Texas Insurance Regulations Test
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is a policy endorsement?
✔✔An amendment modifying coverage.
What is unfair claims settlement practice?
✔✔Failing to handle claims promptly and fairly.
What must insurers do upon receiving a claim?
✔✔Acknowledge and investigate within required timeframes.
What is bad faith in insurance?
✔✔Unreasonable denial or delay of benefits.
What is a proof of loss?
✔✔A formal statement supporting a claim.
What is subrogation?
✔✔An insurer’s right to recover from a responsible party.
What is a deductible?
1
,✔✔The amount the insured pays before coverage applies.
What is coinsurance?
✔✔Sharing of loss between insurer and insured.
What is policy replacement regulation intended to prevent?
✔✔Unnecessary loss of benefits to consumers.
What is a notice of hearing?
✔✔Formal notification of regulatory proceedings.
What is due process in insurance regulation?
✔✔The right to fair procedures before penalties.
What is an authorized insurer?
✔✔An insurer licensed to operate in Texas.
What is an unauthorized insurer?
✔✔An insurer not licensed in Texas.
What is disclosure in insurance transactions?
✔✔Providing required information to consumers.
2
, What is the goal of Texas insurance regulation overall?
✔✔To maintain a stable, fair, and consumer-protective insurance market.
What is the primary purpose of Texas insurance regulations?
✔✔To protect consumers and ensure fair insurance practices.
Which agency enforces insurance laws in Texas?
✔✔The Texas Department of Insurance.
What is an insurance producer?
✔✔An individual licensed to sell, solicit, or negotiate insurance.
What must an individual obtain before selling insurance in Texas?
✔✔A valid Texas insurance license.
What is an insurer required to file with the state before offering policies?
✔✔Policy forms and rates for approval or review.
What does “certificate of authority” mean?
✔✔Permission granted to an insurer to operate in Texas.
3
Questions and Answers | Latest
Version | 2025/2026 | Correct & Verified
What is a policy endorsement?
✔✔An amendment modifying coverage.
What is unfair claims settlement practice?
✔✔Failing to handle claims promptly and fairly.
What must insurers do upon receiving a claim?
✔✔Acknowledge and investigate within required timeframes.
What is bad faith in insurance?
✔✔Unreasonable denial or delay of benefits.
What is a proof of loss?
✔✔A formal statement supporting a claim.
What is subrogation?
✔✔An insurer’s right to recover from a responsible party.
What is a deductible?
1
,✔✔The amount the insured pays before coverage applies.
What is coinsurance?
✔✔Sharing of loss between insurer and insured.
What is policy replacement regulation intended to prevent?
✔✔Unnecessary loss of benefits to consumers.
What is a notice of hearing?
✔✔Formal notification of regulatory proceedings.
What is due process in insurance regulation?
✔✔The right to fair procedures before penalties.
What is an authorized insurer?
✔✔An insurer licensed to operate in Texas.
What is an unauthorized insurer?
✔✔An insurer not licensed in Texas.
What is disclosure in insurance transactions?
✔✔Providing required information to consumers.
2
, What is the goal of Texas insurance regulation overall?
✔✔To maintain a stable, fair, and consumer-protective insurance market.
What is the primary purpose of Texas insurance regulations?
✔✔To protect consumers and ensure fair insurance practices.
Which agency enforces insurance laws in Texas?
✔✔The Texas Department of Insurance.
What is an insurance producer?
✔✔An individual licensed to sell, solicit, or negotiate insurance.
What must an individual obtain before selling insurance in Texas?
✔✔A valid Texas insurance license.
What is an insurer required to file with the state before offering policies?
✔✔Policy forms and rates for approval or review.
What does “certificate of authority” mean?
✔✔Permission granted to an insurer to operate in Texas.
3
