Texas Insurance Exam with Questions and Verified Answers

Texas Insurance Exam with Questions and Verified Answers To obtain insurance for the Texas Automobile Insurance Plan Association, an applicant and his agent must certify that the applicant A. has been rejected by at least 2 licensed insurers actually writing auto insurance B. has not been involved in an at fault accident within the last 12 months C. has lived in the state for less than 3 months D. is of good character and sound financial condition ANSWER A Which of the following statements concerning the Insurance Guaranty Association is NOT correct? A. Any claim that would not be covered by the insurer is not covered by the association. B. The Association is divided into three separate accounts. C. Failure to pay an assessment when due may cost an insurer revocation of its certificate of authority. D. Covered claims are covered up to a limit of $750,000. ANSWER D Which of the following statements regarding automobile liability insurance is CORRECT? A. All insurers must offer policyowners the option of buying insurance for losses resulting from accidents involving both uninsured and underinsured motorists. B. Not all insurers offer personal injury protection with automobile liability coverage. C. Only owners of automobiles that are between 1 and 5 years old are required to carry automobile insurance. D. The financial responsibility law protects automobile owners from drivers who obtain insurance from foreigners insurers. ANSWER A All of the following are acceptable forms of proof of financial responsibility EXCEPT A. a copy of liability policy B. a copy of a binder in the required amounts C. a Texas Liability Insurance Card D. a valid driver's license ANSWER D