15 STATE LAWS
Which of the following statements is NOT correct with respect to a Joint Underwriting Association? A A JUA only acts on behalf of association members B A JUA must have a Certificate of Authority to transact business C A JUA is not subject to an examination by the Commissioner D A JUA's license expires every 3 years
C
Which of the following facts is TRUE about UM/UIM coverage in Texas? A An insured may decline UM/UIM coverage B Mandatory UM/UIM coverage is $100,000 C Hit-and-run accidents are NOT covered D UM/UIM coverage is mandatory
A
After the 60-day underwriting period, an insurer cannot cancel a personal auto policy for which of the following reasons? A The insured submitted a fraudulent claim B The spouse's driver's license was suspended C The insured submitted 3 claims in the past 5 years D Non-payment of the policy premium
C
In Texas, policy forms and endorsements must be filed for approval how many days before they are issued? A 10 B 30 C 20 D 60
D
To be eligible for supplement income benefits in Texas, a recipient must: A Actively seek employment B Have at least a 5% impairment rating from the compensable injury C Have returned to work earning less than 95% of his/her average weekly wage D Elect to receive a portion of the impairment income in a lump-sum
A
Which of the following is NOT a fiduciary duty of an agent? A Recommend the most profitable coverage for the agent B Keep premium funds in a trust account separate from other funds C Serve the best interests of the insurer D Forward premiums collected from the insured to the insurer on a timely basis Good Job!
A
Which of the following is not a prohibited claims settlement practice? A Requiring a claimant's income tax return while investigating a fire B Requiring an insured to release the insurer from a claim in order to receive a partial payment C Misrepresenting a material fact to a claimant D Refusing to pay a claim without reasonably investigating it
A
Which of the following may the Commissioner not do if he/she cancels or revokes an insurance license? A Suspend the license for up to 5 years B Refer the matter to the Attorney General for enforcement of any unpaid penalty or restitution C Order the licensee to pay an administrative penalty and/or make restitution D Issue a cease and desist order
A
Who is NOT eligible for an agent license in this state? A A 17-year-old who passed the licensing exam 6 months ago B A 25-year-old who passed the licensing exam 2 months ago C A 43-year-old who submitted the appropriate application and fees 1 month ago D A 30-year-old who submitted the appropriate application and fees 1 week ago
A
An employee's average weekly wage is calculated on which of the following basis? A The wages paid during the 3 weeks after the injury B The wages paid during the 13 weeks before the injury C The previous week's earnings D The previous calendar year's earnings
B
The Texas Property and Casualty Insurance Guaranty Association pays covered claims against which of the following? A Labor associations that have denied coverage B Insolvent insurers C Unauthorized insurance companies D Workers' Compensation carriers that have denied coverage
B
The term 'employee' does not include: A A person whose employment is in the usual course and scope of the employer's business B A master of, or seaman on, a vessel engaged in interstate or foreign commerce C A person employed in construction, remodeling, or repair work for the employer on the premises of the employer D A trainee under the Texans' Work program
B
When is an employee entitled to temporary income benefits? A After death B When disabled C Before an injury D When not disabled
B
Which of the following does NOT qualify as evidence of financial responsibility? A Deposit of $55,000 filed with the county judge B Savings account statement C Auto insurance card D Certificate of surety bond
B
Which of the following is NOT transacting insurance? A Providing an insurance proposal B Completing continuing education requirements C Delivering an insurance contract D Collecting an insurance payment
B
Which of the following is not required to have an insurance agent's license from the Department of Insurance in order to transact insurance business? A Bank B Underwriter C Counselor D Subagent
B
A new policy form must be submitted to the Commissioner at least _______ days before the date the policy form will be used. A 45 B 90 C 60 D 120
C
For what types of loss may a person obtain insurance from the Texas Windstorm Insurance Association? A Windstorm and fire B Only windstorm C Windstorm and hail D Only hail
C
Who does not qualify for exemption from continuing education requirements necessary to maintain an insurance license? A Agent who is in a coma B Nonresident agent C Agent who serves in the Army Reserves D Agent licensed for 25 years
C
A licensed agent is required do which of the following before transacting insurance in Texas? A Obtain a Certificate of Authority B Pass an appointing exam C Obtain an insurance counselor's license D Obtain an appointment from an insurer
D
An automobile liability policy in Texas must provide which of the following coverages? A Uninsured and underinsured motorist B Bodily injury, death, and PIP C Medical payments D Bodily injury, death, and property damage
D
Producer A tells his clients, falsely, that a rival insurer does not pay claims in a timely fashion. This is an example of what Unfair Trade Practice? A Rebating B Unfair Discrimination C Misrepresentation D Defamation
D
The death benefit amount is _____ % of the employee's average weekly wage. A 90 B 65 C 55 D 75
D
The minimum financial responsibility liability limit in Texas is _____. A 10/20/5 B 15/30/10 C 25/50/15 D 30/60/25
D
The purpose of the Texas FAIR Plan Association is to: A Review premium rates to investigate allegations of discrimination B Handle insurance complaints by policyholders C Mediate claim disagreements between insurers and policyholders D Insure property owners who are unable to obtain insurance coverage
D
What line of insurance does NOT require a licensee to complete a certification course, and a specified number of continuing education hours, if he/she acts as an agent with respect to insurance products in that specialty? A LTC partnership insurance B Medicare-related insurance C Annuities D Auto insurance
D
What prohibited trade practice does an agent commit when he lies about policy terms in order to convince a policyholder to cancel an existing policy in order to buy a new policy? A False advertising B Rebating C Defamation D Misrepresentation
D
Which agent is required to maintain a bond in order to transact business in Texas? A Inland marine agent B Fair Plan agent C Auto insurance agent D Surplus lines agent
D
Who is not covered by a Workers' Compensation policy? A Texans' Work program trainee B Repairman working on employer's premises C Employee injured while working D Workers injured while working on a moving vessel
D
An automatic fine of $50 per credit hour applies if a licensee fails to comply with what continuing education requirement? A Obtain a life and health license during the first licensing period B Prepare 30 course completion certificates during a licensing period C Complete the required number of continuing education hours during a licensing period D Issue a course completion certificate within 60 days of completing a course
C
Which if the following is a requirement of a Texas surplus lines agent? A Obtain and maintain business auto insurance B Hold a Fair Plan agent license C Obtain and maintain a $50,000 surety bond D Hold a personal lines property and casualty agent license
C
Which of the following persons may renew his insurance license? A Michael, whose license expired 6 months ago B Timothy, whose license expired 2 years ago C Brendon, whose license expired 30 days ago D Donald, whose license was revoked
C
The Texas Automobile Insurance Plan Association (TAIPA) provides insurance for which of the following reasons? A Applicant has a poor claims history B Applicant's driver's license was suspended C Applicant had no prior insurance D Applicant was rejected by two insurers
D
An employee is injured and the doctor approved disability for one to two weeks. If the disability continues for 2 or more weeks, from what date would the compensation benefits begin? A Date of injury B Date the disability begins C Beginning of the 2nd week D The date the employer was notified
b
In order to receive credit for attending a classroom insurance continuing education course, how much of the course must a student attend? A At least 90% of the course B The entire course C More than half of the course D No less than 3/4 of the course
A
An insurer is permitted to nonrenew a homeowners policy if the insured submits how many claims within a 3-year period? A 3 B 4 C 5 D 6
A
General Property and Casualty agents must complete ______ continuing education hours each renewal period. A 24 B 10 C 20 D 12
A
If the Department issues a temporary agent license, for how many days is it valid? A 90 days B 180 days C 30 days D 60 days
A
Providing different benefits to insureds of the same actuarial class or hazard category is an example which of the following types of unfair trade practice? A Unfair discrimination B False statements C Unfair comparison D Defamation
A
The maximum weekly benefit paid for workers' compensation benefits is _____% of the state average weekly wage. A 100 B 25 C 50 D 67
A
A Certificate of Authority is issued to an insurer for which of the following reasons? A It certifies the insurer has passed a market conduct exam in this state B It certifies the insurer is authorized to transact insurance in this state C It certifies the insurer can break some laws D It recognizes the insurer for excellence in handling claims
B
An injury for which Workers' Compensation benefits are payable is called a(n) _____ injury. A Occupational B Compensable C Traumatic D Employment
B
The Department must examine each insurance company at least once every _____ years. A 3 B 5 C 7 D 4
B
Which of the following is not a duty the Commissioner must administer? A Approve an insurance license for a producer B Make state insurance laws C Enforce state insurance laws D Administer the workers' compensation system
B
Which of the following is not true about PIP coverage in Texas? A It includes lost income benefits for injured persons who are employees B It covers insureds and their guests without regard to fault or coordination of benefits C It must be included in all auto policies unless a named insured rejects it in writing D It provides periodic benefit payments within 10 days after receiving proof of loss
d
Which of the following statements is false regarding supplemental income benefits? A An insurance carrier must begin paying supplemental income benefits by the 7th day after the employee's impairment income benefit period expires B To be eligible to receive supplemental income benefits, a recipient must actively seek employment C Supplemental income benefits are calculated quarterly and paid monthly D Once every 6 months, an employee and an insurer may request that the Commissioner review the employee's status Nice try!
d