Podcast
Questions and Answers
What does the phrase 'transacting business' include?
What does the phrase 'transacting business' include?
collecting premiums
What act is ABC insurance company committing under Texas insurance laws?
What act is ABC insurance company committing under Texas insurance laws?
unfair methods of competition
What must an insurance company do to terminate an agent's appointment?
What must an insurance company do to terminate an agent's appointment?
send termination notice to the Texas Department of Insurance
____ of continuing education MUST be completed in the classroom or classroom equivalent.
____ of continuing education MUST be completed in the classroom or classroom equivalent.
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An insurer may use suicide as a defense against payment after the second year.
An insurer may use suicide as a defense against payment after the second year.
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What is Credit Life insurance?
What is Credit Life insurance?
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Who is NOT required to provide information on fraudulent claims if requested?
Who is NOT required to provide information on fraudulent claims if requested?
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How long does an insurance company appointment remain in force?
How long does an insurance company appointment remain in force?
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What may B the insurance agent be found guilty of if he tells clients their rights may be impaired?
What may B the insurance agent be found guilty of if he tells clients their rights may be impaired?
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Which of these provisions is NOT required in life insurance policies?
Which of these provisions is NOT required in life insurance policies?
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Which of the following is NOT a required provision in group life policies?
Which of the following is NOT a required provision in group life policies?
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All of these statements about the Commissioner of Insurance are true EXCEPT:
All of these statements about the Commissioner of Insurance are true EXCEPT:
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Which of the following groups may NOT be insured by a group life insurance policy?
Which of the following groups may NOT be insured by a group life insurance policy?
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An insured may assign up to ___ of policy ownership under an individual life insurance policy.
An insured may assign up to ___ of policy ownership under an individual life insurance policy.
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In Texas, what is the required grace period for individual life insurance policies?
In Texas, what is the required grace period for individual life insurance policies?
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What is a foreign company in insurance context?
What is a foreign company in insurance context?
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What will a life insurance company most likely do if an insured's age was misstated on the application?
What will a life insurance company most likely do if an insured's age was misstated on the application?
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Who is liable when an insured suffers a loss on a policy sold by an agent through an unauthorized insurer?
Who is liable when an insured suffers a loss on a policy sold by an agent through an unauthorized insurer?
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An example of false advertising in insurance would be?
An example of false advertising in insurance would be?
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What is an organization that solicits insurance only to its members?
What is an organization that solicits insurance only to its members?
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What is the bank guilty of if it requires a borrower to purchase credit insurance from a specific company?
What is the bank guilty of if it requires a borrower to purchase credit insurance from a specific company?
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In Texas, how long must a policy be in force before an insurance company must pay death benefits for suicide?
In Texas, how long must a policy be in force before an insurance company must pay death benefits for suicide?
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An example of an unfair claims settlement practice is?
An example of an unfair claims settlement practice is?
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What describes a foreign insurance company conducting business in Texas?
What describes a foreign insurance company conducting business in Texas?
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If an insured's age was misstated on a life insurance contract, what does the Misstatement of Age provision require for the death benefit?
If an insured's age was misstated on a life insurance contract, what does the Misstatement of Age provision require for the death benefit?
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Who owns a stock insurance company?
Who owns a stock insurance company?
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During a sales presentation for a participating life insurance policy, what must an agent make a prospect understand?
During a sales presentation for a participating life insurance policy, what must an agent make a prospect understand?
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Which of the following is NOT included in a life insurance illustration?
Which of the following is NOT included in a life insurance illustration?
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An employee 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?
An employee 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?
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Study Notes
Texas Insurance Laws and Rules
- "Transacting business" encompasses activities like collecting premiums.
- Engagement in boycott, coercion, and intimidation by an insurance company falls under unfair methods of competition.
- To terminate an agent's appointment, a termination notice must be sent to the Texas Department of Insurance.
- A minimum of 50% of continuing education must occur in a classroom or equivalent setting.
- After two years, an insurer cannot use suicide as a defense against payment.
- Credit Life insurance protects outstanding loan balances in case of the debtor's death.
- Insurers are not obligated to disclose information on fraudulent claims when requested by the insured.
- An insurance company's appointment remains in effect until officially terminated.
- Agents may commit coercion by improperly suggesting clients' rights could be affected by a release form.
- Extended term provisions are not mandatory in life insurance policies.
- Group life policies do not require a "Right to Loan" provision.
- The Commissioner of Insurance does not require election; they may be appointed.
- Individuals related by blood are not eligible for coverage under a group life insurance policy.
- An individual can assign up to 100% ownership of their life insurance policy.
- A 31-day grace period is mandatory for individual life insurance policies in Texas.
- A foreign insurance company is one organized under the laws of another state but licensed in Texas.
- If a misstatement of age occurs, the life insurance company will pay based on the amount the premiums would have purchased at the accurate age.
- Both the agent and the insurer are liable when an insured suffers a loss from a policy sold by an unauthorized insurer.
- False advertising is illustrated by insurers exaggerating their dividends in promotional materials.
- A fraternal benefit society is an organization that provides insurance coverage exclusively to its members.
- Coercion occurs when a bank requires borrowers to buy credit insurance from a specific insurer.
- Death benefits for suicide are payable after a policy has been in force for two years.
- An unfair claims settlement practice includes denying claims without explaining the reason for denial.
- A foreign insurance company must have been formed under the laws of another state.
- The Misstatement of Age provision ensures any death benefit reflects the amount that premiums would have purchased at the actual age.
- Stock insurance companies are owned by stockholders.
- Agents must clarify during sales presentations for participating life insurance policies that dividends are not guaranteed.
- Life insurance illustrations do not include the company's mortality table.
- A maximum of $25,000 can be insured for a spouse under a company group life plan when the employee has $50,000 coverage.
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Description
This quiz focuses on key Texas laws and rules related to insurance. It covers definitions and regulations that govern the insurance industry, including transacting business and unfair methods of competition. Prepare to test your knowledge on these important legal concepts.
