,TX General Lines Life & Health EXAM
QUESTIONS AND ANSWERS 100%
CORRECT!
After an investigation, an insurer denies a false claim. The insurer must: - ANSWER
Provide a reasonable explanation
Gambling and investing in the stock market are known as what type of risk? - ANSWER
Speculative Risk
Which would be considered an Unfair Claims Practice under Texas Law? - ANSWER
Failing to promptly provide a reasonable explanation for denial of claim payment.
When a producer collects money on an application for insurance and puts it into a
separate account from his/her own personal account. This would make that producer? -
ANSWER Fiduciary
As statement on a proof of loss or on an application which is guaranteed to be true in all
respect and if found to be false could void the contract would be called ? - ANSWER
Warranty
All of the following are not competent to enter into a contract ACCEPT? - ANSWER 75
year old unemployed person
Statement made in an application for life insurance which is substantially true would be
considered? - ANSWER Representation
When the insured pays a premium in exchange for the insurers promise to pay, this
provision is called? - ANSWER Consideration
How many hours of continuing education hours must be ethics per renewal period? -
ANSWER 2
Paula has a life policy with her mother listed as her primary beneficiary. Paula marries
and changes the OWNERSHIP on her policy to her spouse. Paula later dies without
making any changes. Who will receive death proceeds? - ANSWER Mother
, How long is the grace period in an individual Life Insurance policy in Texas? - ANSWER
31 days
Which is not true about coverage for newborns on health policies? - ANSWER Covers
congenital effects only
Statements made on a claim form or an application for insurance that are believed to be
true are? - ANSWER Representations
Which of these would be considered insurable? - ANSWER Pure risk
What is the minimum coverage For long-term care policy in Texas - ANSWER 12
Months
A false statement in an application is - ANSWER Misrepresentation
The federal act that protects consumers by Making sure the data Collected is kept
confidential Accurate and use for Specific purpose is called - ANSWER Fair credit
reporting act
A person that's been in business for years gets their license revoked. Which must they
do? - ANSWER Wait five years then reapply
According to the fair credit reporting act When must the applicant be informed Of
obtaining a credit report In the underwriting of a policy? - ANSWER At the time of
application
When an insurer relies on the prior claims history Of the group to be insured In
determining the rate to be charged It is called? - ANSWER Experience rating
When a producer has a financial responsibility For funds collected while doing business
This would be best described as? - ANSWER A fiduciary
If I miss representation is found to be material the insurer would? - ANSWER Void the
policy
An insurer has its home office in California. To its business in Rhode Island. It would
be? - ANSWER Admitted
QUESTIONS AND ANSWERS 100%
CORRECT!
After an investigation, an insurer denies a false claim. The insurer must: - ANSWER
Provide a reasonable explanation
Gambling and investing in the stock market are known as what type of risk? - ANSWER
Speculative Risk
Which would be considered an Unfair Claims Practice under Texas Law? - ANSWER
Failing to promptly provide a reasonable explanation for denial of claim payment.
When a producer collects money on an application for insurance and puts it into a
separate account from his/her own personal account. This would make that producer? -
ANSWER Fiduciary
As statement on a proof of loss or on an application which is guaranteed to be true in all
respect and if found to be false could void the contract would be called ? - ANSWER
Warranty
All of the following are not competent to enter into a contract ACCEPT? - ANSWER 75
year old unemployed person
Statement made in an application for life insurance which is substantially true would be
considered? - ANSWER Representation
When the insured pays a premium in exchange for the insurers promise to pay, this
provision is called? - ANSWER Consideration
How many hours of continuing education hours must be ethics per renewal period? -
ANSWER 2
Paula has a life policy with her mother listed as her primary beneficiary. Paula marries
and changes the OWNERSHIP on her policy to her spouse. Paula later dies without
making any changes. Who will receive death proceeds? - ANSWER Mother
, How long is the grace period in an individual Life Insurance policy in Texas? - ANSWER
31 days
Which is not true about coverage for newborns on health policies? - ANSWER Covers
congenital effects only
Statements made on a claim form or an application for insurance that are believed to be
true are? - ANSWER Representations
Which of these would be considered insurable? - ANSWER Pure risk
What is the minimum coverage For long-term care policy in Texas - ANSWER 12
Months
A false statement in an application is - ANSWER Misrepresentation
The federal act that protects consumers by Making sure the data Collected is kept
confidential Accurate and use for Specific purpose is called - ANSWER Fair credit
reporting act
A person that's been in business for years gets their license revoked. Which must they
do? - ANSWER Wait five years then reapply
According to the fair credit reporting act When must the applicant be informed Of
obtaining a credit report In the underwriting of a policy? - ANSWER At the time of
application
When an insurer relies on the prior claims history Of the group to be insured In
determining the rate to be charged It is called? - ANSWER Experience rating
When a producer has a financial responsibility For funds collected while doing business
This would be best described as? - ANSWER A fiduciary
If I miss representation is found to be material the insurer would? - ANSWER Void the
policy
An insurer has its home office in California. To its business in Rhode Island. It would
be? - ANSWER Admitted
