TEXAS SURPLUS LINES FINAL STUDY PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Because Celina had three auto accidents during the past nine
months, ABC Insurance Company does not want to provide coverage
after the current policy expires. What will ABC send Celina to notify
her of its decision? Answer: a nonrenewal notice
◉ Tyrone, unable to find a Texas insurer that will cover his business
risks, wants to buy insurance from Outcast Insurance, which is based
in Omaha, Nebraska. Outcast is not authorized to do business in
Texas. Who can Tyrone turn to for assistance in buying this
insurance? Answer: A surplus lines agent
◉ In which case would the risk most likely be subject to coverage
under a surplus lines insurance policy? Answer: Easy Company of
Edinburgh cannot find a Texas insurer willing to insure a risk located
in San Antonio
◉ Adrienne, a surplus lines agent in Texas, renews a client's surplus
lines policy. The effective date is May 1. What is the latest date on
which she can file the policy with the Surplus Lines Stamping Office?
Answer: June 30
, ◉ Atlas Insurance, an insurance company domiciled in Tulsa,
Oklahoma, wants to transact insurance in Texas. What must it obtain
from the Texas Insurance Commissioner? Answer: Certificate of
authority
◉ Wanda suggests to a client that his credit rating might suffer if he
does not purchase a homeowners insurance policy from her. In
doing this, Wanda has committed the practice of: Answer: coercion
◉ Ivy's personal auto provide primary liability coverage with a
$100,000 limit, while her personal umbrella policy provides excess
coverage with a $1 million limit. If Ivy must pay $55,000 in damages
because she is responsible for an auto accident: Answer: her
personal auto policy will pay $55,000
◉ When used in property insurance policies, the term "salvage"
refers to: Answer: insured property that has been damaged due to a
covered peril
◉ On May 1, Hector closes the file on a surplus lines insurance policy
that his client canceled. For how long must Hector keep the records
in this file? Answer: Until May 1 three years from now
◉ The state tax on the premium paid for surplus lines insurance is
based on a percentage of: Answer: gross premium
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Because Celina had three auto accidents during the past nine
months, ABC Insurance Company does not want to provide coverage
after the current policy expires. What will ABC send Celina to notify
her of its decision? Answer: a nonrenewal notice
◉ Tyrone, unable to find a Texas insurer that will cover his business
risks, wants to buy insurance from Outcast Insurance, which is based
in Omaha, Nebraska. Outcast is not authorized to do business in
Texas. Who can Tyrone turn to for assistance in buying this
insurance? Answer: A surplus lines agent
◉ In which case would the risk most likely be subject to coverage
under a surplus lines insurance policy? Answer: Easy Company of
Edinburgh cannot find a Texas insurer willing to insure a risk located
in San Antonio
◉ Adrienne, a surplus lines agent in Texas, renews a client's surplus
lines policy. The effective date is May 1. What is the latest date on
which she can file the policy with the Surplus Lines Stamping Office?
Answer: June 30
, ◉ Atlas Insurance, an insurance company domiciled in Tulsa,
Oklahoma, wants to transact insurance in Texas. What must it obtain
from the Texas Insurance Commissioner? Answer: Certificate of
authority
◉ Wanda suggests to a client that his credit rating might suffer if he
does not purchase a homeowners insurance policy from her. In
doing this, Wanda has committed the practice of: Answer: coercion
◉ Ivy's personal auto provide primary liability coverage with a
$100,000 limit, while her personal umbrella policy provides excess
coverage with a $1 million limit. If Ivy must pay $55,000 in damages
because she is responsible for an auto accident: Answer: her
personal auto policy will pay $55,000
◉ When used in property insurance policies, the term "salvage"
refers to: Answer: insured property that has been damaged due to a
covered peril
◉ On May 1, Hector closes the file on a surplus lines insurance policy
that his client canceled. For how long must Hector keep the records
in this file? Answer: Until May 1 three years from now
◉ The state tax on the premium paid for surplus lines insurance is
based on a percentage of: Answer: gross premium
