TEXAS LIFE AND HEALTH LAWS AND RULES EXAM

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TEXAS LIFE AND HEALTH LAWS AND RULES EXAM

QUESTIONS

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

-Format: Multiple-choice / Flashcard

Question 1: In Texas, an individual life insurance policy is REQUIRED to have a grace period of

Answer:

31 days Question 2: 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:

agent Question 3: What is the MINIMUM benefit period that must be offered by a Long-Term Care policy?

Answer:

12 months Question 4: Which of these provisions is NOT required in life insurance policies?

Answer:

Extended term

Question 5: With whom may an agent legally share commissions?

Answer:

Another agent with the same line of insurance Question 6: What is the monetary penalty for willfully violating a cease-and-desist order?

Answer:

fine up to $500

Question 7: An example of false advertising would be

Answer:

An insurer exaggerating its dividends in a magazine advertisement Question 8: Which of the following actions does the Commissioner of Insurance NOT have the power to conduct?

Answer:

activate insurance companies' financial reserves

Question 9: An example of rebating would be

Answer:

returning a portion of a premium as inducement to purchase insurance Question 10: All of these statements about the Commissioner of Insurance are true EXCEPT

Answer:

The Commissioner must be elected Question 11: Which of the following is a requirement for a raining Texas insurance agents license?

Answer:

Be honest, trustworthy, and reliable Question 12: Which of the following is a valid reason for an enrollee to be cancelled by a Health Maintenance Organization plan?

Answer:

Nonpayment of coverage

Question 13: Which of the following statements about health coverage for newborns is NOT true?

Answer:

Coverage is limited to only congenital defects Question 14: An insured may assign up to ___ of policy ownership under an individual life insurance policy.

Answer:

100% Question 15: A certificate of ____ permits an insurance company to transact business in Texas

Answer:

authority

Question 16: Credit Life Insurance is

Answer:

insurance issued on a debtor to cover outstanding loan balances Question 17: Every 12-months after the initial enrollment period, an HMO must hold an open enrollment period of

Answer:

31 days 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 Evidence of Coverage form may be issued by a Health Maintenance

Organization (HMO) after being approved by the

Answer:

commissioner

Question 20: When will a hearing be held after a notice of hearing, alleging participation in an unfair or deceptive act, is served to a licensee or insurer by the Commissioner?

Answer:

No sooner than 6 days Question 21: 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 22: A promotional advertising item is not considered a rebate unless it has a value equal to or less than what amount?

Answer:

$25 Question 23: An employee is covered under a company group life plan with a $50,000 death benefit. What is the MAXIMUM amount a spouse may be insured for under this program?

Answer:

$25,000

Question 24: Which Unfair Trade Practice involves an agent telling a prospective client that a policy's dividends are guaranteed?

Answer:

Misrepresentation Question 25: An applicant MUST receive an Outline of Coverage when an application is taken for a(n)

Answer:

Medicare Supplement policy

Question 26: What is required for an agent whose license has been revoked?

Answer:

wait at least five years before applying for a new license