Texas Property and Casualty Insurance Flashcard

Front

Types of companies included in the definition of 'insurer' in TAC § 5.5002.

Back

Stock fire, mutual fire, and Lloyd's plans

Answer explanation

The definition of 'insurer' in TAC § 5.5002 includes stock fire insurance companies, mutual fire insurance companies, and Lloyd's plans. Therefore, the correct answer is stock fire, mutual fire, and Lloyd's plans.

Front

Which entity must approve new insurance rates and forms in Texas before they can be used?

Back

Texas Department of Insurance

Answer explanation

The Texas Department of Insurance is the regulatory body responsible for approving insurance rates and forms in Texas. Grace must obtain their approval before implementing her new insurance offerings.

Front

Under what condition could Rohan's homeowner's insurance policy be canceled?

Back

If the insured property is found to be vacant for more than 60 consecutive days

Answer explanation

A homeowner's insurance policy can be canceled if the insured property is vacant for more than 60 consecutive days, as this increases risk for the insurer. The other options do not typically affect policy status.

Front

What is the purpose of the Texas FAIR Plan Association?

Back

To offer basic property insurance to those unable to obtain it in the standard market

Answer explanation

The Texas FAIR Plan Association is designed to provide basic property insurance to individuals like Mia, who cannot obtain coverage in the standard market due to their home's location or condition.

Front

Who is eligible to purchase insurance through the Texas Windstorm Insurance Association (TWIA)?

Back

Homeowners in certain coastal areas of Texas

Answer explanation

The Texas Windstorm Insurance Association (TWIA) provides insurance specifically for homeowners in certain coastal areas of Texas, making this the correct choice. Other options do not accurately reflect TWIA's eligibility criteria.

Front

What do the loss settlement provisions in the Texas Insurance Code outline?

Back

The methods for determining the amount of loss in insurance claims

Answer explanation

The loss settlement provisions in the Texas Insurance Code outline the methods for determining the amount of loss in insurance claims, which is crucial for Aria to understand her potential compensation.

Front

What type of claim is it when someone files in court to recover a specific loan amount that was not repaid?

Back

A claim for a fixed amount of money

Answer explanation

Jackson's claim for the $5,000 is a claim for a fixed amount of money, as it specifies an exact sum owed by Liam. This distinguishes it from claims for unspecified amounts or those related to damages or medical expenses.

Front

Minimum liability coverage for bodily injury per person in Texas?

Back

$30,000

Answer explanation

In Texas, the minimum liability coverage required for bodily injury per person is $30,000. This ensures that Michael meets the state's legal requirements for automobile insurance.

Front

What must Arjun have to meet the financial responsibility requirements when driving in Texas?

Back

Proof of insurance or other financial responsibility

Answer explanation

To meet Texas financial responsibility requirements, Arjun must have proof of insurance or other financial responsibility. This is essential for legally driving a vehicle in the state.

Front

How much notice must the insurance company provide Emma before canceling her automobile policy for nonpayment?

Back

30 days

Answer explanation

The insurance company must provide a 30-day notice before canceling Emma's policy for nonpayment, as required by most state regulations. Therefore, the correct answer is 30 days.