Texas Statutes Quiz 1

All of the following are types of adjuster's licenses available in this state EXCEPT

Life and health claims adjuster

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

Lose entitlement to supplemental income benefits.

According to the Texas Financial Responsibility Law, operating a motor vehicle without the required liability insurance is considered a

Misdemeanor

A non admitted insurer who provides insurance coverages that are not available from an admitted insurer is called

surplus lines insurer

What is surplus lines insurance?

Insurance placed with an unauthorized insurer

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

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

15%

An insured has a policy with an insurance company that became insolvent. The policy has $1600 of unearned premium. How much premium will the insured be able to recover from the Texas Property and Casualty Insurance Guaranty Association

1600

Which of the following is the basic auto liability limit required for bodily injury or death to any ONE person in any ONE accident?

30,000

The insurance commissioner may examine the affairs of any insurer as often as necessary, but not less frequently than once every

5 years

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

70%

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?

75%

Who is a foreign insurer?

An insurer with a home office in another state.

Which members of a corporation or partnership are required to obtain an individual insurance agent's license in order for the association to be licensed?

At least one officer or partner and any other acting as an agent

All of the following are considered unfair or deceptive acts in connection with the sale of insurance except?

Attempting to settle a claim in which liability is clear

Regarding workers compensation, employees who have reached maximum medical improvement will be entitled to

Impairment income benefits

On a participating insurance policy issued by a mutual insurance company, dividends paid to policyholders are

Not taxable since the IRS treats them as a return of a portion of the premium paid

Which of the following statements is INCORRECT with regard to surplus lines insurance

Policies written by a surplus lines insurer typically contain standard coverages and forms.

Who might receive dividends from a mutual insurer?

Policyholders

The commission will refer an employee who is receiving supplemental income benefits to the Rehabilitation Commission if it determines that rehabilitation and training will

Return the employee to work earlier

The income benefit received by an employee who is disabled but has not attained maximum is classified as

Temporary

Which entity has the authority to grant a temporary life insurance agent's license?

The Commissioner of Insurance only

Who do the agents represents?

The Insurance company

What are the requirements for eligibility for coverage in the Texas Automobile Insurance plan?

The applicant must be rejected by at least two insurers in the normal market The applicant must have a valid drivers license The applicant must be able to pay the premium

An employee may be eligible for supplemental income benefits upon

The expiration of the impairment income benefit period

An agent receives an emergency cease and desist order for chronically misrepresenting his insurance policies. The agent knows that he did not commit the violations stated in the Emergency Cease and deist order. He wants to contest the charges in a court hearing. Which o the following is true?

The hearing must be held within 10 days of receiving a request, unless both parties agree to a later date.

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?

The lesser of the above amounts

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

Unfair

An employee is injured on the job but decided 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 to reimbursement. Based on these facts, should the workers compensation policy pay these medical bills?

Yes, the employee notified the employer within 30 days of the injury.

A person who, for a fee, examines, and evaluates and assesses contracts of insurance for another and offers advice on methods of reducing risk, must be licenses as

a risk manager