Questions about Insurance 4

What is considered a valid reason for small businesses to insure the lives of its major shareholders?

• to provide an income for the surviving dependents

• reduce the company's tax liability

• to pay for final expenses

• fund a buy-sell agreement

When can a policy owner change a revocable beneficiary?

• Anytime

• After the consent of the current beneficiary

• Never

• Only if primary beneficiary dies

. A new general property and casualty licensee must complete at LEAST ____ hours of continuing education within 24 months of initial licensure

• 12 hours

•  24 hours

• 30 hours

• 40 hours

S would like to use dividends from her life insurance policy to purchase paid-up additions. All of these would be factors that determine how much coverage can be purchased EXCEPT

• The policy's cash value

• The beneficiary's age

• The dividend rate

• The policy's face amount

 In Texas an individual life insurance policy is required to have a grace period of

• 30 days

• 29 days

• 31 days

• 28 days

 All of these are considered to be a benefit under Social Security EXCEPT for?

• survivorship

• unemployment

• disability

• retirement

 Which of the following is NOT a required provision in group life policies?

• Free look

• Incontestible

• Conversion

• Right to Loan

Which of these is NOT an example of doing insurance business?

• Selling shares of stock

• Receiving an insurance application

• Collecting insurance premium

• Delivering an insurance policy

All of these statements about the Commissioner of Insurance are true EXCEPT

• The Commissioner must be elected

• The Commissioner regulates the business of insurance in this state

• The Commissioner may have the authority to approve insurance policy forms

• The Commissioner enforces insurance laws and regulations.

An example of an unfair claims settlement practice is....

• requiring an insured to give a statement under oath

• denying an insured's claim without indicating the basis of denial under the policy

• requiring the insured to submit a proof of loss statement before paying a claim

• equesting a third-party arbitrator to resolve a disagreement with a claimant