Law Supplement Practice Exam

(Workers' Compensation) If an injury results in an employee's death, workers' compensation will pay up to what amount for burial cost?

$10,000

(Auto Insurance) Operating a motor vehicle w/o the required insurance is a misdemeanor punishable by a fine of between

$175 and $350 for the first offense

(Workers' Compensation) Under workers' compensation law, income benefits may not be paid for an injury unless the injury results in disability that last longer than

1 week

(Workers' Compensation) Generally, to receive compensation for a work related injury, a claim for compensation must be filed with the DWC within

1 year of the date of the injury

(General Insurance) Written notices of reported violations must be sent within

14 days

(Workers' Compensation) An insurer must initiate workers' compensation benefits within how many days of being notified of

15 days

(General Insurance) How many hours of ethics continuing education must an agent complete in a 2-year license period?

2 hours

(General Insurance) How many hours of continuing education is an agent responsible to complete in a 2-year license period?

24 hours

(Auto Insurance) PIP covers medical and funeral expenses incurred within how long from the date of the accident?

3 years

(Auto Insurance) An insurer may cancel a personal automobile policy on its 12 month anniversary by providing how many days' advance notice of its intent?

30 days

(Auto Insurance) In order to nonrenew a personal automobile policy, an insurer must provide how many days' advance notice to the policyholder?

30 days

(General Insurance) An agent licensed in Texas who moves from one state to another must file proof of authorization to conduct business in the new state within how many days?

30 days

(Workers' Compensation) To receive compensation for a work related injury, an employee (or someone acting for the employee) must notify his employer within how long after an injury?

30 days

(Auto Insurance) The minimum limits under the Texas Motor Vehicle Safety Responsibility Law are

30/60/25

(General Insurance) At a minimum, the department must examine a carrier at least once every

5 years

(Auto Insurance) An insurer may refuse to renew a commercial auto liability policy if the insurer give written notice to the insured at least how many day before the policy expires.

60 days

(Workers' Compensation) Under Texas workers' compensation law, lifetime income benefits are paid at what percentage of the employee's average weekly wage?

75%

(Workers' Compensation) An employer must report an injury to the insurer within how many days?

8 days

(Auto Insurance) A temporary license is valid for how long?

90 days

(General Insurance) A person who examines and assesses risks for persons seeking or renewing property and casualty insurance is

A risk manager

(Workers' Compensation) Which of the following statements regarding workers; compensation insurance is NOT correct? A. All employers domiciled in Texas are required to obtain workers' compensation insurance coverage for their employees. B. Workers' compensation's primary advantage for the injured employee is that it provides a quick and certain means of compensation. C. Workers' compensation protects the employer from tort liability. D. Workers'' compensation provides compensation to employees who are injured on the job, without regard to fault or negligence on the part of either the employer or employee.

A. All employers domiciled in Texas are required to obtain workers' compensation insurance coverage for their employees.

(Auto Insurance) Which of the following statements regarding automobile liability insurance is CORRECT? A. All insurers must offer policyowners the option of buying insurance for losses resulting from accidents involving both uninsured and underinsured motorist. B. Not all insurers offer PIP w/automobile liability coverage. C. Only owners of automobiles that are between 1 and 5 years old are required to carry automobile insurance. D. The financial responsibility law protects automobile owners from drivers who obtain insurance from foreign insurers.

A. All insurers must offer policyowners the option of buying insurance for losses resulting from accidents involving both uninsured and underinsured motorist.

(Workers' Compensation) An employee who suffers an injury covered by workers' compensation is entitled to all of the following health care services EXCEPT A. Cosmetic surgery for aesthetic reasons B. Rehabilitation therapy C. Emergency treatment D. Vocational training

A. Cosmetic surgery for aesthetic reasons

(General Insurance) All of the following are correct regarding licensing requirements EXCEPT A. The person must be at least 21 years old B. The state licensing examination must be passed C. The person has submitted an application D. A nonrefundable fee has been paid

A. The person must be at least 21 years old

(Auto Insurance) Under Texas law, and insured may do which of the following with regard to the provision of uninsured motorists property damage? A. Double the amount of coverage upon written request to the insurer B. Elect coverage for the same amount as the policy's liability limit C. Reject the coverage by notifying the insurer of their intentions to do so D. Reduce the coverage below the liability limit of the policy.

B. Elect coverage for the same amount as the policy's liability limit

(Auto Insurance) An insurer may cancel a commercial auto policy for any of the following reasons EXCEPT A. Fraud in obtaining the policy B. Failure to pay parking fines when due C. An increase in the hazard insured against D. Inability of the insurer to renew reinsurance agreement

B. Failure to pay parking fines when due

(General Insurance) Which of the following acts constitutes an unfair practice involving false advertising? A. Accepting an applicant's signed application w/o collecting an initial premium. B. Hinting that a competing insurer is suffering a financial crisis C. Quoting the high school football coach's statements about his new car in your agency's advertisement D. Using statistics about vehicle accidents in an advertisement for car insurance.

B. Hinting that a competing insurer is suffering a financial crisis

(Workers' Compensation) The length of time for which an injured employee will receive workers' compensation benefits depends on which of the following factors? A. Employee's average weekly earnings B. Nature of the injury C. Employer's payroll D. Whether the employee has any dependents

B. Nature of the injury

(Auto Insurance) An insurer that provides personal automobile policies may cancel a policy for each of the following reasons EXCEPT A. Nonpayment of premium B. The age of the insured C. The insured submits a fraudulent claim D. The continuance of the policy would violate the law

B. The age of the insured

(General Insurance) Which of the following is a requirement for a temporary insurance license? A. The applicant must complete a licensing course within 10 days of application filing. B. The applicant must complete training supervised by an agent, insurer, or HMO. C. The applicant must be sponsored by the Department. D. The applicant must demonstrate high unethical standards.

B. The applicant must complete training supervised by an agent, insurer, or HMO.

(General Insurance) Which of the following is an example of misrepresentation? A. An agent convinces a prospect to replace his existing homeowners policy with a new, more expensive policy that provides more coverage. B. An insurer advertises a life insurance policy w/o mentioning that premiums may be paid quarterly instead of annually. C. An agent leads a buyer of an auto policy to believe that she will be covered when driving others' cars when she will not. D. An agent offers a housewarming present to anyone who purchases homeowners insurance from him.

C. An agent leads a buyer of an auto policy to believe that she will be covered when driving others' cars when she will not.

(General Insurance) General duties of the Commissioner include all of the following EXCEPT A. Calculating reinsurance reserves B. Publishing results of insurance investigations C. Enacting new laws D. Reporting to the governor

C. Enacting new laws

(General Insurance) Which of the following is NOT an example of an unfair claim settlement practice? A. Knowingly misrepresenting pertinent facts to claimants B. Failing to acknowledge communication within a reasonably prompt period C. Failing to examine a claimant under oath D. Not attempting in good faith to promptly settle a claim when liability is clear.

C. Failing to examine a claimant under oath

(Workers' Compensation) Lifetime income benefits are paid until the covered employee's death for all of the following EXCEPT A. Total and permanent loss of sight in both eyes B. Loss of both feet at or above the ankle C. Loss of one finger D. Loss of both hands at or above the wrist

C. Loss of one finger

(Auto Insurance) Which of the following statements about cancelling a homeowners policy is CORRECT? A. The insurer must give the insured a 90 day notice in order to find new insurance. B. The insurer must inform the Texas Automobile Insurance Plan Association that it is canceling a policy. C. The insurer must provide a 10-day written notice of cancellation if the insured fails to pay premiums when due. D. The insurer must inform the agent who sold the policy that his commissions must be returned.

C. The insurer must provide a 10-day written notice of cancellation if the insured fails to pay premiums when due.

(Auto Insurance) All of the following vehicles are exempt from the compulsory insurance law EXCEPT A. Vehicles that are self insured B. Vehicles for which a bond has been filed with the Department of Insurance C. Vehicles that are used exclusively on public highways D. Vehicles for which a cash deposit has been made with the state treasurer

C. Vehicles that are used exclusively on public highways

(General Insurance) Agents who solicit and procure insurance for themselves, their families, and their business associates (and not for the general public) are said to engage in

Controlled business

(Auto Insurance) All of the following are acceptable forms of proof of financial responsibility EXCEPT A. A copy of liability policy B. A copy of a binder in the required amounts C. A Texas Liability Insurance Card D. A valid DL

D. A valid DL

(Workers' Compensation) Which of the following is NOT an injury that would be covered by workers' compensation? A. An accident occurs while an employee is driving a forklift from a truck to the warehouse. B. An injury occurs when an employee slips on a wet floor while changing clothes in the employee locker room. C. Several workers are injured when the hydraulic lift that moves automobile parts collapses. D. An employee who returns from lunch intoxicated cuts his hand with an electric saw.

D. An employee who returns from lunch intoxicated cuts his hand with an electric saw.

(Auto Insurance) Which of the following statements concerning the Insurance Guaranty Association is NOT correct? A. Any claim that would not be covered by the insurer is not covered by the Association. B. The association is divided int o three separate accounts. C. Failure to pay an assessment when due may cost an insurer revocation of its certificate of authority. D. Covered claims are covered up to a limit of $750,000.

D. Covered claims are covered up to a limit of $750,000.

(General Insurance) All of the following are grounds for revoking an agent's license EXCEPT A. Defrauding a policyholder B. Defrauding an applicant C. Failing to remit premiums to the inserer D. Failing to compare his policies with a competitor's policies

D. Failing to compare his policies with a competitor's policies

(General Insurance) Which of the following acts is considered and unfair or deceptive act or practice? A. Representing a binder as evidence of insurance B. Encouraging an agent to sell only one type of business owner's policy? C. Issuing policies at a higher premium rate for higher risk insureds D. Providing for the payment of part of the agent's commission to the insured

D. Providing for the payment of part of the agent's commission to the insured

(Auto Insurance) To obtain insurance thought the Texas Automobile Insurance Plan Association, an applicant and his agent must certify that the applicant

Has been rejected for insurance by at least 2 licensed insurers actually writing auto insurance

(Auto Insurance) While PIP benefits under an auto policy are paid w/o regard to fault, an insurer many not pay benefits for any injury

Intentionally caused to the insured by the insured.

(Workers' Compensation) Which organization is considered the insurer of last resort for workers' compensation insurance?

Texas Mutual Insurance Company

(Workers' Compensation) Which organization helps pay insolvent insurers' covered claims in Texas?

Texas Property and Casualty Insurance Guaranty Association

(General Insurance) In the event of a total loss by fire of real property, the policyholder is entitled to be paid what amount?

The full policy amount

(General Insurance) Making a misrepresentation to induce a policyholder to lapse a policy is considered

Twisting

(General Insurance) Insurance issued to Texas residents by companies not licensed to do business in Texas would be classified as

Unauthorized insurance

(General Insurance) The Commissioner has the power to

issue certificates of authority to insurers