Texas Insurance Exam

A temporary license is valid for how long? A. 90 days B. 6 months C. 1 year D. 2 years

A

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 non-refundable fee has been paid

A

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

Operating a motor vehicle without the required insurance is a misdemeanor punishable by a fine of between A. $175 and $350 for the first offense B. $175 and $350 for subsequent offenses C. $350 and $1000 for the first offense D. $1000 and $3000 for subsequent offenses

A

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

A

An employer must report an injury to the insurer within how many days? A. 5 B. 8 C. 15 D. 30

B

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 a reinsurance agreement

B

Which of the following acts constitutes an unfair practice involving false advertising? A. Accepting an applicant's signed application without 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

Which organization is considered the insurer of last resort for workers' compensation insurance? A. Texas Property and Casualty Pool B. Texas Mutual Insurance Company C. Texas Property and Casualty Insurance Guaranty Association D. Texas Insurers' Federation

B

Agents who solicit and procure insurance for themselves, their families, and their business associates (not for the general public) are said to engage in A. rebating B. surplus lines Insurance C. controlled business D. unauthorized insurance

C

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

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? A. 10 B. 20 C. 30 D. 60

C

At a minimum, the department must examine a carrier at least once every A. 6 months B. year C. 5 years D. decade

C

A person who examines and assesses risk for persons seeking or renewing property and casualty insurance is A. a reinsurer B. a surplus lines agent C. an insurance counselor D. a risk manager

D

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 driver's license

D

All of the following are grounds for revoking an agent's license EXCEPT A. defrauding a policy holder B. defrauding an applicant C. failing to remit premiums to the insurer D. failing to compare his policies with a competitor's policies

D

An insurer may cancel a personal automobile policy on its 12 month anniversary by providing how many days' advance notice of its intent? A. 5 B. 10 C. 20 D. 30

D

An insurer may refuse to renew a commercial Auto liability policy if the insurer gives written notice to the insured at least how many days before the policy expires? A. 7 B. 10 C. 30 D. 60

D

How many hours of ethics continuing education must an agent complete in any 2-year license period? A. 4 B. 5 C. 3 D. 2

D

If an injury results in an employee's death, workers' compensation will pay up to what amount for burial costs? A. $5000 B. $6000 C. $7500 D. $10000

D

While personal injury protection (PIP) benefits under an auto policy are paid without regard to a fault, an insurer may not pay benefits for any injury A. intentionally caused to the insured by the insured B. caused by a public vehicle C. caused by an underinsured driver D. under $1,500

A

In the event of a total loss by fire of real property, the policyholder is entitled to be paid what amount? A. The replacement value of the property B. The full policy amount C. The actual cash value of the property D. The market value of the property

B

Written notices of reported violations must be sent within A. 10 days B. 14 days C. 21 days D. 30 days

B

The commissioner has the power to A. appoint a stock insurance company board of directors B. issue certificates of authority to insurers C. authorize a mutual insurance company sale of stock D. write and enact new legislation and statutes affecting the business of insurance

B

Making a misrepresentation to induce a policyholder to lapse a policy is considered A. coercion B. intimidation C. rebating D. twisting

D

Under workers' compensation law, income benefits may not be paid for an injury unless the injury results in disability that lasts longer than A. 48 hours B. 1 week C. 1 month D. 1 year

B

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? A. 24 hours B. 7 days C. 30 days D. 1 year

C

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

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 without 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

The minimum limits under the Texas Motor Vehicle Safety Responsibility Law are A. 15/30/5 B. 20/30/5 C. 20/40/10 D. 30/60/25

D

To obtain insurance for the Texas Automobile Insurance Plan Association, an applicant and his agent must certify that the applicant A. has been rejected by at least 2 licensed insurers actually writing auto insurance B. has not been involved in an at fault accident within the last 12 months C. has lived in the state for less than 3 months D. is of good character and sound financial condition

A

An insurer must initiate workers' compensation benefits within how many days of being notified of an injury? A. 10 B. 15 C. 30 D. 60

B

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

Generally, to receive compensation for a work related injury, a claim for compensation must be filed with the DWC within A. 1 week of the date of injury B. 1 year of the date of the injury C. 1 year of the date the disability ends D. 2 years of the date the disability ends

B

How many hours of continuing educations is an agent responsible to complete in any 2-year license period? A. 15 B. 24 C. None if licensed less than 5 years. D. It depends on the agent's birth date.

B

Under Texas workers' compensation law, lifetime income benefits are paid at what percentage of the employee's average weekly wage? A. 25% B. 50% C. 75% D. 100%

C

Which of the following statements about canceling a homeowners policy is CORRECT? A. The insurer must give the insured a 90 day notice in order to find a 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 commission must be returned.

C

Which of the following acts is considered an unfair or deceptive act or practice? A. Representing a binder as evidence of insurance B. Encouraging an agent to sell only one type of businessowner'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

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 motorists. B. Not all insurers offer personal injury protection with 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 foreigners insurers.

A

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. Worker's compensation's primary advantage for the injured employee is that it provides a quick and certain means of compensation. C. Worker's compensation protects the employer from tort liability. D. Worker's 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

Insurance issued to Texas residents by companies not licensed to do business in Texas would be classified as A. unlicensed insurance B. unauthorized insurance C. unlisted entrance D. alien insurance

B

Under Texas law, an insured may do which of the following with regard to the provision of uninsured motorists property damage? A. Double the amount of the 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 intention to do so D. Reduce the coverage below the liability limit of the policy

B

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

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

In order to non-renew a personal automobile policy, an insurer must provide how many days' advance notice to the policyholder? A. 10 B. 20 C. 30 D. 45

C

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

PIP covers medical and funeral expenses incurred within how long from the date of the accident? A. 1 year B. 2 years C. 3 years D. Unlimited time

C

Which organization helps pay insolvent insurers' covered claims in Texas? A. Texas Property and Casualty Pool B. Texas Mutual Insurance Company C. Texas Property and Casualty Insurance Guaranty Association D. Texas Insurers' Federation

C

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

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 into 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