TEXAS STATUSES and RULES COMMON
TO ALL LINES and then P&C EXAM
NEWEST 2025 ACTUAL EXAM
COMPLETE 199+ QUESTIONS AND
DETAILED ANSWERS (VERIFIED
ANSWERS ALREADY GRADED A+ )
|| BRAND NEW !!!!!
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Cease and desist - = ANSWER =- >> to stop or discontinue
Coercion - = ANSWER =- >> forceful act or threat aimed to influence a person to act against their will
Commission - = ANSWER =- >> payment to the agent by the company for placing insurance, usually a
percentage of the policy premium
Commissioner - = ANSWER =- >> the head of the state department of insurance
exempt - = ANSWER =- >> not subject to an obligation
home office - = ANSWER =- >> insurer's headquarters
inducement - = ANSWER =- >> an offer that attempts to influence the other party
insolvent - = ANSWER =- >> unable to meet financial obligations
,moral turpitude - = ANSWER =- >> conduct that is contrary to community standards of justice, honesty
or good morals
reciprocity - = ANSWER =- >> mutual interchange of rights and privledges
restitution - = ANSWER =- >> restoration to the original condition or repayment
statute - = ANSWER =- >> a formal written law enacted by legislature
Transacting insurance means any of the following - = ANSWER =- >> -negotiation, solicitation, sale,
advising
These constitue the business of insurance in TX - = ANSWER =- >> -making or proposing to make a
contract
-taking or receiving an app
-receiving or collecting any consideration
-issuing or delivering a contract
-acting as an agent
-contracting
-doing any kind of business
Insurance companies must obtain a - = ANSWER =- >> certificate of authority before transacting
insurance
The commissioner must provide a _____ days notice if suspension or revocation to the insurer of their
COA - = ANSWER =- >> 10 days notice
domicile - = ANSWER =- >> the location where an insurer is incorporated, not necessarily where the
insurer conducts business
,domestic insurer - = ANSWER =- >> An insurance company that conducts business in the state of
incorporation.
foreign insurer - = ANSWER =- >> An insurance company that is incorporated in another state.
Alien insurer - = ANSWER =- >> An insurance company that is incorporated outside the United States.
Stock Companies - = ANSWER =- >> Owned by the stockholders who provide the capital necessary to
establish and operate the insurance company and who share in any profits or losses.
-issue nonparticipating policies, so policyowners do not share in profits or losses
-does not pay dividends, but taxable dividends are paid
-dividends and not GURANTEED
Mutual companies - = ANSWER =- >> Owned by the policy owners and issue participating policies.
-policyowners are entitled to dividends (return of excess premium) and are NOT TAXABLE
-dividends are also NOT GURANTEED
Texas Lloyds - = ANSWER =- >> Insurance companies regulated by the Texas Insurance Code that consist
of an arrangement between an attorney-in-fact and at least 10 underwriters (individual, partnership, or
association of individuals) to provide property and casualty insurance
-includes article of agreement AND POWER OF ATTORNEY
-required to maintain a $2 million minimum
- Insurers who meet the state's financial requirements and are approved to transact business in the state
are considered _________________ or ______________ into the state as a legal insurer - = ANSWER =-
>> authorized; admitted
If a stock insurer is unable to fix a financial impairment or their capital stock is less than 50% - = ANSWER
=- >> the commissioner may suspend or revoke the certificate of authority
if reciprocal, inter-insurance, Lloyd's plans, and MUTUTAL companies have less than 25% required by the
code - = ANSWER =- >> may have their certificate suspended or revoked
, Who regulates insurers and other companies that conduct, solicit, and/or sell insurance in this state - =
ANSWER =- >> The TEXAS Department of Insurance
Commissioner - = ANSWER =- >> The chief executive and administrative officer of a state insurance
department.
-must be citizen of texas
-at least 5 years of experience in the administration of business or government/practicing attorney
-appointed by governor
-well-informed and qualified in the field of insurance
How long is a commissioner's term - = ANSWER =- >> 2 years ending on feb 1 of each odd numbered
year
Commissioner powers and duties - = ANSWER =- >> -regulate the internal affairs of dept. of insurance
-prescribe forms and procedures
-aid in the interpretation of any state insurance law
-issue licenses and COA
-monitor insurers and their loyalty to the code
-protect and ensure fair treatment of consumers
-enforce penalties, fines
The commissioner is responsible for transfer of any fees and any amt over ____________ must be
transferred electronically - = ANSWER =- >> $500,000
The commissioner must examine all authorized insurers at least once every - = ANSWER =- >> 5 years
The commisssioner reviews all business records occurring between the - = ANSWER =- >> last day of the
previous exam and december 31st of the year preceding the current examination year
-cost of examination is paid for by that company being reviewed
TO ALL LINES and then P&C EXAM
NEWEST 2025 ACTUAL EXAM
COMPLETE 199+ QUESTIONS AND
DETAILED ANSWERS (VERIFIED
ANSWERS ALREADY GRADED A+ )
|| BRAND NEW !!!!!
…………………………………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………………
Cease and desist - = ANSWER =- >> to stop or discontinue
Coercion - = ANSWER =- >> forceful act or threat aimed to influence a person to act against their will
Commission - = ANSWER =- >> payment to the agent by the company for placing insurance, usually a
percentage of the policy premium
Commissioner - = ANSWER =- >> the head of the state department of insurance
exempt - = ANSWER =- >> not subject to an obligation
home office - = ANSWER =- >> insurer's headquarters
inducement - = ANSWER =- >> an offer that attempts to influence the other party
insolvent - = ANSWER =- >> unable to meet financial obligations
,moral turpitude - = ANSWER =- >> conduct that is contrary to community standards of justice, honesty
or good morals
reciprocity - = ANSWER =- >> mutual interchange of rights and privledges
restitution - = ANSWER =- >> restoration to the original condition or repayment
statute - = ANSWER =- >> a formal written law enacted by legislature
Transacting insurance means any of the following - = ANSWER =- >> -negotiation, solicitation, sale,
advising
These constitue the business of insurance in TX - = ANSWER =- >> -making or proposing to make a
contract
-taking or receiving an app
-receiving or collecting any consideration
-issuing or delivering a contract
-acting as an agent
-contracting
-doing any kind of business
Insurance companies must obtain a - = ANSWER =- >> certificate of authority before transacting
insurance
The commissioner must provide a _____ days notice if suspension or revocation to the insurer of their
COA - = ANSWER =- >> 10 days notice
domicile - = ANSWER =- >> the location where an insurer is incorporated, not necessarily where the
insurer conducts business
,domestic insurer - = ANSWER =- >> An insurance company that conducts business in the state of
incorporation.
foreign insurer - = ANSWER =- >> An insurance company that is incorporated in another state.
Alien insurer - = ANSWER =- >> An insurance company that is incorporated outside the United States.
Stock Companies - = ANSWER =- >> Owned by the stockholders who provide the capital necessary to
establish and operate the insurance company and who share in any profits or losses.
-issue nonparticipating policies, so policyowners do not share in profits or losses
-does not pay dividends, but taxable dividends are paid
-dividends and not GURANTEED
Mutual companies - = ANSWER =- >> Owned by the policy owners and issue participating policies.
-policyowners are entitled to dividends (return of excess premium) and are NOT TAXABLE
-dividends are also NOT GURANTEED
Texas Lloyds - = ANSWER =- >> Insurance companies regulated by the Texas Insurance Code that consist
of an arrangement between an attorney-in-fact and at least 10 underwriters (individual, partnership, or
association of individuals) to provide property and casualty insurance
-includes article of agreement AND POWER OF ATTORNEY
-required to maintain a $2 million minimum
- Insurers who meet the state's financial requirements and are approved to transact business in the state
are considered _________________ or ______________ into the state as a legal insurer - = ANSWER =-
>> authorized; admitted
If a stock insurer is unable to fix a financial impairment or their capital stock is less than 50% - = ANSWER
=- >> the commissioner may suspend or revoke the certificate of authority
if reciprocal, inter-insurance, Lloyd's plans, and MUTUTAL companies have less than 25% required by the
code - = ANSWER =- >> may have their certificate suspended or revoked
, Who regulates insurers and other companies that conduct, solicit, and/or sell insurance in this state - =
ANSWER =- >> The TEXAS Department of Insurance
Commissioner - = ANSWER =- >> The chief executive and administrative officer of a state insurance
department.
-must be citizen of texas
-at least 5 years of experience in the administration of business or government/practicing attorney
-appointed by governor
-well-informed and qualified in the field of insurance
How long is a commissioner's term - = ANSWER =- >> 2 years ending on feb 1 of each odd numbered
year
Commissioner powers and duties - = ANSWER =- >> -regulate the internal affairs of dept. of insurance
-prescribe forms and procedures
-aid in the interpretation of any state insurance law
-issue licenses and COA
-monitor insurers and their loyalty to the code
-protect and ensure fair treatment of consumers
-enforce penalties, fines
The commissioner is responsible for transfer of any fees and any amt over ____________ must be
transferred electronically - = ANSWER =- >> $500,000
The commissioner must examine all authorized insurers at least once every - = ANSWER =- >> 5 years
The commisssioner reviews all business records occurring between the - = ANSWER =- >> last day of the
previous exam and december 31st of the year preceding the current examination year
-cost of examination is paid for by that company being reviewed
