Texas Statutes and Rules Common to Life and Health Insurance
A Texas agent tells a client that surrendering an existing whole life policy to buy a new one carries no disadvantage, when a new contestable period will begin. How is this classified?
Answer and explanation
Answer: D. Inducing a policyholder to lapse or surrender a policy through incomplete or misleading comparisons is prohibited. The new policy restarts the contestable and suicide periods, which must be disclosed.Source: Texas Insurance Code — Tex. Ins. Code ch. 541, subch. B, misrepresentation to induce lapse or replacement
More texas statutes and rules common to life and health insurance questions
- A beneficiary asks in writing why her claim was denied, and the insurer never explains. How does Texas law treat that silence?
- A consumer buys life insurance from an unauthorised insurer that later refuses to pay a valid claim. What protection does Texas law give?
- A domestic insurer keeps claim files electronically and says paper files are unavailable. What does TDI's examination authority require?
- A licensed Texas agent is convicted of a felony in another state. What must the agent do?
- A licensed Texas agent lets an unlicensed assistant take applications and quote rates while the agent is away. What is the consequence?
- A licensed Texas life agent wants to split a commission with a friend who referred the client but holds no insurance licence. What does Texas law allow?
590 Texas questions like this one.
Every answer explained, the ones you miss come back on a spaced schedule, and a plan built from your exam date.