Question: An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for which of the following reasons?

Answer: ...

Question: Under an individual life insurance policy, an insured may assign a MAXIMUM of what percentage of policy ownership?

Answer: 100% Under an individual life insurance policy, an insured may assign a maximum of 100% of policy ownership.

Question: An agent may legally share commissions only with

Answer: another agent who is licensed in the same line of insurance An agent may legally share commissions only with another agent who is licensed in the same line of insurance.

Question: All of the following may charge fees for insurance advice EXCEPT

Answer: Legal reserve agents.All of these may charge fees for insurance advice EXCEPT legal reserve agents.

Question: An agent MUST give a prospective insured an Outline of Coverage when taking an application for a

Answer: Medicare Supplement policy.An agent MUST give a prospective insured an Outline of Coverage when taking an application for a Medicare Supplement policy.

Question: Insurance company agent appointments remain in force for which of the following maximum periods of time, if any?

Answer: Until terminated or withdrawn.The correct answer is "Until terminated or withdrawn". Insurance company agent appointments remain in force until terminated or withdrawn.

Question: Which of the following circumstances would cause a Medicare Supplement policy to be cancelled?

Answer: The insured fails to pay the premium.Failing to pay the premium would cause a Medicare Supplement policy to be cancelled.

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

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

Question: Group life policies MUST include all of the following provisions EXCEPT

Answer: Right to Loan Proceeds.Group life policies MUST include all of the following provisions EXCEPT Right to Loan Proceeds.

Question: Insurance agent licenses normally must be renewed every

Answer: Insurance agent licenses normally must be renewed every 2 years.

Question: Which of the following statements is NOT CORRECT about the Commissioner of Insurance?

Answer: The governor appoints the Commissioner to a two-year term.

Question: 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 [Months]A company shall reserve the right to defer payment of any cash surrender value for a period of six months after demand for payment of the cash surrender value and surrender of the policy.

Question: 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: coercionIn this situation, the agent may be guilty of coercion

Question: A group life insurance policy may NOT insure groups consisting exclusively of persons who are

Answer: elated by marriage, blood or legal adoption A group life insurance policy may NOT insure groups consisting exclusively of persons who are related by marriage, blood or legal adoption.

Question: 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.Because boycott, coercion, and intimidation that result in the unreasonable restraint of trade are prohibited under the Texas Insurance Code covering unfair methods of competition.

Question: Under the Texas insurance code, an insurance company must pay death benefits for suicide if the policy has been in force for a MINIMUM of

Answer: two years.Because an insurance company cannot contest a death benefit claim from suicide if it occurred after the policy was in force for a minimum of two years (incontestability period).

Question: An applicant for an agent's license must meet which of the following requirements?

Answer: Be honest, trustworthy, and reliable.An applicant for an agent's license must be honest, trustworthy, and reliable.

Question: A life insurance illustration is NOT required to include the

Answer: company's mortality table.A life insurance illustration is NOT required to include the company's mortality table.

Question: A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of

Answer: coercion A creditor who requires a debtor to obtain insurance from a particular company or agent as a condition for a loan is guilty of coercion.

Question: Under the Texas insurance code, which of the following statements about the Suicide clause is CORRECT?

Answer: Suicide may not be a defense against payment after the second year.Suicide may not be a defense against payment after the second year.

Question: A Health Maintenance Organization (HMO) may issue an Evidence of Coverage form after it has been approved by the

Answer: Commissioner of Insurance.A Health Maintenance Organization (HMO) may issue an Evidence of Coverage form after it has been approved by the Commissioner of Insurance.

Question: An organization that solicits insurance only among its members is known as a

Answer: fraternal benefit society An organization that solicits insurance only among its members is known as a fraternal benefit society.

Question: 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 [hours]A newly licensed General Lines agent must complete a MINIMUM of 24 hours of continuing education within 24 months after initial licensure.

Question: All of the following statements about health coverage for newborns are correct EXCEPT

Answer: coverage during the first year is limited to congenital defects. All of these statements about health coverage for newborns are correct EXCEPT "coverage during the first year is limited to congenital defects".

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

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

Question: Who can purchase a plan through the Marketplace?

Answer: Any legal resident except those incarcerated.Any legal resident, except those incarcerated, can purchase a plan through the Marketplace.

Question: The Commissioner of insurance may suspend, revoke, or refuse to renew the license of an agent who

Answer: Is found guilty of misrepresentation or fraud in obtaining the license.The Commissioner of insurance may suspend, revoke, or refuse to renew the license of an agent who is found guilty of misrepresentation or fraud in obtaining the license.

Question: An insurance company may be judged guilty of false advertising if it

Answer: exaggerates its dividends in a newspaper advertisement. An insurance company may be judged guilty of false advertising if it exaggerates its dividends in a newspaper advertisement.

Question: 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 Any agent that sells an insurance policy for an unauthorized insurer runs the risk of being responsible for unpaid claims if the unauthorized insurer does not pay.

Question: 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. An enrollee of a Health Maintenance Organization (HMO) may be cancelled or nonrenewed for failure to pay for coverage.

Question: Which of the following BEST describes Credit Life insurance?

Answer: Insurance issued on a debtor to cover outstanding balances on installment loans

Question: The Commissioner of Insurance may issue a temporary agent's license for a maximum of how many days?

Answer: 90 days

Question: Which of the following actions by an insurance company is considered an unfair claims settlement practice?

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

Question: A foreign insurance company is one that is incorporated

Answer: under the laws of another state

Question: Under the Texas code, the MAXIMUM for which a spouse may be insured in a company group life program with a $50,000 death benefit is:

Answer: 25000

Question: An insurance agent does NOT have fiduciary responsibilities to

Answer: other agents.Because the agent handles money of the insured and insurer, he/she has a fiduciary responsibility.

Question: All of the following are defined as doing insurance business EXCEPT

Answer: selling mutual funds

Question: Benefits for drug and alcohol treatment under a group health policy must include all of the following services EXCEPT

Answer: transportation to and from an outpatient facility

Question: 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-day

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

Answer: 12[months]

Question: In Texas, a domestic insurance company is defined as a company that

Answer: is incorporated and formed in Texas