Limited Lines Exam
how many days advance notice is an agent entitled to receive in the event of hearing with the Texas Department Of Insurance?
10 days.
The deductible for the corporate E&O policy must be ?
10% or less.
how long is the commissioner's term?
2 years
if an agent has completed 35 hours of continuing education in one renewal period, how many CE hours will the agent have to complete in the next renewal period?
24
a corporate agency must meet several requirements including a bond in the amount of?
25,000
Anyone with the knowledge of a fraudulent act must report it within how many days?
30 days
continuing education records must be retained for how many years?
4 years
an agent has a license revoked, they may reapply after?
5 years
twisting is a form of
Misrepresentation
Insurance only deals with which type of risks?
Pure Risks
which of the following protects consumers against the circulation of inaccurate or obsolete?
The fair credit reporting act
who is competent to purchase insurance?
a retired person
which of the following definition best defines the terms "accident"?
a sudden unplanned and unexpected event, not under the controlled of the insured, resulting injury or damage neither expected nor intended.
for an insurer to transact in the insurance business they need a?
certificate of authority
what the insured and insurer must do when a loss occurs is called?
duties after a loss
A written provision that adds to, deletes from or in some other way alters an insurance contract is call an?
endorsement or rider
how often does an agent renew their license?
every 2 years
all of the following are found on the declarations page except?
exclusions
the section of the policy that list the perils property not covered or both is called?
exclusions
a corporate agency must meet certain requirements, however does not include which of the following?
have at least 3 officers with all officers holding appropriate Texas insurance agent's license.
which authority is not stated in an agents contract but is required for the agent to conduct business?
implied
the principle that states than an insured should be restored to approximately the same financial position after a loss is know as?
indemnity
An additional loss that results from a direct loss of property is called a/an
indirect loss
Risk retention groups sell what type of insurance?
liabilty
mutual insurance companies are owned by?
policyholders
An agent offers his client free tickets to the Superbowl game in exchange for the purchase of an insurance policy, the agent is guilty of rebating?
rebating
a person who for a fee examines and assesses risk for person seeking or renewing insurance is a?
risk manager
who receives dividends from a stock company?
stockholders
under arbitration/appraisal, who pays for the cost of the umpire?
the insurer and the claimant
which one of the following is not an element of insurability
the risk of loss is a speculative risk
Purchasing insurance is an example of what method of handling risk?
transfer
an insurance company organized and domiciled outside of the United States is called
Alien insurer
before the insurer will pay any loss under a policy, what will it usually require the insured to produce?
Proof Of Loss form
Which of the following is the closest term to an Authorized insurer?
admitted
who has the authority to bind risks?
agents
agent must be keep the department of insurance informed of their current address at all times and must notify TDI?
all address changes within 30 days.
what is a hazard?
an increase in the possibility that a loss might occur.
there are various types of insurance carriers. A foreign company is identified as which of the following?
an insured domiciled outside the state where it writes insurance.
which authority is based on the actions, words, or deeds of the principal?
apparent
where the policy are the duties of the insured and insurer found?
conditions
the term for insurance which an agent negotiates and procures on the agent's own life or interest, or those of the agent's family, employer or business associates is/
controlled business
the section of the policy where the Insured can find where key terms are defined is called?
definitions
the person, business, or entity named the in the declarations page, to whom the policy is issued is called?
named insured
an insurance adjuster denies a claim after completing an investigation and finds that the facts presented were questionable. Is this a violation of the Unfair claims settlement practices act.
no
which of the following is an example of an unfair claim practice?
not getting requested information to the insured regarding a claim settlement.
all of the following would be considered an insurance transaction except?
obtaining an insurance license
how many officers must be licensed in a corporate or bank agency?
one and everyone performing acts of an agent
the cause of loss is referred to as?
peril
the period of time that coverage is in effect is known as the?
policy period