WorksheetsTexas State Laws 1
Total questions: 20
Worksheet time: 15mins
All of the following are considered unfair or deceptive acts in connection with the sale of insurance EXCEPT:
Lacking standards for the investigation of an insured’s claims
Delaying a settlement because there is other insurance that will satisfy any portion of the loss
Stating facts or provisions in a way that misrepresents the true nature of the policy
Attempting to settle a claim in which liability is clear
An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?
Twisting
Defamation
Unfair claims
False advertising
In which of the following situations is it legal to limit coverage based on marital status?
Excessive number of divorces, as defined by the Insurance Code
Divorce within the last six months of applying for insurance
Legal separation during the application process
It is never legal to limit coverage based on marital status
An applicant for a license in Texas must include a statement with his application that provides information about all the following EXCEPT:
Being refused a license
Having held a license before
Intending to apply for another license
Having had a license revoked
An agent licensed in Texas is moving to Kansas. Which of the following applies?
The agent must inform all clients of the move and recommend a new agent
Any of the agent's policies written in the 3 months leading up to the move will be reviewed by the Commissioner
The agent has 30 days to notify the Department of Insurance of the new address
The agent must refrain from writing insurance policies until after the move
Which of the following is NOT a possible penalty for a violation of the Insurance Code?
An administrative penalty
A cease and desist order
Payment of restitution
A fine up to $100,000
Concerning insurance, the definition of a fiduciary responsibility is:
Handling assets or money belonging to others
Handling insurer funds in a trust capacity
Being liable for negligence with respect to clients' applications
Maintaining an agent's personal funds
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT:
An offer to share in commissions generated by the sale
Dividends from a mutual insurer
Stocks, securities, or bonds
An offer of employment
When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had a very similar lifestyle, one of the twins was in a much stronger financial position than the other. Because of this, the company charged him a higher rate for his insurance. This practice is considered:
Twisting
Discrimination
Controlled business
Adverse selection
Which of the following will NOT be considered unfair discrimination by insurers?
Assigning different risk classifications to applicants based on gender identity
Charging applicants with similar health histories different premiums based on their ethnicity
Discriminating in benefits and coverages based on the insured’s habits and lifestyle
Canceling individual coverage based on the insured’s marital status
How many hours of continuing education can be carried over from one licensing period to the next?
0
Any excess hours
2
5
A license may NOT be denied, suspended, or revoked if the licensee:
Engages in fraud
Materially misrepresents an insurance policy
Deals with insurance outside the scope of the license
Submits an unsigned insurance policy application
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Legal, provided that the other insurers are paid royalties for the usage of their names
Illegal until endorsed by the Guaranty Association
Illegal under any circumstances
Legal, provided that the information can be verified
Which of the following is an example of an agent's fiduciary responsibilities?
Helping clients to file claims
Forwarding premiums to the insurer
Performing a review of clients' coverage
Offering additional coverage to a client
In order to transact business for a particular insurer, a producer must be:
Appointed
Resident
Admitted
Authorized
An applicant for an adjuster license must meet all of the following requirements prior to issuance of the license EXCEPT:
Submit the most recent tax return to the Department
Pass the required licensing examination in the last 12 months
Be at least 18 years old
Pay the required fees to the Department
Which of the following actions is NOT in violation of the Unfair Claims Settlement Practices Act?
Refusing to pay claims without conducting a reasonable investigation
Denying an unsubstantiated claim
Failure to respond promptly on claims communications
Delaying a settlement because there is an additional insurance policy on a loss
All of the following must be true of an individual before a license can be issued EXCEPT that the:
Applicant submitted their most recent tax return to the department
Applicant passed the required licensing examination in the last 12 months
Candidate has paid the required fees to the department
Individual is at least 18 years old
On its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of:
Misrepresentation
Rebating
Unfair claim practice
Concealment
If an insurer terminates an agent’s appointment, who must the insurer notify?
Commissioner of Insurance
NAIC
The insurer does not have to notify any entities when it terminates an appointment, unless the termination is a result of an agent’s breach of ethics
Federal government
