Insurance- Texas insurance regulations

If a license is revoked, the licensee shall NOT be eligible for a new license:
A: Ever again
B: For at least 5 years
C: Except by special permission of the governor
D: For six months

To become a Texas insurance agent, you must:
A: Have resided in Texas for at least one year
B: Post a bond
C: File your personal financial statement with the Commissioner
D: Pass an exam

All are true about insurance licensing EXCEPT:
A: Agents represent the insurance company
B: All accounts of a terminated agent must be non-renewed by the insurer
C: A temporary license is available up to three months in certain circumstances
D: You must be at least l8 in order get a license

Sharing commissions is legal if:
A: The other party represents a life company and you represent a P&C company
B: The other party also has an insurance license
C: The other party has permission of your client
D: The other party is licensed for the same lines of insurance you are

Conditions for a corporate agency seeking a Texas insurance agent's license include:
A: It must be a domestic corporation
B: All active corporate officers must have individual agent's licenses
C: All salaried employees must be licensed
D: It must sell all lines of insurance

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:
A: $25,000
B: $5,000
C: $2,500
D: $250

How long does an agent whose license has been revoked have to wait before they can reapply for a new license:
A: 5 years
B: 2 years
C: 3 years
D: 1 year

A person appointed by an insurer to solicit or sell insurance on their behalf in this state is known as a(n):
A: Broker
B: Solicitor
C: Agent
D: Adjuster

Temporary licenses issued in Texas generally:
A: None of the above is true
B: Are renewable for a like period
C: Expire in one year
D: Expire in 90 days

An agent who procures a license for the principal purpose of obtaining insurance for themselves, for family members or employees, violates the regulations prohibiting:
A: Exclusive business
B: Fraud
C: Controlled business
D: Captive business

The Insurance Commissioner shall examine each established, authorized insurer in Texas no less than:
A: Once every five years
B: Once every three years
C: Once every two years
D: Every year

Unfair claims practices will be assumed to be intentional if:
A: The licensee has been reported for a similar practice during the preceding three years
B: They are reported to an insurer by the policyholder
C: They occur with such frequency as to indicate a general business practice
D: The licensee fails to promptly submit a required report

The type of government primarily concerned with the regulation of insurance and insurance companies is:
A: City government
B: Federal government
C: County government
D: State government

If an agent is convicted of a felony in this or another state, who do they have to notify:
A: The Federal Department of Insurance
B: The local Agent's Association
C: The State Department of Insurance
D: The National Association of Insurance Commissioners (NAIC)

What is the maximum period of time the Commissioner may revoke your agent's license:
A: 12 months
B: Six months
C: There is no maximum time period
D: Two years

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:
A: Temporary
B: Reciprocal
C: Conditional
D: Retroactive

Under the Unfair Claims Settlement Practices Act, which of the following is NOT unfair:
A: The denial of an unsubstantiated claim
B: Refusing to pay claims without conducting a reasonable investigation
C: Attempting to settle based upon an application that has been altered
D: Failure to respond promptly on claims communications

If an agent's license is suspended or revoked, what happens to their accounts:
A: They are cancelled immediately
B: They are automatically non-renewed
C: They are assigned to another insurer
D: They continue in force

Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as:
A: Defamation
B: Rebating
C: Misleading advertising
D: Coercion

Making false or malicious statements about the financial condition of an insurer or agent is what type of Unfair Trade Practice:
A: Deceptive advertising
B: Defamation
C: Coercion
D: Intimidation

To obtain a Texas license, you must do all EXCEPT:
A: Be 18 years of age
B: Complete pre-license training
C: Pass an exam
D: Be fingerprinted

Texas resident agents must complete _____ hours of continuing education every two years.
A: 30
B: 20
C: 10
D: 40

What is the maximum time a Texas insurance agent's license may be issued for:
A: Six months
B: Four years
C: One year
D: Two years

Insurers applying for authority to do business in Texas are required to do all of the following, EXCEPT:
A:File forms
B: Maintain their home office in Texas
C: Show evidence of sufficient legal reserves to handle claims
D: File rates

Which of the following is NOT considered an unfair practice:
A: Paying dividends to policyholders out of a surplus accumulated from participating policies
B: Requiring any person to buy insurance through a specific insurer as a condition to lending money for the purchase of property
C: Charging a higher premium than the one filed
D: Using misleading advertising

Which of the following statements regarding temporary licenses is FALSE:
A: They require 40 hours of license training
B: They may be issued without exam
C: They are valid up to 90 days
D: They may be renewed

All could be considered rebates EXCEPT:
A: Dividends
B: Securities
C: Employment
D: Commissions

Circulating deceptive sales material to the public is what type of Unfair Trade Practice:
A: Coercion
B: Misleading advertising
C: Defamation
D: Misrepresentation

A Texas resident agent seeking to sell insurance to customers in another state needs:
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

Which of the following is NOT prohibited under the Unfair Practices section of insurance law:
A: Readjusting group premium rates based on loss or expense experience
B: Discriminating between insurance applicants on the basis of gender
C: Misleading or false statements about dividends previously paid on an insurance policy
D: Making false oral statements about the financial condition of a person which are calculated to injure that person