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Questions and Answers
In a Stock Insurance Company, who are the owners and what is their primary source of return on investment?
In a Stock Insurance Company, who are the owners and what is their primary source of return on investment?
What is the key benefit of being a policyholder in a Mutual Insurance Company?
What is the key benefit of being a policyholder in a Mutual Insurance Company?
What is the primary function of a Joint Underwriting Association (JUA)?
What is the primary function of a Joint Underwriting Association (JUA)?
What is a key requirement for an individual to obtain a General Lines Property and Casualty Agent license in Texas?
What is a key requirement for an individual to obtain a General Lines Property and Casualty Agent license in Texas?
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Which of the following activities are NOT considered transacting insurance in the context of a Joint Underwriting Association (JUA)?
Which of the following activities are NOT considered transacting insurance in the context of a Joint Underwriting Association (JUA)?
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A corporation seeking to sell insurance in Texas must meet which criteria?
A corporation seeking to sell insurance in Texas must meet which criteria?
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What is a temporary agent license, and what is its duration?
What is a temporary agent license, and what is its duration?
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What is the primary difference between a Stock Insurer and a Mutual Insurer?
What is the primary difference between a Stock Insurer and a Mutual Insurer?
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What is a requirement for a non-resident agent to sell insurance in Texas?
What is a requirement for a non-resident agent to sell insurance in Texas?
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Which of the following describes a Limited Lines Agent?
Which of the following describes a Limited Lines Agent?
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What must a non-resident agent submit to obtain a license in Texas?
What must a non-resident agent submit to obtain a license in Texas?
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In what situation can an Emergency License be granted?
In what situation can an Emergency License be granted?
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What is required for a state to grant a non-resident agent a license?
What is required for a state to grant a non-resident agent a license?
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Study Notes
Stock Insurers
- Owned by shareholders who elect a board of directors to guide the insurer
- Shareholders receive taxable dividends as a return on profit
- Dividends are not guaranteed
Mutual Insurers
- Owned by policyholders who elect a board of directors
- Policyholders receive non-taxable dividends as a refund of unused premium
- Dividends are not guaranteed
Lloyd's of Texas
- Companies composed of at least 10 underwriters (individuals, partnerships, or associations)
- Underwriters form syndicates, with each syndicate responsible for its assumed risks
- Each underwriter must be admitted and have a certificate of authority
- Each syndicate has an attorney-in-fact
Joint Underwriting Association (JUA)
- A group of insurers working together to offer coverage for challenging risks or exposures
- The Texas Medical Liability Insurance Underwriting Association is an example in Texas
- Key activities include collecting premiums/fees, issuing policies, and processing applications
- Activities like making phone calls, appointment scheduling, or claim payment do not fall under transacting insurance
General Lines Property & Casualty Agent
- Standard license type for selling various property and casualty insurance in Texas
- Applicants must be at least 18 years old, in good standing with the state, and meet application and fee requirements
- Must have passed the licensing exam within the last 12 months
- Must be a U.S. citizen
Agent Licensing as a Corporation
- Requires at least one licensed officer or partner
- No suspended or revoked licenses for officers or partners allowed
- No disciplinary actions for licensees
- Requires the corporation to submit an application and pay the necessary fees
Temporary Agent
- A temporary license valid for 180 days, non-renewable more than once in any 6-month period
- Requires 40 hours of supervised training, including 10 hours in the classroom or equivalent
Non-Resident Agent
- Residents of other states selling insurance in Texas
- Requires a valid license in their home state
- States must have a reciprocal licensing agreement with Texas
- Requires submitting a copy of their license and paying the fee
Limited Lines Agent
- License limited to specific insurance types
- Examples include prepaid legal services or minimum auto insurance
Emergency License
- Granted to individuals without needing to pass an exam
- Issued if an agent dies, becomes disabled, or becomes insolvent
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Description
Explore the different types of insurance organizations in this quiz. Learn about stock insurers, mutual insurers, Lloyd's of Texas, and Joint Underwriting Associations. Understand the unique characteristics and key functions of each type.
