Texas Life & Health Insurance Exam — All Questions
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The Texas Life and Health Insurance Guaranty Association protects policyholders if a member insurer becomes insolvent. What may a Texas agent do regarding this association when making a sale?
- a.Advertise the association's protection as a selling point
- b.Use the association as an inducement to buy the policy
- c.Not use the existence of the guaranty association in any advertising or sales inducement✓
- d.Guarantee the buyer that all losses are always fully covered
Texas law prohibits agents and insurers from using the existence of the Guaranty Association to induce a sale. The association is a safety net for insolvencies, not a marketing tool, and its coverage is subject to statutory dollar limits.
Texas requires individual life insurance policies to contain a 'free look' provision. What minimum right does this give the policyholder?
- a.To return the policy within at least 10 days of delivery for a full premium refund✓
- b.To cancel only within 3 days of delivery
- c.To cancel at any time during the first policy year with no cost
- d.No refund is available once the policy has been delivered
Texas requires a free-look (right-to-examine) period of at least 10 days on individual life policies. If the policyholder returns the policy during that window, the insurer must refund the premium. Replacement and certain senior policies can carry longer periods.
Texas Insurance Code Chapter 541 primarily addresses which subject?
- a.Licensing examination fees
- b.Unfair methods of competition and unfair or deceptive acts or practices in the business of insurance✓
- c.The minimum wage for insurance office staff
- d.Federal Medicare enrollment periods
Chapter 541 of the Texas Insurance Code is the state's unfair methods of competition and unfair or deceptive acts statute. It prohibits practices such as misrepresentation, false advertising, and unfair claim settlement.