Texas Insurance Licenses Quiz

Ava wants to start working as an insurance agent in Texas and needs to perform transactions for her clients. What is required for her to legally do this?

• A temporary license

• An appointment filed with the Texas Department of Insurance

• A surplus lines license

• A managing general agent license

Answer explanation

To legally perform transactions as an insurance agent in Texas, Ava must have an appointment filed with the Texas Department of Insurance. This is essential for her to represent an insurance company.

Anika has recently started working at an insurance agency and is in the process of obtaining her permanent insurance license. In the meantime, she is granted a temporary insurance license. What is the purpose of this temporary insurance license?

• To sell only specific types of insurance products

• To assess and manage risks for businesses

• To manage and administer insurance policies

• To sell insurance for a limited period while completing permanent license requirements

Answer explanation

The temporary insurance license allows Anika to sell insurance for a limited period while she completes the requirements for her permanent license, ensuring she can start working immediately.

Mia is a licensed professional who needs to renew her license soon. She wants to make sure she meets all the requirements. How many hours of continuing education must Mia complete every two years?

• 30 hours

• 18 hours

• 12 hours

• 24 hours

Answer explanation

Mia must complete 24 hours of continuing education every two years to maintain her license. This requirement ensures she stays updated in her field.

Maya is an insurance agent who forgot to complete her continuing education requirements this year. What can happen to her license as a result?

• It can be transferred to another agent

• It can be upgraded

• It can be renewed automatically

• It can be denied, renewed, or expire

Answer explanation

Maya's failure to complete her continuing education can lead to her license being denied, not renewed, or expiring, as these are common consequences for not meeting educational requirements.

Emma has recently obtained her risk manager license. What is the primary function of her new license?

• To handle claims resulting from large-scale disasters

• To assess and manage risks for businesses and organizations

• To sell insurance for a limited period

• To sell health and life insurance policies

Answer explanation

Emma's risk manager license primarily allows her to assess and manage risks for businesses and organizations, helping them identify potential threats and implement strategies to mitigate those risks.

Grace is reviewing a list of individuals to determine who must obtain a license for a particular activity. Which of the following is NOT exempt from licensing requirements?

• Government Employees

• Chattel Mortgagee

• Attorneys

• Technical Assistants

Answer explanation

A chattel mortgagee is not exempt from licensing requirements, as they engage in activities that typically require a license. In contrast, government employees, attorneys, and technical assistants often have exemptions.

Priya is a licensed professional who wants to ensure she complies with industry regulations. What must she maintain records of for a specified period?

• Insurance claims

• Continuing education and other relevant documents

• Client transactions

• Policy sales

Answer explanation

Priya must maintain records of continuing education and other relevant documents to comply with industry regulations, ensuring she stays updated and meets professional standards.

While conducting an investigation into a recent insurance claim, Zoe is reviewing who needs to be licensed as an adjuster. She wonders who is exempt from adjuster licensing requirements while performing their official duties. Who is exempt?

• Technical Assistants

• Government Employees

• Salaried Office Employees

• Private Investigators

Answer explanation

Government employees are exempt from adjuster licensing requirements while performing their official duties, as they are acting in their capacity as public servants.

Evelyn is an insurance agent in Texas. She encounters a client who needs coverage for a unique risk that no licensed insurer in Texas is willing to cover. Which type of license does Evelyn need to sell insurance for this risk?

• Adjuster

• Limited License

• Emergency (Catastrophe)

• Surplus Lines

Answer explanation

Evelyn needs a Surplus Lines license to sell insurance for unique risks that licensed insurers in Texas won't cover. This license allows agents to place coverage with non-admitted insurers.

Anika wants to start a business where she can sell insurance policies on behalf of insurance companies. What type of license does Anika need to obtain to do this?

• Surplus Lines

• Limited License

• Agent/Agency

• Nonresident Agent

Answer explanation

Anika needs an Agent/Agency license to sell insurance policies on behalf of insurance companies. This license allows her to act as an intermediary between clients and insurers.