Texas Statutes and Rules Pertinent to Property and Casualty Insurance Practice Test

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• Why is recordkeeping important for Texas licensees, and what might be required?
• When is cancellation or nonrenewal notice considered compliant under Texas law?
• Under Texas law, which option can satisfy liability requirements for an uninsured vehicle?
• Under subrogation, how is excess reimbursement treated?
• What is the purpose of filing rates and forms with the Texas Department of Insurance?
• How are accommodation payments to claimants regulated in Texas?
• What are the potential penalties for engaging in unlicensed activity in Texas?
• For the voluntary association license, what must be submitted to the Commissioner?
• Which agency enforces penalties for unfair insurance practices in Texas?
• How are the Governing Committee members of the FAIR Plan Association chosen?
• Temporary income benefits begin the day after what event, and continue for a period based on impairment rating?
• Which statement best describes the 60-day filing rule?
• The duration of Temporary Income Benefits is based on which factor?
• If a Texas policyholder's claim is denied, what rights do they have?
• If a rate filing is discriminatory, what is the regulator's likely action?
• Maximum Medical Improvement is defined as the earliest date when further medical improvement cannot reasonably be anticipated, or 104 weeks from the start of income benefits.
• How is fraud typically addressed in Texas statutes and rules?
• What is the deductible amount referenced in the policy terms?
• In Texas, property losses are settled on which basis when recovery may not exceed the smallest of the Actual Cash Value, the policy limit, the amount necessary to repair or replace, or the insured's interest?
• Which statement best describes the roles of producers and adjusters in Texas licensing and practice?
• Which organization is established to provide windstorm and hail insurance in designated coastal areas?
• Under the Texas P&C Guaranty Association law, unearned premiums are covered up to what amount?
• TWIA can also issue which other type of insurance?
• Nonadmitted Insurance refers to insurance obtained from which type of insurer?
• Can a TAIPA plan policy be used to obtain excess private passenger auto liability coverage?
• Which choice best defines the Course & Scope of Employment?
• What is the purpose of Texas guaranty associations in the context of property and casualty insurance?
• What describes an appraisal clause in a property insurance policy and its purpose?
• Which percentage of the state average weekly wage is used for the entire time that income benefits are payable?
• What are the penalties for violations of Texas unfair insurance practices?
• What is the fine range for a first offense under the Financial Responsibility Law?
• What is the role of the Texas Insurance Code in regulating insurer financial solvency?
• In medical benefits, who approves non-emergency health care?
• Which scenario would violate Texas advertising requirements for insurance?
• Who funds the Texas Property and Casualty Guaranty Association?
• Which Texas Insurance Code chapter addresses unfair settlement practices and penalties related to claim handling?
• Which practice best represents unfair methods of competition by insurers under Texas law?
• A wage statement order must include what?
• Which combination of actions completes a Texas license renewal after expiration?
• The FAIR Plan Association Governing Committee is composed of how many voting members appointed by the Commissioner?
• What must be included in a written advertisement to comply with Texas law?
• Texas Property and Casualty Guaranty Association: What is its purpose?
• If the disability continues over 4 weeks, from what date is the compensation computed?
• What is a fundamental requirement for truthful insurance advertising and solicitation in Texas?
• Which statement best describes solicitation and negotiation under Texas insurance practice, and the rules that apply?
• In a workers' compensation claim, the guaranty association covers what amount?
• Which item is required to be included in an Uninsured Vehicle Exemption document?
• Which term describes failing to renew a policy at expiration without canceling it before expiration?
• Which provision must be included verbatim in fire insurance policies issued on real property in Texas?
• Which statement best describes TAIPA's purpose?
• Total and permanent loss of use of a body part is treated as what?
• How often does a voluntary, unincorporated association license renew?
• In case of total loss of insured property by fire, the fire insurance policy must be held and considered to be a what against the company for the full amount?
• UM & UIM coverage cannot exceed what limits?
• How can insurers appoint or terminate a licensed producer in Texas?
• To maintain a Texas property and casualty adjuster license, what is commonly required?
• Which entity assigns member insurers to write auto liability policies to applicants who cannot obtain coverage otherwise?
• An insurer may assess a premium surcharge at policy renewal if which condition occurred in the preceding policy year?
• What enforcement actions can regulators take against licensees for violations?
• What are the basic eligibility requirements to become a Texas property and casualty adjuster?
• If a commercial auto policy cancellation notice is issued later than 60 days before expiration, how long will the policy remain in effect after the notice date?
• An insurer may cancel a policy by mail at least how many days before the effective cancellation date?
• If the premium is paid within 60 days after cancellation for nonpayment, when does coverage resume?
• What is rebating in Texas insurance practice, and is it allowed?
• Which items must be approved by the Commissioner and filed no more than 60 days before the date of delivery or use?
• Under nonadmitted surplus lines, which conditions must be met to place insurance through a surplus lines broker?
• Insurer time to respond to a claim to avoid waiving their right to contest?
• Which notice requires the insurer to notify the insured within 10 days of an offer to settle and within 30 days after settlement?
• To obtain a Surplus Lines Agent License, which of the following is required?
• Which term best fits the description: 'any activity that originates in the employer's business and is performed by an employee to further the employer's affairs, including on-premises and at other locations'?
• What is the purpose of continuing education for Texas insurance licensees?
• What does Texas law require regarding proof of loss after a claim?
• What is the per-person bodily injury limit required by Texas law?
• Disability benefits are payable when the employee has a disability and has not attained what?
• If the surviving spouse remarries, how long are they entitled to death benefits?
• Which of the following best describes an unfair claim settlement practice in Texas?
• What is twisting in the context of Texas property and casualty insurance?
• Which items require approval by the Commissioner and filing before delivery or use?
• All policy forms, endorsements and rates must be approved by the Commissioner and filed no more than how many days before delivery?
• What is the consequence of rebating in Texas insurance practice?
• Which organization publishes a listing of acceptable excess and surplus lines insurers that many states adopt?
• Under the two-or-more-claims rule, what is the maximum surcharge as a percentage of the total premium?
• What is the purpose of disciplinary action hearings by the Texas Department of Insurance?
• Under the 2+ claims rule, what action does the board take regarding the surcharge when there are two or more claims in a year?
• When a claim is denied in Texas, what must the insurer provide to the policyholder?
• Lifetime Income Benefits are paid to whom and equal to what percentage of the employee's average weekly wages?
• How is the Average Weekly Wage calculated for benefits?
• Which statement correctly describes membership requirements for the FAIR Plan Association's authority to transact residential property insurance in Texas?
• The appraisal clause in a property policy addresses disputes over what?
• Under the FAIR Plan Association, what are the maximum liability limits for dwelling and contents?
• Which entity promulgates implementing rules and procedures for insurance practice in Texas?
• In Texas, what must a cancellation or nonrenewal notice include?
• Which of the following accounts does the Texas P&C Guaranty Association maintain?
• What is the minimum amount that must be offered on the Texas Liability Insurance Card?
• What best describes the concept of unfair discrimination in Texas underwriting and rating?
• In Texas, how should adjusters handle claims when a policy may provide replacement cost or actual cash value?
• By September 1 of each year, the state must compute the minimum and maximum weekly income benefits for the fiscal year. When is the deadline?
• Surplus Lines Insurance is defined as insurance obtained from nonadmitted insurers when protection is not available from admitted insurers.
• Which Texas Insurance Code chapter prohibits unfair methods of competition and unfair or deceptive acts or practices by insurers?
• If the employee fails to notify timely, liability is not relieved unless which conditions exist?
• How does Texas address unlicensed activity in the insurance market?
• If a policyholder rejects Loss of Income and Rehabilitation coverage in writing, what is the insurer's obligation for reinstated or renewed policies?
• Death and burial benefits: If there are surviving children or grandchildren, what portion does the spouse receive?
• Which entity enforces truthfulness and non-discrimination rules in solicitation and negotiation in Texas insurance practice?
• Subrogation rights arise after what event?
• Which of the following is an example of compliant advertising in Texas?
• Windstorm and hail coverage may not be provided by the Association for risks eligible under which act?
• Continuing education requirements affect which of the following?
• In Texas, which activity is explicitly allowed for insurance companies other than life insurers?
• A Surplus Lines Agent is someone licensed to write property and casualty insurance through a nonadmitted insurer and may be a general lines agent, MGA, or nonresident agent.
• Which insurance type provides compensation for harm or wrong done to others that the insured is legally obligated to pay?
• How does Texas regulate the appointment of corporate officers or entities that sell insurance?
• Which term describes intoxication from alcoholic beverage, controlled substances, or similar regulated substances, excluding doctor prescriptions?
• How often may the commission require an employee to undergo a medical examination?
• Accrued benefits are paid on which schedule?
• What term describes insurance markets or facilities designed to assume risks generally unacceptable to the normal insurance market?
• Misrepresentation in Texas insurance can influence decisions about which aspects?
• What constitutes proof of authority for an adjuster or representative acting for an insurer?
• Which policy provision allows cancellation within the first 60 days for any reason, with written notice provided to the insured within 10 days of the cancellation date?
• Weekly benefits are based on the employee's last paycheck reflecting which of the following?
• The intoxication definition excludes prescriptions from a doctor. Which item is excluded?
• Supplemental income benefits may not exceed what percentage of wages?
• Which of the following statements best exemplifies unfair claim settlement practices in Texas?
• Why must policy forms be filed with the Texas Department of Insurance?
• Why does the Texas Insurance Code regulate insurer financial solvency?
• Which term best describes a vehicle that lacks the required liability coverage under Texas law?
• Impairment income benefits may not exceed what percentage of wages?
• Which statement describes rate classification under Texas law?
• Who pays the covered claims under the P&C Insurance Guaranty Association?
• If an employee refuses a referral to the Texas Rehabilitation Commission, what is the consequence?
• Which losses are explicitly excluded from the premium surcharge calculation?
• If a Texas claim is denied, which remedies may a policyholder pursue?
• What is subrogation in Texas property and casualty insurance?
• What is the relationship between the Texas Administrative Code and the Texas Insurance Code in regulating insurance practice?
• What percentage of lost income does Personal Injury Protection (PIP) cover?
• What is the process for a licensee to report a violation or suspected fraud?
• A benefit review conference may be requested when which event occurs?
• If a filed form or endorsement is not disapproved within 60 days, what is its status?
• In medical benefits, is emergency treatment exempt from pre-approval by the treating physician?
• In the described benefit schedule, which benefit may not exceed 100% of the employee's wages while off work due to injury?
• Which statement best describes rating factors?
• For all other claims arising from the same occurrence, coverage is up to how much?
• What is the difference between a producer license and an adjuster license in Texas?
• Which concept states that workers' compensation benefits are the exclusive remedy for employees and beneficiaries?
• Which entity maintains the list of doctors approved for workers' compensation treatment?
• Supplemental Income Benefits are payable after impairment income benefits expire if which criterion is met?
• Surplus Lines (Excess) Insurers are described as insurers that are nonadmitted and write coverage not available from admitted carriers.
• The notification must be given within how many days after the injury?
• What is the maximum total benefits under Personal Injury Protection (PIP)?
• What mechanism protects policyholders in insurer insolvency in Texas?
• Is it permissible for an insurer to refuse to renew a policy solely because the insured is elderly?
• Which plan is considered part of the residual market facilities?
• When replacing a policy with a new policy in Texas, what disclosures may be required and what must be avoided?
• What is a key duty regarding prompt payment of claims in Texas?
• What is the cease and desist authority used by the Texas Department of Insurance?
• What are the consequences of late license renewal in Texas?
• Which term describes a voluntary, unincorporated association of admitted insurers whose members are authorized to provide a particular form of insurance to the public, with renewals due every 3 years?
• How does a private adjuster differ from a public adjuster in Texas?
• Under the Financial Responsibility Law, what is the penalty for the 2nd offense?
• When do weekly income benefits begin if disability lasts at least one week?
• What constitutes misrepresentation under Texas insurance law?
• Which term covers diseases that naturally result from work and occur in the course of employment?
• What is the property damage liability limit required in Texas auto liability?
• Who may refer an employee receiving supplemental income to the Texas Rehabilitation Commission for treatment?
• Can a policyholder reject Loss of Income and Rehabilitation coverage in writing?
• Who is considered "Employment Covered" under workers' compensation?
• For a commercial auto policy, what is the minimum notice period before expiration required by the insurer?
• Under Texas law, what is the minimum number of days' notice an insurer must provide before canceling a liability policy before its expiration date?
• If a loss is reported, who typically determines coverage after an investigation?
• What is the purpose of the insurer investigation and reporting requirements to the Texas Department of Insurance (TDI)?
• TWIA insurable property includes which types of property?
• What does 'timely defense' or time limits refer to in Texas complaint handling by TDI?
• What is the purpose of the Assigned Risk plan?
• Who administers Texas property and casualty insurance licensing and regulation?
• Which injury qualifies for Vocational Rehabilitation benefits?
• Under death benefits, with a surviving spouse and eligible children, which statement is true?
• Subrogation requires net recovery to reimburse the insurer, with excess as an advance against future benefits. Which term describes this mechanism?
• How are insurance fraud cases typically investigated in Texas?
• What is the per-accident limit for bodily injury when two or more people are injured?
• What is the purpose of notice of appointment between insurers and producers in Texas?
• Eligible Child benefits: what portion of the death benefits does the eligible child receive?
• Who reviews filed insurance rates under Texas law?
• Public adjuster license requirements?
• What does TAIPA stand for?
• Expedite weekly benefit payment must be filed within how many days after a notice of injury?
• What is the maximum percentage of wages for the death benefit?
• Burial benefits cap amount?
• How many claims in the last 3-year period would allow the insurer to decline renewal?
• Which coverages must be included in every automobile liability policy under Texas law?
• What defines a Catastrophe Area?
• What is a public adjuster?
• When a loss is reported, what are the core duties of the insurer or adjuster?
• Supplemental income benefits may not exceed what percentage?