Texas All Lines Adjuster Laws and Regulations Test Questions and Answers Latest 2023 (Already Graded)

Texas All Lines Adjuster Laws and Regulations Test Questions and Answers Latest 2023 (Already Graded) When canceling a homeowners policy, the insurer must do which one of the following: A. Give the insured a 90-day notice in order to find new insurance; B. Inform the Texas Automobile Insurance Plan Association that it is canceling a policy; C. Provide a written notice explaining the reasons for the cancellation; D. Inform the agent who sold the policy that his or her commission must be returned - C. Whenever insurance policies are cancelled in accordance with the law, the written notice must include the precise reason the policy is being cancelled, including the source of any information relied on by the insurer to make its decision. An insurer that provides personal automobile, homeowners or farm and ranch owners' policies may cancel a policy for each of the following reasons except: A. nonpayment of premium; B. the age of the insured; C. the insured submits a fraudulent claim; D. the continuance of the policy would violate the law. - B. It is unlawful to decline to renew a personal automobile, homeowners or farm and ranch owner's policy based solely on the age of the covered person. An insurer may cancel a personal automobile policy on its 12-month anniversary by providing how many days advance notice of its intent? A. 5; B. 10; C. 20; d. 30 - D. An insurer may cancel or refuse to renew a personal automobile insurance policy on its 12-month anniversary by providing advance notice of at least 30 days. In order to nonrenew a personal auto policy, an insurer must provide how many days advance notice to the policyholder? A. 10; B. 20; C. 30; D. 45 - C. The same rule for providing notice of cancellation applies to nonrenewal. A notice must be sent to the insured no less than 30 days in advance of the nonrenewal date. When an insurer assesses a surcharge on a fire or homeowners policy due to adverse loss experience, the surcharge may not exceed what amount of the total premium? A. 5 percent; B. 10 percent; C. 15 percent; D. There is no maximum on the amount - B. A surcharge of up to 10 percent may be added to any homeowners, fire or farm and ranch owner's policy if the insured has filed two or more claims in the preceding year. The claims may not be for losses caused by natural causes or for claims that are filed but not paid by the insurer. An insurer may notify an insured that filing on a third claim within what period of time may result in the nonrenewal of the policy? A. 1-yr.; B. 2-yrs; C. 3-yrs.; D. 5 yrs. - C. An insurer may decline to renew a policy if the insured has filed three or more claims under the policy in any three-year period. The insurer may notify an insured who has filed two claims that the filing of a third in the three-year period may result in nonrenewal. If the insurer does not so notify the insured, the policy may not be nonrenewed because of losses. The minimum limits under the Texas Motor Vehicle Safety Responsibility Law are: A. $15,000 per person, $30,000 per accident for Bodily Injury and $5,000 for Property damage; B. $20,000 per person; $30,000 per accident for Bodily Injury and $5,000 for Property Damage; C. $20,000 per person, $40,000 per accident for Bodily Inury and $10,000 for Property Damage; D. $25,000 per person, $50,000 per accident for Bodily Injury and $25,000 for Property Damage. - D. The Texas Motor Vehicle Safety Responsibilty Law requires automobile insurance limits at least equal to $25,000 per person and $50,000 per accident for Bodily Injury and $25,000 per accident for Property Damage. All of the following vehicles are exempt from the compulsory insurance law except: A. vehicles that are self-insured; B. vehicles for which a bond has been filed with the Department of Insurance; C. vehicles that are used exclusively on public highways; D. vehicles for which a cash deposit has been made with the state treasurer - C. The only vehicles that are exempt from the compliance with the State's compulsory automobile insurance law are those that are self-insured, those for which a bond has been filed with the Dept. of Insurance and those for which a cash deposit of $55,000 has been made to the state treasurer. Operating a motor vehicle without the required insurance is a misdemeanor punishable by a fine of between.... A. $175 and $350 for the first offense; B. $175 and $350 for subsequent offenses; C. $350 and $1000 for the first offense; D. $1000 and $3000 for subsequent offenses. - A. Operating a motor vehicle without the required insurance is a misdemeanor punishable by a fine of between $175 and $350 for the first offense. Subsequent offenses may result in a fine of between $350 and $1000 and suspension of a driver's license or vehicle registration. Under Texas law, an insured may do which one of the following with regard to the provision of uninsured motorists property damage? A. Double the amount of the coverage upon written request to the insurer; B. Elect coverage for the same amount as the policy's liability limit; C. Reject the coverage by notifying the insurer of their intention to do so; D. Reduce the coverage below the liability limit of the policy. - B. The requirement under law is that coverage for uninsured motorists property damage be provided at a limit at least equal to the state financial responsibility limit. Insurers may provide higher limits, but only up to the liability limit contained in the policy. An insurer may cancel a commercial auto policy for any of the following reasons except: A. fraud in obtaining the policy; B. failure to pay parking fines when due; C. an increase in the hazard insured against; D. inability of the insurer to renew a reinsurance agreement. - B. An insurer may cancel a commercial auto policy at any time for the following reasons: fraud in obtaining the policy, failure to pay premiums when due, increase in hazard insured against, loss of a reinsurance agreement or insolvencyof the insurer. When an insurer pays a claim under an automobile policy for which their insured is not legally responsible, the insurer must.... A. notify the insured that there is no way to recover the deductibles; B. bring action against a third party to recover the insured's deductible; C. notify the claimant that they must pay the insured's body shop directly; D. bring suit against the body shop to prevent them from charging the insured a deductible - B. In cases where an insured must pay a deductible on a claim covered by his or her auto insurer, but there is a third party that may be liable to the insurer or insured for the amount of the deductible, the insurer has certain obligations. Within six months after the date the claim is made, the insurer must either bring an action against the third party to recover the deductible (or pay the deductible to the insured) or notify the insured in writing that the insurer will nto bring an action against the third party and authorize the insured to bring the action. Applicants to the Texas Automobile Insurance Plan Association must certify that they have been rejected for insurance by what number of insurers? A. One; B. Two; C. Three; D. Four - B. At least two insurers must decline to provide coverage. To receive compensation for a work-related injury, an employee (or someone acting for the employee) must notify his or her employer within how long after an injury? A. 24 hours; B. 7 days; C. 30 days; D. 1-year - C. An employee or a person acting on the employee's behalf must notify the employer of the injured employee no later than 30 days after the date on which the injury occurred or if the injury is an occupational disease and the employee knew or should have known that the injury may be related to the employment. Notice may be given to the employer or a supervisor or manager. Generally, to receive compensation for a work-related injury, a claim for compensation must be filed with the workers' compensation commission within: A. one week of the date of injury; B. one year of the date of the injury; C. one year of the date the disability ends; D. two years of the date the disability ends. - B. Notice to the commission is required within one year of the date of injury or manifestation of occupational disease. Under workers' compensation in Texas, income benefits may not be paid for an injury unless the injury results in disability that lasts longer than: A. 48 hours; B. 1- week; C. 1-month; D. 1-year - B. Texas law imposes a mandatory waiting period of one week for income benefits as a result of a work-related disability. Under Texas workers' compensation law, lifetime income benefits are paid at what percentage of the employee's average weekly wage? A. 25 percent; B. 50 percent; C. 75 percent; D. 100 percent - C. Lifetime income benefits are paid to individuals who suffer serious and permanent injury in the course of their employment. The benefits are paid at 75 percent of the employee's average weekly wage. Which one of the following statements regarding workers' compensation insurance is not correct? A. All employers domiciled in Texas are required to obtain workers' compensation insurance coverage for their employees; B. Workers' compensation's primary advantage for the injured employee is that it provides a quick and certain means of compensation; C. Workers' compensation protects the employer from tort liability; D. Workers' compensation provides compensation to employees who are injured on the job, without regard to fault or negligence on the part of either the employer or employee. - A. Texas is an elective state with respect to work............