Insurance MCQ

An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons? Answer: Failure to pay for coverage

What MUST an insurance company use in its advertising? Answer: Its true corporate name

An individual life insurance policy issued in Texas MUST have a grace period for premium payment of how many days? Answer: 31

Under the Nonforfeiture Law, a cash surrender value payment may be deferred by the insurance company for NO LONGER than how many months? Answer: 6

An agent whose license has been revoked is required to Answer: wait at least five years before applying for a new license

If an insured sustains a loss on a policy sold by an agent through an insurance company that is not authorized to do business in Texas, which of the following would be liable? Answer: the agent and the company

An agent who tells a client that dividends are guaranteed may be guilty of Answer: misrepresentation

An agent who tells claimants that their rights may be impaired if they fail to complete a release form within a given period of time could be guilty of Answer: coercion

After the initial enrollment period, an HMO must hold an open enrollment period of how many days at LEAST once in every 12-month period? Answer: 31

A newly licensed General Lines agent must complete a MINIMUM of how many hours of continuing education within 24 months after initial license? Answer: 24

An insurance company must provide information on fraudulent claims at the request of all of the following entities EXCEPT local law enforcement agencies the Commissioner of Insurance the Attorney General an insured Answer: an insured

If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely Answer: pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age

Under the Texas insurance code, which of the following statements about the Suicide clause is CORRECT? The Commissioner of Insurance must review insurance companies' Suicide clauses every five years for discrimination A Suicide clause must apply equally to Life and Accidental Death and Dismemberment (AD&D) policies An insurance company must actuarially justify any suicide limitation Suicide may not be a defense against payment after the second year Answer: Suicide may not be a defense against payment after the second year

Boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Texas Insurance Code covering Answer: unfair methods of competition

The Misstatement of Age provision requires that if the age of the insured is misstated, then any amount payable is Answer: an amount that the premiums paid would have purchased at the current age or ages

An insurance agent does NOT have fiduciary responsibilities to Answer: other agents

A Long-Term Care policy must offer a MINIMUM benefit period of how many months? Answer: 12

A certificate of authority does which of the following? Answer: Permits an insurance company to transact business in Texas

Group life policies MUST include all of the following provisions EXCEPT Ownership Beneficiary Designation Conversion Privilege Right to Loan Proceeds Answer: Right to Loan Proceeds

Before holding a hearing regarding an agent's unfair or deceptive practice, the Insurance Commissioner MUST give how many days notice? Answer: 30 days