Texas Property & Casualty Law Questions and Answers Graded A

Texas Property & Casualty Law Questions and Answers Graded A Forcing a client to buy insurance from a certain Agent as a condition to granting a loan is an - ✔✔Unfair Trade Practice What is the Guaranty Fund's purpose? ✔✔To pay claims, up to $300,000, & unearned premium refunds up to $25,000, of more than $25, of insolvent companies, funded by assessments on members. All P&C companies must join in order to get their Certificate of Authority. Workers Comp. claims are covered w/ out limits. Rates cannot be - ✔✔Too high, too low or unfairly discriminatory. Fire policies may be canceled after how many days for certain things? ✔✔60 days If a Fire or Homeowners policy is canceled or nonrenewed, the company must give the insured how many days' advance notice? ✔✔30 days Insurable interest in P&C insurance should exist at what time? ✔✔Time of loss The owners policy is always _________ in auto policy. ✔✔Primary After an auto policy is in effect for how many days, the company may not cancel except for certain reasons? ✔✔60 days The Texas Auto Insurance Plan (Auto Assigned Risk Pool) offers coverage to who? ✔✔Drivers not able to obtain coverage through the normal market. Notice of Claim on property insurance is required when? ✔✔Immediately Proof of loss on fire insurance must be submitted w/ in how many days? ✔✔60 days T or F: Farm tractors are exempt from the auto Financial Responsibility Law. ✔✔True Cancellation is ___________. Non renewal is at the ____________ _________ of your policy period. ✔✔Midterm / normal end Insurance companies have a 60 day underwriting period, during which they may do what? ✔✔Cancel or reject an application for any valid reason. What is the minimum limits for Uninsured Motorist cov. for injury to one person? ✔✔$30k Auto Under Insured Motorist (UIM) cov. applies when ? ✔✔When the "at fault" party has liability insurance, but not enough to cover a third party's injuries. When cancelling a personal auto policy - ✔✔Insurers must give at least 10 days' advance notice, state the specific reasons & notify the insured of their eligibility for the Assigned Risk Plan. In Texas, the minimum liability limit for an automobile property damage loss as a result of the insured's negligence in an automobile accident is? ✔✔$25k To be insured, a loss must be? ✔✔Calculable A person responsible for the supervision & collection of premiums on behalf of a reciprocal insurer is known as an? ✔✔Attorney-in-fact