Texas Property and Casualty insurance study guide 2024

Conditions that increase the chance of a loss are know as what? - Correct Answer Hazards How is the actual cash value of a property calculated? - Correct Answer Current replacement cost minus depreciation What are the three types of hazards? - Correct Answer Physical, Moral, Morale A policy that covers all causes of loss except for those specifically excluded is known as what type of policy? - Correct Answer Open Peril (or special) form What is negligence? - Correct Answer Failure to act as a reasonable, prudent person under given circumstances What is burglary? - Correct Answer A forced entry into another's premises with felonious intent What type of limits of liability has the limits separately stated for different coverages? - Correct Answer Split limits In property insurance, when must insurable interest exist? - Correct Answer At the time of loss What is a risk? - Correct Answer Uncertainty of loss Under absolute liability, does an injured party need to prove negligence? - Correct Answer No. Absolute liability exists when a condition or conduct is inherently dangerous, so proof of negligence is not required. What determines an insurer's responsibility for payment, as stated in an insurance policy? - Correct Answer Limits of liability (Insurance Carried/Insurance Required) x Loss Amount= - Correct Answer Loss payment What is the term for the causes of loss insured against in an insurance policy? - Correct Answer Peril What do individuals use to transfer their risk of loss to a larger group? - Correct Answer Insurance A tornado that destroys a property would be an example of what? - Correct Answer Peril