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Property and Casualty Insurance Producer Exam

Claims (TX): practice questions

Our Property & Casualty Insurance bank has 14 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1 · Texas

For the Texas prompt payment subchapter, a 'notice of claim' is:

  1. Any phone call to the agent mentioning that a loss happened
  2. Only a sworn proof of loss
  3. A lawsuit
  4. Written notice that reasonably tells the insurer the facts of the claim
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D. Written notice that reasonably tells the insurer the facts of the claim — Tex. Ins. Code 542.051(4): any written notification by a claimant that reasonably apprises the insurer of the facts relating to the claim.

Question 2 · Texas

Within how many days after receiving notice of a claim must a Texas insurer acknowledge it and begin its investigation?

  1. 15 days
  2. 5 days
  3. 30 days
  4. 45 days
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A. 15 days — Tex. Ins. Code 542.055(a): not later than the 15th day (30th business day for a surplus lines insurer) after receiving notice of a claim.

Question 3 · Texas

Within how many days after settling a claim against its named insured must a Texas casualty insurer notify the insured in writing?

  1. 10 days
  2. 60 days
  3. 30 days
  4. 90 days
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C. 30 days — Tex. Ins. Code 542.153(b): not later than the 30th day after a claim against the named insured is settled, the insurer notifies the insured in writing.

Question 4 · Texas

A Texas insurer liable for a claim that violates the prompt payment law owes, besides the claim, interest at:

  1. 6 percent a year, with attorney's fees only if a court allows
  2. 10 percent a year
  3. 18 percent a year, plus reasonable attorney's fees
  4. The prime rate only
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C. 18 percent a year, plus reasonable attorney's fees — Tex. Ins. Code 542.060(a): interest on the claim at 18 percent a year as damages, together with reasonable and necessary attorney's fees.

Question 5 · Texas

Which is an unfair claim settlement practice under Tex. Ins. Code 542.003?

  1. Paying a claim within 5 days of receiving the proof of loss
  2. Asking for a proof of loss
  3. Compelling a policyholder to sue by offering substantially less than is due
  4. Inspecting the damage
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C. Compelling a policyholder to sue by offering substantially less than is due — Tex. Ins. Code 542.003(b)(5): compelling a policyholder to institute suit by offering substantially less than the amount ultimately recovered.

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