Texas Insurance License Exam Prep P&C

What are 3 subjects an auto policy covers? - Answer- 1. Body 2. The vehicle 3. Assets Bodily Injury Types - Answer- Personal Injury Med Pay Uninsured Motorist No Fault Insurance - Answer- State stipulates that parties cannot file a claim to the other persons insurance policy unless required in excess. Instead, each party is required to file a primary claim against their own insurance regardless who is at fault. EX. Florida Financial Responsibility Laws - Answer- State Laws regulating that people are to carry a minimum coverage amount set by the state to protect themselves, others, and property. P.A.P - Answer- Personal Automotive Policy Negligence - Answer- The failure to act as a prudent person would under similar circumstances Legal Liability - Answer- Involves proven negligence or fault Vicarious Liability - Answer- Being responsible for the negligent acts of someone else. Ex. Your children Absolute or Strict Liability - Answer- Stems from hazardous or dangerous activities that makes the owner liable WITHOUT the requirement of proof of negligence. Liability - Answer- Being responsible for the damages or injury you or someone else you're responsible for has done. The 7 Characteristics of a Contract - Answer- 1. Personal Contract 2. Conditional Contract 3. Adhesion 4. Indemnity 5. Aleatory 6. Unilateral 7. Utmost Good Faith Personal Contract - Answer- Is stipulation of a contract that says the contract is for the name person and cannot be transferred to another. C