Texas State Laws and Regs Flashcards
The commissioner is appointed by the governor for a period of how many years?
2 years
A commissioner must have at least ____ years’ experience in business and government.
5 years
The commissioner must provide a _________ surety bond.
$50,000
State fees in excess of ____ must be submitted by electronic transfer
$500,000
Persons must respond to Commissioner inquiries within ____ days
15 days
Penalties
Department must send notice of violation within ____ days of findings
14 days
Penalties
Response from alleged violator must be within ____days of receipt
20 Days
Penalties
Maximum penalty for insurance code violations
$25,000
Licensing and Continuing Education
minimum age for license
Age 18
Licensing and Continuing Education
waiting period to reapply if license is denied or revoked
5 years
Licensing and Continuing Education
Temporary License is valid for up to _____ days
180 days
Continuing Education (CE) per renewal period
Total CE requirement
24 hours
Continuing Education (CE) per renewal period
Ethics and consumer protection CE requirement
3 hours
Product Specific Initial Training and Ongoing CE requirements
Long Term care partnership policies
Initial Certification Course ____ hours
8
Product Specific Initial Training and Ongoing CE requirements
Long Term care partnership policies
CE requirement every 2 years ____ hours
4 hours
Product Specific Initial Training and Ongoing CE requirements
Small employer health benefit plans
initial certification course _____hours
8 hours
Product Specific Initial Training and Ongoing CE requirements
Small employer health benefit plans
CE requirement every 2 years _____ hours
4 hours
Product Specific Initial Training and Ongoing CE requirements
Medicare Related Products
Initial training requirement ____ hours
8 hours
Product Specific Initial Training and Ongoing CE requirements
Medicare Related Products
CE requirement every 2 years _____ hours
4 hours
Product Specific Initial Training and Ongoing CE requirements
Annuity Products
Initial certification course ____ hours
4 hours
Product Specific Initial Training and Ongoing CE requirements
Annuity Products
CE requirement every 12 months _____ hours
4 hours
Continuing education records must be kept for ____ years
4 years
License Renewal
Business entity agent licenses are renewed every ____ years after the license is issued.
2 years
License Renewal
Agent licenses for individuals are renewed every ____ years based on their birth year (even/odd numbered birth years renew in even/odd numbered years)
2 years
License Expiration and Reinstatement
If a license has been expired for ___ days or less, it may be renewed by paying the renewal fee plus a %50 penalty.
90 days
License Expiration and Reinstatement
A license expired more than ____ days but less than one year cannot be renewed; a new license may be issued with no exam upon payment of license fee and penalty fee.
90 days
License Expiration and Reinstatement
if the license is expired more than ____ year(s) all requirements for a new license (including an exam) must be met
1 year
Reporting of Actions
Change of address, felony convictions, or administrative actions must be reported to the Commissioner on a ____ basis
Monthly
Unfair Trade Practices
Suspected fraudulent acts must be reported to the commissioner or law enforcement with in ___ days
30 days
Violation of Cease and Desist Orders
Max penalty for each violation
$1,000
Violation of Cease and Desist Orders
Max penalty for ALL violations
$5,000
Texas Life, Accident, Health, and Hospital Service Insurance Guaranty Association
The Association’s maximum liability per person
Life Insurance death benefit
$300,000
Texas Life, Accident, Health, and Hospital Service Insurance Guaranty Association
The Association’s maximum liability per person
Life insurance cash value
$100,000
Texas Life, Accident, Health, and Hospital Service Insurance Guaranty Association
The Association’s maximum liability per person
Cash Value in annuities
$250,000
Texas Life, Accident, Health, and Hospital Service Insurance Guaranty Association
The Association’s maximum liability per person
Basic hospital, medical-surgical, or major medical insurance
$500,000
Texas Life, Accident, Health, and Hospital Service Insurance Guaranty Association
The Association’s maximum liability per person
Disability and long-term care benefits
$300,000
Texas Life, Accident, Health, and Hospital Service Insurance Guaranty Association
The Association’s maximum liability per person
Other health insurance benefits
$200,000
Required LIFE insurance policy provisions
Policy loans must be available after_____ policy years
3 years
Required LIFE insurance policy provisions
Settlement of death benefit
2 months
Required LIFE insurance policy provisions
Time limit for legal action may not be less than ____ years
2 years
Required LIFE insurance policy provisions
Right to return, or lookback period is _____ days
15 days
Prohibited LIFE insurance policy provisions
Policy cannot be backdated more than ____ months
6 months
Group Life/ Conversion to individual Policy
Allowed within ___ days of coverage
31 days
Accident and Health Insurance/ Medicare Supplement
Maximum pre-existing exclusion period
6 months
Accident and Health Insurance/ Medicare Supplement
Open Enrollment with in ___ months of enrolling in Medicare part B, and being age 65 or older
6 months
Accident and Health Insurance/ Medicare Supplement
Right to return (free look)
30 days
Accident and Health Insurance/ Medicare Supplement
Guaranteed issue is available to those who had prior group health or Medicare Advantage coverage who apply for a Medicare supplement within ___ days after the date of termination or disenrollment of the prior coverage.
63 days
Advertisements must be submitted ___ days prior to use
60 days
Accident and Health Insurance/ Medicare Supplement
Permitted Compensation
Medicare supplement first-year commission can be no more than ___% of the commissions paid for selling or servicing the policy in the second year.
200%
Long Term Care
Provides coverage for not less than ___ months
12 months
Long Term Care
Minimum inflation protection percentage is
5%
Long Term Care
Maximum pre-existing exclusion period
6 months
Small group health insurance
Small employer employs at least 2, but not more than ___ eligible employees.
50
Small group health insurance
A minimum of ____% of employees must elect coverage
75%
Texas Statute and rules pertinent to HMOs
Notice of Cancellation
____ days in advance for nonpayment of amounts due under the contract (no notice is required for failure to pay premium)
30 days
Texas Statute and rules pertinent to HMOs
Notice of Cancellation
____ days in advance for fraud or intentional material misrepresentation
15 days
