Insurance Basics: Understanding Loss Settlement, Coverage, and Exclusions, Exams of Law

Download Insurance Basics: Understanding Loss Settlement, Coverage, and Exclusions and more Exams Law in PDF only on Docsity! 2024 Texas Adjuster Study Guide| 367 QUESTIONS| ANSWERS ALL CORRECT PERILS Correct Answer: A CAUSE OF PROPERTY LOSSES UNDER AN INSURANCE CONTRACT EX: WINDSTORM, HURRICANE, EXPLOSION, COLLAPSE OF BUILDING, VANDALISM, ACCIDENTAL DISCHARGE, AND THEFT LAW OF LARGE NUMBERS Correct Answer: A FUNDAMENTAL CONCEPT IN STATISTICS AND PROBABILITY THAT DESCRIBES HOW THE AVERAGE OF A RANDOMLY SELECTED LARGE SAMPLE FROM A POPULATION. IT BASICALLY RELIES ON THE PRINCIPLE THAT THE LARGER THE POOL, THE MORE PREDICTABLE THE AMOUNT OF LOSSES WILL BE IN A GIVEN PERIOD PRINCIPLE OF INDEMNITY Correct Answer: IS AN INSURANCE PRINCIPLE STATING THAT AN INSURED MAY NOT BE COMPENSATED BY INSURANCE COMPANY IN AN AMOUNT EXCEEDING THE INSURED'S ECONOMIC LOSS. LIMITS OF LIABILITY Correct Answer: THE MAXIMUM AMOUNT THAT AN INSURANCE POLICY WILL PAY. IT IS SPECIFIED ON THE POLICY DECLARATION PAGE. PROPERTY INSURANCE Correct Answer: COVERAGE FOR REAL AND PERSONAL PROPERTY AGAINST LOSS OR DAMAGE FROM PERILS INSURED AGAINST. LOSS SETTLEMENT Correct Answer: THE PROCESS USED TO DETERMINE THE AMOUNT OF THE LOSS ACTUAL CASH VALUE Correct Answer: THE VALUE OF THE PROPERTY BASED ON THE CURRENT COST TO REPLACE IT MINUS DEPRECIATION. AGREED VALUE Correct Answer: THE AMOUNT THAT THE INSURED AND INSURER AGREE UPON DURING THE TIME OF POLICY INCEPTION. REPLACEMENT COST Correct Answer: THE COST ASSOCIATED WITH REPLACING PROPERTY AT CURRENT MARKET PRICES MARKET VALUE Correct Answer: THE AMOUNT THAT THE PROPERTY IS WORTH IN A COMPETITIVE MARKET. THIS AMOUNT IS ACCEPTED BY THE BUYER AND SELLER. TORT Correct Answer: IS A WRONG THAT INVOLVES A BREACH OF CIVIL DUTY OWED TO SOMEONE ELSE. THIS BREACH DETERMINES IF THAT PERSON IS NEGLIGENCE. ELEMENTS USED TO DETERMINE NEGLIGENCE Correct Answer: A DUTY OWED, A DUTY BREACHED, PROXIMATE CAUSE, AND DAMAGES METHODS TO DETERMINE LOSS ARE: Correct Answer: ACV, MARKET VALUE, REPLACEMENT COST, AGREED VALUE CASUALTY INSURANCE Correct Answer: PROTECTS A PERSON FROM FINANCIAL LOSS ARISING FROM BODILY INJURY OR PROPERTY DAMAGE TO OTHERS HAZARD Correct Answer: IS A SITUATION THAT POSES A LEVEL OF THREAT TO LIFE, HEALTH, PROPERTY, OR ENVIRONMENT. INDIRECT LOSS Correct Answer: TYPE OF LOSS THAT DOES NOT RESULT FROM DIRECT DAMAGE OF A COVERED CAUSE OF LOSS OR PERIL BUT IS INSTEAD A CONSEQUENCE OF THE DIRECT DAMAGE LOSS. DIRECT LOSS Correct Answer: DIRECT PHYSICAL LOSS TO PROPERTY INSURING AGREEMENT Correct Answer: THIS SECTION OF THE INSURANCE POLICY SPECIFIES WHAT THE INSURANCE WILL PROVIDE COVERAGE FOR IN EXCHANGE FOR PREMIUM PAYMENTS BY THEIR CUSTOMER. DEDUCTIBLE Correct Answer: THE AMOUNT THE INSURED MUST PAY IN A LOSS BEFORE ANY PAYMENT IS DUE FROM THE INSURANCE COMPANY. WHERE IS A HOMEOWNER PERCENTAGE DEDUCTIBLE ALWAYS TAKEN FROM? Correct Answer: COVERAGE A STRUCTURE POLICY LIMITS OF LIABILITY THAT IS USED ON THE DECLARATION PAGE. CANCELLATION Correct Answer: IS THE TERMINATION OF AN INSURANCE POLICY BY EITHER SIDE AND IT MUST BE DONE IN WRITING LIABILITY Correct Answer: A PERSON IS LEGALLY LIABLE FOR AN ACCIDENT IF THAT PERSON IS FOUND RESPONSIBLE FOR BODILY INJURY OR PROPERTY DAMAGE TO ANOTHER PARTY. NEGLIGENCE Correct Answer: THE FAILURE TO EXERCISE THE CARE THAT A REASONABLY PRUDENT PERSON CAN BE CHARACTERIZED BY THE AVERAGE PERSON. ADDITIONAL LIVING EXPENSES Correct Answer: CHARGES COVERED BY HOMEOWNERS POLICY OVER AND ABOVE POLICY HOLDERS CUSTOMARY LIVING DUE TO DAMAGE BY A COVERED PERIL AND MAKES THE HOME TEMPORARY UNINHABITABLE. EXPOSURE Correct Answer: THE MEASURE OF THE POSSIBILITY OF THE LOSS COMMERCIAL GENERAL LIABILITY Correct Answer: Insurance that covers many of the common commercial general liability loss exposures faced by an organization, including its premises, operations, and products. An employee working in a customer's home trips and injures the customer causing property damage the employee and business would be covered under CATASTROPHE Correct Answer: A SEVERE DISASTER THAT INVOLVES A LARGE POPULATION AND GENERATES LARGE AMOUNT OF PROPERTY DAMAGE COMPREHENSIVE COVERAGE Correct Answer: Insurance that pays for damage to your car caused by something other than a collision, such as damage from storms, FIRE, HAIL, FALLING OBJECTS, vandalism, and theft. IT ALSO PAYS FOR A RENTAL IF YOUR CAR IS STOLEN CONCURRENT CAUSATION Correct Answer: A situation where there are 2 causes resulting in a loss and 1 of the causes is excluded while the other cause is not excluded. Unless the policy specifies otherwise, the loss is covered. Example: a policy that excludes earth movement will still pay a loss due to for or explosion that ensues directly from the earth movement. CONDITIONS Correct Answer: THE PART OF THE INSURANCE POLICY THAT DETAIL THE RIGHTS AND DUTIES OF THE INSURED AND THE INSURANCE COMPANY IN THE POLICY ENDORSEMENTS Correct Answer: IS A SPECIFIC ADDITION TO A POLICY THAT ALTERS THE COVERAGE AND THEREFORE THE PRICE OF THAT POLICY YOU CAN EITHER ADD OR REMOVE SPECIFIC TYPES OF COVERAGE DECLARATION PAGE Correct Answer: PART OF THE WRITTEN INSURANCE POLICY THAT STATES ALL THE POLICY'S SPECIFICS LIKE NAME, PROPERTY INSURED, PREMIUMS, AND THE LIMITS FOR THE COVERAGE EXCLUSIONS Correct Answer: specific hazards listed in an insurance policy for which the insurance company will not pay EX WEAR AND TEAR, RUST, ROT, CONTAMINATION, AND MECHANICAL BREAKDOWN MATERIAL MISREPRESENTATION Correct Answer: A SIGNIFICANT MISSTATEMENT IN AN APPLICATION FORM. IF A COMPANY HAD ACCESS TO THE CORRECT INFO AT THE TIME OF THE APPLICATION PROCESS THE COMPANY MIGHT HAVE NOT AGREED TO ACCEPT THE APPLICATION OCCURRENCE Correct Answer: IS AND EVENT THAT RESULTS IN AN INSURED LOSS WHICH RESULTS IN BODILY INJURY OR DAMAGES SALVAGE Correct Answer: LEFT OVER VALUE OF A CLAIM WHEN AN INSURANCE COMPANY RECOVERS AND SELLS PROPERTY TO REDUCE ITS FINANCIAL LOSS PERSONAL LINE Correct Answer: Insurance for individuals and families, such as private- passenger auto and homeowners insurance. RESERVES Correct Answer: IS A COMPANY BEST ESTIMATE OF WHAT IT WILL PAY FOR CLAIMS. THE AMOUNT REPRESENTING ACTUAL OR POTENTIAL LIABILITIES KEPT BY AN INSURER TO COVER DEBTS TO POLICY HOLDERS SUBROGATION Correct Answer: The legal process by which an insurance company seeks recovery of the amount paid to the insured from a third party who may have caused the loss UMBRELLA INSURANCE Correct Answer: REFERS TO LIABILITY INSURANCE COVERAGE ABOVE THE LIMS OF YOUR HOMEOWNERS, AUTO, AND BOAT POLICIES, IT MAY PROVIDE COVERAGE CLAIMS THAT MAY BE EXCLUDED BY OTHER LIABILITY POLICIES LIKE FALSE ARREST, LIBEL AND SLANDER, INVASION OF PRIVACY POLICY TERRITORY Correct Answer: IDENTIFIES THE PLACE WHEN COVERAGE UNDER A POLICY APPLIES THIRD PARTY PROVISIONS Correct Answer: THE STANDARD MORTGAGEE OR LOSS PAYABLE CLAUSE SPECIFIES THE RIGHTS AND DUTIES OF THE MORTGAGEE OR LOSS PAYEE UNDER THE POLICY EX. THE MORTGAGEE MAY BE EXPECTED TO PAY THE POLICY IF THE INSURED FAILS TO DO SO ADDITIONAL COVERAGES Correct Answer: COVERAGES APPLY ONLY IN CERTAIN CIRCUMSTANCES HAVE REDUCED OR SEPARATE LIMITS OF LIABILITY OR REQUIRE THE INSURED TO MEET CERTAIN REQUIREMENTS BAILEE Correct Answer: A PERSON OR ORGANIZATION THAT HAS TEMPORARY POSSESSION OF SOMEONE ELSE'S PROPERTY SUCH AS A DRY CLEANER. THE CONDITIONS STATES THAT THE BAILEE IS NOT COVERED UNDER THE INSURED POLICY WHILE THE BAILEE HAS POSSESSION OF PROPERTY UMPIRE Correct Answer: A PERSON HIRED BY TWO APPRAISERS DURING THE APPRAISAL PROCESS TO MAKE THE FINAL DETERMINATION AS TO THE VALUE OF OR EXTENT OF DAMAGE OF THE PROPERTY IN QUESTION EXTENSIONS Correct Answer: THESE ARE INCLUDED IN A POLICY TO EXTEND COVERAGE BEYOND THE POLICY LIMITS OF LIABILITY UTMOST GOOD FAITH Correct Answer: A CHARACTERISTIC OF INSURANCE, IT IS DEMONSTRATED WHEN AN INSURANCE COMPANY MUST RELY ON HONEST AND COOPERATIONS OF THE INSURED AND THE INSURED MUST RELY ON THE COMPANY TO FULFIL ITS OBLIGATIONS REPRESENTATION Correct Answer: ORAL OR WRITTEN STATEMENT MADE BY AN INDIVIDUAL SEEKING TO ENTER A CONTRACT WARRANTIES Correct Answer: STATEMENTS MADE BY THE APPLICANT REGARDING THE NATURE OF THE RISK TO BE INSURED, ANSWERS TO SPECIFIC QUESTIONS ARE CONSIDERED TO BE WARRANTIES. THE ELEMENTS OF AN INSURANCE CONTRACT Correct Answer: 1. UNILATERAL CONTRACT 2. ADHESION CONTRACT 3. ALEATORY CONTRACT 4. VALUED CONTRACT 5. PERSONAL CONTRACT 6. CONDITIONAL CONTRACT THE FOUR ELEMENTS OF A LEGAL CONTRACT Correct Answer: 1. OFFER AND ACCEPTANCE 2. COMPETENT PARTIES 3. LEGAL OBJECT 4. CONSIDERATION UNILATERAL CONTRACT Correct Answer: THE INSURANCE CONTRACT THAT IT CAN BE ENFORCED BY ONLY ONE PARTY. THE COMPANY CANNOT FORCE PREMIUM PAYMENT, BUT INT INSURED CAN ENFORCE THE CONTRACT IF ALL PREMIUMS ARE PAID AND VALID THE FOUR PARTS OF AN INSURANCE CONTRACT Correct Answer: 1. DECLARATIONS PAGE 2. INSURING AGREEMENT 3. CONDITIONS 4. EXCLUSIONS IN ADDITIONS YOU MAY HAVE THE ENDORSEMENTS PAGE ADHESION CONTRACT Correct Answer: MUST BE ACCEPTED BY THE INSURED AS WRITTEN BY COMPANY. ALEATORY CONTRACT Correct Answer: THE INSURANCE POLICY IS VALID EVEN THOUGH THERE ARE UNEQUAL EXCHANGES OVERHEAD AND PROFIT Correct Answer: IS THE AMOUNT OF MONEY THAT IS DEDICATED TO A GENERAL CONTRACTORS COST OF DOING BUSINESS AND EARNING A PROFIT. THE INSURANCE INDUSTRY STANDARDS IS TYPICALLY IS 10% OVERHEAD AND 10% PROFIT. USUALLY ADDED ON A LOSS THAT INVOLVES AT LEAST 3 TRADES AND REPAIR PROCESS REQUIRES COORDINATION BY A GENERAL CONTRACTOR MEDICAL COVERAGE Correct Answer: coverage that pays for the reasonable medical claims of occupants of an insured's vehicle who are injured in an automobile accident REGARDLESS OF FAULT PERSONAL INJURY PROTECTION (PIP) Correct Answer: Automobile insurance that pays for medical, hospital, and funeral costs of the insured's family and passengers, regardless of fault UNINSURED MOTORIST Correct Answer: additional coverage that allows the insured to collect damages from his or her own insurance company when they are not collectible from the person who caused the harm HOMEOWNER'S INSURANCE Correct Answer: TYPE OF COVERAGE PROVIDES PROTECTION FOR RESIDENTIAL DWELLINGS THAT ARE LISTED ON THE DECLARATIONS PAGE OF AN INSURANCE POLICY WHAT PROPERTY IS COVERED UNDER THE HOMEOWNERS INSURANCE? Correct Answer: THE DWELLING/BUILDING ( OTHER STRUCTURES ON THE DWELLING PREMISES) AND PERSONAL PROPERTY: (TREES, SHRUBS, PLANTS, LAWNS) WATERCRAFT INSURANCE Correct Answer: POLICY COVERS YOU, YOUR SPOUSE, OR ANOTHER HOUSEHOLD MEMBER THAT HAVE PERMISSION TO RIDE THE WATERCRAFT. THE POLICY WILL PAY FOR BODILY INJURY OR OTHER PROPERTY DAMAGES CAUSED BY WATERCRAFT. OTHER COVERAGES INCLUDE MEDICAL PAYMENTS, PHYSICAL DAMAGE, UNINSURED BOATER AND PERSONAL EFFECTS COMMERCIAL MEDICAL PAYMENT COVERAGE Correct Answer: THIS IS VOLUNTARY COVERAGE WHICH APPLIES IN A SIMILAR MANNER TO PIP SUPPLEMENTING THOSE MEDICAL BENEFITS AND COVERING FOR CERTAIN RESIDUAL INJURY SITUATION NOT INCLUDED IN PIP UNINSURED BOATER (WATERCRAFT) Correct Answer: COVERAGE PAYS FOR MEDICAL TREATMENT THAT RESULTS FROM AN ACCIDENT WITH ANOTHER BOATER WHO DOES NOT HAVE INSURANCE PERSONAL EFFECTS (WATERCRAFT) Correct Answer: THIS OPTIONAL COVERAGE WILL COVER SOME OF THE VARIOUS COMMON CONTENTS KEPT WITHIN A BOAT CAMERAS, BINOCULARS, CLOTHING UNDER THE MILLER ACT PAYMENTS AND PERFORMANCE BONDS ARE REQUIRED FOR GENERAL CONTRACTORS ON ALL US FEDERAL GOV. CONSTRUCTIONS PROJECTS WHERE THE CONTRACT EXCEEDS Correct Answer: $100,000,.00 SURETY BONDS Correct Answer: A CONTRACT AMONG AT LEAST 3 PARTIES THE PRINCIPAL, THE OBLIGEE, THE SURETY THE PRINCIPAL Correct Answer: THE PRIMARY PARTY WHO WILL BE PERFORMING OR HAS A DUTY TO PERFORM A CONTRACTUAL OBLIGATION THE OBLIGEE Correct Answer: THE PARTY WHO IS THE RECIPIENT OF THE OBLIGATION ( THE SURETY Correct Answer: WHO ENSURES THAT THE PRINCIPAL'S OBLIGATIONS WILL BE PREFORMED. BUILDERS RISK INSURANCE Correct Answer: PROPERTY INSURANCE THAT INDEMNIFIES AGAINST ALL LOSSES DUE TO FIRE, VANDALISM, LIGHTNING, WIND AND SIMILAR FORCES COMMERCIAL AUTO INSURANCE Correct Answer: CONTAINS 2 COVERAGE'S LIABILITY AND PHYSICAL DAMAGE. OTHERS WHICH ARE BASIC TO BUSINESS AUTO EXPOSURES, AND ADDED BY ENDORSEMENT, ARE PIP, MEDICAL PAYMENTS AND UNINSURED MOTORISTS. COMMERCIAL LIABILITY COVERAGE Correct Answer: PROTECTS THOSE WHO ARE INSURED FROM LEGAL LIABILITY FOR BODILY INJURY OR PROPERTY DAMAGE TO OTHERS CAUSED BY AUTO ACCIDENTS. COMMERCIAL PIP Correct Answer: PROVIDES MEDICAL, DISABILITY AND DEATH BENEFITS FOR PERSONS INJURED IN OR BY THE INSURED VEHICLES WITHOUT REGARD TO FAULT COMMERCIAL PHYSICAL DAMAGE COVERAGE Correct Answer: COVERAGE FOR ACCIDENTAL DAMAGE TO THOSE DESIGNATED AS COVERED AUTOS WITHOUT REGARD TO FAULT COMMERCIAL PROPERTY INSURANCE Correct Answer: PROTECTS YOUR BUSINESS AGAINST THE LOSS OR LOSS OF USE OF COMPANY PROPERTY. IT CAN INCLUDE A VARIETY TYPES: LOST INCOME OR BUSINESS INTERRUPTION, BUILDINGS, COMPUTERS, MONEY AND VALUABLE PAPERS. CONTRACTOR'S INSURANCE Correct Answer: COVERS THE INSURED FOR BODILY INJURY AND PROPERTY DAMAGE LIABILITY ARISING FROM OPERATIONS PERFORMED FOR INSURED BY A DESIGNATED CONTRACTOR. IT IS DESIGNED TO SATISFY A REQUIREMENT THAT INSURANCE PROTECTION BE PROVIDED TO ONE FOR WHOM OPERATIONS WILL BE PERFORMED BY THE ONE WHO WILL PERFORM THE OPERATION ERRORS AND OMISSION INSURANCE Correct Answer: A PROFESSIONAL LIABILITY INSURANCE THAT PROTECTS COMPANIES AND INDIVIDUALS AGAINST CLAIMS MADE BY CLIENTS FOR INADEQUATE WORK OR NEGLIGENT ACTIONS. IT COVERS BOTH COURT COSTS AND ANY SETTLEMENTS UP TO THE AMOUNT SPECIFIED ON THE INSURANCE CONTRACT WORKERS COMPENSATION INSURANCE Correct Answer: COVERS THE LIABILITY OF THE EMPLOYER FOR WORK RELATED INJURIES TO EMPLOYEES WHAT WAS ESTABLISHED IN 1991 TO ENSURE THE PROMPT PAYMENT OF INSURANCE CLAIMS? Correct Answer: ARTICLE 21.55 COMPLIANCE WITHIN 15 CALENDAR DAYS OF RECEIVING A NEW CLAIM THE INSURER MUST: Correct Answer: ACKNOWLEDGE RECEIPT OF THE NEW CLAIM, BEGIN INVESTIGATION, REQUEST ALL OF THE ITEMS NEEDED TO EVALUATE AND INVESTIGATE THE CLAIM HOW MUCH TIME THE INSURER HAS ONCE ALL OF THE INFORMATION THAT HAVE BEEN REQUESTED TO REVIEW AND EVALUATE, PROCESS, ACCEPT OR REJECT THE CLAIM Correct Answer: WITHIN 15 BUSINESS DAYS ONCE THE INSURE ACCEPTS OR REJECT THE CLAIM WHAT MUST OCCUR Correct Answer: THE INSURE HAS 5 BUSINESS DAYS TO PAY THE CLAIM OR ISSUE A FULL OR PARTIAL DENIAL OF THE CLAIM IF THE INSURER NEED ADDITIONAL TIME TO EVALUATE AND INVESTIGATE THE CLAIM, THE INSURE CAN REQUEST HOW MUCH ADDITIONAL TIME Correct Answer: 45 CALENDAR DAYS WHAT ARE THE SIX COVERAGE'S OF A HOMEOWNER INSURANCE POLICIES? Correct Answer: DWELLING, OTHER STRUCTURES, PERSONAL PROPERTY, LOSS OF USE, LIABILITY, AND MEDICAL PAYMENTS TO OTHERS DWELLING (HOMEOWNER'S POLICY) Correct Answer: HOUSE STRUCTURE, PLUMBING, HEATING, AIR CONDITIONING, AND OTHER ATTACHED STRUCTURES OF FIXTURES BUT NOT THE LAND OTHER STRUCTURES DWELLING COVERS (HOMEOWNER'S POLICY) Correct Answer: A DETACHED GARAGE, FENCE, MAILBOX, SHEDS, RETAINING WALL, DRIVEWAY, ETC. no land WHAT IS THE MOST YOU CAN PAY FOR OTHER STRUCTURES UNDER THE HOMEOWNER INSURANCE POLICY Correct Answer: 10 % WHAT IS THE OTHER STRUCTURE (HOMEOWNER'S POLICY) PAID FROM ? Correct Answer: COVERAGE A LIMITS OF LIABILITY GOVERNMENTAL ACTIONS, LOSS BY FREEZING WHILE BUILDING IS UNOCCUPIED UNLESS YOU HAVE USED REASONABLE CARE TO MAINTAIN HEAT IN THE BUILDING OR SHUT OFF THE WATER SUPPLY AND DRAIN PLUMBING, HEATING AND AIR CONDITIONING SYSTEMS OF WATER JEWELRY/WATCHES/FURS/GEMS SPECIAL LIMITS OF LIABILITY Correct Answer: $500 FOR LOSS BY THEFTS MONEY/BANK CARDS SPECIAL LIMITS OF LIABILITY Correct Answer: $100 OR NUMISMATIC PROPERTY SPECIAL LIMITS OF LIABILITY BULLION/VALUABLES PAPERS, GOLD OR SILVER/BILLS, DEEDS, STAMPS, MANUSCRIPTS, NOTES, EVIDENCES OF DEBTS, CREDITS, PASSPORT DOCUMENTS Correct Answer: $500 SPECIAL LIMITS OF LIABILITY DO NOT COVER WHAT? Correct Answer: BUSINESS PROPERTY THAT CONSIST OF SAMPLES OR ARTICLES FOR SALE OR DELIVERY OR IF THE PROPERTY IS AWAY FROM THE RESIDENCE PREMISES DEDUCTIBLE CLAUSE 1 Correct Answer: FOR LOSSES CAUSED BY WINDSTORM, HURRICANE, HAIL, OR WIND DRIVEN RAIN. DEDUCTIBLE CLAUSE 2 Correct Answer: FOR LOSSES CAUSED BY ALL OTHER PERILS IF YOU HAVE A PERCENTAGE DEDUCTIBLE WHERE IS IT TAKEN FROM? Correct Answer: THAT PERCENTAGE IS ALWAYS TAKEN FROM COVERAGE A LIMIT OF LIABILITY INITIAL CONTACT MUST BE MADE WITHIN HOW MANY HOURS OF RECEIVING A LOSS NOTICE Correct Answer: 24 HOURS OMBUDSMAN Correct Answer: IS AN EMPLOYEE OF THE OFFICE OF INJURED EMPLOYEE COUNSEL EMPLOYEES MUST TELL THEIR EMPLOYER WITHIN HOW MANY DAYS OF THE DATE THEY WERE INJURED OR FIRST NEW OF THE INJURY OR ILLNESS MIGHT BE WORK RELATED Correct Answer: 30 DAYS PERMANENT TOTAL DISABILITY Correct Answer: COMPLETE AND PERMANENT LOSS OF EARNING POWER WITH NO ABILITY TO PERFORM ANY TYPE OF GAINFUL EMPLOYMENT PERMANENT PARTIAL DISABILITY Correct Answer: PERMANENT PHYSICAL IMPAIRMENT THAT LEAVES THE INDIVIDUAL INCAPABLE OF PERFORMING HIS OR HER ORIGINAL JOB BUT RESULTS IN ONLY PARTIAL LOSS OF EARNINGS ABILITY SINCE OTHER JOBS CAN BE PERFORMED. TEMPORARY TOTAL DISABILITY Correct Answer: occurs when the employee can perform no job duties for a period of time but will eventually resume full job duties TEMPORARY PARTIAL DISABILITY Correct Answer: When an injury or illness impairs an employee's ability to work for a limited time. The impairment is such that the individual is able to perform limited employment duties and is expected to recover fully. THE DEVASTATION FLOODS CAUSED CONGRESS TO ACT IN Correct Answer: 1968 TO DEVELOP A NATIONAL FLOOD INSURANCE PROGRAM. WHAT HAPPENED IN 1973 Correct Answer: SPECIAL HIGH FLOOD RISK ZONE DEFINED BY THE FLOOD DISASTER PROTECTION ACT MADE FLOOD INSURANCE MANDATORY SPECIAL FLOOD HAZARD AREA (SFHA) Correct Answer: A LOCATION HAVING SPECIAL FLOOD, MUDFLOW, OR EROSION PROBLEMS. FEMA Correct Answer: FEDERAL EMERGENCY MANAGEMENT AGENCY UNDERWRITES ALL FLOOD COVERAGE WHAT IS THE TIME FRAME AFTER YOU'VE APPLIED AND PAID THE PREMIUM BEFORE IT IS EFFECTIVE FOR FLOOD INSURANCE Correct Answer: 30 DAY WAITING PERIOD WHO DETERMINES THE RISK OF FLOOD IN VARIOUS LOCATIONS ACROSS THE US? Correct Answer: FEMA WHAT IS THE POLICY TERM FOR NFIP POICIES Correct Answer: 1 YEAR THE FLOOD POLICY HAS HOW MANY SECTIONS Correct Answer: FOUR THE 10% OTHER STRUCTURE COVERAGE LIMITS AUTOMATICALLY APPLIES TO WHAT? Correct Answer: FLOOD POLICIES INCREASED COST OF COMPLIANCE (ICC) PROVIDES COVERAGE UP TO HOW MUCH? Correct Answer: 30,000 TO DEMOLISH OR ELEVATE YOUR HOME IN ORDER FOR THE ICC TO APPLY HOW MUCH DAMAGE TO THE DWELLING Correct Answer: 51% DOES FLOOD INSURANCE COVER THE LAND YOU OCCUPY Correct Answer: NO WHAT TYPE OF PROPERTY DOES FLOOD INSURANCE POTECTS Correct Answer: BUILDING AND CONTENTS NFIP DWELLING FORM COVERAGE BUILDING/STRUCTURE UP TO Correct Answer: $250,000 NFIP DWELLING FORM COVERAGE PERSONAL PROPERTY (CONTENT) UP TO Correct Answer: $100,000 FLOOD INSURANCE PROTECTS BUILDING/ STRUCTURE COVERAGE INCLUDES: Correct Answer: BUILDING AND FOUNDATION, ELECTRICAL, PLUMBING SYSTEM, CENTRAL AIR, FURNACES, WATER HEATERS, REFRIGERATORS, STOVES, BUILT IN APPLIANCE (DISHWASHER) PERMANENTLY INSTALLED CARPETING OVER UNFINISHED FLOORING FLOOD INSURANCE PROTECTS PERSONAL PROPERTY/CONTENTS COVERAGE Correct Answer: CLOTHING, FURNITURE, ELECTRONIC EQUIP, CURTAINS, PORTABLE AND WINDOW AIR CONDITIONING UNITS, PORTABLE MICROWAVES AND DISHWASHER , CARPETING THAT IS NOT ATTACHED TO THE BUILDING, WASHER AND DRYER NOT INSURED BY EITHER BUILDING PROPERTY OR PERSONAL PROPERTY COVERAGE (FLOOD) Correct Answer: PERSONAL PROPERTY NOT INSIDE A FULLY ENCLOSED BUILDING, A BUILDING OR PROPERTY OVER WATER, RECREATIONAL VEHICLES MINUS TRAVEL TRAILERS, SELF PROPELLED VEHICLES OR MACHINES, INCLUDING THEIR PARTS AND EQUIPMENT, HOWEVER WE DO COVER VEHICLES OR MACHINES NOT LICENSED FOR USE ON PUBLIC ROAD MAINLY TO SERVICE THE LOCATION, TO ASSIST HANDICAPPED, LAND , TREES, SHRUBS, PLANTS, CROPS, OR ANIMALS, ACCOUNTS, BILLS, COINS, DEEDS, MEDALS, MONEY , BULLION, MANUSCRIPTS, WALKWAYS DECKS, DRIVEWAYS PATIOS, LOCATED OUTSIDE THE PERIMETER, EXTERIOR WALLS OF THE INSURED BUILDING, THE POLICY PAYS ONLY FOR DIRECT LOSS BY OR FROM FLOOD SO THESE ITEMS ARE EXCLUDED Correct Answer: LOSS OF REVENUES OR PROFITS, LOSS OF ACCESS TO THE INSURED PROPERTY, LOSS OF USE, LOSS OF BUSINESS INTERRUPTION OR PRODUCTION, NO ADDITIONAL LIVING EXPENSE INCURRED WHILE BUILDING OR HOME IS BEING REPAIRED, THE COST OF COMPLYING WITH ANY ORDINANCE OR LAW REQUIRING OR REGULATION THE CONSTRUCTION, DEMOLITION, REMODELING , RENOVATION OR REPAIR , NO REMOVAL OF DEBRIS, EXCEPT FOR ELIGIBLE ACTIVITIES COVERED UNDER ICC THE VALUE OF FLOOD DAMAGE IN THE DWELLING FORM IS BASED ON WHAT? Correct Answer: REPLACEMENT COST VALUE OR ACTUAL CASH VALUE RCV Correct Answer: THE COST TO REPLACE THAT PART OF A BUILDING THAT IS DAMAGED WITHOUT DEPRECIATION. COMMERCIAL PACKAGE POLICY Correct Answer: COMMERCIAL INSURANCE POLICIES CAN BE USED FOR FARM/RANCH BUSINESS. COMMERCIAL GENERAL LIABILITY Correct Answer: INSURANCE POLICY OFTEN USED IN FARM/RANCH SITUATIONS IN WHICH THE MAIN CONCERN IS PREMISE LIABILITY RISK FOR THE PROPERTY OWNER OF RURAL LAND. EX. HOMEOWNER LEASED PROPERTY FOR CATTLE GRAZING. (LAND OWNERSHIP) MOBILE COME INSURANCE Correct Answer: THE MOBILE HOMEOWNERS FROM MAY BE WRITTEN ON AN OPEN PERILS BASIS AND THE COVERAGE ON THE BUILDING (MOBILE HOME) IS SETTLED ON A REPLACEMENT COST BASIS. ADDITIONAL ITEMS OF PROPERTY ATTACHED TO THE MOBILE HOME ARE COVERED ON AN Correct Answer: ACV BASIS MOBILE HOME COVERAGE SECTION A Correct Answer: APPLIES TO THE MOBILE HOME ATTACHED STRUCTURES, UTILITY TANKS, AND PERMANENTLY INSTALLED ITEMS, SUCH AS APPLIANCES, DRESSERS, AND CABINETS, FLOOR COVERINGS, AND SIMILAR PROPERTY IF INSTALLED ON A PERMANENT BASIS. 10 TO 40 FEET TO BE COVERED MOBILE HOME COVERAGE SECTION B Correct Answer: FOR OTHER STRUCTURES IS SIMILAR TO THE HOMEOWNERS FORM MOBILE HOME COVERAGE SECTION C Correct Answer: PERSONAL PROPERTY GENERALLY IS WRITTEN WITH A LIMIT TO 40% OF COVERAGE A RATHER THAN 50% SPECIFIED FOR HOMEOWNERS COVERAGE. MOBILE HOME COVERAGE SECTION D Correct Answer: LOSS OF USE IS 20% OF COVERAGE A REMOVAL COVERAGE OF MOBILE HOME Correct Answer: $500 FOR EXPENSE WHEN HOME IS THREATENED BY A COVERED PERIL THE ORDINANCE OF LAW ADDITIONAL COVERAGE Correct Answer: DOES NOT APPLY TO MOBILE HOME POLICIES THE CURRENT MINIMUM LIMITS OF LIABILITY COVERAGE FOR BODILY INJURY Correct Answer: $30,000 THE CURRENT MINIMUM LIMITS OF LIABILITY COVERAGE PER ACCIDENT Correct Answer: $60,000 THE CURRENT MINIMUM LIMITS OF LIABILITY COVERAGE FOR PROPERTY DAMAGED PER ACCIDENT Correct Answer: $25,000 PIP COVERAGE PAYS FOR UP TO WHAT PERCENTAGE OF LOST INCOME AND COST OF CAREGIVER FOR INJURED PERSON Correct Answer: 80% UNDER INSURED MOTORIST Correct Answer: PROVIDES PROTECTION IN THE EVENT AN INSURED IS INVOLVED IN AN ACCIDENT CAUSED BY ANOTHER WHO IS CARRYING INSURANCE COVERAGE LOWER THAN THE AMOUNT OF THE DAMAGE AND LOWER THAN THE CLAIMANTS UNDER INSURED MOTORIST COVERAGE BODILY INJURY COVERS Correct Answer: MEDICAL BILLS, LOST WAGES, PAIN AND SUFFERING, DISFIGUREMENT, PERMANENT AND PARTIAL DISABILITY PROPERTY DAMAGE COVERS Correct Answer: PAYS FOR AUTO REPAIRS, RENTAL CARS, DAMAGED TO ITEMS IN YOUR CAR PROPERTY DAMAGE UM/UIM DEDUCTIBLE COST Correct Answer: $250 COLLISION COVERAGE Correct Answer: COST OF REPAIRING OR REPLACING YOUR CAR AFTER ACCIDENT REGARDLESS OF WHO WAS DRIVING OR AT FAULT. PAYMENTS ON YOUR CARS FOR REPLACEMENT IS ON Correct Answer: ACTUAL CASH VALUE LESS YOUR DEDUCTIBLE GAP Correct Answer: COMPREHENSIVE AND COLLISION COVERAGE ONLY PAY UP TO THE ACTUAL CASH VALUE OF THE INSURED VEHICLE YOUR INSURANCE SHOULD COVER YOU IF YOU DRIVE IN Correct Answer: OTHER US STATES AND CANADA SOME INSURANCE COMPANY PROVIDE FREE ENDORSEMENT FOR OCCASIONAL TRIPS TO MEXICO UP TO Correct Answer: 10 DAYS AND UP TO 25 MILES INTO MEXICO. IF YOU GET INSURANCE COVERAGE IN MEXICO IT WILL ONLY COVER YOU UP TO Correct Answer: 25 MILES OF THE BORDER AUTO REPAIR CLAIMS SETTLEMENT Correct Answer: SETTLED AT ACV COMMERCIAL AUTO COVERAGE Correct Answer: FOR AUTOS USED PRIMARILY FOR BUSINESS PURPOSES MAY BE ADDED TO THE COMMERCIAL PACKAGE POLICY BUSINESS AUTO COVERAGE FORM Correct Answer: COVERS VEHICLES USED TO CONDUCT BUSINESS IT DOES NOT COVER VEHICLES SOLD, STORED, OR REPAIRED FOR CLIENTS NOT INCLUDED IN BUSINESS AUTO COVERAGE (OFF THE ROAD VEHICLES) Correct Answer: BULLDOZERS, FORKLIFTS, CHERRY PICKERS, AND BACK HOES GARAGE COVERAGE FORM Correct Answer: TYPE OF LIABILITY INSURANCE IS BASICALLY A PACKAGE OF COVERAGE SUITED FOR AUTOMOBILE DEALERS GARAGE KEEPERS COVERAGE Correct Answer: PROVIDES COVERAGE FOR DAMAGE TO AUTOMOBILES OF OTHER ARISING OUT OF THE GENERAL OPERATION OF BUSINESS DWELLING POLICY FORMS Correct Answer: THE DWELLING POLICY FORMS ARE FOR RESIDENTIAL PROPERTY OWNERS WHO DO NOT QUALIFY FOR HOMEOWNERS POLICIES. THEY ARE CONTRACTS THAT PROVIDE A PACKAGE OF COVERAGE FOR DWELLINGS MOST DWELLING FORMS ARE FOR RESIDENTIAL LIVING THE TDP-1 IS A Correct Answer: NAMED PERILS INSURANCE POLICY TDP-1 Correct Answer: POLICY IS THE MOST BASIC INSURANCE POLICY COVERAGE AVAILABLE FOR RENTAL PROPERTIES. THERE IS NO PERSONAL LIABILITY COVERAGE. MOST COMMON PERILS INSURED AGAINST TDP-1 Correct Answer: FIRE (DEFAULT COVERAGE) LIGHTNING (DEFAULT COVERAGE) MOST TDP-1 INSURANCE POLICIES ARE : Correct Answer: ACTUAL CASH VALUE INSURANCE POLICIES OPTIONAL PERILS FOR TDP-1 Correct Answer: RIOT, EXPLOSION, VEHICLE, CIVIL COMMOTION, HURRICANE, SMOKE, HAIL, WINDSTORM, VANDALISM (OPTIONAL) NO THEFT COVERAGE THE TDP-2 INSURANCE POLICY Correct Answer: PROVIDES ADEQUATE COVERAGE FOR MOST LANDLORDS AND PROPERTY OWNERS TDP-2 COMES IN 2 DIFFERENT CATEGORIES Correct Answer: NAMED PERIL POLICIES AND ALL RISK POLICIES Texas Dwelling Property- 1 AND Texas Dwelling Property-2 Correct Answer: NAMED PERIL POLICIES TDP2 ONLY COVERS Correct Answer: PERILS LISTED INT THE POLICY THE INLAND MARINE COVERS Correct Answer: THE CARGO FROM THE MOMENT IT WAS SENT TO BE TRANSPORTED TO THE MOMENT IT ARRIVES AT ITS ULTIMATE DESTINATION INCLUDING DOCS AND WAREHOUSE WHERE PROPERTY IS STORED PROPERTY INSURED UNDER INLAND MARINE COVERAGE IS Correct Answer: A. ACTUALLY IN TRANSIT B. HELD BY A BAILEE C. AT A FIXED LOCATION D. MOVABLE TYPE OF GOODS THAT IS OFTEN AT DIFFERENT LOCATIONS DOMESTIC SHIPMENTS Correct Answer: CARGO THAT IS SHIPPED WITHING A SINGLE COUNTRY'S BORDERS what are the 4 classes of inland marine risk Correct Answer: IMPORTS AND EXPORTS, DOMESTIC SHIPMENTS, INDIVIDUAL PROPERTY, BUSINESS PROPERTY BUSINESS PROPERT Correct Answer: PROPERTY RELATED TO A PARTICULAR BUSINESS OR OCCUPATION. IMPORTS AND EXPORTS Correct Answer: CARGO SHIPPED FROM ONE COUNTRY TO ANOTHER. IMPORTS ARE PRODUCTS THAT ARE BROUGHT INTO A COUNTRY FROM ANOTHER COUNTRY. EXPORTS ARE PRODUCTS THAT ARE MADE IN ANOTHER COUNTRY AND SHIPPED TO ANOTHER COUNTRY FOR FUTURE SALE OR TRADE. IN MOST CASES THE INLAND MARINE INSURANCE ALSO COVERS Correct Answer: DAMAGE TO ANY EQUIPMENT OR A PIECE OF INFRASTRUCTURE INVOLVED IN TRANSPORTING THE PRODUCT. IT MAY COVER THE DAMAGE TO BOTH THE TRUCK AND BRIDGE IT PASSES OVER. WHEN TAKING OUT INLAND MARINE INSURANCE PROPERTY OWNERS CAN CHOOSE Correct Answer: PERIL COVERAGE OR ALL RISK COVERAGE. NATIONWIDE MARINE DEFINITION A RISK MUST INCLUDE AN ELEMENT OF TRANSPORTATION TO BE ELEGIBLE FOR INLAND MARINE CONTRACT Correct Answer: THE PROPERTY MUST BE IN TRANSIT, AT A FIXED LOCATION, HELD BY A BAILEE (NOT THE OWNER OF THE PROPERTY), A TRANSPORTABLE PROPERTY THAT IS OFTEN AT DIFFERENT LOCATIONS. FOUR CLASSES OF INLAND MARINE INSURANCET Correct Answer: PROPERTY IN TRANSIT, BAILEE LIABILITY, FIXED TRANSPORTATION PROPERTY (INSTRUMENTALITIES) AND PERSONAL AND COMMERCIAL FLOATERS PROPERTY IN TRANSIT (TRANSPORTATION INSURANCE) Correct Answer: TRANSPORTATION INSURANCE COVERS A SPECIFIC TRIP. COVERAGE IS PROVIDED FOR PROPERTY FROM WHEN IT LEAVES UNTIL IT IS DELIVERED ANNUAL TRANSIT POLICY Correct Answer: PROTECT THE SHIPPER OR RECEIVER OF GOODS AGAINST LOSS TO GOODS IN TRANSIT IT AVAILABLE ON A NAMED PERIL BASIS TRIP TRANSIT POLICY Correct Answer: USED TO INSURE SINGLE SHIPMENT OF GOODS FOR COMPANIES THAT HAVE ONLY OCCASIONAL SHIPMENTS TO INSURE OPEN CARGO POLICY Correct Answer: INSURES THE GOODS IN TRANSIT AND REMAINS IN FORCE UNTIL CANCELED BY THE PARTIES INVOLVED EXCLUSION FOR INLAND MARINE INSURACE Correct Answer: LOSS BY THEFT, ROBBERY, CIVIL COMMOTION, WAR AND RIOT. BAILEE LIABILITY Correct Answer: USED TO MEET THE NEEDS OF PERSONS WHO HAVE INTENTIONALLY RECEIVED TEMPORARY CUSTODY OF GOODS OR PROPERTY BELONGING TO OTHER TYPES OF BUSINESSES THAT WOULD NEED BAILEE COVERAGE Correct Answer: DRY CLEANERS, TAILORS, BICYCLE OR TELEVISION REPAIR SHIPS. BAILEE'S CUSTOMER POLICIES Correct Answer: ARE WRITTEN ON A NAMED PERIL BASIS AND COVER DIRECT DAMAGE WITHOUT REGARD TO LEGAL LIABILITY TO GOODS IN CARE CUSTODY OR CONTROL OF THE INSURED FOR SERVICES SUCH AS CLEANING, LAUNDERING OR REPAIRING. MOTOR TRUCK CARGO COVERAGE (CARRIERS LIABILITY) Correct Answer: INSURES THE TRUCKER FOR LEGAL LIABILITY AS A CARRIER OF GOODS BELONGING TO OTHERS FIXED TRANSPORTATION Correct Answer: COVERAGE FOR BRIDGES, TUNNELS AND OTHER INSTRUMENTALITIES OF TRANSPORTATION AND COMMUNICATION. EXAMPLE IT COVERS DIRECT LOSS OF DAMAGE TO THE BRIDGE, DOCKS, PIERS AND WHARVES. PERSONAL ARTICLES FLOATER Correct Answer: THE INLAND MARINE FLOATER PROVIDES ALL RISK COVERAGE ON PERSONAL ITEMS SUCH AS FURS, SILVERWARE, JEWELRY, CAMERAS, FINE ARTS, GOLFERS EQUIPMENT, AND ANTIQUES NEWLY ACQUIRED JEWELRY, WATCHES, FURS AND SIMILAR ITEMS ARE AUTOMATICALLY COVERED FOR Correct Answer: 30 DAYS AT ACV UP TO 10000 OR 25% OF THE AMOUNT ALREADY SCHEDULED. COMMERCIAL FLOATERS Correct Answer: COVER PROPERTY FREQUENTLY MOVED FROM PLACE TO PLACE IN CONNECTION WITH A BUSINESS OR PROFESSION PHYSICIAN AND SURGEONS EQUIPMENT FLOATER Correct Answer: COVER A DOCTOR'S PROFESSIONAL INSTRUMENTS AND EQUIPMENT USED IN A PRACTIVE CONTRACTORS EQUIPMENT FLOATER Correct Answer: CONTRACTOR'S EQUIPMENT WHICH AT SOME TIME MOVES FROM ONE LOCATION TO ANOTHER INCLUDING SMALL, AND LARGE TOOLS, MACHINERY AND AUTOMOTIVE UNITS NOT REGISTERED FOR THE ROAD USE. USUALLY ON AN ALL RISK BASIS. INSTALLATION FLOATER Correct Answer: FOR BUSINESSES WHOSE OPERATIONS REQUIRE THE COMPLETE INSTALLATION OF THEIR PRODUCTS IN WORKING ORDER AT THE PREMISES OF THE CUSTOMER BEFORE DELIVERY IS CONSIDERED COMPLETE ACCOUNTS RECEIVABLE COVERAGE Correct Answer: PROVIDES ALL RISK COVERAGE FOR LOSS RESULTING FROM THE DAMAGE OR DESTRUCTION OF ACCOUNTS RECEIVABLES RECORDS, EX, SUMS DUE BUT NOT COLLECTED, INTEREST ON LOANS, COLLECTION EXPENSE, OTHER REASONABLE EXPENSE VALUABLE PAPERS AND RECORDS COVERAGE Correct Answer: ALL RISK COVERAGE FOR LOSS TO SPECIFIC VALUABLE PAPERS AND RECORDS. IT PAYS UP TO 5000 FOR EXPENSES INCURRED TO REPLACE OR RESTORE THE DOCUMENTS THAT ARE LOST OR DAMAGED. MONEY IS NOT COVERED COVERED PROPERTY INCLUDES MAPS, BLUEPRINTS, FILMS, ILLUSTRATIONS, AND DRAWINGS, ADJUSTER BOND Correct Answer: A PENAL BOND FOR A SPECIFIC AMOUNT CONDITIONED FOR THE FAITHFUL AND HONEST CONDUCT OF BUSINESS BY THE LICENSED ADJUSTER. SURETY Correct Answer: THIS IS THE PARTY GUARANTEEING THE PERFORMANCE BY THE PRINCIPAL ALSO KNOWN AS THE GUARANTOR. TWO TYPES OF BONDS Correct Answer: FIDELITY AND SURETY BONDS FIDELITY BOND Correct Answer: FORM OF PROTECTION THAT COVERS THE POLICYHOLDERS FROM LOSSES THAT THEY INCUR AS A RESULT OF FRAUDULENT ACTS BY SPECIFIC INDIVIDUALS NAME SCHEDULE BOND Correct Answer: Fidelity bond that covers each employee named in the policy schedule for the amount listed in the schedule. POSITION SCHEDULE BOND Correct Answer: A Fidelity Bond that covers multiple employees that are listed by job title and may have different amounts of coverage for different positions WHO MAY ENTER INTO AN AGREEMENT WITH THE APPROPRIATE OFFICIALS OF ANOTHER STATE AS NECESSARY TO IMPLEMENT RECIPROCAL LICENSING OF NON RESIDENT AGENST Correct Answer: THE COMMISSIONER NONRESIDENT AGENT Correct Answer: HAS THE SAME RIGHTS AND PRIVILEGES AS A RESIDENT LICENSE HOLDER. THE COMMISSIONER MAY ENTER INTO AN AGREMMENT WITH THE APPROPRIATE OFFICIAL OF ANOTHER STATE AS NECESSARY APPOINTMENT Correct Answer: A LICENSED AGENT MAY REPRESENT MORE THAN ONE INSURER AT ANY TIME WHILE THE AGENT LICENSE IS IN FORCE. THE AGENT AND THE INSURANCE COMPANY MUST NOTIFY THE Correct Answer: COMMISSIONER OF ANY ADDITIONAL APPOINTMENTS INSURANCE LICENSE IN TEXAS IS VALID FOR Correct Answer: 2 YEARS TEMPORARY LICENSE IS VALID FOR Correct Answer: 90 DAYS ONLY AN AGENT MAY RENEW A LICENSE THAT Correct Answer: HAS NOT EXPIRED OR BEEN SUSPENDED OR REVOKED BY FILING A RENEWAL APPLICATION AND FEE BEFORE THE LICENSE EXPIRES AN AGENT MAY NOT Correct Answer: RENEW A LICENSE THAT HAS BEEN SUSPENDED OR REVOKED THE ORIGINAL LICENSE OF AN AGENT WHO HAS APPLIED FOR RENEWAL REMAINS IN EFFECT UNTIL Correct Answer: THE DEPARTMENT ISSUES THE RENEWAL LICENSE OF THE LICENSE IS REVOKED BY THE COMMISSIONER IF A LICENSE HAS BEEN EXPIRED FOR 90 DAYS OR LESS Correct Answer: THE APPLICANT MAY RENEW BY PAYING A RENEWAL PENALTY OF ONE HALF OF THE MAXIMUM RENEWAL FEE IN ADDITIONAL TO THE REG FEE. IF LICENSE HAS BEEN EXPIRED FOR MORE THAN 90 DAYS Correct Answer: ADJUSTERS HAVE TO PASS THE EXAMINATION AGAIN AND MEET ALL REQUIREMENTS THE DEPARTMENT MAY RENEW, WITHOUT EXAMINATION, AN EXPIRED LICENSE OF Correct Answer: A PERSON WHO WAS LICENSED IN TEXAS MOVED TO ANOTHER STATE, AND IS CURRENTLY LICENSED AND IN CONTINUAL PRACTICE IN THAT STATE. THE DEPARTMENT WILL SEND A WRITTEN NOTICE OF THE IMPENDING LICENSE EXPIRATION TO THE ADDRESS Correct Answer: AT LEAST 30 DAYS BEFORE THE LICENSE EXPIRES IF THE AGENT MOVES TO ANOTHER STATE THE AGENT MUST FILE Correct Answer: NO LATER THAN 30 DAYS THE NEW ADDRESS AND PROOF OF AUTHORIZATION TO ENGAGE IN THE BUSINESS OF INSURANCE IN THE NEW STATE. WHO MAY DISCIPLINE A LICENSE HOLDER AND REVOKE, SUSPEND , OR DENY AN APPLICATION Correct Answer: THE COMMISSIONER CONTINUING EDUCATION REQUIREMENTS FOR ADJUSTERS Correct Answer: IS 30 HOURS EVERY TWO YEARS TWO HOURS OF CONTINUED EDUCATION MUS BE IN Correct Answer: CONSUMER PROTECTION OR ADJUSTER ETHICS THE REQUEST FOR AN EXEMPTION MUST BE PRESENTED ON PROPER DOCUMENTATION AND MUST BE: Correct Answer: DUE TO CIRCUMSTANCES THAT ARE BEYOND THE LICENSEE CONTROL. HOW MANY YEARS IS AN INDIVIDUAL WHO HAS HELD A LICENSE CONTINUOUSLY EXEMPT FROM THE CONTINUED EDUCATION REQUIREMENTS Correct Answer: 20 YEARS AGENT OR ADJUSTER Correct Answer: A PERSON MUST HAVE A VALID TEXAS INSURANCE LICENSE FOR THE TYPE OF INSURANCE INVOLVED. AGENT Correct Answer: A PERSON WHO SOLICIT INSURANCE ON BEHALF OR AN INSURE, OR RECEIVE OR TRANSMIT AN APPLICATION FOR INSURANCE OR AN INSURANCE POLICY TO OR FROM THE INSURE DEFAMATION Correct Answer: IT IS AN UNFAIR TRADE PRACTICE TO MAKE AN ORAL OR WRITTEN STATEMENT THAT IS FALSE OR MALICIOUSLY CRITICAL OF , OR DEROGATORY TO THE FINANCIAL CONDITION OF ANY INSURER THAT IS CALCULATED TO INJURE ANY PERSON ENGAGED IN THE INSURANCE BUSINESS NON RENEWAL Correct Answer: AN INSURE MAY REFUSE TO RENEW A POLICY IF THE INSURE HAS MAILED A NOTICE OF NON RENEWAL TO THE INSURED AT LEAST 30 DAYS BEFORE POLICY EXPIRATION DATE WHEN DECIDING TO ISSUE OR TO DECLINE A STANDARD FIRE POLICY AN INSURE MAY NOT CONSIDER A WHAT FOR DECLINATION Correct Answer: CUSTOMER INQUIRY