Questions and Answers
Which regulatory body handles violations of each related insurance issue only?
TIC - Texas Insurance Code
What license carries the minimum requirements to handle homeowners claims?
Property, Casualty and Surety
Most workers' comp policies have what type of policy limit?
None
Which one of the following penalties or remedies is not valid under the DTPA?
Signup and view all the answers
Which one of the following is not a qualification to become an adjuster?
Signup and view all the answers
In the mid 1900's insurers shifted focus on claims handling from field adjusting to in-office adjusting. This change in claims handling was known as ________?
Signup and view all the answers
When the dealers negotiated an agreement on purchasing drugs, they were of age and there was a monetary exchange. Which of the following nullifies this transaction as a 'contract'?
Signup and view all the answers
Which of the following is not allowed to handle property or auto claims for an insurance carrier?
Signup and view all the answers
In workers' comp, what is utilized to monitor the frequency of medical visits?
Signup and view all the answers
Which of the following is a workers' comp regulatory entity?
Signup and view all the answers
Which of the following is allowed to handle property claims for an insurance carrier?
Signup and view all the answers
What does IME stand for?
Signup and view all the answers
Which of the following is not a source of legal liability?
Signup and view all the answers
What is TIC?
Signup and view all the answers
An individual who investigates or adjusts losses or supervises the handling of claims is known as an?
Signup and view all the answers
Which of the following is a compensatory damage?
Signup and view all the answers
Under the TIC remedies, what is the cap for punitive damages?
Signup and view all the answers
Which of the following methods to control medical costs would not be included in a workers' comp policy?
Signup and view all the answers
The courts have interpreted that an insured or third-party beneficiary to an insurance policy can be recognized as a __________ under the TIC.
Signup and view all the answers
This position is the insurer's direct representative with the insured, claimant, attorney, etc.
Signup and view all the answers
What is the best description of a 'competent party'?
Signup and view all the answers
The Texas Workers' Comp Act limits a covered employer's liability to a schedule of benefits. Which benefit is not included?
Signup and view all the answers
An emergency licensed adjuster can work for _____________ days before submitting the actual license application.
Signup and view all the answers
Workers' comp has how many regulatory entities in Texas?
Signup and view all the answers
Which of the following will not likely be involved or included in a workers' comp investigation?
Signup and view all the answers
What regulatory body or statute handles consumer protection violations of most business-related issues in Texas?
Signup and view all the answers
Pursuant to Texas Insurance Code (TIC), which of the following is not exempt from the requirement of an adjuster's license examination?
Signup and view all the answers
Which of the following is an 'exemplary damage'?
Signup and view all the answers
The insurance company function that is responsible for handling payment of claims is?
Signup and view all the answers
What is TDI?
Signup and view all the answers
An insured is also considered a ________ under the DTPA.
Signup and view all the answers
The body of law can be divided into 2 categories. Which of the following is a category?
Signup and view all the answers
Which of the following could be a violation of the Unfair Claims Settlement Practices Act?
Signup and view all the answers
The claims adjusting process consists of 3 major elements. Which of the following is NOT one of the elements?
Signup and view all the answers
A person, entity, or organization known as the 2nd party is referred to as the?
Signup and view all the answers
What is DTPA?
Signup and view all the answers
In a bond transaction, the entity that makes the commitment and is sometimes referred to as the 'obligator' is the?
Signup and view all the answers
Courts that have jurisdiction over matters pertaining to the sea are known as ______________ courts.
Signup and view all the answers
Most insurance policies are considered two-party contracts, whereas bond transactions usually involve ___________ party(ies).
Signup and view all the answers
Which of the following is not a party to a bond?
Signup and view all the answers
In a typical homeowners policy, the expense incurred BEYOND the normal daily expense of maintaining a household subsequent to a covered loss would be ___________.
Signup and view all the answers
The standard fire policy was truly standardized in what year?
Signup and view all the answers
In a typical homeowners insurance policy, the price of a 'unit' of insurance determines the exposure to a risk. This is referred to as ____________.
Signup and view all the answers
Inland marine insurance can be classified by all the following except:
Signup and view all the answers
Which of the following statements is most true regarding bonds?
Signup and view all the answers
Even though most perils are covered in an 'All-Risk' homeowners policy, what would not be covered?
Signup and view all the answers
What is the amount payable under a homeowners insurance policy with the following facts: 1) 1% deductible, 2) $10,000 loss, 3) $150,000 Coverage A limit?
Signup and view all the answers
According to most homeowners insurance policies, which of the following is the definition of 'RISK'?
Signup and view all the answers
The TSFP is considered a ____________ policy.
Signup and view all the answers
Homeowner policies are considered ______ policies since they provide both property and liability.
Signup and view all the answers
How many sections does the HO-2 policy have?
Signup and view all the answers
In a typical homeowners insurance policy, an 'All Risk' (special) policy is usually responsible for _____________.
Signup and view all the answers
An adjuster for marine losses is known as?
Signup and view all the answers
What peril does the standard fire policy cover?
Signup and view all the answers
What type of bond would be required for a contractor to guarantee that a performance bond would be obtained prior to commencement of a job?
Signup and view all the answers
Bailees are one of the most common purchasers of inland marine insurance. What is a bailee?
Signup and view all the answers
The initial fire policy was considered a ___________ policy.
Signup and view all the answers
Inland marine insurance covers all the following except:
Signup and view all the answers
The loss payment provision in an inland marine policy states that the carrier must take action within __________ days of receipt of the proof of loss.
Signup and view all the answers
What is covered under Coverage A in the homeowners insurance policy?
Signup and view all the answers
A mathematical concept that the more times an event is repeated, the more predictable the outcome is known as __________.
Signup and view all the answers
A bond that guarantees that a contractual obligation will be met, such as a debt, duty, and/or commitment is known as a?
Signup and view all the answers
Heidi is a defendant in a lawsuit and has elected to appeal her verdict. She will need to purchase what bond?
Signup and view all the answers
What is covered under homeowners policy Coverage B?
Signup and view all the answers
The insured has an ACV policy on her residence. The replacement cost of the loss is $10,000 and the depreciation is 25%. What is the amount payable?
Signup and view all the answers
What was the year that the first independent policy combined personal liability coverage with packaged property coverages?
Signup and view all the answers
The Texas Standard Fire Policy is used exclusively for __________.
Signup and view all the answers
According to the typical homeowners policy, what is the payable if the tree is blown onto the dwelling by a covered peril?
Signup and view all the answers
Under the ISO homeowners policy, what would be covered under Coverage C?
Signup and view all the answers
What of the following is not part of most insurance policies and contracts?
Signup and view all the answers
What coverage pays for lost wages in the Texas PAP?
Signup and view all the answers
What coverage pays for household or replacement services if needed due to an injury in an auto accident?
Signup and view all the answers
What coverage is mandatory to offer to prospective insureds?
Signup and view all the answers
When crossing state lines, the auto limit of liability coverage will __________.
Signup and view all the answers
Which of the following is not a penalty for violating financial responsibility laws in Texas?
Signup and view all the answers
According to the TPAP, Coverage D is __________.
Signup and view all the answers
Regarding liability, Texas is considered a ______ state.
Signup and view all the answers
Hail damage to an insured vehicle would be paid under what coverage?
Signup and view all the answers
ISO stands for?
Signup and view all the answers
Which of the following perils is not covered under the 'comp coverage'?
Signup and view all the answers
Coverage C under the TPAP is?
Signup and view all the answers
AAIS stands for?
Signup and view all the answers
___________ contracts and policies are drafted to meet the specific needs of a state, company, and/or policyholder.
Signup and view all the answers
TPAP stands for?
Signup and view all the answers
According to the TPAP, it will provide liability coverage for any insured __________.
Signup and view all the answers
The TPAP is based on what type of driver?
Signup and view all the answers
What contracts or policies are consistent from state to state?
Signup and view all the answers
A legal term applying to third-party claims meaning to pay back or make whole is?
Signup and view all the answers
What is not listed on the declarations page of a commercial property policy?
Signup and view all the answers
What of the following is not a person identified as a 'premises liability' claimant?
Signup and view all the answers
AIC stands for?
Signup and view all the answers
What form of the commercial property policy is an 'open peril' 'all risk' policy?
Signup and view all the answers
What CGL policy is commonly utilized?
Signup and view all the answers
Which of the following is not an element of tort and negligence?
Signup and view all the answers
Which of the following is not a type of 'absolute liability'?
Signup and view all the answers
The commercial property insurance policy utilizes the ______________ coverage.
Signup and view all the answers
Which CGL coverage addresses personal injury and advertising injury?
Signup and view all the answers
The necessary increase in living expense resulting from a loss by a covered peril incurred by the insured is?
Signup and view all the answers
What is the statute of limitations for a liability claim in Texas?
Signup and view all the answers
Derived from statutory and case law of England and the American colonies, this is known as?
Signup and view all the answers
Study Notes
Texas Insurance Code and Regulatory Entities
- TIC refers to the Texas Insurance Code, which addresses violations related to insurance issues.
- The Texas Workers' Compensation Commission is a key regulatory entity for workers' compensation matters in Texas.
- The Texas Department of Insurance (TDI) oversees insurance companies, agents, and adjusters.
Licensing and Adjuster Qualifications
- The minimum license required to handle homeowners' claims is Property, Casualty, and Surety.
- Adjusters do not need an MBA in insurance to qualify.
- An emergency licensed adjuster can operate for up to five days before submitting a full license application.
Claims Handling Practices
- Claim centralization marked the transition from field adjusting to in-office claims management in the mid-1900s.
- There are two regulatory entities governing workers' compensation in Texas.
Compensation and Damages
- Compensatory damages are designed to punish wrongdoers, often through punitive measures.
- Under TIC, punitive damages are capped at twice the actual damages.
- The term "consumer" under the DTPA designates an insured individual.
Insurance Policy Features
- Homeowners' policies typically cover living expenses incurred beyond normal costs due to loss, known as Additional Living Expense (ALE).
- The standard fire policy was standardized in 1943 and only covers fire as a peril.
- Homeowners' policies are classified as 'package' policies since they provide both property and liability coverage.
Coverage Specifics
- Coverage A in homeowners policies addresses dwelling, while Coverage B pertains to additional structures like fences.
- The Texas Personal Auto Policy (TPAP) includes mandatory Personal Injury Protection (PIP) coverage.
- Coverage C under TPAP refers to Uninsured Motorist (UM) coverage.
Claims Investigation and Practices
- Utilization review is employed in workers' compensation to monitor medical visit frequencies.
- Adjusters are expected to manage claims, including supervising the handling of property and auto claims.
Legal Principles and Liability
- Indemnification refers to the legal principle of making a party whole in third-party claims.
- Texas operates under comparative negligence laws concerning liability claims.
Miscellaneous Facts
- The law of large numbers states that the predictability of outcomes increases with repeated events.
- Common law originates from both statutory and case law established in England and American colonies.
- The statute of limitations for liability claims in Texas is set at two years.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers key aspects of the Texas Insurance Code and its regulatory entities, including licensing and qualifications for adjusters. It also addresses claims handling practices and the purpose of compensatory damages. Test your knowledge on Texas insurance regulations and practices.