Texas Insurance Laws, Rules, and Regulations

Question 1

A certificate of _______ permits an insurance company to transact business in Texas

Answer 1

Authority

Question 2

What is required for an agent whose license has been revoked?

Answer 2

Wait at least five years before applying for a new license

Question 3

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 3

No sooner than 6 days

Question 4

Unfair methods of competition

Answer 4

Boycott, coercion, and intimidation

Question 5

How long does an insurance company appointment remain in force?

Answer 5

Until terminated

Question 6

An insurer may not use _____ as a defense against payment after the second year.

Answer 6

Suicide

Question 7

Insurance issued on a debtor to cover outstanding loan balances

Answer 7

Credit Life Insurance

Question 8

How long can a cash surrender value payment be deferred by the insurance company under the Nonforfeiture Law?

Answer 8

6 months

Question 9

Turning down a claim without providing the basis of denial

Answer 9

Unfair claim settlement practice

Question 10

Requirement for obtaining a Texas insurance agent’s license

Answer 10

Be honest, trustworthy, and reliable

Question 11

To terminate an agent’s appointment, an insurance company must

Answer 11

Send termination notice to the Texas Department of Insurance

Question 12

True or false: the Commissioner of Insurance must be elected

Answer 12

False: the Commissioner is appointed by the governor for a two-year term

Question 13

An insured may assign up to _____ of policy ownership under an individual life insurance policy.

Answer 13

100%

Question 14

Length of grace period in Texas

Answer 14

31 days

Question 15

Length of free-look period in Texas

Answer 15

15 days

Question 16

A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of _____

Answer 16

Coercion

Question 17

At least _____ of all continuing education hours must be completed in a classroom setting, or a classroom equivalent setting

Answer 17

50%

Question 18

What is the monetary penalty for willfully violating a cease-and-desist order?

Answer 18

A fine up to $500

Question 19

When does the free-look period begin?

Answer 19

On the date the consumer receives the contract

Question 20

Offering to pay a consumer a portion of commissions earned from the sale of a policy in return for the purchase of a policy

Answer 20

Rebating