Texas Statutes and Rules Pertinent to
Property and Casualty Ins.
1. a - ANS-A health care provider wants to provide medical professional liability insurance
for its employees. Unfortunately, the provider has searched unsuccessfully for an
insurance carrier that can provide this insurance. Which of the following will most likely
be able to provide this insurance?
2. A. Joint Underwriting Association
3. B. Professional Liability Union of Insurers
4. C. Texas Insurance Association
5. D. Fair Plan
6. a - ANS-According to the Texas Financial Responsibility Law, operating a motor vehicle
without the required liability insurance is considered a/an
7. A. Misdemeanor.
8. B. Crime.
9. C. Offense of the first degree.
10. D. Felony.
11. a - ANS-An employee's average weekly wage is computed according to the sum of
wages paid in what period of time immediately preceding the date of the injury?
12. A. 13 consecutive weeks
13. B. 2 years
14. C. 180 days
15. D. 6 months
16. a - ANS-An insured has a policy with an insurance company that became insolvent. The
policy has $1,600 of unearned premium. How much of this premium will the insured be
able to recover from the Texas Property and Casualty Insurance Guaranty Association?
17. A. $1,600
18. B. The total of the premium paid at the inception of the policy
19. C. None
20. D. $25,000
21. a - ANS-An insured under a homeowners policy who has filed two or more claims in the
preceding policy year may be
22. A. Surcharged on the premium amount.
23. B. Nonrenewed.
24. C. Cancelled.
25. D. None of the above.
26. a - ANS-If an auto policy has split limits of 30/60/25, how much will the policy pay for
property damage in a single accident?
27. A. $25,000
, 28. B. $30,000
29. C. $60,000
30. D. $115,000
31. a - ANS-Injuries that occur when an employee is traveling to or from work are
32. A. Covered under workers compensation only when the means of transportation is paid
for by the employer.
33. B. Only covered if the employee is being transported in his or her private auto.
34. C. Always covered by workers compensation.
35. D. Never covered by workers compensation.
36. a - ANS-The commission will refer an employee who is receiving supplemental income
benefits to the Rehabilitation Commission if it determines that rehabilitation and training
will
37. A. Return the employee to work earlier.
38. B. Satisfy a court order.
39. C. Reduce the cost of claim.
40. D. Allow the commission to reduce the supplemental benefit.
41. a - ANS-Under Workers Compensation, an insurance carrier will pay death benefits to
the legal beneficiary in an amount equal to what portion of the employee's average
weekly wage?
42. A. 75%
43. B. 50%
44. C. 25%
45. D. 15%
46. a - ANS-What type of insurance can be obtained through a surplus lines insurer?
47. A. Coverage that is unavailable through authorized insurers
48. B. Out-of-state coverage
49. C. Commercial coverage
50. D. Coverage that provides dividends
51. a - ANS-Which of the following was created to pay benefits due to insureds after their
insurance companies have been declared insolvent?
52. A. Property and Casualty Insurance Guaranty Association
53. B. LLoyd's Association
54. C. Federal Insurers Solvency Fund
55. D. NAIC Insolvency Fund
56. a - ANS-Words or terms that appear in an insurance policy in bold face print include
57. A. Specific definitions as to their meaning as used in the policy.
58. B. Dual definitions.
59. C. Standard definitions.
60. D. All of the above.
61. b - ANS-A recent college graduate bought a new car and is trying to get automobile
insurance on it as required by the lienholder. After being rejected by several insurance
companies due to his driving record, he finally talked to an agent who can get him
coverage. His agent called him a residual market risk. From which type of automobile
insurance plan can the applicant purchase insurance?
Property and Casualty Ins.
1. a - ANS-A health care provider wants to provide medical professional liability insurance
for its employees. Unfortunately, the provider has searched unsuccessfully for an
insurance carrier that can provide this insurance. Which of the following will most likely
be able to provide this insurance?
2. A. Joint Underwriting Association
3. B. Professional Liability Union of Insurers
4. C. Texas Insurance Association
5. D. Fair Plan
6. a - ANS-According to the Texas Financial Responsibility Law, operating a motor vehicle
without the required liability insurance is considered a/an
7. A. Misdemeanor.
8. B. Crime.
9. C. Offense of the first degree.
10. D. Felony.
11. a - ANS-An employee's average weekly wage is computed according to the sum of
wages paid in what period of time immediately preceding the date of the injury?
12. A. 13 consecutive weeks
13. B. 2 years
14. C. 180 days
15. D. 6 months
16. a - ANS-An insured has a policy with an insurance company that became insolvent. The
policy has $1,600 of unearned premium. How much of this premium will the insured be
able to recover from the Texas Property and Casualty Insurance Guaranty Association?
17. A. $1,600
18. B. The total of the premium paid at the inception of the policy
19. C. None
20. D. $25,000
21. a - ANS-An insured under a homeowners policy who has filed two or more claims in the
preceding policy year may be
22. A. Surcharged on the premium amount.
23. B. Nonrenewed.
24. C. Cancelled.
25. D. None of the above.
26. a - ANS-If an auto policy has split limits of 30/60/25, how much will the policy pay for
property damage in a single accident?
27. A. $25,000
, 28. B. $30,000
29. C. $60,000
30. D. $115,000
31. a - ANS-Injuries that occur when an employee is traveling to or from work are
32. A. Covered under workers compensation only when the means of transportation is paid
for by the employer.
33. B. Only covered if the employee is being transported in his or her private auto.
34. C. Always covered by workers compensation.
35. D. Never covered by workers compensation.
36. a - ANS-The commission will refer an employee who is receiving supplemental income
benefits to the Rehabilitation Commission if it determines that rehabilitation and training
will
37. A. Return the employee to work earlier.
38. B. Satisfy a court order.
39. C. Reduce the cost of claim.
40. D. Allow the commission to reduce the supplemental benefit.
41. a - ANS-Under Workers Compensation, an insurance carrier will pay death benefits to
the legal beneficiary in an amount equal to what portion of the employee's average
weekly wage?
42. A. 75%
43. B. 50%
44. C. 25%
45. D. 15%
46. a - ANS-What type of insurance can be obtained through a surplus lines insurer?
47. A. Coverage that is unavailable through authorized insurers
48. B. Out-of-state coverage
49. C. Commercial coverage
50. D. Coverage that provides dividends
51. a - ANS-Which of the following was created to pay benefits due to insureds after their
insurance companies have been declared insolvent?
52. A. Property and Casualty Insurance Guaranty Association
53. B. LLoyd's Association
54. C. Federal Insurers Solvency Fund
55. D. NAIC Insolvency Fund
56. a - ANS-Words or terms that appear in an insurance policy in bold face print include
57. A. Specific definitions as to their meaning as used in the policy.
58. B. Dual definitions.
59. C. Standard definitions.
60. D. All of the above.
61. b - ANS-A recent college graduate bought a new car and is trying to get automobile
insurance on it as required by the lienholder. After being rejected by several insurance
companies due to his driving record, he finally talked to an agent who can get him
coverage. His agent called him a residual market risk. From which type of automobile
insurance plan can the applicant purchase insurance?
