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A set of practice exam questions and answers related to texas auto insurance. It covers various aspects of insurance, including direct causes of loss, insurance agency types, ethics, licensing requirements, insurance fraud, fair credit reporting, policy limits, agent obligations, and more. Useful for individuals preparing for texas auto insurance exams or seeking to understand key concepts in the field.
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An example of a direct cause would be? - ✔✔Water Damage as a result of fire fighters putting out a fire. This can be found on a schedule part of an insurance agreement. - ✔✔name of the insured , location of property , and premium and effective date of coverage An insurance agency that conducts business in its home state is called? - ✔✔Domestic Business If a Texas Insurance Company is set up business in a foreign County it is known as? - ✔✔Alien Business These all fall under ethics except? - ✔✔License Fees In order for a foreign agency to practice insurance in this state they must have? - ✔✔A certificate of Authority The commissioner may issue a temporary license with? - ✔✔An appointment from an Insurer Who is not required to obtain a license? - ✔✔an insured who refers people to the company for no fee Stock companies do not have? - ✔✔stocks that pay dividends
Mutual policies are owned by? - ✔✔Policy Holders The commissioner is? - ✔✔The person who enforces the insurance laws The commissioner has to review all domestic insurance policies no later than? - ✔✔Once every 5 years Once an agent makes an appointment it is good for a certain period of time? - ✔✔Indefinitely This is an example of insurance fraud - ✔✔a person who makes a false claim on a policy If an agent is told that he can do something that is not in his duties he is operating under the power of? - ✔✔Expressed The fair credit reporting act is set up so that? - ✔✔to give consumers a fair credit report Selling a policy by giving false information is best known as? - ✔✔Missrepresentaion The limits liability are best defined as - ✔✔The most the Insured can collect per occurrence Obligations of an agent involve - ✔✔collecting premiums
The part of the policy in which an insurer promises to pay the insured is? - ✔✔The Insuring agreement Things that are not covered in a policy can be found on the? - ✔✔Exclusions Any additional insurance coverage can be defined as? - ✔✔Extension If a certain provision in a contract causes an insurer not to be covered the insurer must give thte claimant? - ✔✔an explanation in reference to the exact provision In reference to renewal of a license, how often must you renew it? - ✔✔Must renew it every 2 years the Direct cause of a loss is? - ✔✔A Peril After an incident the insured must provide - ✔✔Proof of loss Before an insurer can deny a claim they must? - ✔✔Conduct a reasonable investigation