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

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