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chapter 1 review fred loya.
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chapter 1 review fred loya.
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chapter 1 review fred loyaWhat is a non resident agent? - correct answer-agent resides outside the state of Texas and
wishes tp transact insurance business in the state of Texas.
What is a risk Manager? - correct answer-examines, assesses, or evaluates risk for
reduction of risks.
What are the requirements a non resident agent must meet to obtain a TX insurance
license? - correct answer-valid license in that state and is in good standing.
is an agent able to share commissions with everyone? explain. - correct answer-agents
cannot share commissions with someone that is not licensed. Only the spouse or children of
a deceased agent can get the agent's commission. They can however, share commissions
with a person that is licensed.
What are your responsibilities as an agent, to the insured? - correct answer-to EVALUATE
the client's insurance and make a proper recommendations with regard to coverage
if an agent fails to recommend a needed coverage gap that results in a loss that is not
covered, THE INSURED MAY HAVE A VALID CLAIM AGAINST THE AGENT.
What is the definition of fiduciary capacity? - correct answer-someone who undertakes a
high level of trust when acting in the interest of another person.
Anyone who has knowledge of a fraudulent act must report it to whom? - correct answer-TDI
Fraud Unit
What could happen if an agent incorrectly tells a customer that they have coverage, when no
coverage actually exists? - correct answer-If an agent incorrectly implies or tells an insured
that there is coverage under a policy when no coverage actually exist under that policy, the
insurer could be held liable for the loss.
How long is the term for temporary agent's license? - correct answer-90 days
What is a surplus lines agent? - correct answer-an individual must be currently licensed as a
general property and casualty agent or as a managing general agent. at least ONE agent in
an agency must be licensed as a surplus lines agent for the agency to sell surplus lines.
Agents must retain proof if continuing education for how long? - correct answer-agents are to
retain proof of CE for 4 YEARS (records are subject to inspection by the commissioner).
What is the definition of twisting? - correct answer-making an y misrepresentation to any
policyholder for the purpose of inducing or tending to induce that person to lapse or
surrender his insurance.
What percentage of an agent's sales must come from the general public? - correct
answer-25%
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