Texas Life Laws And Rules Quiz Flashcards
(40 cards)
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?
$25,000
And insured may assign up to __________ of policy ownership under an individual life insurance policy
100%
Credit life insurance is:
Insurance issued on a debtor to cover outstanding loan balances
During a sales presentation for a participating life insurance policy, and agent must:
Make a prospect understand that dividends are not guaranteed
How long can a cash surrender value payment be deferred by the insurance company under the non-forfeiture law?
Six months
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
An amount that the premiums paid would have purchased at the current age
In Texas, an individual life insurance policy is required to have a grace period of
31 days
__________ of continuing education must be completed in the classroom or classroom equivalent
50%
In Texas, how long must the policy be in force before an insurance company must pay death benefits for suicide?
Two years
A certificate of __________ permits an insurance company to transact business in Texas
Authority
A domestic insurance company in Texas is considered a company that:
Is incorporated and formed in Texas
A foreign insurance company conducting insurance business in Texas
Was formed under the laws of another state
In Texas, which of these statements regarding the suicide clause is true?
An insurer may not use suicide as a defense against Payment after the second year
Which action will a life insurance company most likely take if an insured dies and discovered that the insured age was Miss stated on the application?
Pay an amount the premiums would have purchased at the insured’s actual age
Which of the following groups may not be insured by a group life insurance policy?
Individuals who are related by blood
A promotional advertising item is not considered a rebate unless it has a value equal to or less than what amount?
$25
Which of the following is not a required provision in group life policies?
Right to loan
A temporary agents license issued by the commissioner of insurance is valid for up to _____ days
90
Which of the following is not included in a life insurance illustration?
Company’s mortality table
ABC insurance company is actively engaging in boycott, coercion, and intimidation that results in the unreasonable restraint of trade. ABC is committing a prohibited act under Texas insurance laws covering
Unfair methods of competition
All of these statements about the commissioner of insurance are true except
The commissioner must be elected
Which of these provisions is not required in life insurance policies?
Extended term
An example of false advertising would be
An insurer exaggerating its dividends in a magazine advertisement
An example of rebating would be
Returning a portion of a premium as inducement to purchase insurance
