AD Banker Texas State Insurance
Laws Exam Questions and Answers
Which of the following is not a duty the Commissioner must administer?
a. Enforce state insurance laws
b. Make state insurance laws
c. Develop and implement regulatory policy
d. Approve an insurance license for a producer - correct Answer-b. Make state
insurance laws
The Department must examine each insurance company at least once every _____
years.
a. 3
b. 4
c. 5
d. 7 - correct Answer-c. 5
Inquiries - correct Answer-must respond to it in writing no later than 15 days after
receipt unless the person submits a written notice to the Department requesting
additional time to respond.
The Commissioner can take all the following actions if insurance laws are violated,
except:
a. Order the licensee to pay an administrative penalty and/or make restitution
b. Imprison any violator
c. Issue a cease and desist order
d. Suspend, revoke, or deny a license - correct Answer-b. Imprison any violator
Request for Hearing - correct Answer-not later than 30 days after the date on which the
person receives the order
Hearing - correct Answer-The TDI/Commissioner must give at least 10 days advance
notice
Certificate of Authority - correct Answer-the Commissioner must provide the insurer with
at least 10 days' advance written notice before such revocation or modification.
Texas Lloyds companies are considered:
a. Nonadmitted insurers
b. Unauthorized insurers
c. Admitted insurers
, d. Ineligible insurers - correct Answer-c. Admitted insurers
All of the following must be filed with the Commissioner of Insurance in Texas, except:
a. Rate schedules
b. Policy forms
c. Endorsements
d. Commission schedules - correct Answer-d. Commission schedules
In Texas, an insurer is permitted to assess a renewal surcharge on a homeowners
policy if the insured submits how many non weather-related claims within the past 3
policy years?
a. 5
b. 2
c. 3
d. 4 - correct Answer-b. 2
The purpose of the Texas FAIR Plan Association is to:
a. Insure property owners who are unable to obtain insurance coverage in the regular
market
b. Review premium rates to investigate allegations of discrimination
c. Handle insurance complaints by policyholders
d. Mediate claim disagreements between insurers and policyholders - correct Answer-a.
Insure property owners who are unable to obtain insurance coverage in the regular
market
Under the Texas Windstorm Insurance Association, an area where windstorm and hail
insurance is not reasonably available because of severe damage from storms is
considered a(n):
a. Disaster area
b. Catastrophic area
c. Emergency zone
d. Uninsurable area - correct Answer-b. Catastrophic area
All of the following are motor vehicles under TX law, except:
a. A pickup truck
b. A train
c. A car towing a boat
d. A car towing a boat - correct Answer-b. A train
An automobile liability policy in Texas must provide which of the following coverages?
a. Medical payments
b. Bodily injury, death, and property damage
c. Uninsured and underinsured motorist
d. Bodily injury, death, and PIP - correct Answer-b. Bodily injury, death, and property
damage
Laws Exam Questions and Answers
Which of the following is not a duty the Commissioner must administer?
a. Enforce state insurance laws
b. Make state insurance laws
c. Develop and implement regulatory policy
d. Approve an insurance license for a producer - correct Answer-b. Make state
insurance laws
The Department must examine each insurance company at least once every _____
years.
a. 3
b. 4
c. 5
d. 7 - correct Answer-c. 5
Inquiries - correct Answer-must respond to it in writing no later than 15 days after
receipt unless the person submits a written notice to the Department requesting
additional time to respond.
The Commissioner can take all the following actions if insurance laws are violated,
except:
a. Order the licensee to pay an administrative penalty and/or make restitution
b. Imprison any violator
c. Issue a cease and desist order
d. Suspend, revoke, or deny a license - correct Answer-b. Imprison any violator
Request for Hearing - correct Answer-not later than 30 days after the date on which the
person receives the order
Hearing - correct Answer-The TDI/Commissioner must give at least 10 days advance
notice
Certificate of Authority - correct Answer-the Commissioner must provide the insurer with
at least 10 days' advance written notice before such revocation or modification.
Texas Lloyds companies are considered:
a. Nonadmitted insurers
b. Unauthorized insurers
c. Admitted insurers
, d. Ineligible insurers - correct Answer-c. Admitted insurers
All of the following must be filed with the Commissioner of Insurance in Texas, except:
a. Rate schedules
b. Policy forms
c. Endorsements
d. Commission schedules - correct Answer-d. Commission schedules
In Texas, an insurer is permitted to assess a renewal surcharge on a homeowners
policy if the insured submits how many non weather-related claims within the past 3
policy years?
a. 5
b. 2
c. 3
d. 4 - correct Answer-b. 2
The purpose of the Texas FAIR Plan Association is to:
a. Insure property owners who are unable to obtain insurance coverage in the regular
market
b. Review premium rates to investigate allegations of discrimination
c. Handle insurance complaints by policyholders
d. Mediate claim disagreements between insurers and policyholders - correct Answer-a.
Insure property owners who are unable to obtain insurance coverage in the regular
market
Under the Texas Windstorm Insurance Association, an area where windstorm and hail
insurance is not reasonably available because of severe damage from storms is
considered a(n):
a. Disaster area
b. Catastrophic area
c. Emergency zone
d. Uninsurable area - correct Answer-b. Catastrophic area
All of the following are motor vehicles under TX law, except:
a. A pickup truck
b. A train
c. A car towing a boat
d. A car towing a boat - correct Answer-b. A train
An automobile liability policy in Texas must provide which of the following coverages?
a. Medical payments
b. Bodily injury, death, and property damage
c. Uninsured and underinsured motorist
d. Bodily injury, death, and PIP - correct Answer-b. Bodily injury, death, and property
damage
