Insurance- Texas insurance regulations

Card Set Information

Author:
Anonymous
ID:
292160
Filename:
Insurance- Texas insurance regulations
Updated:
2014-12-28 16:53:25
Tags:
Insurance
Folders:

Description:
Insurance- Texas insurance regulations
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Anonymous on FreezingBlue Flashcards. What would you like to do?


  1. If a license is revoked, the licensee shall NOT be eligible for a new license:
    A: Ever again
    B: For at least 5 years
    C: Except by special permission of the governor
    D: For six months
    B: For at least 5 years
  2. To become a Texas insurance agent, you must:
    A: Have resided in Texas for at least one year
    B: Post a bond
    C: File your personal financial statement with the Commissioner
    D: Pass an exam
    D: Pass an exam
  3. All are true about insurance licensing EXCEPT:
    A: Agents represent the insurance company
    B: All accounts of a terminated agent must be non-renewed by the insurer
    C: A temporary license is available up to three months in certain circumstances
    D: You must be at least l8 in order get a license
    B: All accounts of a terminated agent must be non-renewed by the insurer
  4. Sharing commissions is legal if:
    A: The other party represents a life company and you represent a P&C company
    B: The other party also has an insurance license
    C: The other party has permission of your client
    D: The other party is licensed for the same lines of insurance you are
    D: The other party is licensed for the same lines of insurance you are
  5. Conditions for a corporate agency seeking a Texas insurance agent's license include:
    A: It must be a domestic corporation
    B: All active corporate officers must have individual agent's licenses
    C: All salaried employees must be licensed
    D: It must sell all lines of insurance
    B: All active corporate officers must have individual agent's licenses
  6. When the Commissioner finds, after a hearing, that a person has intentionally violated an insurance regulation, what is the maximum fine that may be levied:
    A: $25,000
    B: $5,000
    C: $2,500
    D: $250
    A: $25,000
  7. How long does an agent whose license has been revoked have to wait before they can reapply for a new license:
    A: 5 years
    B: 2 years
    C: 3 years
    D: 1 year
    A: 5 years
  8. A person appointed by an insurer to solicit or sell insurance on their behalf in this state is known as a(n):
    A: Broker
    B: Solicitor
    C: Agent
    D: Adjuster
    C: Agent
  9. Temporary licenses issued in Texas generally:
    A: None of the above is true
    B: Are renewable for a like period
    C: Expire in one year
    D: Expire in 90 days
    D: Expire in 90 days
  10. An agent who procures a license for the principal purpose of obtaining insurance for themselves, for family members or employees, violates the regulations prohibiting:
    A: Exclusive business
    B: Fraud
    C: Controlled business
    D: Captive business
    C: Controlled business
  11. The Insurance Commissioner shall examine each established, authorized insurer in Texas no less than:
    A: Once every five years
    B: Once every three years
    C: Once every two years
    D: Every year
    A: Once every five years
  12. Unfair claims practices will be assumed to be intentional if:
    A: The licensee has been reported for a similar practice during the preceding three years
    B: They are reported to an insurer by the policyholder
    C: They occur with such frequency as to indicate a general business practice
    D: The licensee fails to promptly submit a required report
    C: They occur with such frequency as to indicate a general business practice
  13. The type of government primarily concerned with the regulation of insurance and insurance companies is:
    A: City government
    B: Federal government
    C: County government
    D: State government
    D: State government
  14. If an agent is convicted of a felony in this or another state, who do they have to notify:
    A: The Federal Department of Insurance
    B: The local Agent's Association
    C: The State Department of Insurance
    D: The National Association of Insurance Commissioners (NAIC)
    C: The State Department of Insurance
  15. What is the maximum period of time the Commissioner may revoke your agent's license:
    A: 12 months
    B: Six months
    C: There is no maximum time period
    D: Two years
    C: There is no maximum time period
  16. When the applicant passes the exam and qualifies in all other respects except for the fingerprint check by the FBI, the Department of Insurance will issue a license called:
    A: Temporary
    B: Reciprocal
    C: Conditional
    D: Retroactive
    C: Conditional
  17. Under the Unfair Claims Settlement Practices Act, which of the following is NOT unfair:
    A: The denial of an unsubstantiated claim
    B: Refusing to pay claims without conducting a reasonable investigation
    C: Attempting to settle based upon an application that has been altered
    D: Failure to respond promptly on claims communications
    A: The denial of an unsubstantiated claim
  18. If an agent's license is suspended or revoked, what happens to their accounts:
    A: They are cancelled immediately
    B: They are automatically non-renewed
    C: They are assigned to another insurer
    D: They continue in force
    D: They continue in force
  19. Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as:
    A: Defamation
    B: Rebating
    C: Misleading advertising
    D: Coercion
    D: Coercion
  20. Making false or malicious statements about the financial condition of an insurer or agent is what type of Unfair Trade Practice:
    A: Deceptive advertising
    B: Defamation
    C: Coercion
    D: Intimidation
    B: Defamation
  21. To obtain a Texas license, you must do all EXCEPT:
    A: Be 18 years of age
    B: Complete pre-license training
    C: Pass an exam
    D: Be fingerprinted
    B: Complete pre-license training
  22. Texas resident agents must complete _____ hours of continuing education every two years.
    A: 30
    B: 20
    C: 10
    D: 40
    A :30
  23. What is the maximum time a Texas insurance agent's license may be issued for:
    A: Six months
    B: Four years
    C: One year
    D: Two years
    D: Two years
  24. Insurers applying for authority to do business in Texas are required to do all of the following, EXCEPT:
    A:File forms
    B: Maintain their home office in Texas
    C: Show evidence of sufficient legal reserves to handle claims
    D: File rates
    B: Maintain their home office in Texas
  25. Which of the following is NOT considered an unfair practice:
    A: Paying dividends to policyholders out of a surplus accumulated from participating policies
    B: Requiring any person to buy insurance through a specific insurer as a condition to lending money for the purchase of property
    C: Charging a higher premium than the one filed
    D: Using misleading advertising
    A: Paying dividends to policyholders out of a surplus accumulated from participating policies
  26. Which of the following statements regarding temporary licenses is FALSE:
    A: They require 40 hours of license training
    B: They may be issued without exam
    C: They are valid up to 90 days
    D: They may be renewed
    D: They may be renewed
  27. All could be considered rebates EXCEPT:
    A: Dividends
    B: Securities
    C: Employment
    D: Commissions
    A: Dividends
  28. Circulating deceptive sales material to the public is what type of Unfair Trade Practice:
    A: Coercion
    B: Misleading advertising
    C: Defamation
    D: Misrepresentation
    B: Misleading advertising
  29. A Texas resident agent seeking to sell insurance to customers in another state needs:
    A: A non-resident license in that state
    B: A Foreign agents license in that state
    C: A Certificate of Authority in that state
    D: A resident license in that state
    A: A non-resident license in that state
  30. Which of the following is NOT prohibited under the Unfair Practices section of insurance law:
    A: Readjusting group premium rates based on loss or expense experience
    B: Discriminating between insurance applicants on the basis of gender
    C: Misleading or false statements about dividends previously paid on an insurance policy
    D: Making false oral statements about the financial condition of a person which are calculated to injure that person
    A: Readjusting group premium rates based on loss or expense experience

What would you like to do?

Home > Flashcards > Print Preview