EXAMFX: CHP. 5: TEXAS STATUTES AND RULES COMMON

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EXAMFX: CHP. 5: TEXAS STATUTES AND RULES COMMON

TO LIFE AND HEALTH INSURANCE

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -15 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: All insurers that provide life or accident and health insurance coverage in Texas must be members of what association?

• Federal Association of Insurers

B. NAIC

• The Life and Health Insurance Guaranty Association
• Texas Insurers Guild

Answer:

The Life and Health Insurance Guaranty Association Question 2: Which of the following will NOT be considered unfair discrimination by insurers?

• Discriminating in benefits and coverages based on the insured's habits and lifestyle
• Charging applicants with similar health histories different premiums based on their ethnicity
• Cancelling individual coverage based on the insured's marital status
• Assigning different risk classifications to applicants based on gender identity

Answer:

Discriminating in benefits and coverages based on the insured's habits and lifestyle

Question 3: An insurance professional advises a client regarding the benefits of her life insurance policy, in exchange for a fee. Which of the following terms best describes this type of insurance professional?

• Advisor
• Counselor
• Producer
• Agent

Answer:

Counselor

Question 4: In Texas, how is the Commissioner of Insurance placed in office?

• Appointed by the Governor for a term of 4 years
• Appointed by the Senate for a term of 2 years
• By election, at the same election when other state officials are chosen
• Appointed by the Governor for a term of 2 years

Answer:

Appointed by the Governor for a term of 2 years Question 5: The following are all causes for the insurance Commissioner to suspend or impose conditions upon the continuance of an agent's license EXCEPT..

• Misappropriation or illegal withholding of the policy holder's money
• The applicant has been shown to be a poor personal credit risk
• Conviction of a felony involving moral turpitude
• Obtaining a license through fraud

Answer:

The applicant has been shown to be a poor personal credit risk

Question 6: Which of the following best describes the unfair trade practice of defamation?

• Assuming the name and identity of another person
• Refusing to deal with other insurers
• Issuing false advertising material
• Making derogatory oral statements about another insurer's financial condition

Answer:

Making derogatory oral statements about another insurer's financial condition Question 7: An insurer that holds a Certificate of Authority in the state in which it transacts business is considered a/an...

• Authorized insurer
• Self-insurer
• Local insurer
• Certified insurer

Answer:

Authorized insurer

Question 8: 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
• Applies to life, annuity, and accident and health licensees only
• Must be completed by all licensed resident and nonresident agents

Answer:

Consists of completing 24 hours of CE each biennium

Question 9: An individual licensed as an agent must notify the Texas Department of Insurance, on a monthly basis, of all of the following EXCEPT..

• Any change of the mailing address
• Any change in business name
• Any administrative action taken against the license holder by an insurance regulator of

Texas, any other state, or the federal government

Answer:

Any change in business name Question 10: The commissioner of Insurance issues a cease and desist order and immediately receives a request for the charges to be review in a hearing. Within how many days must the hearing be held?

• 10
• 14
• 60
• 30

Answer:

30 Question 11: If an insurer meets the state's financial requirements and is approved to transact business in the state, it is considered to be...

• Qualified
• Authorized
• Certified
• Approved

Answer:

Authorized