TEXAS LAWS AND RULES INSURANCE EXAM

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TEXAS LAWS AND RULES INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -40 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The premium has not been paid by the insured

Answer:

A Medicare Supplement policy may be cancelled for which of the following reasons?

Question 2: an insured

Answer:

An insurer is NOT required to provide information on fraudulent claims if requested by

Question 3: Be honest, trustworthy, and reliable

Answer:

Which of the following is a requirement for obtaining a Texas insurance agent's license?

Question 4: Commissioner

Answer:

An Evidence of Coverage form may be issued by a Health Maintenance Organization (HMO) after being approved by the

Question 5: Right to Loan

Answer:

Which of the following is NOT a required provision in group life policies?

Question 6: Until terminated

Answer:

How long does an insurance company appointment remain in force?

Question 7: 24

Answer:

A new general property and casualty licensee must complete at LEAST ___ hours of continuing education within 24 months of initial licensure.

Question 8: Wait at least 5 years before applying for a new license

Answer:

What is required for an agent whose license has been revoked?

Question 9: Coverage is limited to only congenital defects

Answer:

Which of the following statements about health coverage for newborns is NOT true?

Question 10: other agents

Answer:

An insurance agent has a fiduciary responsibility to all of the following EXCEPT

Question 11: 31 days

Answer:

In Texas, an individual life insurance policy is REQUIRED to have a grace period of

Question 12: Another agent with the same line of insurance

Answer:

With whom may an agent legally share commisions?

Question 13: $25

Answer:

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

Question 14: The agent

Answer:

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?

Question 15: any legal resident (except those imprisoned)

Answer:

A plan through the Marketplace may be purchased by

Question 16: To determine the solvency of the compnay

Answer:

Why would the Insurance Commissioner examine the records of an insurance company?

Question 17: Misrepresentation

Answer:

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

Question 18: 50%

Answer:

_____ of continuing education MUST be completed in the classroom or classroom equivalent.Question 19: Pay an amount the premiums would have purchased at the insured's actual age

Answer:

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?

Question 20: 31 days

Answer:

Every 12-months after the initial enrollment period, an HMO must hold an open enrollment period of

Question 21: No sooner than 6 days

Answer:

When will a hearing be held after a notice of hearing, alleging participation in an unfair or deceptive act, is served to a license or insurer by the Commissioner?

Question 22: Extended Term

Answer:

Which of these provisions is NOT required in the life insurance policies?

Question 23: unfair methods of competition

Answer:

ABC Insurance Company is actively engaging in boycotts, coercion, and intimidation that results in the unreasonable restraint of trade. ABC is committing a prohibited act under Texas insurance laws covering

Question 24: Nonpayment of coverage

Answer:

Which of the following valid reasons for an enrollee to be canceled by a Health Maintenance Organization (HMO) plan?

Question 25: 2 years

Answer:

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

Question 26: A fine of up to $500

Answer:

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

Question 27: make a prospect understand that dividends are NOT guaranteed

Answer:

During a sales presentation for a participating life insurance policy, an agent MUST

Question 28: Activate Insurance companies' financial reserves

Answer:

Which of the following actions does the Commissioner of Insurance NOT have the power to conduct?

Question 29: is incorporated and formed in Texas

Answer:

A domestic insurance company in Texas is considered a company that?