Chapter 18: Texas Laws and Rules Pertinent to Insurance
This flashcard set covers key Texas insurance laws and practices, including grace periods, group life limits, HMO rules, agent conduct, and licensing classifications. Great for state exam prep or regulatory review.
in texas an individual life insurance policy is required to have a grace period of
31 days
Key Terms
in texas an individual life insurance policy is required to have a grace period of
31 days
an employee is covered under a company group life plan with a. $50,000 death benefit. what is the MAX amount a spouse may be insured for under this program
$25,000
spouse may not exceed 1/2 of the amount of the insurance
which of the following is a valid reason for an enrollee to be cancelled by a health maintenance organization (HMO) plan
nonpayment of coverage
which of these is NOT an example of doing insurance business
selling shares of stocks
if an insureds age was misstated of a life insurance contract, the misstatement of age provision requires that any death benefit payable would be
an amount that the premiums paid would have purchased at the current age
when will a hearing be held after a notice of hearing, alleging participation in an unfair or deceptive act, is served to a licensee or insurer by the commissioner
no sooner than 6 days
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| Term | Definition |
|---|---|
in texas an individual life insurance policy is required to have a grace period of | 31 days |
an employee is covered under a company group life plan with a. $50,000 death benefit. what is the MAX amount a spouse may be insured for under this program | $25,000 spouse may not exceed 1/2 of the amount of the insurance |
which of the following is a valid reason for an enrollee to be cancelled by a health maintenance organization (HMO) plan | nonpayment of coverage |
which of these is NOT an example of doing insurance business | selling shares of stocks |
if an insureds age was misstated of a life insurance contract, the misstatement of age provision requires that any death benefit payable would be | an amount that the premiums paid would have purchased at the current age |
when will a hearing be held after a notice of hearing, alleging participation in an unfair or deceptive act, is served to a licensee or insurer by the commissioner | no sooner than 6 days |
with whom may an agent legally share commissions | an agent with the same line of insurance |
which of the following statements about health coverage for newborns is not true | coverage is limited to only congenital defects |
an insurance agent has a fiduciary responsibility to all of the following except | other agents |
_________ of continuing education must be completed int he classroom or classroom equivalent | 50% |
an insurance company organized under new york laws and licensed to do business in texas is considered an | foreign company |
how long can a cash surrender value payment be deferred by the insurance company under the nonforfeiture law | 6 months |
to terminate an agents appointment an insurance company must | send termination notice to the texas department of insurance |
in texas how long must a policy be in force before an insurance company must pay death benefits for suicide | 2 years |
which of the following is not included in a life insurance illustration | companys mortality table |
an example of an unfair claims settlement practice is | turning down a claim without providing the basis of denial |
a promotional advertising item is not considered a rebate unless it has a value equal to or less than what amount | $25 |
an evidence of coverage form may be issued by a health maintenance organization after being approved by the | commissioner |
which of the following actions does the commissioner of insurance not have the power to conduct | activate insurance companies financial reserves |
B, an insurance agent tells his clients that their rights may be impaired if they fail to complete a release form within a given period of time. B may be found guilty of | coercion |
what is the minimum benefit period that must be offered by a long term care policy | 12 months |
every 12 months after the initial enrollment period an HMO must hold an open enrollment period of | 31 days |
a certificate of _________ permits an insurance company to transact business in texas | authority |
a medicare supplement policy may be cancelled for which of the following reasons | the premium has not been paid by the insured |
as a condition for a loan a bank requires the borrower to purchase credit insurance from a specific company, what is the bank guilty of | coercion |
why would the insurance commissioner examine the records of an insurance company | to determine the solvency of the company |
in texas which of these statments regarding the suicide clause is true | an insurer may not use suicide as a defense against payment after the second year |
who owns a stock insurance company | stockholders |
which of the following benefits is not required under a group health plan for drug and alcohol treatment | transportation to and from a treatment facility |
which of the following is NOT a required provision in group life policies | right to loan |
what is an organization that solicits insurance only to its members | fraternal benefit society |
a plan through the marketplace may be purchased by | any legal resident (except those imprisoned) |
an insurer is not required to provide information on fraudulent claims if requested by | an insured on the written request of an authorized government entity they will provide any relevant information |
an insured may assign up to _ of policy owenrship under an individual life insurance policy | 100% |
the phrase "transacting business" includes | collecting premiums |
an applicant must receive an outline of coverage when an application is taken for an | medicare supplement policy |
how long does an insurance company appointment remain in force | until terminated |
which unfair trade practice involves an agent telling a prospective client that a policy dividends are guaranteed | misrepresentation |
a temporary agents license issued by the commissioner of insurance is valid up to _ days | 90 days |
a domestic insurance company in texas is considered a company that | is incorporated and formed in texas |