Chapter 5 Flashcards
Texas Statutes and Rules Common to Life and Health Insurance (15 cards)
A temporary license is normally valid for
A. 1 year
B. 180 Days
C. 90 Days
D. 30 Days
A life agent’s license must be renewed
A. Every year on Jan 1
B. Every year on the anniversary date of issuance
C. Every two years on the anniversary date
D. Only when the agent has not been active
C. Every two years on the anniversary date
Page 110
In an insurance transaction, which of the following does a licensed agent represent?
A. Insurer
B. Insured
C. Insurance Department
D. Commissioner
A. Insurer
Page 107
An gent who offers a cash reward to a prospect for buying a policy is guilty of
A. Misrepresentation
B. Twisting
C. Rebating
D. Coercion and intimidation
C. Rebating
Page 115
An insurer who deliberately makes a malicious statement about another insurance company is guilty of an illegal trade practice called
A. Discrimination
B. Defamation
C. Misrepresentation
D. False Advertising
B. Defamation
Page 115
Who is considered a nonresident agent?
A. An agent who is not a US citizen
B. An agent whose license has been revoked
C. An agent who does not earn commission in this state
D. An agent who resides in another state, but is licensed to write insurance in this state
D. An agent who resides in another state, but is licensed to write insurance in this state
Page 109
The Commissioner of Insurance issues a Cease and Desist Order and immediately receives a request for the charges to be reviewed in a hearing. Within how many days must the hearing be held?
A. 3 days
B. 10 days
C. 14 days
D. 30 days
D. 30 days
Page 104
All of the following would be considered an insurance transaction EXCEPT
A. Soliciting a policy
B. Advising a policyowner regarding a claim
C. Negotiating coverage
D. Obtaining an insurance license
D. Obtaining an insurance license
The Commissioner of Insurance is responsible for all of the following actions EXCEPT
A. Issuing Certificates of Authority
B. Enforcing the Insurance Code
C. Setting premium rates
D. Issuing cease and desist orders
C. Setting premium rates
Page 103
Which of the following persons is required to hold a producer license?
A. A director of the insurer who administers employee benefits
B. A salaried employee who creates insurance advertisements
C. A nonresident agent who negotiates insurance contracts
D. An agent’s administrative assistant who takes messages related to claims
C. A nonresident agent who negotiates insurance contracts
What is the minimum required number of continuing education credits in ethics every licensing period?
A. 1 hour
B. 3 hours
C. 4 hours
D. 5 hours
B. 3 hours
Page 111
What is the main purpose of requiring licenses for persons who transact insurance?
A. To generate income for the Department of Insurance
B. To be able to collect commissions
C. To protect insurance companies from incompetent producers
D. To protect the general public
D. To protect the general public
Page 111
Which of the following is NOT an example of a company’s location of incorporation?
A. Authorized
B. Domestic
C. Foreign
D. Alien
A. Authorized
Page 101
Agents whose license has been revoked will not be able to receive another license in Texas for at least
A. 6 months
B. 1 year
C. 2 years
D. 5 years
D. 5 years
Page 113
How often must producers renew their licenses?
A. Annually
B. Every 2 years
C. Every 3 years
D. Licenses do not need to be renewed; they are perpetual
B. Every 2 years
