Insurance MCQ

Except for non-payment of premium, insurers non-renewing commercial policies in this state must give _____days' advance notice to the first named insured: Answer: 60

If an insured with a Personal Auto Policy has minimum limits, what is the most that their insurer will pay to others for injury and/or damage caused by the insured in an at-fault auto accident: Answer: $85,000

The federal government writes certain types of insurance for all of the following reasons EXCEPT to: A.Provide catastrophic coverage B.Encourage economic activity C.Meet social needs D.Reduce fraud Answer: D.Reduce fraud

What company usually writes Surplus Lines coverage in Texas: Answer: An unauthorized company

A person who is in charge of supervision and the collection of premiums on behalf of a reciprocal insurer is known as a(n): Answer: Attorney-in-Fact

When an insurer elects to base their rates on their underwriting experience rather than upon actuarial data, they are utilizing: Answer: Judgment rating

When canceling a commercial liability policy after 60 days, an insurer must give the first named insured: Answer: 10 days advance written notice and a pro-rata refund

If an injury covered by Workers Compensation results in an employee's death, the insurer must pay a death benefit to the employee's legal beneficiary in the amount of ____% of the employee's average weekly wage: Answer: 75

All of the following are true about Surplus Lines insurers EXCEPT: A.They sell mostly L&H insurance B.They are non-admitted C.They are unregulated D.They are unauthorized Answer: A.They sell mostly L&H insurance

If an insurer wants to non-renew a Personal Auto Policy, they must give the insured ____ days advance written notice. Answer: 30

The Commissioner shall approve a reasonable plan for the apportionment among authorized companies the applicants for auto insurance who are in good faith entitled to but are unable to procure insurance through ordinary means. This is known as: Answer: The Texas Auto Insurance Plan

Which of the following is NOT a valid reason for an employer to elect to self insure for Workers Compensation: A.Statutory benefits are minimal B.Excess Workers Compensation coverage is available from insurers C.Losses are fairly predictable D.Self insured programs are easy and inexpensive to administer Answer: A.Statutory benefits are minimal

What type of insurance is unregulated by state law: Answer: Ocean marine

You sell a Homeowner's policy. You may share your commission with: Answer: Any licensed Property and Casualty agent

Except for non-payment of premium, insurers non-renewing commercial policies in this state must give _____days' advance notice to the first named insured: Answer: 60

Binders must be replaced by an original policy within ____ days: Answer: 30

Liquid monies kept by insurers in order to honor their future liabilities to policy holders are called: Answer: Legal reserves

Agents have immunity from lawsuits for reporting fraud to all of the following EXCEPT: A.The National Association of Insurance Commissioners (NAIC) B.The insurer's fraud investigation unit C.The Department of Insurance D.The claimant Answer: D.The claimant

If an insurer finds that the insured is guilty of material misrepresentation in connection with an auto insurance claim, they will most likely: Answer: Send 10 days advance notice of cancellation

When non-renewing a commercial liability policy, the insurer must give ____ days advance written notice to the first named insured: Answer: 60