CHAPTER EXAM: TEXAS LIFE AND HEALTH LAWS AND

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CHAPTER EXAM: TEXAS LIFE AND HEALTH LAWS AND

RULES Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -39 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: In Texas, how long must a policy be in force before an insurance company must pay death benefits for suicide?

Answer:

• years

Question 2: An example of false advertising would be

Answer:

An insurer exaggerating its dividends in a magazine advertisement Question 3: A new general property and casualty licensee must complete at LEAST __ hours of continuing education within 24 months of initial licensure.

Answer:

24 hours

Question 4: To terminate an agent's appointment, an insurance company must

Answer:

send termination notice to the Texas Department of Insurance

Question 5: Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?

Answer:

Misrepresentation

Question 6: Who owns a stock insurance company?

Answer:

stockholders Question 7: During a sales presentation for a participating life insurance policy, an agent MUST

Answer:

make a prospect understand that dividends are NOT guaranteed Question 8: ABC Insurance Company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. ABC is committing a prohibited act under Texas insurance laws covering

Answer:

unfair methods of competition

Question 9: Credit Life insurance is

Answer:

insurance issued on a debtor to cover outstanding loan balances Question 10: If an insured's age was misstated on a life insurance contract, the Misstatement of Age provision requires that any death benefit payable would be

Answer:

an amount that the premiums paid would have purchased at the current age

Question 11: An Evidence of Coverage form may be issued by a Health Maintenance

Organization (HMO) after being approved by the

Answer:

Commissioner

Question 12: What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?

Answer:

12 months Question 13: As a condition for a loan, a bank requires the borrower to purchase credit insurance from a specific company. What is the bank guilty of?

Answer:

coercion Question 14: An insurance agent has a fiduciary responsibility to all of the following EXCEPT

Answer:

other agents Question 15: Which of the following is NOT included in a life insurance illustration?

Answer:

Companies' mortality table

Question 16: Nonpayment of coverage

Answer:

Which of the following statements about health coverage for newborns is NOT true?Question 17: A Medicare Supplement policy may be cancelled for which of the following reasons?

Answer:

The premium has not been paid by the insured Question 18: An insurance company organized under New York laws and licensed to do business in Texas is considered a(n)

Answer:

foreign company Question 19: An insured may assign up to ____ of policy ownership under an individual life insurance policy.

Answer:

100%

Question 20: An applicant MUST receive an Outline of Coverage when an application is taken for a(n)

Answer:

Medicare Supplement policy

Question 21: A license may be denied, suspended, or revoked if the licensee?

Answer:

is found guilty of misrepresentation in obtaining the license Question 22: Why would the Insurance Commissioner examine the records of an insurance company?

Answer:

To determine the solvency of the company

Question 23: How long does an insurance company appointment remain in force?

Answer:

Until terminated Question 24: In Texas, an individual life insurance policy is REQUIRED to have a grace period of

Answer:

31 days Question 25: A promotional advertising item is not considered a rebate unless it has a value equal to or less than what amount?

Answer:

$25 Question 26: Who is liable when an insured suffers a loss on a policy sold by an agent through an insurer not authorized to conduct business in Texas?

Answer:

The agent Question 27: Which action will a life insurance company most likely take if an insured dies and it is discovered that the insured's age was misstated on the application?

Answer:

Pay an amount the premiums would have purchased at the insured's actual age