TX General Lines - Property and
Casualty (Law and Regulations)
1. A licensee may only share commissions receive with - ANS-Persons also licensed as
agents for the same lines of insurance
2. Adjuster - ANS-Any person who adjusts, investigates or negotiates settlement of claims
arising under insurance contracts on behalf of the insurer or the insured.
3. After a commercial policy has been in effect for at least 60 days or upon renewal it may
be - ANS-canceled for only the following:
4. -Non-payment
5. -Insured's conviction of a crime arising out of acts increasing hazard insured against
6. -Substantial change in risk assumed by insurer
7. -Breach of contract
8. Agent - ANS-An individual or business entity authorized by and insurer to solicit
applications or to negotiate insurance on its behalf.
9. Agents represent - ANS-the insurer, not the insured
10. All insurer authorized to issue motor vehicle liability policies - ANS-must participate in the
Plan
11. All newly issued licenses have a term of - ANS-2 years
12. Although both coverages must be offered at policy inception, if rejected in writing by the
insured, the coverages need - ANS-not be re-offered upon renewal
13. An auto insurer may not cancel or refuse to renew an auto policy solely on - ANS-the
grounds of the insured's ages, race, color, religion, sex, or national origin or ancestry
14. annual financial statements - ANS-Domestic and alien insurers must file annual financial
statements to prove they have adequate legal reserves
15. Assigned Risk Pool - ANS-All auto insurers must include notice of cancellation or
non-renewal notices language that advises insureds that they may be eligible for
coverage through the Plan
16. Association covers unpaid claims of insolvent insurers of - ANS-up to a maximum of
$300,000
17. Benefits provided - ANS-Every eligible injured employee and dependents of an
employee who is killed by an accident from employment is entitle to compensation for:
18. -medical expenses
19. -nurse and hospital services
20. -medicines
21. -funeral expenses
22. Board of Commissioners - ANS-Asses each member company as necessary to pay the
obligations of the Fund
23. CAN-SPAM - ANS-Does not make spam unlawful
, 24. Cease and Desist Order - ANS-prohibits a firm from continuing a deceptive practice
25. Certificate of Authority - ANS-To transact business in state
26. Commissioner's General Duties and Powers - ANS--Enforce Texas Insurance Code
27. -Expressed and Implied powers
28. -To protect the public
29. -Examine each authorized insurer not less than once every five years
30. Compensation will not be paid for what time period? - ANS-The first seven days after the
injury
31. Conditional Licenses may be issued: - ANS-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.
32. Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 has
three provisions - ANS--Unsolicited e-mails must be clearly identified as solicitation or
advertisements
33. -Senders must be able to "opt-out"
34. -Contain legitimate return e-mail addresses, as well sender's postal address
35. Coverage is optional, insurer must - ANS-offer such coverage to all applicants, who may
reject in writing
36. Covered Employment - ANS-Employers subject to the law include the state, counties,
cities, and school districts and every person who regularly employs any workers
37. Dwelling Fire and Homeowners: After a policy has been in effect for ______ or upon
renewal, - ANS--60 days
38. -no notice of cancellation is effective
39. Exclusive Remedy - ANS-Right to recover for injury sustained by an employee is
exclusive remedy against the employer and their insurer
40. Fair Credit Reporting Act - ANS-Consumer reports may be furnished only for insurance
underwriting purposes, credit transactions and employment
41. How are notices of cancellation or non-renewal be made? - ANS-Must be in writing,
mailed to the name insured, and must state reason at least 30 days in advance
42. How long do you have to renew? What are the consequences of lateness? - ANS--90
days late: renewal fee must be paid
43. -More than 90 days: cannot be renewed but do not need to do exam with new license,
subject to a late fee
44. -More than 12 months: considered new and must take the exam
45. If a driver has violated one of the condition, how can insured avoid cancellation or
non-renewal? - ANS-By excluding this driver in writing from coverage.
46. 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 - ANS-$25,000
47. If two or more policies apply to the same motor vehicle involved in accident then -
ANS--The owner's policy shall be primary
48. -Driver's policy shall be excess
Casualty (Law and Regulations)
1. A licensee may only share commissions receive with - ANS-Persons also licensed as
agents for the same lines of insurance
2. Adjuster - ANS-Any person who adjusts, investigates or negotiates settlement of claims
arising under insurance contracts on behalf of the insurer or the insured.
3. After a commercial policy has been in effect for at least 60 days or upon renewal it may
be - ANS-canceled for only the following:
4. -Non-payment
5. -Insured's conviction of a crime arising out of acts increasing hazard insured against
6. -Substantial change in risk assumed by insurer
7. -Breach of contract
8. Agent - ANS-An individual or business entity authorized by and insurer to solicit
applications or to negotiate insurance on its behalf.
9. Agents represent - ANS-the insurer, not the insured
10. All insurer authorized to issue motor vehicle liability policies - ANS-must participate in the
Plan
11. All newly issued licenses have a term of - ANS-2 years
12. Although both coverages must be offered at policy inception, if rejected in writing by the
insured, the coverages need - ANS-not be re-offered upon renewal
13. An auto insurer may not cancel or refuse to renew an auto policy solely on - ANS-the
grounds of the insured's ages, race, color, religion, sex, or national origin or ancestry
14. annual financial statements - ANS-Domestic and alien insurers must file annual financial
statements to prove they have adequate legal reserves
15. Assigned Risk Pool - ANS-All auto insurers must include notice of cancellation or
non-renewal notices language that advises insureds that they may be eligible for
coverage through the Plan
16. Association covers unpaid claims of insolvent insurers of - ANS-up to a maximum of
$300,000
17. Benefits provided - ANS-Every eligible injured employee and dependents of an
employee who is killed by an accident from employment is entitle to compensation for:
18. -medical expenses
19. -nurse and hospital services
20. -medicines
21. -funeral expenses
22. Board of Commissioners - ANS-Asses each member company as necessary to pay the
obligations of the Fund
23. CAN-SPAM - ANS-Does not make spam unlawful
, 24. Cease and Desist Order - ANS-prohibits a firm from continuing a deceptive practice
25. Certificate of Authority - ANS-To transact business in state
26. Commissioner's General Duties and Powers - ANS--Enforce Texas Insurance Code
27. -Expressed and Implied powers
28. -To protect the public
29. -Examine each authorized insurer not less than once every five years
30. Compensation will not be paid for what time period? - ANS-The first seven days after the
injury
31. Conditional Licenses may be issued: - ANS-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.
32. Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 has
three provisions - ANS--Unsolicited e-mails must be clearly identified as solicitation or
advertisements
33. -Senders must be able to "opt-out"
34. -Contain legitimate return e-mail addresses, as well sender's postal address
35. Coverage is optional, insurer must - ANS-offer such coverage to all applicants, who may
reject in writing
36. Covered Employment - ANS-Employers subject to the law include the state, counties,
cities, and school districts and every person who regularly employs any workers
37. Dwelling Fire and Homeowners: After a policy has been in effect for ______ or upon
renewal, - ANS--60 days
38. -no notice of cancellation is effective
39. Exclusive Remedy - ANS-Right to recover for injury sustained by an employee is
exclusive remedy against the employer and their insurer
40. Fair Credit Reporting Act - ANS-Consumer reports may be furnished only for insurance
underwriting purposes, credit transactions and employment
41. How are notices of cancellation or non-renewal be made? - ANS-Must be in writing,
mailed to the name insured, and must state reason at least 30 days in advance
42. How long do you have to renew? What are the consequences of lateness? - ANS--90
days late: renewal fee must be paid
43. -More than 90 days: cannot be renewed but do not need to do exam with new license,
subject to a late fee
44. -More than 12 months: considered new and must take the exam
45. If a driver has violated one of the condition, how can insured avoid cancellation or
non-renewal? - ANS-By excluding this driver in writing from coverage.
46. 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 - ANS-$25,000
47. If two or more policies apply to the same motor vehicle involved in accident then -
ANS--The owner's policy shall be primary
48. -Driver's policy shall be excess
