TEXAS LIFE INSURANCE EXAM FX CH
#5 QUESTIONS WITH COMPLETE
SOLUTIONS
Mutual companies - Answer-owned by the policyowners and issue participating policies
Stock companies - Answer-owned by the stockholders who provide capital necessary to
establish and operate insurance company and who share in profits/ losses
nonparticipating policy - Answer-policyowners do not share in profits or losses
nonparticipating policies do not pay _______to _______, but do pay _______ to
stockholders - Answer-dividends; policyowners; taxable dividends
fraternal benefit society - Answer-formed to provide insurance benefits for members of
an affiliated lodge, religious organization, or fraternal organization
Insurers must obtain a _______ prior to transacting business in this state - Answer-
Certificate of Authority
the Commissioner must provide a _______ notice of _______or _______ to the insurer
- Answer-10-day; suspension; revocation
The Commissioner is appointed by the _______ for a _-year term - Answer-governor; 2
The Commissioner must examine all authorized insurers at least... - Answer-once every
5 years
the Commissioner may issue a _______ and hold a hearing for any purpose deemed
necessary - Answer-statement of charges
emergency cease and desist order - Answer-may be issued by commissioner if an
agent is engaged in any unfair method of competition or trade practice
when are emergency cease and desist orders final? - Answer-61 days from date served
types of licensees - Answer--agents
-nonresident agents
-counselor
-temporary
-corporations/partnerships
Licensees must complete __ hours of continuing education every _______; at least __
hours must cover _______ - Answer-24; renewal period; ethics
#5 QUESTIONS WITH COMPLETE
SOLUTIONS
Mutual companies - Answer-owned by the policyowners and issue participating policies
Stock companies - Answer-owned by the stockholders who provide capital necessary to
establish and operate insurance company and who share in profits/ losses
nonparticipating policy - Answer-policyowners do not share in profits or losses
nonparticipating policies do not pay _______to _______, but do pay _______ to
stockholders - Answer-dividends; policyowners; taxable dividends
fraternal benefit society - Answer-formed to provide insurance benefits for members of
an affiliated lodge, religious organization, or fraternal organization
Insurers must obtain a _______ prior to transacting business in this state - Answer-
Certificate of Authority
the Commissioner must provide a _______ notice of _______or _______ to the insurer
- Answer-10-day; suspension; revocation
The Commissioner is appointed by the _______ for a _-year term - Answer-governor; 2
The Commissioner must examine all authorized insurers at least... - Answer-once every
5 years
the Commissioner may issue a _______ and hold a hearing for any purpose deemed
necessary - Answer-statement of charges
emergency cease and desist order - Answer-may be issued by commissioner if an
agent is engaged in any unfair method of competition or trade practice
when are emergency cease and desist orders final? - Answer-61 days from date served
types of licensees - Answer--agents
-nonresident agents
-counselor
-temporary
-corporations/partnerships
Licensees must complete __ hours of continuing education every _______; at least __
hours must cover _______ - Answer-24; renewal period; ethics
