Texas Property and Casualty practice exam Guide 2024

Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy. However, with the purchase of the water backup and sump pump overflow endorsement, coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is the deductible associated with this coverage? - Correct Answer $250 Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for an additional premium with this endorsement. An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. She is also storing some furniture and clothes in the house. From an insurance standpoint, the insured's house is considered - Correct Answer Unoccupied Unoccupancy refers to an insured structure in which no people have been living or working within the required period of time, but the structure contains contents. Individuals in the business of selling construction equipment and mobile equipment should insure with a/an - Correct Answer Equipment dealers coverage form An equipment dealer's coverage form covers a dealer's stock in trade consisting primarily of mobile agricultural equipment and construction equipment. It also covers property of others in the dealer's care, custody, or control. It excludes coverage for autos, motorcycles, aircraft, and watercraft. All of the following are true regarding deposit premium - Correct Answer It must be paid in advance. It is an estimated premium paid at the policy issue. It could be adjusted by the audit. Deposit premium is an estimated premium paid in advance at the time the policy is issued that may be adjusted by the audit based on actual exposures. Which of the following is NOT an essential element of an insurance contract? - Correct Answer counteroffer To purchase insurance, the policyowner must have financial interest in the property being insured. This is known as - Correct Answer Insurable Interest