TEXAS SURPLUS LINES COMPREHENSIVE
SCRIPT 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Mutual Insurer/Company. Answer: -owned by policy holders
-dividend is paid to policy holder
- dividend is not taxable
◉ Texas Llyods. Answer: regulated by the texas insurance code
- must consist of min 10 UWs
- managed by an attorney in fact
- Lloyds must be a member of TWIA where applicable
- Lloyds much be a member of the Tex Prop and Casualty Insurance
Guartny Fund
◉ Self Insurers. Answer: business pays its own claims but must
obtain cert of authorit from TDI
◉ domestic vs foreign vs alien. Answer: Dom - state where a
company is incorporated
Foreign - Company is inc in another state of US territory
Alien- company is inc in another country
,◉ Certificate of Authority. Answer: state license for an insurance
company
- Authorized (admittted ) COA
- unauthorized (nonadmitted) no COA
◉ Direct REsponse Carrier. Answer: no agent/producer - mass
advertisements
◉ Law of Agency. Answer: relationship between agent/principal
- ins agent acts on behalf of the principal (insurance company)
- insurance company is liable for agents actions and statements
◉ responsibility of agent to applicants/insured. Answer: -promptly
send premium to insurer
-does not comingle funds
-fidciary = trust
- premiums = fiduciary funds
◉ Elements of a Legal Contract. Answer: CLOAC
Consideration - MUST BE EXCHANGE OF VALUE
Legal Purpose - cannot break low
,Offer -
Acceptance
Competent Parties
◉ Indemnity =. Answer: restore
◉ warranty. Answer: written promise
statement that is guaranteed to be tree
- on the dec page
- MUST exist at the time of the loss
◉ Representation. Answer: believed to be true
◉ Misrepresentation. Answer: not true but would NOT affect the
insurance company decision
◉ Material Misrepresentation. Answer: info given that is not true
and DOES affect the insuers decision
◉ concealment. Answer: failure to disclose information ---- if
intentional than coverage will be voided
, ◉ fraud. Answer: intentional misrepresentation of an existing,
important fact
◉ Insuring agreement. Answer: summarizes the major promises of
the insurer --- what perils are covered
◉ duties after loss. Answer: - Prompt notice to insurer
- Protect from further damage
- Complete proof of loss - 91 days!!! From when the claim form is
sent
- Make propert available for inspection
- Submit to examination under oath of required
- Coorperate with insurer
◉ Salvage. Answer: -when a total loss occurs, estimated repair costs
are greater than the ACV
- INSURER has the right of salvage, not the insured , IF the insured
agrees to surrender title for claim settlement
◉ how long is a binder good for?. Answer: 30 days
◉ manual rate class. Answer: set rates for specific risk classes
SCRIPT 2026 QUESTIONS AND ANSWERS
GUARANTEED TO PASS
◉ Mutual Insurer/Company. Answer: -owned by policy holders
-dividend is paid to policy holder
- dividend is not taxable
◉ Texas Llyods. Answer: regulated by the texas insurance code
- must consist of min 10 UWs
- managed by an attorney in fact
- Lloyds must be a member of TWIA where applicable
- Lloyds much be a member of the Tex Prop and Casualty Insurance
Guartny Fund
◉ Self Insurers. Answer: business pays its own claims but must
obtain cert of authorit from TDI
◉ domestic vs foreign vs alien. Answer: Dom - state where a
company is incorporated
Foreign - Company is inc in another state of US territory
Alien- company is inc in another country
,◉ Certificate of Authority. Answer: state license for an insurance
company
- Authorized (admittted ) COA
- unauthorized (nonadmitted) no COA
◉ Direct REsponse Carrier. Answer: no agent/producer - mass
advertisements
◉ Law of Agency. Answer: relationship between agent/principal
- ins agent acts on behalf of the principal (insurance company)
- insurance company is liable for agents actions and statements
◉ responsibility of agent to applicants/insured. Answer: -promptly
send premium to insurer
-does not comingle funds
-fidciary = trust
- premiums = fiduciary funds
◉ Elements of a Legal Contract. Answer: CLOAC
Consideration - MUST BE EXCHANGE OF VALUE
Legal Purpose - cannot break low
,Offer -
Acceptance
Competent Parties
◉ Indemnity =. Answer: restore
◉ warranty. Answer: written promise
statement that is guaranteed to be tree
- on the dec page
- MUST exist at the time of the loss
◉ Representation. Answer: believed to be true
◉ Misrepresentation. Answer: not true but would NOT affect the
insurance company decision
◉ Material Misrepresentation. Answer: info given that is not true
and DOES affect the insuers decision
◉ concealment. Answer: failure to disclose information ---- if
intentional than coverage will be voided
, ◉ fraud. Answer: intentional misrepresentation of an existing,
important fact
◉ Insuring agreement. Answer: summarizes the major promises of
the insurer --- what perils are covered
◉ duties after loss. Answer: - Prompt notice to insurer
- Protect from further damage
- Complete proof of loss - 91 days!!! From when the claim form is
sent
- Make propert available for inspection
- Submit to examination under oath of required
- Coorperate with insurer
◉ Salvage. Answer: -when a total loss occurs, estimated repair costs
are greater than the ACV
- INSURER has the right of salvage, not the insured , IF the insured
agrees to surrender title for claim settlement
◉ how long is a binder good for?. Answer: 30 days
◉ manual rate class. Answer: set rates for specific risk classes
