TEXAS INSURANCE EXAM

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TEXAS INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -50 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Generally, to receive compensation for a work related injury, a claim for compensation must be filed with the DWC within

• 1 week of the date of injury
• 1 year of the date of the injury
• 1 year of the date the disability ends
• 2 years of the date the disability ends

Answer:

B Question 2: General duties of the Commissioner include all of the following EXCEPT

• calculating reinsurance reserves
• publishing results of insurance investigations
• enacting new laws
• reporting to the governor

Answer:

C

Question 3: Making a misrepresentation to induce a policyholder to lapse a policy is considered

• coercion
• intimidation
• rebating
• twisting

Answer:

D Question 4: Which of the following statements regarding workers' compensation insurance is NOT correct?

• All employers domiciled in Texas are required to obtain workers' compensation insurance

coverage for their employees.

• Worker's compensation's primary advantage for the injured employee is that it provides a

quick and certain means of compensation.

• Worker's compensation protects the employer from tort liability.
• Worker's compensation provides compensation to employees who are injured on the job,

without regard to fault or negligence on the part of either the employer or employee.

Answer:

A Question 5: How many hours of ethics continuing education must an agent complete in any 2-year license period?

• 4
• 5
• 3
• 2

Answer:

D

Question 6: The commissioner has the power to

• appoint a stock insurance company board of directors
• issue certificates of authority to insurers
• authorize a mutual insurance company sale of stock
• write and enact new legislation and statutes affecting the business of insurance

Answer:

B Question 7: The minimum limits under the Texas Motor Vehicle Safety Responsibility Law are

A. 15/30/5

B. 20/30/5

C. 20/40/10

D. 30/60/25

Answer:

D Question 8: To obtain insurance for the Texas Automobile Insurance Plan Association, an applicant and his agent must certify that the applicant

• has been rejected by at least 2 licensed insurers actually writing auto insurance
• has not been involved in an at fault accident within the last 12 months
• has lived in the state for less than 3 months
• is of good character and sound financial condition

Answer:

A Question 9: To receive compensation for a work related injury, an employee (or someone acting for the employee) must notify his employer within how long after an injury?

• 24 hours
• 7 days
• 30 days

• 1 year

Answer:

C Question 10: Which organization helps pay insolvent insurers' covered claims in Texas?

• Texas Property and Casualty Pool
• Texas Mutual Insurance Company
• Texas Property and Casualty Insurance Guaranty Association
• Texas Insurers' Federation

Answer:

C Question 11: All of the following are grounds for revoking an agent's license EXCEPT

• defrauding a policy holder
• defrauding an applicant
• failing to remit premiums to the insurer
• failing to compare his policies with a competitor's policies

Answer:

D Question 12: Under workers' compensation law, income benefits may not be paid for an injury unless the injury results in disability that lasts longer than

• 48 hours
• 1 week
• 1 month
• 1 year

Answer:

B