Texas Insurance Regulations Test
Questions and Answers 100%
PASS
To obtain a Texas license, you must do all EXCEPT: - CORRECT ANSWER-
Answer: Complete pre-license training
Explanation: Most states require it, but not texas.
Unfair claims practices will be assumed to be intentional if: - CORRECT
ANSWER-Answer: They occur with such frequency as to indicate a general
business practice
Explanation: The Commissioner keeps track of complaints regarding the handling
of claims, and if it appears that an insurer violates the Unfair Claims Practices
regulations with frequency, they could be penalized.
Which of the following is NOT considered an unfair practice: - CORRECT
ANSWER-Answer: Paying dividends to policyholders out of a surplus
accumulated from participating policies
, Explanation: Mutual insurers issue "participating policies," which might pay a
dividend as stated in the policy. Dividends may never be guaranteed.
When the Commissioner finds, after a hearing, that a person has intentionally
violated an insurance regulation, what is the maximum fine that may be levied: -
CORRECT ANSWER-Answer: $25,000
Explanation: The key word here is "intentionally". Willful violations carry more
serious penalties. The maximum fine for one willful violation is $25,000.
Under the Unfair Claims Settlement Practices Act, which of the following is NOT
unfair: - CORRECT ANSWER-Answer: The denial of an unsubstantiated claim
Explanation: Insurers do not have to pay 'unsubstantiated' claims, which means
that the claimant failed to submit the required Proof of Loss.
If a license is revoked, the licensee shall NOT be eligible for a new license: -
CORRECT ANSWER-Answer: For at least 5 years
Explanation:
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Questions and Answers 100%
PASS
To obtain a Texas license, you must do all EXCEPT: - CORRECT ANSWER-
Answer: Complete pre-license training
Explanation: Most states require it, but not texas.
Unfair claims practices will be assumed to be intentional if: - CORRECT
ANSWER-Answer: They occur with such frequency as to indicate a general
business practice
Explanation: The Commissioner keeps track of complaints regarding the handling
of claims, and if it appears that an insurer violates the Unfair Claims Practices
regulations with frequency, they could be penalized.
Which of the following is NOT considered an unfair practice: - CORRECT
ANSWER-Answer: Paying dividends to policyholders out of a surplus
accumulated from participating policies
, Explanation: Mutual insurers issue "participating policies," which might pay a
dividend as stated in the policy. Dividends may never be guaranteed.
When the Commissioner finds, after a hearing, that a person has intentionally
violated an insurance regulation, what is the maximum fine that may be levied: -
CORRECT ANSWER-Answer: $25,000
Explanation: The key word here is "intentionally". Willful violations carry more
serious penalties. The maximum fine for one willful violation is $25,000.
Under the Unfair Claims Settlement Practices Act, which of the following is NOT
unfair: - CORRECT ANSWER-Answer: The denial of an unsubstantiated claim
Explanation: Insurers do not have to pay 'unsubstantiated' claims, which means
that the claimant failed to submit the required Proof of Loss.
If a license is revoked, the licensee shall NOT be eligible for a new license: -
CORRECT ANSWER-Answer: For at least 5 years
Explanation:
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
