TEXAS SURPLUS LINES ACTUAL EXAM SCRIPT
2026 QUESTIONS AND ANSWERS 100%
CORRECT
◉ State Regulation. Answer: The Texas legislature passes statues (laws)
that are known as the Texas Insurance Code. The Texas Department of
Insurance (TDI) is charged with making rules and regulations necessary
to enforce the code. The commissioner of insurance runs the TDI and
most insurance regulation takes place at the state level.
◉ Self Regulation. Answer: Business that chose to self-insurance must
operate efficiently and most set up formal programs. Most purchase
reinsurance to protect themselves from catastrophic claims.
◉ Fair Credit Reporting Act (FCRA). Answer: established procedures
that consumer-reporting agencies must follow in order to ensure that
records are confidential, accurate, relevant, and properly used. The law
also protects consumers against the circulation of inaccurate or obsolete
personal or financial information.
◉ Gramm Leach Bliley Act. Answer: (privacy protection) stipulates that,
in general, a financial institution may not disclose nonpublic, personal
information to a nonaffiliated third party except for the following
reasons:
, a. the insurance company lets them know they are doing it
b. they let the consumer opt out
c. the consumer is given an explanation on how they can exercise a
nondisclosure option.
◉ Terrorism Risk Insurance Program Reauthorization Act of 2104.
Answer: Government pays insurance companies for covered terrorism
losses in some commercial policies.
◉ Domicile. Answer: Insurance companies are classified according to
the location of incorporation. Regardless of where an insurance
company is incorporated, it must obtain a Certificate of Authority before
transacting insurance within the state if not a surplus lines insurer.
◉ Domestic. Answer: an insurance company that is incorporated in this
state
◉ Foreign. Answer: An insurance company that is incorporated in
another state or territorial possession.
◉ Alien. Answer: An insurance company that is incorporated outside the
United States.
◉ Surplus Lines. Answer: Every state makes certain exceptions to allow
unauthorized or Non admitted insurers to transact business within the
2026 QUESTIONS AND ANSWERS 100%
CORRECT
◉ State Regulation. Answer: The Texas legislature passes statues (laws)
that are known as the Texas Insurance Code. The Texas Department of
Insurance (TDI) is charged with making rules and regulations necessary
to enforce the code. The commissioner of insurance runs the TDI and
most insurance regulation takes place at the state level.
◉ Self Regulation. Answer: Business that chose to self-insurance must
operate efficiently and most set up formal programs. Most purchase
reinsurance to protect themselves from catastrophic claims.
◉ Fair Credit Reporting Act (FCRA). Answer: established procedures
that consumer-reporting agencies must follow in order to ensure that
records are confidential, accurate, relevant, and properly used. The law
also protects consumers against the circulation of inaccurate or obsolete
personal or financial information.
◉ Gramm Leach Bliley Act. Answer: (privacy protection) stipulates that,
in general, a financial institution may not disclose nonpublic, personal
information to a nonaffiliated third party except for the following
reasons:
, a. the insurance company lets them know they are doing it
b. they let the consumer opt out
c. the consumer is given an explanation on how they can exercise a
nondisclosure option.
◉ Terrorism Risk Insurance Program Reauthorization Act of 2104.
Answer: Government pays insurance companies for covered terrorism
losses in some commercial policies.
◉ Domicile. Answer: Insurance companies are classified according to
the location of incorporation. Regardless of where an insurance
company is incorporated, it must obtain a Certificate of Authority before
transacting insurance within the state if not a surplus lines insurer.
◉ Domestic. Answer: an insurance company that is incorporated in this
state
◉ Foreign. Answer: An insurance company that is incorporated in
another state or territorial possession.
◉ Alien. Answer: An insurance company that is incorporated outside the
United States.
◉ Surplus Lines. Answer: Every state makes certain exceptions to allow
unauthorized or Non admitted insurers to transact business within the
