Texas Statutes and Rules Pertinent to Property and Casualty Ins.
a
A health care provider wants to provide medical professional liability insurance for its employees. Unfortunately, the provider has searched unsuccessfully for an insurance carrier that can provide this insurance. Which of the following will most likely be able to provide this insurance? A. Joint Underwriting Association B. Professional Liability Union of Insurers C. Texas Insurance Association D. Fair Plan
b
A recent college graduate bought a new car and is trying to get automobile insurance on it as required by the lienholder. After being rejected by several insurance companies due to his driving record, he finally talked to an agent who can get him coverage. His agent called him a residual market risk. From which type of automobile insurance plan can the applicant purchase insurance? A. Voluntary insurance plan B. Assigned risk C. Fair automobile insurance D. Joint underwriting association
a
According to the Texas Financial Responsibility Law, operating a motor vehicle without the required liability insurance is considered a/an A. Misdemeanor. B. Crime. C. Offense of the first degree. D. Felony.
c
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? A. Life insurance B. Health insurance C. Liability insurance D. Property insurance
b
After attending a company party at the corporate headquarters, an employee causes a car accident, is injured, and arrested for DUI. His medical injuries total $5,200, and his legal fees and fine for the DUI arrest total $12,000. How much will the company's workers compensation policy pay? A. $17,200 B. $0 C. $5,200 D. $12,000
b
All of the following statements are true regarding the relationship among the amounts of insurance EXCEPT A. The recovery may not exceed the ACV of the property at the time of loss. B. All property losses under the basic form are settled on a replacement cost basis. C. The recovery may not exceed the ACV at the time of loss or the policy limit, whichever is smaller. D. The recovery may not exceed the ACV at the time of loss or the amount necessary to replace the property, whichever is smaller.
b
An employee is entitled to impairment income benefits beginning A. The date medical treatment commences. B. The day after the employee reaches maximum medical improvement. C. The day that medical improvement is noted. D. The date of the injury.
d
An employee is injured on the job but decides not to tell his employer. He is treated in the emergency room and stays home to recuperate. Five days later, he feels better and returns to work, but the pain becomes worse, and he doesn't return for 5 more days. He then gives his medical bills to his employer for reimbursement. Based on these facts, should the workers compensation policy pay these medical bills? A. No, the company must authorize treatment. B. Yes, the employee will be paid income benefits during the first week. C. No, the employee notified the employer 10 days after the injury. D. Yes, the employee notified the employer within 30 days of the injury.
b
An employee may be eligible for supplemental income benefits upon A. The termination of employment. B. The expiration of the impairment income benefit period. C. Reaching age 65. D. The date of the injury causing disability.
d
An employee who refuses services or refuses to cooperate with services provided by the Rehabilitation Commission will A. Lose medical expense benefit. B. Lose death and burial benefits. C. Continue to receive supplemental income benefits. D. Lose entitlement to supplemental income benefits.
a
An employee's average weekly wage is computed according to the sum of wages paid in what period of time immediately preceding the date of the injury? A. 13 consecutive weeks B. 2 years C. 180 days D. 6 months
a
An insured has a policy with an insurance company that became insolvent. The policy has $1,600 of unearned premium. How much of this premium will the insured be able to recover from the Texas Property and Casualty Insurance Guaranty Association? A. $1,600 B. The total of the premium paid at the inception of the policy C. None D. $25,000
a
An insured under a homeowners policy who has filed two or more claims in the preceding policy year may be A. Surcharged on the premium amount. B. Nonrenewed. C. Cancelled. D. None of the above.
c
An insurer can cancel a personal auto policy by giving the named insured 10 days prior written notice for any of the following reasons EXCEPT if A. The name insured submits a fraudulent claim. B. The board finds that continuing the policy would violate the insurance laws of Texas. C. The cancellation is to take effect on the 12-month anniversary of the policy. D. The named insured does not pay a premium when due.
d
An insurer may cancel a personal auto policy if the policy has been in effect for at least how many days? A. 10 days B. 20 days C. 30 days D. 60 days
c
Bob's insurer declared bankruptcy. It has not yet paid his $1,000 claim. Which of the following is true? A. Bob can collect this money through the NAIC Insolvency Fund. B. Bob will not be able to recover his $1,000. C. The Property and Casualty Insurance Guaranty Association will cover his claim. D. Bob will have to sue the insurer in order to collect his money.
c
If a deceased employee is survived by a eligible spouse and 3 dependent children, what percentage of the death benefit will be paid to the spouse? A. 100% B. 75% C. 50% D. 25%
a
If an auto policy has split limits of 30/60/25, how much will the policy pay for property damage in a single accident? A. $25,000 B. $30,000 C. $60,000 D. $115,000
b
If the death of an employee results from a compensable injury, the insurance carrier will pay A. Up to $4,000 for the cost of burial. B. Up to $10,000 for the cost of burial. C. Nothing. D. Up to $2,500 for the cost of burial.
d
In Texas, an employee injured on the job will NOT receive loss of time benefits unless the disability lasts longer than A. 1 month. B. 1 year. C. 3 days. D. 1 week.
c
In Texas, under workers compensation law, lifetime income benefits are paid at what rate? A. An amount equal to the statewide average weekly wage B. An amount equal to the employee's average weekly wage C. An amount equal to 75% of the employee's average weekly wage D. An amount equal to 50% of the statewide average weekly wage
c
In Texas, unless higher optional limits are purchased, the maximum amount payable for all auto personal injury protection benefits arising out of a single accident shall not exceed A. $1,000. B. $1,500. C. $2,500. D. $3,000.
d
In order to qualify for supplemental income benefits, an employee must have an impairment rating of at least A. 50%. B. 75%. C. 10%. D. 15%.
a
Injuries that occur when an employee is traveling to or from work are A. Covered under workers compensation only when the means of transportation is paid for by the employer. B. Only covered if the employee is being transported in his or her private auto. C. Always covered by workers compensation. D. Never covered by workers compensation.
b
Insurance procured from an unauthorized insurer is called A. Illegal. B. Surplus lines insurance. C. Unauthorized insurance. D. Credit insurance.
c
Insurers must file all rates and forms for Commissioner's approval within how many days prior to use? A. 10 days B. 30 days C. 60 days D. 90 days
d
Lifetime benefits are paid until the employee's death for all of the following injuries except A. Loss of sight in both eyes. B. Complete paralysis of both arms. C. Loss of both feet above the ankle. D. Loss of hearing in both ears.
b
Regarding workers compensation, employees who have reached maximum medical improvement will be entitled to A. Supplemental income benefits. B. Impairment income benefits. C. Temporary income benefits. D. Receding income benefits.
d
The Texas Windstorm Insurance Association provides windstorm and hail insurance A. In the entire state. B. Any disaster prone area countrywide. C. In rural areas of this state only. D. In the seacoast territory of this state only.
a
The commission will refer an employee who is receiving supplemental income benefits to the Rehabilitation Commission if it determines that rehabilitation and training will A. Return the employee to work earlier. B. Satisfy a court order. C. Reduce the cost of claim. D. Allow the commission to reduce the supplemental benefit.
b
The date of "maximum medical improvement" is defined as the earliest of the date that, based on medical probability, further medical improvement to an injury can no longer be reasonably anticipated, or A. 3 years. B. 104 weeks. C. The employee's age 65. D. 5 years.
d
The income benefit received by an employee who is disabled but has not attained maximum medical improvement is classified as A. Impairment. B. Vocational. C. Supplemental. D. Temporary.
c
The limits of liability for bodily injury or property damage stated in an auto insurance policy are 30/60/25. What are the maximum limits of liability allowed for uninsured/underinsured motorist? A. 10/10/10 B. 15/30/15 C. 30/60/25 D. 60/120/50
d
The qualify for a surplus lines license, the applicant must be licensed as a(n) A. Risk Manager. B. Accident and Health solicitor. C. Adjuster. D. Local Recording Agent.
a
Under Workers Compensation, an insurance carrier will pay death benefits to the legal beneficiary in an amount equal to what portion of the employee's average weekly wage? A. 75% B. 50% C. 25% D. 15%
d
Under the Texas Property and Casualty Insurance Guaranty Association, what is the maximum amount that a claimant may recover from an occurrence under a policy issued by an insolvent insurer? A. The amount of loss B. The amount of insurance provided by the policy C. $300,000 D. The lesser of the above amounts
b
What is a required notice of cancellation of a Homeowners policy to the insured? A. 5 days B. 10 days C. 20 days D. 30 days
c
What is the maximum portion of the state average weekly wage that workers compensation will pay for impairment income benefits? A. 35% B. 50% C. 70% D. 75%
a
What type of insurance can be obtained through a surplus lines insurer? A. Coverage that is unavailable through authorized insurers B. Out-of-state coverage C. Commercial coverage D. Coverage that provides dividends
d
Which of the following can qualify for a surplus lines license? A. An individual licensed as a Local Recording Agent in Texas B. An individual licensed as a Managing General agent in Texas C. A nonresident agent using the license for limited purposes on behalf of a purchasing group operating in Texas D. Any of the above
d
Which of the following conditions would most likely be compensable under workers compensation? A. Heart attack B. Influenza C. Common cold D. Carpal tunnel syndrome
d
Which of the following is NOT considered a residual market? A. Joint underwriting association B. FAIR plan C. Assigned risk auto plan D. State Property and Casualty Guaranty Association
d
Which of the following is a requirement for eligibility for coverage in the Texas Automobile Insurance Plan? A. The applicant must be rejected by at least two insurers in the normal market. B. The applicant must have a valid driver's license. C. The applicant must be able to pay the premium. D. All of the above.
b
Which of the following is the basic auto liability limit required for bodily injury or death to any one person in any one accident? A. $25,000 B. $30,000 C. $50,000 D. $60,000
b
Which of the following statements is INCORRECT with regard to surplus lines insurance? A. Business placed with a surplus lines insurer is subject to a premium tax that must be collected by the broker. B. Policies written by a surplus lines insurer typically contain standard coverages and forms. C. To sell surplus lines insurance, the licensee must obtain a surplus lines broker's license. D. Before coverage is placed with a surplus lines company, diligent effort must be made to place the risk with admitted insurers.
a
Which of the following was created to pay benefits due to insureds after their insurance companies have been declared insolvent? A. Property and Casualty Insurance Guaranty Association B. LLoyd's Association C. Federal Insurers Solvency Fund D. NAIC Insolvency Fund
d
Who are members of the Texas Windstorm Insurance Association? A. Only the insurers who issue windstorm insurance B. City and county governments C. State licensed builders and engineers D. All authorized property insurers
a
Words or terms that appear in an insurance policy in bold face print include A. Specific definitions as to their meaning as used in the policy. B. Dual definitions. C. Standard definitions. D. All of the above.
