Insurance
If a person is requesting a temporary license, how many hours must they have a supervised training and how long does it license valid for?
1) It is valid for 180 days 2) 40 hours of supervised training
If an insured and Texas has the certificate of authority, revoked your modified, it must be given how many days notice?
10 days
What must be done to renew your license?
24 hours every 2 years for continuing education
How many hours of continuing education hours must be ethics per renewal period?
3 hours of ethics
If an insured was denied, or is in danger of losing their certificate of authority, and they want to hearing hearing must be held within how many days?
30 days
A business has a leak at their plant for a year causing damage to the local water supply. This is considered? a) loss b) protection c) loss prevention d) occurence
d) occurence
What type of insurance company sells shares? a) Mutual b) Lloyds c) Fraternal d) Stock
d) stock
Which of the following triggers the end of a binder's effectiveness? a) upon policy cancellation b) upon policy renewal c) upon binder issuance d) upon policy issuance
d) upon policy issuance
In which of these companies are the policyholder is also the owners of the company? A) Lloyds B) Stock C) Mutual D) Fraternal
C) mutual
What's a license that an agent would need to sell insurance in their state as well as Texas?
A Reciprocal licensing agreement
If an agent from another state wants to sell insurance in Texas, what would they need?
A nonresident license and license in the state to live in
Limited lines, license, would be which of the following? A) For a limited type of insurance B) For a limited period of time like 90 days C) I producer to use to make sales until the regular license arrives D) a producer who doesn't live in Texas
A) For a limited type of insurance
Which of these is true the lawyers in Texas? A) Must have a certificate of authority B) Must have a certificate of approval C) Must be foreign insurers D) Must be alien insurers
A) Must have a certificate of authority
The Texas Department of Insurance must examine the books and records of each admitted insurer A) Once every 5 years B) Once every 3 years C) Once every 2 years D) Once a year
A) Once every 5 years
The commissioner of insurance can do which of these A)Set continuing education requirements in Texas B) make insurance laws C) pursues criminal proceedings against insurers D) sentences a person to jail for insurance fraud
A) Set continuing education requirements in Texas
The commissioner of insurance can do which of these? A) Set continuing education requirements in Texas B) Makes insurance laws C) Pursues, criminal proceedings against insurers D) Sentence is a person to jail for insurance fraud
A) Set continuing education requirements in Texas
Insurable interest must exist at what time in the writing of a property policy? a) at the time of application b) at the time of underwriting c) at the time of policy delivery d) at the time of loss
d) at the time of loss
In order for a surplus lines policy to be sold which of these must be true A) The coverage must not be available from an admitted insurer B) Coverage must not be available from a domestic insurer C) Only furniture can make the offer D) Only an alien ensure can make the offer
A) The coverage must not be available from an admitted insurer
All of the following are part of the power and duties of the state of Texas Insurance Commissioner, except? A) To make and pass fair and reasonable insurance laws (sentence to jail prison) or (public prosecutor) B) Assess and enforce penalties C) ensure, fair competition in the insurance industry D) Administer the Worker's Compensation system
A) To make and pass fair and reasonable insurance laws (sentence to jail prison) or (public prosecutor)
All of the following are part of the power and the duties of the state of Texas Insurance Commissioner, except? A) To make him pass, fair and reasonable insurance laws or (sentenced to jail prison) or (public prosecutor) B) assess and enforce penalties C) insure, fair competition in the insurance industry D) administer the Worker's Compensation system
A) To make him pass, fair and reasonable insurance laws or (sentenced to jail prison) or (public prosecutor)
When an insurance company's home office is outside of the United States, this is called A) Alien B) foreign C) surplus D) domestic
A) alien
An insurer selling policies, and Texas must have a Certificate of A)Authority B)approval C) admittance D)acceptability
A) authority
And insurance company incorporated in Texas would be known as A) Domestic B) foreign C) alien D) admitted
A) domestic
An insurance company incorporated in Texas would be known as?
A) domestic B) Foreign C) Alien D) Admitted
Texas department of insurance must examine the books and records of each admitted insurer every A) once every 5 years B) once every 3 years C) once every 2 years D) once a year
A) once every 5 years
In order for a surplus lines policy to be sold which of these must be true A)The coverage must not be available from an admitted insurer B) Coverage must not be available from a domestic insurer C) Only a foreign insurer can make the offer D) Only an alien insurer can make the offer
A)The coverage must not be available from an admitted insurer
Surplus lines insurance is bought when? A) When the insurer has a certificate of authority B) when insurance cannot be found through admitted carrier C) when the insurer is an Alien insurer, D) when the insurer is not a Domestic insurer
B) when insurance cannot be found through admitted carrier
If an insurer in Texas has their Certificate of Authority, revoked or modified, what must be given how many days notice? A) 7 days B) 10 days C) 30 days D) 60 days
B) 10 days
If an insurer in Texas has their Certificate of Authority, revoked, or modified, what must be the given number of days notice? A) 7 days B) 10 days C) 30 days D) 60 days
B) 10 days
An agent must do all the following to be in a corporation, except A) Pay a fee B) All employees must be licensed C) One officer or partner must be individually licensed D) An officer, a partner must not have a suspended. Are the places where you be subject to any disciplinary reaction
B) All employees must be licensed
And admitted insurer, must have which of these to sell an insurance policies in Texas A) Insurance license B) certificate of authority C) Certificate of approval D) License of approval
B) Certificate of Authority
Alpha insurance company does business in all 50 states however its home office is located in Rhode Island. To the business in California, alpha insurance company is A) Alien B) Foreign C) Surplus D) Domestic
B) Foreign
Which of these is true of the commissioner of insurance? A) He/she is an elected official B) He/she is appointed by the Governor C) He/he makes and sets insurance laws D) He/she is voted into office by the state legislature
B) He/she is appointed by the Governor
Which of these is true about the commissioner of insurance a) He/she is an elected official b) He/she is appointed by the governor c) He/she makes an sets insurance laws d) He/she is voted into office by the state legislature
B) He/she is appointed by the governor
Surplus lines insurance is bought when? A) When the insurer has a certificate of authority B) When insurance cannot be found in admitted carrier C) When the insurer is an alien insurer D) When the insurer is not a domestic insurer
B) When insurance cannot be found in admitted carrier
Lloyds of Texas must be A) Approved B) Admitted C) Insured D) Underwritten
B) admitted
And admitted insurer, must have which of these to sell their insurance policies in Texas? A) Insurance license B) certificate of authority C) certificate of approval D) license of approval
B) certificate of authority
Alpha insurance company does business in all 50 states however it's home office is located in Rhode Island. To their business in California, Alpha insurance company is A) Alien B) foreign C) surplus D) domestic
B) foreign
And insurance company Incorporated in another state is A) Alien B) foreign C) surplus D) domestic
B) foreign
Which of these cannot request information about fraudulent claims? A) Commissioner of insurance B) Insured C) District attorney D) Local police
B) insured
Which of these cannot request information about fraudulent claims? A) Commissioner of insurance B) Insured C) District Attorney D) Local police
B) insured
An insurance company owned by shareholder would be what type of insurer? A) Lloyd's B) stock C) mutual D) fraternal
B) stock
If an insurer was denied, or is in danger of losing their Certificate of Authority, and they want a hearing, the hearing must be held within how many days? A) 7 days B) 10 days C) 30 days D) 60 days
C) 30 days
If an insurer was denied, or is in danger of losing their certificate of authority, and they want to hearing hearing must be held within how many days? A) 7 days B) 10 days C) 30 days D) 60 days
C) 30 days
Which of these insurers is NOT a member of the Texas Property and Casualty Guaranty Association? A) A Foreign insurer selling policies in Texas B) A Domestic insurer selling policies in Texas C) A Surplus lines insurer selling policies in Texas D) An Alien insurer selling policies in Texas
C) A Surplus lines insurer selling policies in Texas
Which of these intruders is not a member of the Texas property and casualty guaranty association? A) A foreign ensure selling policies in Texas B) A domestic insurer selling policies in Texas C) a surplus lines, insurer selling policies in Texas D) An alien insurer selling policies in Texas
C) A surplus lines insurer selling policies in Texas
When an insurance company's home office is outside of the United States this is called what? A) Domestic B) foreign C) alien D) admitted
C) Alien
And insured and ensure cannot come to an agreement about the amount of a loss. The insured could request? A) Arbitration B) Court hearing C) Appraisal D) Subrogation
C) Appraisal
The commissioner of insurance and taxes does which of these? A) Make some passes insurance related laws B) Ask as a public prosecutor C) Approves insurers by giving them a certificate of authority D) Has the ability to sentence a person breaking an insurance law to prison
C) Approves insurers by giving them a certificate of authority
Which of the following would be considered transacting business insurance? A) Rate making B) Underwriting C) Collecting a premium D) Calling to set up appointments
C) Collecting a premium
Which of these cannot be used in an advertisement for a stock or mutual company? A) Dividends are paid as declared by the company B)Dividends are paid annually C) Dividends are guaranteed every year D) dividends are a return of profit or surplus
C) Dividends Dividends are never guaranteed ever !
A domestic insurance company would be? A) Sells policies in Texas B) sells policies in every state C) Incorporated in Texas D) Incorporated in another country
C) Incorporated in Texas
Insurance company endorsements are approved by A) Governor of Texas B) Texas state legislature C) Texas Commissioner of insurance D)Texas Department of endorsements
C) Texas Commissioner of insurance
Insurance company endorsements are approved by A) The governor of Texas B) The Texas state legislator C) Texas commissioner of insurance D) Texas department of endorsements
C) Texas commissioner of insurance
When an insurer is allowed to transact business in the state, it is known as A) Domestic B) foreign C) admitted D) allowed
C) admitted
And insured and insured cannot come to the agreement about the amount of a loss, the insured could request? a) Arbitration b) Court hearing c) Appraisal d) Subrogation
C) appraisal
The commissioner of insurance in Texas does which of these A) Makes and passes insurance related laws B) acts as a public prosecutor C) approved, insurers by giving them a Certificate of Authority D) has the ability to sentence a person, breaking and insurance law to prison
C) approved, insurers by giving them a Certificate of Authority
Domestic insurance company would be? A) sells policies in Texas B) sells policies in every state C) incorporated in Texas D) incorporated in another country
C) incorporated in Texas
Which of the following condition of applause in the insured and ensure can't agree on the value of a loss ? a) Abandonment b) Apportionment c) Loss payable d) Appraisal
D) Appraisal
Which of the following conditions applies when the insured and ensure can't agree on the value of a loss? A) Abandonment B) Apportionment C) Loss payable D) Appraisal
D) Appraisal
A foreign insurer is a company that A) Is incorporated in the state B) Has employees in the state C) Incorporated in another country D) Incorporated in another state
D) Incorporated in another state
Which of the following would not be considered transact in the business of insurance? A) Indirectly acting as a producer B) Delivering a policy C) Collecting a premium D) Making appointments or (paying claims)
D) Making appointments (or pain claims)
The department of insurance does all of the following except A) Ensures, fair competition in the industry B) Administers the Worker's Compensation system C) Computes Reinsurance Reserves D) Releases Reinsurance Reserves, if needed
D) Releases Reinsurance Reserves, if needed
The department of insurance does all of the following except? A) Ensures fair competition in the industry B) administers the Worker's Compensation system C) Computes Reinsurance Reserves D) Releases Reinsurance Reserves, if needed
D) Releases Reinsurance Reserves, if needed
When does the Texas Property and Casualty Insurance Guaranty Association pay covered claims? A) When admitted, insurer fails to pay the claim within three months B) When an admitted insurer fails to pay the claim within six months C) Never, they sell policies, they do not pay claims D) When an Admitted insurer becomes insolvent
D) When an Admitted insurer becomes insolvent
When does a Texas property and casualty insurance guaranty association pay covered claims? A) When an admitted insurer fails to pay a claim within 3 months B) When an admitted insurer fails to pay the claim within 6 months C) Never, they sell policies they do not pay claims D) When an admitted, insurer becomes insolvent
D) When an admitted insurer becomes insolvent
What would an insurer use to revise coverage provided in an in-force property insurance policy? a) binder b) application c) renewal d) endorsement
d) endorsement
How often must your insurance license be renewed
Every 2 years
What does the commissioner of insurance in Texas do?
He/ she approves insurers by giving them a certificate of authority
What is a requirement to obtain a temporary agents license in Texas
Must be considered for appointment by an insurer authorized to sell policies in Texas
A person selling insurance for one company who wants to start selling for another company must do what?
Request appointment to the second company
An insurer wishing to dissolve the relationship with a producer would
Terminate the producers appointment
Which of these is not a named insured in an auto policy? a) you b) your spouse c) a child of driving age d) lienholder on the auto
d) lienholder on the auto
Surplus insurance is bought when
When insurance cannot be found through an admitted carrier
Surplus lines insurance is bought when?
When insurance cannot be found through an admitted carrier
An insurer selling policies, and Texas must have the certificate of A) Authority B) Approval C) Admittance D) Acceptability
a) Authority
A producer delivers a notification of coverage date and coverage amount it would be called? a) binder b) endorsement c) appraisal d) renewal
a) binder
A written or verbal statement that coverage is in force even though no premium settlement has been reached is known as what? a) binder b) Certificate of Insurance c) Binding Receipt d) Evidence of Insurance
a) binder
Being a named insured means what in a property policy? a) it covers anyone listed in the policy b) it covers anyone protected by the policy c) it includes the mortgage d) it includes minor children in a household
a) it covers anyone listed in the policy
When the insurer considers depreciation in the settling of a loss this would be known as? a) principal of indemnity b) principal of indemnify c) replacement cost d) adverse selection
a) principal of indemnity
When an insurer is allowed to transact business in the state is known as
admitted
If an insured and insurer can't come to an agreement about the amount of a loss, what can the insured request?
an appraisal
Which of these is true of the Commissioner of Insurance? a) He/she is an elected official b) He/she is elected by the governor c) He/she makes sets insurance laws d) He/she is voted into office by the state legislature
b) He/she is elected by the governor
If the insurer and insured disagree concerning a loss. Which would the insurer choose? a) subrogation b) arbitration c) cancellation d) appointment
b) arbitration
When a person is restored to the same financial condition as before the loss this is called? a) insurability b) indemnity c) actual cost d) replacement cost
b) indemnity
Which of these has the broadest coverage available? a) insured b) named insured c) first named insured d) additional insured
b) named insured
A water pipe leak over a period of several months damages a wood floor. This would be called? a) accident b) occurence c) hazard d) risk
b) occurence
An orchard owner has been spraying pesticides on his apple trees for a year. The neighbors orchard complains that the pesticides have killed 500 of their trees. This would be called? a) accident b) occurence c) hazard d) risk
b) occurence
An insurer making a change to a liability policy would use? a) binder b) application c) endorsement d) renewal
c) endorsement
If a person with a property policy is given an amount of money after a loss ___________will buy another property of equal value, this would be called what? a) actual cost b) true value c) indemnity d) insurability
c) indemnity
An insurer decides to terminate a policy when the existing policy is cancelled. This is an example of? a) subrogation b) cancellation c) non-renewal d) noncompliance
c) non-renewal
When an insurer no longer covers you after the expiration of an existing policy, this would be? a) cancellation b) short rate cancellation c) non-renewal d) subrogation
c) non-renewal
Damage caused over a period of time would be? a) accident b) risk c) occurence d) accident
c) occurence
A binder would be which one of these? a) permanent proof of insurance b) a guarantee of a policy existence c) temporary proof of insurance d) guarantee not to terminate a policy
c) temporary proof of insurance
Which of the following is not a requirement for licensing in Texas? A) Must be 18 years old B) Must be honest C) Must've passed the written exam in the past 12 months D) Must have a minimum of a high school diploma. The US is an ship or be 21 years old.
d) Must have a minimum of a high school diploma and be 21 years old The rest are true
Which of the following conditions applies in the insured and insure can't agree on the value of a loss? a) abandonment b) apportionment c) loss payable d) appraisal
d) appraisal
Which of the following conditions applies when the insured and the insurer cannot agree on the coverage for a loss? a) abandonment b) apportionment c) loss payable d) arbitration
d) arbitration