Age
Occupation
Address
Sexual orientation
Offers client free tickets to sporting event in exchange for purchase of ins policy
Agent is guilty of
Controlled biz
Rebating
Coercion
Twisting
Rebating
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
Giving client a 25 pen with insurer’s logo during ins application process
Forcing client to but ins from particular lender as condition of granting a loan is defined as
Coercion
Rebating
Defamation
Coercion
To devise an intimidation strategy in order to corner s large portion of the ins market
Illegal
A legal advertising strategy
Unfair discrimination
Illegal
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
Telling client that his first premium will be waived if he purchases the ins policy today
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
Discrimination
