Section 1: Lesson 4.1 Conducting Insurance Business in Texas

Question 1

The responsibility for regulation the insurance falls to whom?

Answer 1

Each state’s Department of Insurance

Question 2

Which of the following would be considered “conducting insurance business” in Texas?

Answer 2

An Allstate agent helps a customer complete an application for auto insurance, accepts a premium deposit , and issues a binder for coverage.

Question 3

Which of the following would not be “conducting insurance business “in Texas?

Answer 3

Repairing damaged vehicles under a “ preferred body shop” arrangement with an insurance carrier.

Question 4

Jim knows that the Texas Department of insurance is chard with overseeing and regulating insurance business. As an adjuster which of the following categories wold Jim’s business fall into?

Answer 4

Investigating claims or losses

Question 5

if the Texas Department of Insurance believes that a carrier is engaged in inappropriate conduct, competition or market practices, it has the authority to:

Answer 5

The Department of Insurance can issue a cease and desist order to the carrier which, if not appropriately addressed, can effectively shut down a carriers’s insurance operations, including its entire adjusting force.

Question 6

Which of the following explains why Departments of Insurance license and monitor agents, agencies, adjusters, and customer service representatives of the insurance industry?

Answer 6

To make sure these individuals are qualified to sell, service, or adjust claims on property and casualty insurance

Question 7

The licensing of adjusters and all who are engaged in the practice of adjusting in Texas is regulated by:

Answer 7

The Texas Department of Insurance

Question 8

Bob knows that, as an adjuster, he has an obligation to be fair and prompt in his treatment of policy holder’s claims. If he fails to do this, the Texas Department of Insurance has a responsibility to:

Answer 8

Investigate charges of unethical conduct and take judicious action in appropriate cases

Question 9

Departments of Insurance have another responsibility that follows the licensing of adjusters, and that is:

Answer 9

Supervise claims activity to assure policyholders of fair treatment and prompt settlement, and investigate allegations of unethical conduct and take appropriate action if necessary

Question 10

Vince is a Work Comp adjuster who is handling the claim of a roofer who injured his back when he fell from a roof. The ER physician referred him to an orthopedic specials surgery, but Vince thinks the claimant is faking, so he refuses to authorize the treatment. The claimant hires an attorney who files a complaint which the Texas Department of Insurance seeking sanctions against Vince for denying the request with no legitimate reason for such denial. What could be a consequence of Vince’s actions?

Answer 10

Vince could have this adjuster’s license suspended or revoked

Question 11

In Texas, other than emergency adjusters, who must have an adjuster’s license?

Answer 11

All adjusters, regardless of type of claim handled or source of employment

Question 12

What types of adjuster licenses are approved for issuance in Texas?

Answer 12

All lines, Property & Casualty, and Worker’s Comp

Question 13

The state of Texas takes adjuster licensing very seriously and all of the following reflect the consequences for acting as an adjuster without a license except:

Answer 13

There are no significant consequences. Licensure is formality and its requirements are merely given lip service.

Question 14

Jack is thinking’s of getting an adjusters licensing. He would like to be able to handle any time of claim. The most comprehensive type of licensing would be:

Answer 14

All lines

Question 15

An emergency license can be obtained in all of the following except:

Answer 15

An adjuster with worker’s comp license begins to handle Property claims before obtaining an all lines license.

Question 16

After a hurricane hit the northeastern coastline of Texas, Joe, a resident of Virginia responded to a call for all able-bodied and qualified adjusters to assist in responding to the needs of insured Texas policyholders and their property claims. Joe has been an adjuster in Virginia doesn’t require licensure of its adjusters. What kind of license should Joe seek to allow him to adjust claims in Texas for this catastrophe?

Answer 16

An emergency license

Question 17

After 15 yrs of adjusting claims in Louisiana, Mary moved to Dallas. Under what circumstances would Texas not waive the examination requirement and give her a resident Texas adjuster’s license?

Answer 17

If Mary has a minimum of 10 yrs of adjusting experience

Question 18

Todd secured his Texas adjuster’s license a year ago and was wondering how long he had before it expired. What would you tell him?

Answer 18

A Texas adjuster’s license expires and must be renewed, on the second anniversary of the date it was issued ( every two urs following the date of original licensure)

Question 19

Adam has been licensed in Florida as an all lines adjuster for the past 15 yrs. After joining a catastrophe team to handle claims following a tropical storm that hit Texas, he decided to secure his non-resident license during the term of his initial 90-day emergency license period. He was advised that he did not have to take the Texas licensing exam to secure his non-resident adjuster’s license. The reason for this is:

Answer 19

Florida is a reciprocal state with Texas. As such , Texas recognizes the licensure of its adjusters and will waive the examination requirement.

Question 20

An adjuster whose license has expired for more than 90 ays can obtain a new license without taking the licensing exam as long as the license has not been expired for more than:

Answer 20

one year