TEXAS GENERAL LINES LIFE, ACCIDENT AND
HEALTH INSURANCE LATEST VERSIONS ACTUAL
EXAM COMPLETE 346 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
SECTION 1 - TEXAS COMMON LAW - ANSWER..SECTION 1 - TEXAS
COMMON LAW
1) A person appointed by an insurer to solicit or sell insurance on their behalf in
this state is known as a(n): - ANSWER..A- Adjuster
B- Agent
C- Broker
D- Solicitor
2) Texas resident agents must complete _____ hours of continuing education
every two years. - ANSWER..A- 10
B- 40
C- 24
D- 20
3) Which of the following is NOT prohibited under the Unfair Practices section
of insurance law: - ANSWER..A- Making false oral statements about the financial
condition of a person which are calculated to injure that person
B- Readjusting group premium rates based on loss or expense experience
C- Misleading or false statements about dividends previously paid on an
insurance policy
D- Discriminating between insurance applicants on the basis of gender
4) An insurance company can have rates based on: - ANSWER..A- Gender
B- Ethnic background
C- Religion
D- Nationality
5) Forcing a client to buy insurance from a particular lender as a condition of
granting a loan is defined as: - ANSWER..A- Defamation
,B- Rebating
C- Misleading advertising
D- Coercion
6) Shareholders own a ___________ insurer: - ANSWER..A- Stock
B- Fraternal
C- Reciprocal
D- Mutual
7) An insurance company authorized to sell insurance in Texas, but with their
home office in Illinois, is called a/an: - ANSWER..A- Alien company
B- Domestic company
C- Foreign company
D- Surplus company
8) Regarding Claims Methods and Practices, all of the following are true
EXCEPT: - ANSWER..A- Insurers cannot deny unsubstantiated claims
B- Insurers must conduct a reasonable investigation prior to denial of a claim
C- Insurers may settle a claim by attempt to reach a compromise
D- Insurers cannot require insureds to pay the costs of a claims investigation
9) All of the following are true regarding the federal Fair Credit Reporting Act
EXCEPT: - ANSWER..A- It applies to credit reports ordered in connection with
insurance, banking and employment
B- Insurers are not required to give customers a copy of the report
C- Reports may be sent to anyone who requests one
D- The customer must be notified if adverse action is taken as a result of a report
10) No licensee whose license has been denied, refused or revoked can file
another licensing application with the Commissioner for at least ____ years: -
ANSWER..A- 5
B- 4
C- 2
D- 3
11) All could be considered rebates EXCEPT: - ANSWER..A- Employment
B- Dividends
,C- Securities
D- Commissions
12) To become a Texas insurance agent, you must: - ANSWER..A- Pass an exam
B- Have resided in Texas for at least one year
C- Post a bond
D- File your personal financial statement with the Commissioner
13) When the applicant passes the exam and qualifies in all other respects except
for the fingerprint check by the FBI, the Department of Insurance will issue a
license called: - ANSWER..A- Conditional
B- Retroactive
C- Temporary
D- Reciprocal
14) A Texas resident agent seeking to sell insurance to customers in another state
needs: - ANSWER..A- A non-resident license in that state
B- A Foreign agents license in that state
C- A Certificate of Authority in that state
D- A resident license in that state
15) Which of the following statements regarding temporary licenses is FALSE: -
ANSWER..A- They may be renewed
B- They may be issued without exam
C- They are valid up to 90 days
D- They require 40 hours of license training
16) When the Commissioner finds, after a hearing, that a person has intentionally
violated an insurance regulation, what is the maximum fine that may be levied: -
ANSWER..A- $25,000
B- $250
C- $5,000
D- $2,500
17) If an agent is convicted of a felony in this or another state, who do they have
to notify: - ANSWER..A- The National Association of Insurance Commissioners
(NAIC)
, B- The Federal Department of Insurance
C- The local Agent's Association
D- The State Department of Insurance
18) Unfair claims practices will be assumed to be intentional if: - ANSWER..A-
They are reported to an insurer by the policyholder
B- They occur with such frequency as to indicate a general business practice
C- The licensee fails to promptly submit a required report
D- The licensee has been reported for a similar practice during the preceding three
years
19) Circulating deceptive sales material to the public is what type of Unfair Trade
Practice: - ANSWER..A- Defamation
B- Misleading advertising
C- Misrepresentation
D- Coercion
20) Conditions for a corporate agency seeking a Texas insurance agent's license
include: - ANSWER..A- It must sell all lines of insurance
B- All active corporate officers must have individual agent's licenses
C- It must be a domestic corporation
D- All salaried employees must be licensed
21) Sharing commissions is legal if: - ANSWER..A- The other party also has an
insurance license
B- The other party is licensed for the same lines of insurance you are
C- The other party has permission of your client
D- The other party represents a life company and you represent a P&C company
22) What is the maximum period of time the Commissioner may revoke your
agent's license: - ANSWER..A- Two years
B- There is no maximum time period
C- 12 months
D- Six months
23) Your license will expire every ____ years. - ANSWER..A- 3
B- 4
HEALTH INSURANCE LATEST VERSIONS ACTUAL
EXAM COMPLETE 346 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
SECTION 1 - TEXAS COMMON LAW - ANSWER..SECTION 1 - TEXAS
COMMON LAW
1) A person appointed by an insurer to solicit or sell insurance on their behalf in
this state is known as a(n): - ANSWER..A- Adjuster
B- Agent
C- Broker
D- Solicitor
2) Texas resident agents must complete _____ hours of continuing education
every two years. - ANSWER..A- 10
B- 40
C- 24
D- 20
3) Which of the following is NOT prohibited under the Unfair Practices section
of insurance law: - ANSWER..A- Making false oral statements about the financial
condition of a person which are calculated to injure that person
B- Readjusting group premium rates based on loss or expense experience
C- Misleading or false statements about dividends previously paid on an
insurance policy
D- Discriminating between insurance applicants on the basis of gender
4) An insurance company can have rates based on: - ANSWER..A- Gender
B- Ethnic background
C- Religion
D- Nationality
5) Forcing a client to buy insurance from a particular lender as a condition of
granting a loan is defined as: - ANSWER..A- Defamation
,B- Rebating
C- Misleading advertising
D- Coercion
6) Shareholders own a ___________ insurer: - ANSWER..A- Stock
B- Fraternal
C- Reciprocal
D- Mutual
7) An insurance company authorized to sell insurance in Texas, but with their
home office in Illinois, is called a/an: - ANSWER..A- Alien company
B- Domestic company
C- Foreign company
D- Surplus company
8) Regarding Claims Methods and Practices, all of the following are true
EXCEPT: - ANSWER..A- Insurers cannot deny unsubstantiated claims
B- Insurers must conduct a reasonable investigation prior to denial of a claim
C- Insurers may settle a claim by attempt to reach a compromise
D- Insurers cannot require insureds to pay the costs of a claims investigation
9) All of the following are true regarding the federal Fair Credit Reporting Act
EXCEPT: - ANSWER..A- It applies to credit reports ordered in connection with
insurance, banking and employment
B- Insurers are not required to give customers a copy of the report
C- Reports may be sent to anyone who requests one
D- The customer must be notified if adverse action is taken as a result of a report
10) No licensee whose license has been denied, refused or revoked can file
another licensing application with the Commissioner for at least ____ years: -
ANSWER..A- 5
B- 4
C- 2
D- 3
11) All could be considered rebates EXCEPT: - ANSWER..A- Employment
B- Dividends
,C- Securities
D- Commissions
12) To become a Texas insurance agent, you must: - ANSWER..A- Pass an exam
B- Have resided in Texas for at least one year
C- Post a bond
D- File your personal financial statement with the Commissioner
13) When the applicant passes the exam and qualifies in all other respects except
for the fingerprint check by the FBI, the Department of Insurance will issue a
license called: - ANSWER..A- Conditional
B- Retroactive
C- Temporary
D- Reciprocal
14) A Texas resident agent seeking to sell insurance to customers in another state
needs: - ANSWER..A- A non-resident license in that state
B- A Foreign agents license in that state
C- A Certificate of Authority in that state
D- A resident license in that state
15) Which of the following statements regarding temporary licenses is FALSE: -
ANSWER..A- They may be renewed
B- They may be issued without exam
C- They are valid up to 90 days
D- They require 40 hours of license training
16) When the Commissioner finds, after a hearing, that a person has intentionally
violated an insurance regulation, what is the maximum fine that may be levied: -
ANSWER..A- $25,000
B- $250
C- $5,000
D- $2,500
17) If an agent is convicted of a felony in this or another state, who do they have
to notify: - ANSWER..A- The National Association of Insurance Commissioners
(NAIC)
, B- The Federal Department of Insurance
C- The local Agent's Association
D- The State Department of Insurance
18) Unfair claims practices will be assumed to be intentional if: - ANSWER..A-
They are reported to an insurer by the policyholder
B- They occur with such frequency as to indicate a general business practice
C- The licensee fails to promptly submit a required report
D- The licensee has been reported for a similar practice during the preceding three
years
19) Circulating deceptive sales material to the public is what type of Unfair Trade
Practice: - ANSWER..A- Defamation
B- Misleading advertising
C- Misrepresentation
D- Coercion
20) Conditions for a corporate agency seeking a Texas insurance agent's license
include: - ANSWER..A- It must sell all lines of insurance
B- All active corporate officers must have individual agent's licenses
C- It must be a domestic corporation
D- All salaried employees must be licensed
21) Sharing commissions is legal if: - ANSWER..A- The other party also has an
insurance license
B- The other party is licensed for the same lines of insurance you are
C- The other party has permission of your client
D- The other party represents a life company and you represent a P&C company
22) What is the maximum period of time the Commissioner may revoke your
agent's license: - ANSWER..A- Two years
B- There is no maximum time period
C- 12 months
D- Six months
23) Your license will expire every ____ years. - ANSWER..A- 3
B- 4
