Texas P&C Regulations

What is the minimum of a licensee's total volume of premiums in a calendar year that must come from business other than controlled business.

• 80%

• 50%

• 60%

• 25%

An insurance company has published a brochure that inaccurately portrays the advantages of a particular insurance policy. What is this an example of?

• Twisting

• Defamation

• False Advertising

• Unfair Claims

Anyone who violates the Insurance Code of Texas may be fined up to

• $25,000

• $5,000

• $10,000

• $20,000

All of the following are considered unfair trade practices in the business of insurance EXCEPT

• Defamation

• Sharing commissions

• Boycott

• Rebating

All of the following statements about the continuing education requirement in this state are true EXCEPT

• It does not allow excess credit hours to be carried forward to the next reporting period

• Hours may be completed using independent self study or classroom study

• It requires satisfactory completion of 24 hours approved training every 2 years

• All licensed agents must comply by January 1 or even-numbered years

If an auto policy has split limits of 30/60/25, how much will the policy pay for property damage in a single accident?

• $30,000

• $60,000

• $25,000

• $115,000

Which of the following is NOT considered a residual market?

• Assigned risk auto plan

• State Property and Casualty Guaranty Association

• Joint underwriting association

• FAIR plan

The Property and Casualty Insurance Guaranty Association must maintain all of the following separate accounts EXCEPT

• Homeowners insurance.

• Other lines of insurance under the Association.

• Automobile insurance.

• Workers compensation.

Which of the following applicants will be able to obtain an adjuster's license without taking the state examination?

• An applicant who has been engaged in the adjustment of losses in the past 5 years

• It is not possible; all licensees must pass the examination.

• An applicant who holds a CLU designation

• An applicant who is renewing a license

What is surplus lines insurance?

• Additional insurance placed on itemized risks

• Insurance in excess of a standard policy’s coverage

• Any insurance on items worth more than $25,000

• Insurance placed with an unauthorized insurer