TEXAS INSURANCE LAWS QUESTIONS WITH CORRECT ANSWERS

The Commissioner of Insurance may issue a temporary agent's license for a maximum of how many days? CORRECT ANSWER 90 A group life insurance policy may NOT insure groups consisting exclusively of persons who are CORRECT ANSWER related by marriage, blood or legal adoption The Commissioner of Insurance has the power and duty to take all of the following actions EXCEPT activate insurance companies' financial reserves compute insurance companies' required financial reserves issue insurance licenses handle insurance-related consumer complaints CORRECT ANSWER activate insurance companies' financial reserves Which of the following actions by an insurance company is considered an unfair claims settlement practice? CORRECT ANSWER Denying an insured's claim without indicating the basis of denial under the policy Under Texas insurance law, the term "transacting business" includes CORRECT ANSWER collecting premiums An agent may legally share commissions only with CORRECT ANSWER another agent who is licensed in the same line of insurance If an insurance company is organized under the laws of New Jersey and licensed to do business here, it is considered which of the following in Texas? CORRECT ANSWER a foreign company