TX STATE SPECIFIC LIFE HEALTH INSURANCE LAWS

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EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -42 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: The Commissioner is authorized to perform all of the following duties, except:

Answer:

• suspend insurance licenses for up to 5 years

The commissioner may suspend the license for up to 1 year Question 2: A small employer health insurer may not offer coverage to an eligible employee

unless the employee has:

Answer:

• Satisfied the applicable waiting period

the applicable waiting period cannot exceed 90 days.Question 3: Which of the following is not included in a Summary of Benefits and Coverage?

Answer:

• Premiums

The Summary of Benefits and Coverage includes the plan's benefits and services, cost-sharing provision, and coverage exceptions, exclusions, and limitations.Question 4: According to the Texas Insurance Code, an insurance company incorporated in

New Mexico is a(n):

Answer:

• Foreign insurer

Question 5: Under Nonforfeiture Law, a cash surrender payment may be deferred up to:

Answer:

• 6 months

Question 6: All of the following regarding Evidence of Coverage are correct, except:

Answer:

• The evidence of coverage must be delivered in writing

It may be delivered in writing OR electronically Question 7: An individual life insurance policy must have a grace period of at least ______ days.

Answer:

• 31

Question 8: An agent's appointment:

Answer:

• remains in force until terminated or withdrawn

Question 9: An insurance agent does not owe a fiduciary duty to:

Answer:

• insurance counselors

An agent owes a fiduciary duty to its insurer, insurance applicants, and insureds.Question 10: Under the ACA, a catastrophic plan may be purchased by any of the following

except an individual:

Answer:

• Enrolled in Medicaid

Individuals enrolled in Medicaid are not eligible for a catastrophic plan under the ACA.Question 11: A licensed agent is required to obtain which of the following before transacting insurance in Texas?

Answer:

• an appointment from an insurer

Question 12: An individual may be denied a license or be disciplined by the Department for all of

the following reasons, except if the individual has:

Answer:

• actively engaged in soliciting and writing insurance for the general public

Can be denied or disciplined if convicted of a felony, obtained license by fraud or misrepresentation, or offered a premium rebate to an insured.Question 13: General life, accident, and health agents must complete a minimum of _____ continuing education hours per renewal period (every two years).

Answer:

• 24

Question 14: A Certificate of Authority is issued to an insurer for which of the following reasons?

Answer:

• It certifies the insurer is authorized to transact insurance in this state.

The Certificate of Authority that gives the insurer approval to act as an insurer is effective until suspended or revoked.Question 15: A long-term care policy issued in Texas must, at a minimum, be offered as:

Answer:

• Guaranteed renewable

Question 16: Who is NOT eligible for an agent license in this state?

Answer:

• a 17-year-old who passed the licensing exam 6 months ago

They must be 18 to be eligible Question 17: Which of the following statements about continuing education is true?

Answer:

• at least 50% of continuing education hours must be completed in a classroom or classroom

equivalent setting.Licensees must complete 2 hours of ethics, 24 CE hours per person, and they must be completed before the expiration date.

Question 18: Publishing or circulating info that is maliciously derogatory to the financial

condition of an insurance company with the intent to injure is known as:

Answer:

• defamation

Question 19: Which of the following is a method used by an HMO to compensate a physician or provider for providing a defined set of health care services and is based on a predetermined

payment per enrollee:

Answer:

• Capitation

It's based on a predetermined payment per enrollee and not the quantity of services actually performed.Question 20: The Texas Department of Insurance requires all licensees to:

Answer:

• be honest, trustworthy, and reliable

This is because the relationship between licensees and the public is one of trust.Question 21: When taking an application for a Medicare supplement policy, an agent must

provide the applicant with a(n):

Answer:

• Outline of Coverage

The Outline of Coverage must be provided to all applicants at the time of application and an acknowledgement of receipt must be obtained.Question 22: If an insurer requires an individual to be tested for the AIDS virus, all of the

following are required, if applicable, except:

Answer:

• Gather statistical info that identifies the applicant to share with other insurers.

It cant identify the applicant Question 23: Holding which of the following professional designations will exempt a person from taking the life licensing exam?

Answer:

• Chartered Life Underwriter (CLU)