Texas Insurance Exam
1. A person who examines and assesses risk for persons seeking or renewing property and
casualty insurance is A. a reinsurer B. a surplus lines agent C. an insurance counselor
D. a risk manager - ANS-D
2. A temporary license is valid for how long? A. 90 days B. 6 months C. 1 year D. 2 years -
ANS-A
3. Agents who solicit and procure insurance for themselves, their families, and their
business associates (not for the general public) are said to engage in
4. A. rebating B. surplus lines Insurance C. controlled business D. unauthorized insurance -
ANS-C
5. All of the following are acceptable forms of proof of financial responsibility EXCEPT
6. A. a copy of liability policy B. a copy of a binder in the required amounts C. a Texas
Liability Insurance Card D. a valid driver's license - ANS-D
7. All of the following are correct regarding licensing requirements EXCEPT
8. A. the person must be at least 21 years old B. the state licensing examination must be
passed C. the person has submitted an application D. a non-refundable fee has been
paid - ANS-A
9. All of the following are grounds for revoking an agent's license EXCEPT
10. A. defrauding a policy holder
11. B. defrauding an applicant
12. C. failing to remit premiums to the insurer
13. D. failing to compare his policies with a competitor's policies - ANS-D
14. All of the following vehicles are exempt from the compulsory insurance law EXCEPT
15. A. vehicles that are self insured
16. B. vehicles for which a bond has been filed with the Department of Insurance
17. C. vehicles that are used exclusively on public highways
18. D. vehicles for which a cash deposit has been made with the state treasurer - ANS-C
19. An agent licensed in Texas who moves from one state to another must file proof of
authorization to conduct business in the new state within how many days?
20. A. 10 B. 20 C. 30 D. 60 - ANS-C
21. An employee who suffers an injury covered by workers' compensation is entitled to all of
the following health care services EXCEPT
22. A. cosmetic surgery for aesthetic reasons
23. B. rehabilitation therapy
24. C. emergency treatment
25. D. vocational training - ANS-A
26. An employer must report an injury to the insurer within how many days?
27. A. 5
28. B. 8
29. C. 15
, 30. D. 30 - ANS-B
31. An insurer may cancel a commercial auto policy for any of the following reasons
EXCEPT
32. A. fraud in obtaining the policy
33. B. failure to pay parking fines when due
34. C. an increase in the hazard insured against
35. D. inability of the insurer to renew a reinsurance agreement - ANS-B
36. An insurer may cancel a personal automobile policy on its 12 month anniversary by
providing how many days' advance notice of its intent?
37. A. 5
38. B. 10
39. C. 20
40. D. 30 - ANS-D
41. 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?
42. A. 7 B. 10 C. 30 D. 60 - ANS-D
43. An insurer must initiate workers' compensation benefits within how many days of being
notified of an injury?
44. A. 10
45. B. 15
46. C. 30
47. D. 60 - ANS-B
48. An insurer that provides personal automobile policies may cancel a policy for each of the
following reasons EXCEPT
49. A. nonpayment of premium
50. B. the age of the insured
51. C. the insured submits a fraudulent claim
52. D. the continuance of the policy would violate the law - ANS-B
53. At a minimum, the department must examine a carrier at least once every
54. A. 6 months B. year C. 5 years D. decade - ANS-C
55. General duties of the Commissioner include all of the following EXCEPT
56. A. calculating reinsurance reserves
57. B. publishing results of insurance investigations
58. C. enacting new laws
59. D. reporting to the governor - ANS-C
60. Generally, to receive compensation for a work related injury, a claim for compensation
must be filed with the DWC within
61. A. 1 week of the date of injury
62. B. 1 year of the date of the injury
63. C. 1 year of the date the disability ends
64. D. 2 years of the date the disability ends - ANS-B
65. How many hours of continuing educations is an agent responsible to complete in any
2-year license period?
66. A. 15
1. A person who examines and assesses risk for persons seeking or renewing property and
casualty insurance is A. a reinsurer B. a surplus lines agent C. an insurance counselor
D. a risk manager - ANS-D
2. A temporary license is valid for how long? A. 90 days B. 6 months C. 1 year D. 2 years -
ANS-A
3. Agents who solicit and procure insurance for themselves, their families, and their
business associates (not for the general public) are said to engage in
4. A. rebating B. surplus lines Insurance C. controlled business D. unauthorized insurance -
ANS-C
5. All of the following are acceptable forms of proof of financial responsibility EXCEPT
6. A. a copy of liability policy B. a copy of a binder in the required amounts C. a Texas
Liability Insurance Card D. a valid driver's license - ANS-D
7. All of the following are correct regarding licensing requirements EXCEPT
8. A. the person must be at least 21 years old B. the state licensing examination must be
passed C. the person has submitted an application D. a non-refundable fee has been
paid - ANS-A
9. All of the following are grounds for revoking an agent's license EXCEPT
10. A. defrauding a policy holder
11. B. defrauding an applicant
12. C. failing to remit premiums to the insurer
13. D. failing to compare his policies with a competitor's policies - ANS-D
14. All of the following vehicles are exempt from the compulsory insurance law EXCEPT
15. A. vehicles that are self insured
16. B. vehicles for which a bond has been filed with the Department of Insurance
17. C. vehicles that are used exclusively on public highways
18. D. vehicles for which a cash deposit has been made with the state treasurer - ANS-C
19. An agent licensed in Texas who moves from one state to another must file proof of
authorization to conduct business in the new state within how many days?
20. A. 10 B. 20 C. 30 D. 60 - ANS-C
21. An employee who suffers an injury covered by workers' compensation is entitled to all of
the following health care services EXCEPT
22. A. cosmetic surgery for aesthetic reasons
23. B. rehabilitation therapy
24. C. emergency treatment
25. D. vocational training - ANS-A
26. An employer must report an injury to the insurer within how many days?
27. A. 5
28. B. 8
29. C. 15
, 30. D. 30 - ANS-B
31. An insurer may cancel a commercial auto policy for any of the following reasons
EXCEPT
32. A. fraud in obtaining the policy
33. B. failure to pay parking fines when due
34. C. an increase in the hazard insured against
35. D. inability of the insurer to renew a reinsurance agreement - ANS-B
36. An insurer may cancel a personal automobile policy on its 12 month anniversary by
providing how many days' advance notice of its intent?
37. A. 5
38. B. 10
39. C. 20
40. D. 30 - ANS-D
41. 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?
42. A. 7 B. 10 C. 30 D. 60 - ANS-D
43. An insurer must initiate workers' compensation benefits within how many days of being
notified of an injury?
44. A. 10
45. B. 15
46. C. 30
47. D. 60 - ANS-B
48. An insurer that provides personal automobile policies may cancel a policy for each of the
following reasons EXCEPT
49. A. nonpayment of premium
50. B. the age of the insured
51. C. the insured submits a fraudulent claim
52. D. the continuance of the policy would violate the law - ANS-B
53. At a minimum, the department must examine a carrier at least once every
54. A. 6 months B. year C. 5 years D. decade - ANS-C
55. General duties of the Commissioner include all of the following EXCEPT
56. A. calculating reinsurance reserves
57. B. publishing results of insurance investigations
58. C. enacting new laws
59. D. reporting to the governor - ANS-C
60. Generally, to receive compensation for a work related injury, a claim for compensation
must be filed with the DWC within
61. A. 1 week of the date of injury
62. B. 1 year of the date of the injury
63. C. 1 year of the date the disability ends
64. D. 2 years of the date the disability ends - ANS-B
65. How many hours of continuing educations is an agent responsible to complete in any
2-year license period?
66. A. 15
