1 Texas General Lines - Life, Accident and Health Insurance Exam/ Complete 500 Actual Exam Questions with Correct Detailed Answers/ Latest Update 2024 – 2025/ Graded A+
Which insurance company function calculates company mortality and morbidity rates as well as the dividends on participating life insurance policies?
A.) actuarial division B.) underwriting division C.) claims division D.) sales division - ANSWER - A.) Actuarial Division
Which of the following is an example of an unauthorized insurance company in Illinois?
A.) Company B, an Iowa-based company that does not hold a certificate of authority in Illinois and sells products that are not approved by the Illinois insurance department B.) Company D, a Canadian company that holds a certificate of authority in Illinois C.) Company C, a Florida-based company that does not hold a certificate of authority Illinois but whose products are approved by the Illinois insurance department D.) Company A, an Illinois-based company that holds a certificate of authority in Illinois and 32 other states - ANSWER - A.) Company B, an Iowa-based company that does not hold a certificate of authority in Illinois and sells products that are not approved by the Illinois insurance department
An insurance company that primarily sells life insurance policies designed for burial and last expense purposes, and whose agents typically collect premiums in person, is
known as a: 1 / 4
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A.) home service insurance company B.) risk retention group C.) fraternal insurance company D.) reinsurance company - ANSWER - A.) Home service insurance company
A not-for-profit insurance provider operated by an organization that has a representative form of leadership, operates on a lodge system, and exists solely for the benefit of its
members and their beneficiaries is called a:
A.) risk retention group B.) home service insurance company C.) mutual insurance company D.) fraternal insurance company - ANSWER - D.) Fraternal insurance company
The insurance company function responsible for evaluating the insurable risks and
assigning appropriate premium rates, is the:
A..) actuarial division B.) claims division C.) underwriting division D.) sales division - ANSWER - C.) Underwriting division
ll the following statements regarding reinsurance are correct EXCEPT:
A.) The insurer accepting some of the risk being transferred from another insurer is known as the reinsuring company.B.) Reinsurance is a risk-sharing process used by insurance companies.C.) The insurer seeking to transfer some of its risk to another insurer is known as the ceding company. 2 / 4
3 D.) Claims are paid to the policyowner separately by each insurer participating in the reinsurance agreement. - ANSWER - D.) Claims are paid to the policyowner separately by each insurer participating in the reinsurance agreement.
An insurer's record of complaints must include all of the following information EXCEPT:
A.) The total number of complaints received B.) The time spent processing each complaint C.) The commissions paid on policies for which complaints were received D.) A classification of complaints by line of insurance - ANSWER - C.) The commissions paid on the policies for which complaints were received
Which of the following does not constitute an unfair claims settlement practice in Texas?
A.) Failing to pay a claim for which the insurer's liability is uncertain.B.) Denying liability when the policy calls for payment of the claim.C.) Failing to respond to a claim promptly.D.) Routinely denying claims as a matter of company policy. - ANSWER - A.) Failing to pay a claim for which the insurer's liability is uncertain
Which of the following practices may an insurer adopt for lawfully settling its claims?
A.) Requiring the insured to sign a full release after getting payment on part of a claim.B.) Compelling insureds to sue the insurer first before it offers a settlement.C.) Requiring the insured to provide his or her federal income tax records with a claim.D.) Requiring a prompt investigation of a claim, even if the insured has not submitted all proofs of loss. - ANSWER - D.) Requiring a prompt investigation of a claim, even if the insured has not submitted all proofs of loss
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4 Superior Insurance Company receives a claim and proof of loss from an insured on April
- It investigates the claim on April 5 and determines that the claim is a valid one by
April 12. The insured submits additional information in support of the claim on May 1.On which date did Superior first become obligated to settle the claim?
A.) May 1 B.) April 5 C.) April 12 D.) April 1 - ANSWER - C.) April 12
The Texas Department of Insurance has found that ABT Insurance has consistently failed to promptly respond to policyholder communications regarding claims. This means that it typically fails to respond within
A.) 60 days.B.) 15 days.C.) 30 days.D.) 90 days. - ANSWER - B.) 15 days
All of the following are characteristics of a mutual insurance company EXCEPT:
A.) They are owned by stockholders.B.) They have minimum financial capital requirements that must be met before they can conduct business.C.) They may issue policy dividends.D.) They are governed by a board of directors. - ANSWER - A.) They are owned by stockholders
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