Texas Statutes and Rules Common to Life and Health Insurance
A Texas agent tells a prospect that a universal life policy's illustrated non-guaranteed values are amounts the insurer is obliged to pay. What violation is this?
Answer and explanation
Answer: B. Presenting non-guaranteed elements as guaranteed misstates the benefits, terms, or conditions of the policy, which Chapter 541 prohibits as an unfair method of competition.Source: Texas Insurance Code — Tex. Ins. Code ch. 541, subch. B, misrepresentation of policy benefits
More texas statutes and rules common to life and health insurance questions
- An insurer's certificate of authority is revoked, and it continues to accept premiums from Texas consumers. How are the policies it already issued treated?
- An out-of-state company with no Texas certificate of authority mails life insurance solicitations to Texas residents and collects premiums. How does Texas law treat this?
- An unlicensed office assistant is paid a bonus for each prospect she refers who later buys a policy. How does Texas law view the arrangement?
- Another state's insurance department fines a Texas-licensed agent and suspends his licence there. What must he do in Texas?
- Before TDI proposes to revoke a Texas agent license, what hearing protection applies under Texas Insurance Code §4005.104?
- Beyond the unfair practice provisions, what additional Texas exposure does an insurer face for unreasonably delaying payment of a valid life claim?
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