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Life Insurance
| Question | Answer |
|---|---|
| UNDERWRITING | THE PROCESS OF CLASSIFYING A RISK FOR THE PROCESS OF ISSUING INSURANCE COVERAGE |
| INSURABLE INTEREST IS | A PRINCIPLE THAT REQUIRES THE INSURED TO SUFFER FINANCIALLY IN THE EVENT OF A LOSS IN ORDER TO OBTAIN INSURANCE AND COLLECT CLAIM PAYMENT |
| INSURABLE INTEREST MUST EXIST... | AT THE TIME OF THE APPLICATION |
| NON-RENEWAL IS CANCELLATION OF POLICY WHEN? | AFTER POLICY EXPIRY |
| CANCELLATION IS BEFORE... | POLICY EXPIRED |
| wHEN AN APP FOR LIFE INSURANCE GOES TO THE UNDERWRITING DEPARTMENT OF AN INSURER THE PURPOSE IS? | RISK CLASSIFICATION |
| THE PROCESS OF CLASSIFYING A RISK FOR THE PURPOSE OF ISSUING AN INSURANCE POLICY IS KNOWN AS? | UNDERWRITING |
| INSURABLE INTEREST MUST EXIST AT WHAT TIME IN THE UNDERWRITING OF A LIFE INSURANCE POLICY? | AT THE TIME OF APPLICATION |
| B BOUGHT A LIFE POLICY 10 YRS AGO WHILE MARRIED TO C. B AND C GET A DIVORCE. B MARRIES E 2 YEARS LATER. B DIED AFTER 5 MORE YEARS WITHOUT CHANGING THE BENEFICIARY ON HIS POLICY. WHICH OF THESE WILL RECEIVE THE DEATH PROCEEDS FROM THE POLICY? | C |
| S AND W ARE PARTNERS IN A BUSINESS. THEY BOTH BUY AND OWN POLICIES ON THE OTHER. 3 YEARS LATER, THE BUSINESS DISSOLVES. S AND W ARE BOTH MARRIED. THEY DON'T CHANGE BENEFICIARIES AND NO LONGER HAVE INSURABLE INT ON EACH OTHER. S DIES, WHO RECEIVES PROCEEED | W |
| 4 POSITIONS IN A LIFE INSURANCE POLICY | - POLICY OWNER - INSURED - POLICY PAYER - BENEFICIARY |
| A RIDER IS... | A POLICY FORM USED TO REVISE OR ADD COVERAGE IN AN IN-FORCE LIFE POLICY |
| RIDER IS ALSO KNOWN AS | ENDORSEMENT |
| IS AN EXCLUSION EVER COVERED? | NO |
| WHAT IS AN EXCLUSION? | A CAUSE OF LOSS, CONDITION, OR SITUATION NOT COVERED BY THE POLICY |
| THE COMMISSIONER OF INSURANCE IS APPOINTMENT BY THE ____ AND IS THE DEP OF INSURANCE'S _______________ OFFICER | GOVERNOR; CHIEF EXECUTIVE AND ADMINISTRATIVE OFFICER |
| THE COMMISSIONER'S POWERS ARE: TO ENFORE INSURANCE RULES AND LAW BUT... | - BUT not MAKE LAW - NOT A PUBLIC PROSECUTOR - CANNOT SENTENCE YOU TO JAIL OR PRISON |
| WHO SETS CE EDUCATION REQ? | COMMISSIONER |
| WHO PROVIDES LICENSES AND INSURER'S CERTIFICATES OF AUTHORITY | THE COMMISSIONER OF INSURANCE |
| WHAT IS A CERTIFICATE OF AUTHORITY? | THE CERTIFICATE THE COMPANY NEEDS TO BE ABLE TO SELL POLICIES |
| WHO ADMINISTERS WORKER'S COMP SYSTEM? | COMMISSIONER OF INSURANCE |
| CAN THE INSURED REQUEST INFO ABOUT FRAUD. CLAIMS? | NO, INSURER CAN |
| WHO APPROVERS INSURER ENDORSEMENT FORMS? | THE COMMISSIONER OF INSURANCE |
| THE COMMISSIONER EXAMINES THE RECORDS OF EACH ADMITTED AND DOMESTIC ____ AT LEAST ONCE EVER ___ YEARS | INSURER; FIVE |
| IS THE COMMISSIONER OF INSURANCE IN TEXAS AN ELECTED OFFICIAL? | NO, THEY ARE APPOINTED BY THE GOVERNER |
| POWER AND DUTIES OF TEXAS INSURANCE COMMISSIONER | - ASSESS AND ENFORCE PENALTIES - ENSURE FAIR COMPETITION IN THE INSURANCE INDUSTRY - ADMINISTER WORKERS COMP |
| IS THE COMMISSIONER APPOINTED BY THE TEXAS LEG? | NO |
| WHAT IS NOTTT A PART OF THE POWER AND DUTIES OF COMMISSIONER? | - TO MAKE AND PASS FAIR AND REASONABLE INSURANCE LAWS |
| DOES THE COMMISIONER OF INSURANCE IN TEXAS APPROVE INSURERS BY GIVING THEM A CERT OF AUTHORITY | YES |
| WHO CANNOT REQUEST INFO ABOUT FRAUD HEALTH CLAIMS? | INSURED |
| INVESTIGATION AND NOTICE OF HEARING WHEN DEPARTMENT HAS REASON TO BELIEVE BUSINESS PERSON UNETHICAL, DEPARTMENT SHALL ISSUE AND SERVE ON THE PERSON | 1. A STATEMENT OF THE CHARGES 2. A NOTICE OF THE HEARING ON THE CHARGES, INCLUDING THE TIME AND PLACE FOR THE HEARING |
| THE DEPARTMENT MAY NOT HOLD THE HEARING BEFORE THE _____ DAY AFTER THE DATE THE NOTICE IS SERVED | SIXTH |
| ON DETERMINING THAT A PERSON COMMITTED A VIOLATION, THE DEP SHALL | 1. MAKE WRITTEN FINDINGS 2. ISSUE AND SERVE ON THE PERSON AN ORDER REQUIRING THE PERSON TO CEASE AND DESIST FROM ENGANGING IN THE METHOD OF COMPETITION OR ACT OR PRACTICE DETERMINED TO BE A VIOLATION |
| - A PERSON WHO VIOLATES A _____ IS SUBJECT TO AN ADMINISTRATIVE POLICY | CEASE AND DESIST ORDER |
| AN ADMINS. PENALTY IMPOSED UNDER THIS (CEASE AND DESIST VIOLATION) SECTION MAY NOT EXCEED: | - 1,000 FOR EACH VIOLATION, OR 5,000 FOR ALL VIOLATIONS |
| CIVIL PENALTY FOR VIOLATION OF CEASE AND DESIST ORDER; PENALTY MAY NOT EXCEED $___ UNLESS THE COURT FINDS THE VIOLATION TO BE WILLFUL, IN WHICH CASE THE PENALTY MAY NOT EXCEED $___ | 50; 500 |
| WHAT IS A REINSURANCE RESERVE? | A SAVINGS ACC WITHIN THE COMPANY |
| DOES THE DEP RELEASE REINSURANCE RESERVES? | NO |
| DOES THE DEPARTMENT COMPUTE THE REINSURANCE RESERVES | YES |
| A REINSURANCE RESERVE IS A REQUIRED FUND SET UP BY THE _____ FOR THE PROTECTION OF ITS POLICYHOLDERS | INSURER |
| WHAT IS A DOMESTIC INSURER? | HOME OFFICE OR INCORPORATED IN TEXAS |
| FOREIGN INSURER | HOME OFFICE OR INCORPORATED IN ANY STATE EXCEPT TEXAS |
| WHAT IS AN ALIEN INSURER? | HOME OFFICE OR INCORPORATED IN ANOTHER COUNTRY, NOT IN THE US |
| IT DOESN'T MATTER IF THEYRE DOMESTIC, FOREIGN, OR ALIEN IF THEY ARE ADMITTED, IT MEANS | THEY ARE AUTHORIZED TO CONDUCT BUSINESS (SELL POLICIES) IN TEXAS AND HAVE A CERTIFICATE OF AUTHORITY |
| CERTIFICATE OF _____ | AUTHORITY |
| THE DEP OF INSURANCE DOES ALL OF THE FOLLOWING EXCEPT? A. ENSURES FAIR COMPETITION IN INDUSTRY B. ADMINISTERS WORKERS COMP C. COMPUTERS REINSURANCE RESERVES D. RELEASES REINSURANCE RESERVES IF NEEDED | D. RELEASES REINSURANCE RESERVES IF NEEDED |
| AN INSURANCE COMPANY INCORPORATED IN TEXAS WOULD BE KNOWN AS | DOMESTIC |
| 10:30 RULE | 10 DAYS BEFORE REVOKING CERT OF AUTHO HEARINF MUST BE HELD WITHIN 30 DAYS OF THE REQUEST |
| GUARANTY ASSOCIATIONS - ____ ENTITY THAT PROVIDES PROTECTION, SUBJECT TO CERTAIN LIMITS IN TEXAS LAW, FOR LIFE, HEALTH, AND ANNUITY POLICIES OWNER BY TEXAS RESIDENTS IF A MEMBER INSURANCE COMPANY IS FOUND TO BE ___ AND IS ORDERED ___ BY A COURT. | NON-PROFIT LEGAL; INSOLVENT; LIQUIDATED |
| TYPES OF INSURERS WHO OWNS A STOCK INSURANCE COMPANY? | THE SHAREHOLDERS |
| IN A STOCK INSURANCE COMPANY, THE DIVIDEND IS A _______ BUT NEVER ______ | SHARING OF PROFIT; GUARANTEED |
| IN A STOCK INSURANCE COMPANY, WHO ELECTS BOARD OF DIRECTORS? | THE SHAREHOLDERS |
| IN A STOCK INSURANCE COMPANY, ARE CORPORATE DIVIDENDS TAXABLE OR NONTAXABLE? | THEY ARE TAXABLE |
| A MUTUAL INSURANCE COMPANY IS OWNED BY THE ______ | POLICYHOLDERS |
| WHO ELECTS THE BOARD OF DIRECTORS IN A MUTUAL INSURANCE COMPANY | POLICYHOLDERS |
| ARE MUTUAL DIVIDENDS TAXABLE? | NO, THEU ARE JUST A RETURN OF UNUSED PREMIUMS |
| SO IN A MUTUAL INSURANCE COMPANY, A DIVIDEND IS A ______ BUT NEVER ______ | RETURN OF PREMIUM; GUARANTEED |
| ARE DIVIDENDS EVER GUARANTEED? | NO! NEVER! |
| WHAT IS A FRATERNAL BENEFIT SOCIETY? | A FRATERNAL BENEFIT SOCIETY PROVIDES INSURANCE ONLYYYY TO THEIR MEMBERS |
| AN INCORPORATED INSURANCE COMPANY THAT SELLS SHARES WOULD BE WHAT TYPE OF INSURANCE COMPANY? | STOCK |
| WHAT SHOULD YOU THINK OF WHEN YOU SEE THE WORD CONSIDERATION ON A TEST? | MONEY! CONSIDERATION IS MONEY |
| EXAMPLES OF ACTIVITIES THAT DOES NOTTT INVOLVE TRANSACTION INSURANCE | - SETTING UP APPOINTMENTS - PAYING CLAIMS - SELLING MUTUAL FUNDS |
| ACTIVITY THAT INVOLVE TRANSACTION INSURANCE EXAMPLES | COLLECTION OF PREMIUMS - ISSUING PROPOSAL - ACTING AS INSURANCE PRODUCER DIRECTLY/INDIRECTLY |
| ADVERTISING INSURANCE: AN INSURER'S _______ MUST BE INCLUDED ON EACH OF ITS ADS | FULL (COMPLETE) CORPORATE NAME |
| AN INSURANCE AD MAY NOT USE | - A TRADE NAME - PARENT COMPANY NAME - LOGO ONLY - ANY DEVICE THAT WOULD DECEIVE A PROSPECTIVE PURCHASER |
| WHAT ARE NOT REQUIRED FOR LIFE ACCIDENT AND HEALTH LICENSE? | - HIGH SCHOOL DIPLOMA - US CITIZEN - 21 YRS OLD |
| NO EXAM REQUIRED FOR LICENSING A PERSON WHO HAS A ____ | CLU |
| WHAT IS A CLU | CHARTERED LIFE UNDERWRITER DESIGNATION |
| TEMPORARY AGENT THE DEP MAY ISSUE A TEMPORARY AGENT'S LICENSE, VALID FOR ___ DAYS | 90 |
| REQ FOR TEMPARARY LICENSE | - NONREFUNDABLE FEE - CERT STATING APPLICANT IS BEING CONSIDERED FOR APPOINTMENT - THE APPLICANT WILL COMPLETE AT LEAST 40 HOURS OF SUPERVISED TRAINH |
| IS AN EXAM REQUIRED FOR A TEMPORARY LICENSE | NO |
| HOW MANY HOURS OF SUPERVISED TRAINING DOES A TEMPORARY AGENT NEED? | 40 |
| HOW LONG AFTER YOU PASS YOUR EXAM CAN YOU APPLY FOR YOUR INSURANCE LICENSE? | 12 MONTHS |
| WHICH DESIGNATION ALLOWS A PERSON TO OBTAIN A LIFE AND HEALTH INSURANCE LICENSE WITHOUT TESTING? | CLU - CHARTERED LIFE UNDERWRITER |
| A LIFE AND HEALTH INSURANCE COUNSELOR GIVES ADVICE FOR A ___ | FEE |
| A LIFE AND HEALTH INSURANCE COUNSELOR GIVES ADVICE FOR A FEE REGARDING | POLICY, PLAN, BENEFITS, CHANGING, EXCHANGING ETC |
| A LIFE AND HEALTH INSURANCE COUNSELOR IS JUST LIKE A ______ BUT NOT A _____ AGENT | FINANCIAL ADVISOR, MANAGING GENERAL AGENT; LIMITED LINES AGENT |
| IF A PRODUCER APPOINTED WITH ONE COMPANY WISHES TO SELL FOR A SECOND COMPANY, THAT PRODUCER NEED ONLY ______ | REQUEST APPOINTMENT |
| CE REQ. | - 24 TOTAL HOURS IN 24 MONTHS - 50% IN A CLASSROOM OR CLASSROOM EQUIVAKENT - 12 HRS |
| CE REQ. HOW MANY HOURS OF ETHIC EDU | 2 HOURS OF ETHICS |
| AFTER HOW MANY YEARS IS THE LICENSEE EXEMPT FROM CE REQ | 20 YRS |
| A PENALTY OF ___ FOR EVERY ____ NOT PROPERLY COMPLETED WILL APPLY. IF A LICENSE DOES NOT COMPLETE THE 24 HRS OF CE BEFORE THE EXPIRATION DATE OF LICENSE, LICENSEE WILL HAVE __ DAYS TO COMPLETE THE DEFICIENT NUMBER OF HOURS AND PAY A FINE OF $___ PER ___ | $50; HOUR; 90; 50, DEFICIENT HOUR |
| WHAT PROFESSIONALS CAN CHARGE A FEE TO REVIEW A PROPOSED OR IN FORCE POLICY AND OFFER ADVICE ABOUT COVERAGES OR CHANGES? | - FINANCIAL ADVIOR - A LIFE AND HEALTH COUNSELOR - MANAGING GENERAL AGENT |
| WHAT PROFESSIONAL CANNOTTT CHARGE A FEE TO REVIEW A PROPOSED OR IN FORCE POLICY AND OFFER ADVICE ABOUT COVERAGES OR CHANGES? | LIMITED LINES AGENT |
| HOW MANY HRS OF CONTINUING EDU MUST A LICENSED PRODUCER COMPLETE PER REPORTED PERIOD IN ORDER TO MAINTAIN THEIR LICENSE? | 24 HRS IN 24 MONTHS |
| HOW MANY CONTINUING EDU HOURS MUST BE COMPLETED IN THE CLASSROOM OR BY CLASSROOM EQUIVALENT? | 12 |
| WHAT PERCENTAGE OF CONTINUING EDU HOURS MUST BE COMPLETED IN THE CLASSROOM OR BY CLASSROOM EQUIVALENT? | 50% |
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