Texas All Lines Adjuster Laws & Regulation Review Questions And Answers.

Texas All Lines Adjuster Laws & Regulation Review Questions And Answers. All of the following are exempted from the requirement of an adjuster's license examination except: A. Those persons holding CPCU designation; B. those persons adjusting workers compensation claims; C. Those persons who have received the Associate in Claims (AIC) designation; D. Those persons who have a certificate of completion showing that within the past 12 months the applicant has completed a certified adjuster prelicensing education program and passed the state examination. - correct answer. B. A person adjusting workers compensation claims is not exempt. All of the following are qualifications of applicants for an adjuster license in Texas except: A. is at least 25 yrs. of age; B. resides in this state or a state that permits a resident of this state to act as an adjuster in that state; C. is trustworthy; D. has passed the required examination or presents evidence that the applicant has been exempted from the examination. - correct answer. A. Applicants must be at least 18 yrs. of age. An emergency adjuster license is effective for a period not to exceed: A. 180 days B. 120 days; C. 90 days; D. 60 days. - correct answer. C. An emergency license is effective for a period not to exceed 90 days. The commissioner may extend the term of the emergency license for an additional period of 90 days. A licensed adjuster must notify the commissioner if the adjuster changes the location of the adjuster's place of business: A. Within 10 days; B. Within 20 days; C. Within 30 days; D. Notification must be made promptly - correct answer. D. A licensed adjuster shall promptly notify the commissioner if the adjuster changes the location of the adjuster's place of business. All licensees must complete ________ hours of continuing education within each reporting period. A. 15; B. 20; C. 24; D. 30 - correct answer. D. All licensees must complete 30 hours of continuing education within each reporting period. However, limited lines licensees, those selling life insurance not exceeding $15,000 and county mutual agents are required to comlete 10 hours of continuing education during each reporting period. Which one of the following is not an example of an unfair claim settlement practice? A. Knowingly misrepresenting pertinent facts to claimants; B. Failing to acknowledge communication within a reasonably prompt period; C. Failing to examine a claimant under oath; D. Not attempting in good faith to promptly settle a claim when liability is clear. - correct answer. C. The right to examine policyholders under oath, in the case of questionable claims or potential fraud, is a right of an insurer during a claim investigation and is part of the contractural agreement between the insurer and the insured. Failing to do so does not constitute a violation of the state's unfair claims settlement practices. A contract that provides insurance coverage for up to 30 days, pending the issuance of the permanent policy, is called a: A. binder; B. endorsement; C. lender; D. remedy - correct answer. A. A binder is a contract that provides temporary insurance coverage for up to 30 days, pending the issuance of the permanent policy. Lenders must accept binders issued by properly appointed and licensed agents. What happens when a married couple who jointly owns residential property divorces during the term of their homeowners insurance policy? A. Both insureds must reapply for separate insurance on the property; B. The owner's must decide who will become the named insured and transfer ownership of the insurance policy to that person; C. The insurance remains in effect, and the interests of both owners are covered as long as the policy exists or as long as the policy is not cancelled; D. The insurer has the option to continue the policy that is in force or require the insureds to apply for new and separate policies. - correct answer. C. A homeowners or fire insurance policy issued in Texas must contain a provision that the policy, if issued to cover community property, will remain in full force and effect as to the interest of each spouse irrespective of divorce or change of ownership between the spouses. The spouses or former spouses may apply for separate insurance, but the law does not require them to do so. All of the following statements regarding arbitration agreements are correct except: A. the agreement must be in writing to be enforced; B. one party may revoke the agreement by providing the fair value for the disputed loss; C. arbitration agreement clauses must be included in all property and casualty policies in Texas; d. the agreement must exist before the dispute arises for arbitration to take place. - correct answer. C. Property insurance contracts may contain a clause that allows the insurer and insured to arbitrate a disagreement about the amount to be paid for a claim if the agreement is in writing, if the controversy exists at the time the agreement is made and if the controversy arises between the parties after the date of the agreement. The agreement may be revoked by either party for a lawful reason by providing the fair value of the contract. When can an insurer refuse to pay a claim under a homeowner's policy because the policyowner misrepresented information on the insurance application? A. when the insurer can prove that the misrepresentation led to an event that caused the policy to pay; B. When the insured refuses to submit a new application; C. When the claim was submitted within the first six months that the policy was in effect; D. When the insured can prove that the misrepresentation was made with the knowledge of the insurer's agent. - correct answer. A. No insurer may use the fact that a policyholder has given false or untrue information on an insurance application as a reason to cancel the policy or to deny a claim unless it can be proved that the misrepresentation led to an event that caused the policy to pay a claim that would not otherwise have been paid. While personal injury protection (PIP) benefits under an auto policy are paid without regard to fault, an insurer may not pay benefits for any injury: A. caused to the insured by the insured; B. caused by a public vehicle; C. caused by an underinsured driver; D. under $1500. - correct answer. A. Personal Injury Protection (PIP) is required under all auto policies issued in Texas unless rejected by the insured in writing. Coverage does not apply, however, if the insured caused the injury to him or herself or if the injury occurred while committng a felony or while trying to evade a lawful arrest. An insurer may refuse to renew a commercial auto liability policy if the insurer gives written notice to the insured at least how many days before the policy expires? A. 7; B. 10; C. 30; D. 60 - correct answer. D. Commercial automobile policies may be nonrenewed by giving 60 days advance notice to the policyholder. An insurer who cancels a personal auto policy for nonpayment of premium must give how many days notice to the insured? A. 7; B. 10; C. 30; D. 60 - correct answer. B. Cancellation of any policy for nonpayment of premium requires that the insurer give 10 days' advance notice to the policyholder. To obtain insurance through the Texas Automobile Insurance Plan Association, an applicant and his or her agent must certify that the applicant: A. has been rejected for insurance by at least two licensed insurers actually writing auto insurance; B. has not been involved in an at-fault accident within the last 12 months; C. has lived in the state for less than three months; D. is of good character and sound financial condition. - correct answer. A. To secure coverage through the Texas Automobile Insurance Plan, an applicant must have been refused by at least two licensed auto insurers. Which one of the following statements regarding automobile liability insurance is correct? A. All insurers must offer policyowners the option of buying insurance for losses resulting from accidents involving both uninsured and underinsured motorists; B. Not all insurers offer personal injury protection with automobile liability coverage; C. Only owners of automobiles that are between one and five years old are required to carry automobile insurance; D. The financial responsibility law protects automobile owners from drivers who obtain insurance from foreign insurers. - correct answer. A. All automobile policies issued in the state must contain uninsured and underinsured motorists coverage unless it has been rejected by the applicant in writing. All of the following are acceptable forms of proof of financial responsibility except: A. a copy of a liability policy; C. a copy of a binder in the required amounts; C. a Texas Liability Insurance Card; D. a valid driver's license - correct answer. D. Proof of financial responsibility for automobile accidents may be demonstrated by a copy of a policy or binder of insurance or by possession of a Texas Liability Insurance Card that identifies the insured, insurer and other pertinent policy information.