Texas State Law portion Verified Multiple
Choice and Conceptual Actual Frequently
Tested Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. The Commissioner of Insurance is:
A) The chief financial officer of the state
B) A member of the state legislature
C) The department of insurance's chief executive and administrative officer
D) The head of the state board of insurance
2. Who appoints the Commissioner of Insurance, and for how long?
A) The President for four years
B) The Governor for a two-year term ending February 1 of each odd-numbered
year
C) The Legislature for three years
D) The Insurance Board for a one-year term
3. The Commissioner of Insurance must be:
A) A licensed insurance producer
B) A competent and experienced administrator, well informed about insurance
regulation, and have at least five years’ experience as an executive in business,
government, or as a practicing attorney or CPA
,C) A Texas resident for at least 10 years
D) A certified actuary
4. The Commissioner must provide a surety bond in the amount of:
A) $10,000
B) $25,000
C) $50,000
D) $100,000
5. The general powers and duties of the Commissioner of Insurance include:
A) Enforcing only auto insurance laws
B) Administering, enforcing, and carrying out the provisions of the Texas
Insurance Code and other applicable laws, including the calculation of insurance
reserves
C) Supervising local insurance agents
D) Regulating federal insurance programs
6. Regarding electronic transfers, the Commissioner:
A) Has no authority over them
B) Only regulates private business transactions
C) Regulates the electronic transfer of any fee, guarantee fund, or other money
owed or held for the state, and requires such transfer if the amount exceeds
$500,000
D) Must approve every transaction under $100,000
7. On December 31 of each year, the Department of Insurance must:
A) Recalculate all insurance premiums
B) Issue new licenses for insurers
C) Compute the reinsurance reserve for all unexpired risks of every insurer doing
,business in Texas
D) Review insurance claim payouts
8. If the Department of Insurance receives a written complaint against an insurer
or producer, it must:
A) Discard it if the claim is under $500
B) Only notify the insurer
C) Notify each party of the complaint’s status at least quarterly until resolved,
unless doing so would jeopardize an undercover investigation
D) Immediately revoke the insurer’s license
in addition to the other duties required of the texas department of insurance, the
department shall - ANSWER - regulate the business of insurance in Texas,
- administer the worker's comp system of Texas
- ensure that this code and other laws regarding insurance are executed
- protect and ensure the fair treatment of consumers, and ensure fair
competition
what does examinations of records do - ANSWER analyze the insurer, its
financial condition, its ability to meet its liabilities and its compliance with state
laws
who does the examination of records apply to - ANSWER insurers authorized
to transact business in Texas, including foreign insurers
an agent or insurer receiving an examination inquiry must respond to the inquiry
in writing within how many days - ANSWER 10 days
, frequency of examination - ANSWER the department may examine a carrier
as frequently as necessary, and at least once every five years
the department has the following powers regarding examinations - ANSWER
free access to all books and papers that relate to the carrier's business and affairs,
authority to summon and examine under oath an employee of the carrier or any
other person in relation to the carrier's affairs
cease and desist orders - ANSWER requires violators of the Texas insurance
code to cease and desist immediately from prohibited acts, methods, or practices
the commissioner may issue an emergency cease and desist order if - ANSWER
an authorized person commits an unfair method of competition or a deceptive
act or practice, an unauthorized person engages in the business of insurance, or it
appears to the Commissioner that the alleged conduct is fraudulent or hazardous,
endangers public safety, or can cause significant, imminent, and irreparable public
injury
a cease and desist order must contain - ANSWER the name and last known
address of the person against whom the order is entered, a short statement of the
immediate danger presented by the prohibited conduct and of the factual bases
of the order, a statement of the rights of the person, a statement of the penalties
which may be assessed, and a requirement that the person immediately cease
and desist from the acts stated
Choice and Conceptual Actual Frequently
Tested Exam Questions With Reviewed 100%
Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. The Commissioner of Insurance is:
A) The chief financial officer of the state
B) A member of the state legislature
C) The department of insurance's chief executive and administrative officer
D) The head of the state board of insurance
2. Who appoints the Commissioner of Insurance, and for how long?
A) The President for four years
B) The Governor for a two-year term ending February 1 of each odd-numbered
year
C) The Legislature for three years
D) The Insurance Board for a one-year term
3. The Commissioner of Insurance must be:
A) A licensed insurance producer
B) A competent and experienced administrator, well informed about insurance
regulation, and have at least five years’ experience as an executive in business,
government, or as a practicing attorney or CPA
,C) A Texas resident for at least 10 years
D) A certified actuary
4. The Commissioner must provide a surety bond in the amount of:
A) $10,000
B) $25,000
C) $50,000
D) $100,000
5. The general powers and duties of the Commissioner of Insurance include:
A) Enforcing only auto insurance laws
B) Administering, enforcing, and carrying out the provisions of the Texas
Insurance Code and other applicable laws, including the calculation of insurance
reserves
C) Supervising local insurance agents
D) Regulating federal insurance programs
6. Regarding electronic transfers, the Commissioner:
A) Has no authority over them
B) Only regulates private business transactions
C) Regulates the electronic transfer of any fee, guarantee fund, or other money
owed or held for the state, and requires such transfer if the amount exceeds
$500,000
D) Must approve every transaction under $100,000
7. On December 31 of each year, the Department of Insurance must:
A) Recalculate all insurance premiums
B) Issue new licenses for insurers
C) Compute the reinsurance reserve for all unexpired risks of every insurer doing
,business in Texas
D) Review insurance claim payouts
8. If the Department of Insurance receives a written complaint against an insurer
or producer, it must:
A) Discard it if the claim is under $500
B) Only notify the insurer
C) Notify each party of the complaint’s status at least quarterly until resolved,
unless doing so would jeopardize an undercover investigation
D) Immediately revoke the insurer’s license
in addition to the other duties required of the texas department of insurance, the
department shall - ANSWER - regulate the business of insurance in Texas,
- administer the worker's comp system of Texas
- ensure that this code and other laws regarding insurance are executed
- protect and ensure the fair treatment of consumers, and ensure fair
competition
what does examinations of records do - ANSWER analyze the insurer, its
financial condition, its ability to meet its liabilities and its compliance with state
laws
who does the examination of records apply to - ANSWER insurers authorized
to transact business in Texas, including foreign insurers
an agent or insurer receiving an examination inquiry must respond to the inquiry
in writing within how many days - ANSWER 10 days
, frequency of examination - ANSWER the department may examine a carrier
as frequently as necessary, and at least once every five years
the department has the following powers regarding examinations - ANSWER
free access to all books and papers that relate to the carrier's business and affairs,
authority to summon and examine under oath an employee of the carrier or any
other person in relation to the carrier's affairs
cease and desist orders - ANSWER requires violators of the Texas insurance
code to cease and desist immediately from prohibited acts, methods, or practices
the commissioner may issue an emergency cease and desist order if - ANSWER
an authorized person commits an unfair method of competition or a deceptive
act or practice, an unauthorized person engages in the business of insurance, or it
appears to the Commissioner that the alleged conduct is fraudulent or hazardous,
endangers public safety, or can cause significant, imminent, and irreparable public
injury
a cease and desist order must contain - ANSWER the name and last known
address of the person against whom the order is entered, a short statement of the
immediate danger presented by the prohibited conduct and of the factual bases
of the order, a statement of the rights of the person, a statement of the penalties
which may be assessed, and a requirement that the person immediately cease
and desist from the acts stated
