Texas Property and Casualty General Lines (Law and Regulations) Correct 100%

Licensing Purpose - Answer For the protection of the public of this state. Individuals must satisfy the following to be eligible to get a license: - Answer -18 years of age or older -Resident of state -Passed exam and pay fees -Filed application and submitted a fingerprint card -Not license for the purpose of selling to themselves, family, or employees Refuse to issue any license if: - Answer -Material misrepresentation or fraud in application -Record of dishonesty or misappropriation of customer funds -Is incompetent or lacks moral turpitude -Record of suspension or revocation in other jurisdiction -Convicted of felony Types of licenses: - Answer -Agent -Adjuster -Surplus Lines Broker -Managing General Agent -Non-resident Agent -Temporary -Conditional Agent - Answer An individual or business entity authorized by and insurer to solicit applications or to negotiate insurance on its behalf. Agents represent - Answer the insurer, not the insured Adjuster - Answer Any person who adjusts, investigates or negotiates settlement of claims arising under insurance contracts on behalf of the insurer or the insured. To be licensed as an adjuster: - Answer -Must be at least 18 years old -Pass Texas Adjuster's examination Surplus Lines Broker - Answer Any person who, as independent contractor, procures insurance on behalf of clients wth Surplus Lines insurers such as Lloyds of London. To obtain Surplus Lines Broker license: - Answer -First hold a Property and Casualty Agent license Managing General Agent - Answer A full time person who is responsible for recruiting and training a local insurance sales staff for either a L&H or P&C Non-resident Agent - Answer Who do not have either a principal residence or place of business here. Can only have one. Temporary License - Answer Commissioner may issue a temporary resident agents license without examination. Temporary License may be obtained: - Answer Before a person passes the state exam for a permanent license if a person completes a 40-hout course before applying for the license or withing 14 days after applying. Temporary License can only go for - Answer Up to 90 days Conditional Licenses may be issued: - Answer Without having to wait for results of a criminal history search (fingerprint check). Can be revoked if something is found in applicants criminal background. If nothing found, temporary License will become permanent. All newly issued licenses have a term of - Answer 2 years What must an individual do to renew the license? - Answer -Complete 30 hours (including 2 hours of ethics) of continuing education -If held license for at least 20 years, exempt from continuing education requirements How long do you have to renew? What are the consequences of lateness? - Answer -90 days late: renewal fee must be paid -More than 90 days: cannot be renewed but do not need to do exam with new license, subject to a late fee -More than 12 months: considered new and must take the exam Reporting Change of Address, Administrative Action or Felony Conviction - Answer Shall notify Commissioner in writing within 30 days The Commissioner may suspend, revoke permanently or refuse to renew any license after - Answer a hearing, if requested The Commissioner shall not reissue any revoked license for - Answer at least five years Maximum penalty for violating a cease and desist order is - Answer $1000 The total for all cease and desist violations are - Answer $5000 Cease and Desist Order - Answer prohibits a firm from continuing a deceptive practice If the Commissioner finds that any licensee has failed to perform a duty, discharge an obligation, or has violated any insurance law, rule, or order the Commissioner may impose a maximum civil penalty up to - Answer $25,000 Report of Actions to Commissioner should be - Answer within 30 days Transacting Insurance - Answer Any activity related to the negotiation, sale or purchase of insurance Commissioner's General Duties and Powers - Answer -Enforce Texas Insurance Code -Expressed and Implied powers -To protect the public -Examine each authorized insurer not less than once every five years Certificate of Authority - Answer To transact business in state