Insurance Pt. 4

Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses?

additional coverage

Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?

defamation

When doing business in this state, an insurance company that is formed under the laws of another state is known as which type of insurer?

foreign

When would a misrepresentation on an insurance application be considered fraud?

if it is intentional and material

During a sales presentation a producer intentionally makes a statement which may mislead the insurance applicant. This describes

misrepresentation

When an insurance policy does not offer a continuation or replacement at its expiration date, it is considered a

nonrenewal

An insured has a policy with an insurance company that became insolvent. The policy has $1,600 if unearned premium. How much of this premium will the insured be able to recover from the Texas Property & Casualty Insurance Guaranty Association?

$1,600

In Texas, an employee injured on the job will NOT receive loss of time benefits unless the disability lasts longer than

1 week

The Commissioner of Insurance issues a Cease and Desist Order and immediately receives a request for the charges to be reviewed in a hearing. Within what number of days must the hearing be held?

10

What is the maximum portion of the state average weekly wage that workers compensation will pay for impairment income benefits?

70%

Insurance companies may be classified according to the legal form of their ownership. The type of company organized to return any surplus money to their policyholders is

A mutual insurer

Which of the following can qualify for a surplus lines license?

Any of the above

The commissioner has full power and authority to do all of the following EXCEPT

Draft insurance laws

In an insurance transactions, fiduciary responsibilities means

Handing insurer funds in a trust capacity

Which of the following is NOT considered a misrepresentation as it pertains to unfair trade practices?

Making comparisons between different policies

In order to qualify for supplemental income benefits, an employee must have an impairment rating of at least

15%

All of the following are true regarding rebates EXCEPT

Rebates are allowed if it's in the best interest of the client

The following are all causes for the insurance commissioner to suspend or impose conditions upon the continuance of an agent's license EXCEPT

The applicant has been shown to be a poor personal credit risk

Which of the following is an example of a producer's fiduciary duty?

The trust that a client places in the producer in regard to handling premiums

When an individual obtains an insurance license for the primary purpose of writing insurance on him or himself or for members of his or her immediate family or business this is called

Controlled business

Robbery is

Taking property by use of force, violence, or fear

Adam is injured in a car accident caused by John. What kind of insurance would cover John's obligation to pay for Adam's injuries?

Liability insurance

The qualify for a surplus lines license, the applicant must be licensed as a(n)

Local recording agent

An employee who refuses services or refuses to cooperate with services provided by the rehabilitation Commission will

Loss entitlement to supplemental income benefits

Lifetime benefits are paid until the employee's death for all of the following injuries except

Loss of hearing in both ears

What is the minimum percentage of a licensee's total volume of premiums in a calendar year that must come from business other than controlled business?

25%

If a deceased employee is survived by an eligible spouse and 3 dependent children, what percentage of the death benefit will be paid to the spouse?

50%

After filing a claim, an insured tells the insurer that there is more than one insurance policy in force. The insurer sets aside the claim until it hears what the other company will pay. The insurer's action will be classified as

Unfair

Three years ago, an insured moved to an unfurnished apartment. She bought new furniture that cost $9,000. Last week, there was a fire in the apartment that destroyed the furniture. Replacement cost is $10,500. The adjuster told the insured her furniture depreciated $2,500. If insurance is written on an actual cash basis, how much will it pay for the loss?

$8,000

An agent discovers his newest client was the result of a referral. To show his thanks to the referring customer, the agent could

Thank the customer