Texas Insurance Test with 100%
Correct Answers
Commissioner of Insurance:
Appointed by the governor for a term of _ years - ANS-2
Commissioner of Insurance:
Must have at least _ years experience in business or government - ANS-5
Commissioner of Insurance:
Must provide a _ surety bond - ANS-$50,000
Commissioner of Insurance:
State fees in excess of _ must be submitted by electronic transfer - ANS-$500,000
Commissioner of Insurance:
Person must respond to Commissioner inquires within _ days - ANS-15
insurers must be examined at least once every _ years - ANS-5
Waiting period to reapply if license is denied or revoked _ years - ANS-5
temporary license is valid for _ up to days - ANS-90
Total Continuing Education Per Renewal Period _ hours - ANS-24
ethics and consumer protection CE requirement _ hours - ANS-2
Before agents may sell annuities, they must complete a training program that qualifies
for at least how many hours of education credit?
A. 2
B. 4
C. 5
D. 8 - ANS-B
All of the following agent acts would violate Texas insurance EXCEPT
, A. unfairly disparaging competitors to minimize competing methods of marketing
insurance
B. rebating part of the policy's premium as an inducement to purchase insurance
C. charging a healthy 25-year-old a lower life insurance premium than a 65-year-old
with a heart condition
D. representing policy provisions concerning insurance coverage in a manner
inconsistent with the stated terms - ANS-C
Which of the following is NOT an unfair claims practice?
A. Misrepresenting policy provisions
B. Not attempting to settle claims promptly when liability has become reasonably clear
C. Failing to explain why a claim was denied
D. Investigating a claim that appears to be fraudulent - ANS-D
Which of the following is the practice of using misrepresentation to induce a policyholder
to replace a policy?
A. Rebating
B. Defamation
C. Unfair discrimination
D. Twisting - ANS-D
The anti-rebating statute prohibits
A. payment of policy dividends
B. collection of expense savings for industrial debit insurance premiums paid directly to
the insurer
C. readjustment of the group premium rate based on the loss or expense experience of
the group
D. returning part of the premium paid on an insurance contract to the insured - ANS-D
An agent speaks disparagingly of a competitor while trying to sell a life insurance policy.
What unfair marketing practice has the agent committed?
A. Defamation
B. Rebating
C. Twisting
D. Conservation - ANS-A
Assume an agent's insurance license has been revoked. When can he apply for another
license?
A. In 6 months
B. In 1 year
C. In 2 years
D. In 5 years - ANS-D
An agent's license can be automatically terminated for which of the following reasons?
A. The agent does not meet his annual sales quota.
B. The agent does not pass the annual licensing examination.
Correct Answers
Commissioner of Insurance:
Appointed by the governor for a term of _ years - ANS-2
Commissioner of Insurance:
Must have at least _ years experience in business or government - ANS-5
Commissioner of Insurance:
Must provide a _ surety bond - ANS-$50,000
Commissioner of Insurance:
State fees in excess of _ must be submitted by electronic transfer - ANS-$500,000
Commissioner of Insurance:
Person must respond to Commissioner inquires within _ days - ANS-15
insurers must be examined at least once every _ years - ANS-5
Waiting period to reapply if license is denied or revoked _ years - ANS-5
temporary license is valid for _ up to days - ANS-90
Total Continuing Education Per Renewal Period _ hours - ANS-24
ethics and consumer protection CE requirement _ hours - ANS-2
Before agents may sell annuities, they must complete a training program that qualifies
for at least how many hours of education credit?
A. 2
B. 4
C. 5
D. 8 - ANS-B
All of the following agent acts would violate Texas insurance EXCEPT
, A. unfairly disparaging competitors to minimize competing methods of marketing
insurance
B. rebating part of the policy's premium as an inducement to purchase insurance
C. charging a healthy 25-year-old a lower life insurance premium than a 65-year-old
with a heart condition
D. representing policy provisions concerning insurance coverage in a manner
inconsistent with the stated terms - ANS-C
Which of the following is NOT an unfair claims practice?
A. Misrepresenting policy provisions
B. Not attempting to settle claims promptly when liability has become reasonably clear
C. Failing to explain why a claim was denied
D. Investigating a claim that appears to be fraudulent - ANS-D
Which of the following is the practice of using misrepresentation to induce a policyholder
to replace a policy?
A. Rebating
B. Defamation
C. Unfair discrimination
D. Twisting - ANS-D
The anti-rebating statute prohibits
A. payment of policy dividends
B. collection of expense savings for industrial debit insurance premiums paid directly to
the insurer
C. readjustment of the group premium rate based on the loss or expense experience of
the group
D. returning part of the premium paid on an insurance contract to the insured - ANS-D
An agent speaks disparagingly of a competitor while trying to sell a life insurance policy.
What unfair marketing practice has the agent committed?
A. Defamation
B. Rebating
C. Twisting
D. Conservation - ANS-A
Assume an agent's insurance license has been revoked. When can he apply for another
license?
A. In 6 months
B. In 1 year
C. In 2 years
D. In 5 years - ANS-D
An agent's license can be automatically terminated for which of the following reasons?
A. The agent does not meet his annual sales quota.
B. The agent does not pass the annual licensing examination.
