Texas PNC licensing exam |349 Complete
Q’s and A’s
Domestic insurer - -An insurer organized, admitted, and writing insurance in
texas
- Foreign insurer - -An insurer domesticated outside the state where it
writes insurance
- Alien insurer - -An insurer who is organized and domiciled outside the
United States
- Staff adjuster - -An adjuster who is on the payroll of one insurance
company and is paid a salary or by the hour
- Independent adjuster - -An adjuster who handles claims for more than one
company and receives a fee based on time and expense
- Public adjuster - -An adjuster who works on behalf of the insured in
negotiating a claim settlement
- 5 days - -Notice period required for a commissioner to issue a temporary
or emergency license
- 18 - -Minimum age requirement for an adjuster to be licensed
- 2 - -An insurance adjusters license must be renewed every ___ years
- 30 days - -Amount of time one has to notify the commissioner of an
address change
- 30 - -Number of hours of continuing education needed during a license
cycle
- 4 - -Number of years one is required to keep a record of continuing
education
- 90 - -Number of days an adjuster has to renew a license after expiration.
Payment must include a 50% penalty
- State legislature - -Government entity that passes statutes that form the
Texas insurance code
, - Texas department of insurance - -A state agency that oversees the
business of insurance
- 10 - -Number of days notice for a hearing given by the commissioner when
an adjuster is accused of wrongdoing
- Cease and desist orders, $25,000 fines, revocation, suspension, refusal to
renew license - -Potential disciplinary actions an adjuster can face if found
guilty of wrongdoing
- Fiduciary - -Type of responsibility held by agents where they handle
financial resources
- Agent - -One who sells insurance policies
- No - -Can an adjuster accept gratuities or gifts?
- No - -Can an adjuster give legal advice?
- Unfair claims settlement practices - -Actions such as: misrepresenting
facts regarding coverage; failing to promptly acknowledge communication;
failing to adopt reasonable standards when handling claims; not attempting
in good faith to have prompt, fair, and equitable settlement to a claim in
which liability is reasonably clear; compelling policyholders to sue because
they cannot recover amounts due by offering substantially less than amounts
actually covered
- Yes - -Is good faith and fair dealing implied in a contract?
- Bad faith - -Occurs when the insurer does not abide by the terms and spirit
of the policy. The insured must prove that the insurance company had no
reasonable basis for denying a claim or payment.
- Yes - -When liability is reasonably clear, can an adjuster render a decision?
- No - -Can an adjuster make legal determinations?
- Business day - -A day other than Saturday, Sunday, or holiday.
- Day - -Any calendar day including weekends and holidays
- Claim - -A request for indemnification under an insurance contract due to
a financial loss. Paid by an insurer to indemnify losses to the insured or to
others who have experienced losses for which the insured is liable
- Claimant - -One who makes a claim
, - First-party claim - -When the insured submits a claim for indemnification
- Third-party claim - -When one who is not a party to the insurance contract
submits a claim for indemnity due to the insureds legal liability
- No - -Does the insurance company or adjuster have a contractual duty to a
third party claimant?
- 15 - -Number of days an agent has to: acknowledge receipt of a claim,
commence investigation, forward necessary paperwork requesting
information from a claimant
- 15 - -Number of BUSINESS days a claimant must be notified in writing of
acceptance or rejection of a claim after all requested information has been
received
- 5 - -Number of business days an adjuster has to send a check to the
claimant once a settlement has been reached
- 60 - -Number of days an agent has to investigate fraud
- 30 - -Number of days an agent has to resolve claims where arson is
suspected
- 30 - -Number of days an agent has to resolve a claim that is the result of a
major natural disaster
- Competent parties, Agreement, Lawful objective, Considration - -Essential
elements for a valid contract
- Contract of adhesion - -A contract where all parties agree to adhere to the
contract as a whole; when ambiguities arise, the court will rule in the favor of
the insured
- Aleatory contract - -A contract in which the values exchanged are not
equal. Ex: Someone insures a $300,000 house, but only pays $200 in
premiums
- Unilateral contract - -A contract where only one party makes a legally
enforceable promise
- Conditional contract - -A contract that may be voided if all policy
conditions are not met
Q’s and A’s
Domestic insurer - -An insurer organized, admitted, and writing insurance in
texas
- Foreign insurer - -An insurer domesticated outside the state where it
writes insurance
- Alien insurer - -An insurer who is organized and domiciled outside the
United States
- Staff adjuster - -An adjuster who is on the payroll of one insurance
company and is paid a salary or by the hour
- Independent adjuster - -An adjuster who handles claims for more than one
company and receives a fee based on time and expense
- Public adjuster - -An adjuster who works on behalf of the insured in
negotiating a claim settlement
- 5 days - -Notice period required for a commissioner to issue a temporary
or emergency license
- 18 - -Minimum age requirement for an adjuster to be licensed
- 2 - -An insurance adjusters license must be renewed every ___ years
- 30 days - -Amount of time one has to notify the commissioner of an
address change
- 30 - -Number of hours of continuing education needed during a license
cycle
- 4 - -Number of years one is required to keep a record of continuing
education
- 90 - -Number of days an adjuster has to renew a license after expiration.
Payment must include a 50% penalty
- State legislature - -Government entity that passes statutes that form the
Texas insurance code
, - Texas department of insurance - -A state agency that oversees the
business of insurance
- 10 - -Number of days notice for a hearing given by the commissioner when
an adjuster is accused of wrongdoing
- Cease and desist orders, $25,000 fines, revocation, suspension, refusal to
renew license - -Potential disciplinary actions an adjuster can face if found
guilty of wrongdoing
- Fiduciary - -Type of responsibility held by agents where they handle
financial resources
- Agent - -One who sells insurance policies
- No - -Can an adjuster accept gratuities or gifts?
- No - -Can an adjuster give legal advice?
- Unfair claims settlement practices - -Actions such as: misrepresenting
facts regarding coverage; failing to promptly acknowledge communication;
failing to adopt reasonable standards when handling claims; not attempting
in good faith to have prompt, fair, and equitable settlement to a claim in
which liability is reasonably clear; compelling policyholders to sue because
they cannot recover amounts due by offering substantially less than amounts
actually covered
- Yes - -Is good faith and fair dealing implied in a contract?
- Bad faith - -Occurs when the insurer does not abide by the terms and spirit
of the policy. The insured must prove that the insurance company had no
reasonable basis for denying a claim or payment.
- Yes - -When liability is reasonably clear, can an adjuster render a decision?
- No - -Can an adjuster make legal determinations?
- Business day - -A day other than Saturday, Sunday, or holiday.
- Day - -Any calendar day including weekends and holidays
- Claim - -A request for indemnification under an insurance contract due to
a financial loss. Paid by an insurer to indemnify losses to the insured or to
others who have experienced losses for which the insured is liable
- Claimant - -One who makes a claim
, - First-party claim - -When the insured submits a claim for indemnification
- Third-party claim - -When one who is not a party to the insurance contract
submits a claim for indemnity due to the insureds legal liability
- No - -Does the insurance company or adjuster have a contractual duty to a
third party claimant?
- 15 - -Number of days an agent has to: acknowledge receipt of a claim,
commence investigation, forward necessary paperwork requesting
information from a claimant
- 15 - -Number of BUSINESS days a claimant must be notified in writing of
acceptance or rejection of a claim after all requested information has been
received
- 5 - -Number of business days an adjuster has to send a check to the
claimant once a settlement has been reached
- 60 - -Number of days an agent has to investigate fraud
- 30 - -Number of days an agent has to resolve claims where arson is
suspected
- 30 - -Number of days an agent has to resolve a claim that is the result of a
major natural disaster
- Competent parties, Agreement, Lawful objective, Considration - -Essential
elements for a valid contract
- Contract of adhesion - -A contract where all parties agree to adhere to the
contract as a whole; when ambiguities arise, the court will rule in the favor of
the insured
- Aleatory contract - -A contract in which the values exchanged are not
equal. Ex: Someone insures a $300,000 house, but only pays $200 in
premiums
- Unilateral contract - -A contract where only one party makes a legally
enforceable promise
- Conditional contract - -A contract that may be voided if all policy
conditions are not met
