TEXAS INSURANCE TEST

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TEXAS INSURANCE TEST

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -84 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: An agent speaks disparagingly of a competitor while trying to sell a life insurance policy. What unfair marketing practice has the agent committed?

• Defamation
• Rebating
• Twisting
• Conservation

Answer:

A Question 2: Required Life Insurance policy provision: time limit for legal action may not be less than _ years

Answer:

2 Question 3: Long-term care insurers must offer the following optional coverage or policy provision

• Noncancellable renewal provision
• Cash surrender value

• Guaranteed issue
• Nonforfeiture benefits

Answer:

D Question 4: Suspected fradulant act must be reported to the commissioner of law enforcement within _ days

Answer:

30 Question 5: Medicare Supplement: maximum pre-existing exclusion period _ months

Answer:

6

Question 6: The anti-rebating statute prohibits

• payment of policy dividends
• collection of expense savings for industrial debit insurance premiums paid directly to the

insurer

• readjustment of the group premium rate based on the loss or expense experience of the

group

• returning part of the premium paid on an insurance contract to the insured

Answer:

D Question 7: To transact business in Texas, agents must satisfy which of the following requirements?

• Be appointed by an insurer
• Hold a consultant contract
• Be employed by a broker
• Be a resident for 5 years

Answer:

A Question 8: Required Life Insurance policy provision: right to return (free-look) _ days

Answer:

15

Question 9: Violation of cease and desist order is a min and max of?

Answer:

$1,000 - $5,000

Question 10: A group health benefit plan may do which of the following in providing coverage for chemical dependency?

• Exclude coverage
• Require a separate higher deductible, but not higher coinsurance
• Provide coverage similar to other illnesses
• Require higher coinsurance, but not a higher deductible

Answer:

C Question 11: The maximum penalty for violation of the code is:

A. $2,500

B. $5,000

C. $10,000

D. $25,000

Answer:

D

Question 12: Which of the following is NOT an unfair claims practice?

• Misrepresenting policy provisions
• Not attempting to settle claims promptly when liability has become reasonably clear
• Failing to explain why a claim was denied
• Investigating a claim that appears to be fraudulent

Answer:

D

Question 13: Waiting period to reapply if license is denied or revoked _ years

Answer:

5 Question 14: Prohibited Provisions Life Insurance: policy cannot be backdated more than _ months

Answer:

6 Question 15: Change of address, felony convictions, or administrative action must be reported to the Commissioner on a _ basis

Answer:

monthly Question 16: How many years must a person be licensed as a life insurance agent before he can become a life insurance counselor?

• 1
• 2
• 3
• There is no time requirement

Answer:

D