TEXAS PROPERTY AND CASUALTY REAL
EXAM WITH 100% SOLVED SOLUTIONS
2024 UPDATE
____ ____ ____ is replacement cost minus depreciation. - ✔✔✔
ANSWER actual cash value
____ _____ ______ coverage pays for losses that occur during the
policy period and are found for up to 1 year after the policy is
terminated. - ✔✔✔ ANSWER Loss sustained crime
____ is a transfer of risk from the insured to the insurer - ✔✔✔
ANSWER insurance
____ is uncertainty of loss - ✔✔✔ ANSWER risk
____ risk means there is a chance of a loss or a gain. It is not insurable. -
✔✔✔ ANSWER speculative
____ risk means there is no chance of gain. It is insurable. - ✔✔✔
ANSWER pure
_____ ___ _____ covers only additional living expenses - ✔✔✔
ANSWER loss of use
_____ _____ _____ are voluntary, unincorporated associations whose
member insurers provide particular forms of insurance to the public -
✔✔✔ ANSWER Joint underwriting associations (JUAs)
_____ _____ _____ coverage is not mandatory in the state of Texas -
✔✔✔ ANSWER Auto Uninsured Motorist
,_____ _____ agents may be authorized as a general lines agent,
managing general agent, or nonresident agent who is granted a _____
_____ license - ✔✔✔ ANSWER surplus lines
_____ _____ and medical coverage cover the insured's activities both
on and off the premises - ✔✔✔ ANSWER personal liability
_____ _____ are not covered on DP or HO forms - ✔✔✔ ANSWER farm
risks
_____ _____ covers product liability, but does not cover the cost of a
recall - ✔✔✔ ANSWER garage liability
_____ _____ does not cover the cost of a recall or resulting lost income
- ✔✔✔ ANSWER products liability
_____ _____ establishes that an employee cannot take legal action
against an employer if the employee recovers benefits through workers
compensation - ✔✔✔ ANSWER exclusive remedy
_____ _____ issue participating policies, which might pay a dividend -
✔✔✔ ANSWER mutual insurers
_____ _____ may be issued to corporations if eligibility requirements
are met - ✔✔✔ ANSWER agent licenses
_____ _____ must exist on a casualty policy at time of loss in order for
the policy to provide coverage. - ✔✔✔ ANSWER insurable interest
_____ ______ applies only after the product is out of the control of the
insured - ✔✔✔ ANSWER products liability
_____ ______ causes of loss adds falling objects; weight of ice, snow, or
sleet; water damage; collapse; and breakage of glass to those perils
covered under the basic causes of loss. - ✔✔✔ ANSWER Broad form
,_____ ______ insurance provides coverage on risks unavailable through
authorized insurers - ✔✔✔ ANSWER surplus lines
_____ ______ is defined as a disease arising out of or during the course
of employment, resulting in damage or harm to the body - ✔✔✔
ANSWER occupational disease
_____ _____, also known as the automatic increase endorsement, must
be added to a DP policy by endorsement - ✔✔✔ ANSWER inflation
guard
_____ are a return of excess premiums in participating policies - ✔✔✔
ANSWER dividends
_____ can only share commissions with other agents who are licensed
for the same lines of insurance - ✔✔✔ ANSWER Agents
_____ coverage covers buildings, the contents of buildings, or both -
✔✔✔ ANSWER property
_____ is considered to be a restraint of trade and is illegal - ✔✔✔
ANSWER Coercion
_____ is defined as an intentional misrepresentation or concealment
used to induce a party - ✔✔✔ ANSWER Fraud
_____ is defined as the temporary inundation of normally dry land -
✔✔✔ ANSWER flood
_____ or liability insurance provides compensation or indemnity an
insured must pay as a result of harm or wrong done to others - ✔✔✔
ANSWER casualty
, ______ _____ are paid to an employee on a weekly basis, unless
otherwise requested and greed upon with the employer - ✔✔✔
ANSWER income benefits
______ _____ on the PAP covers colliding with another object, rollover
and upset. Everything else is covered by other than collision coverage -
✔✔✔ ANSWER Collision coverage
______ _____ works best for items whose value does not fluctuate
much - ✔✔✔ ANSWER Agreed value
______ ______ (such as for trees, shrubs and plants) are in addition to
limits - ✔✔✔ ANSWER additional coverages
______ ______ covers occupational injury or sickness - ✔✔✔ ANSWER
Workers Compensation
______ ______ do not cover growing crops or autos driven on the
highway - ✔✔✔ ANSWER farm policies
______ ______ may pay dividends to policyholders; however, dividends
are never guaranteed - ✔✔✔ ANSWER mutual insurers
______ ______ means one location is insured for a specific amount of
insurance on the structure and contents. - ✔✔✔ ANSWER Specific
coverage.
______ ______ refers to the value of loss being the full amount of the
HO policy, in response to a total loss of insured property - ✔✔✔
ANSWER liquidated demand
______ ______ sell nonparticipating policies and pay dividend to
policyholders - ✔✔✔ ANSWER stock insurers
EXAM WITH 100% SOLVED SOLUTIONS
2024 UPDATE
____ ____ ____ is replacement cost minus depreciation. - ✔✔✔
ANSWER actual cash value
____ _____ ______ coverage pays for losses that occur during the
policy period and are found for up to 1 year after the policy is
terminated. - ✔✔✔ ANSWER Loss sustained crime
____ is a transfer of risk from the insured to the insurer - ✔✔✔
ANSWER insurance
____ is uncertainty of loss - ✔✔✔ ANSWER risk
____ risk means there is a chance of a loss or a gain. It is not insurable. -
✔✔✔ ANSWER speculative
____ risk means there is no chance of gain. It is insurable. - ✔✔✔
ANSWER pure
_____ ___ _____ covers only additional living expenses - ✔✔✔
ANSWER loss of use
_____ _____ _____ are voluntary, unincorporated associations whose
member insurers provide particular forms of insurance to the public -
✔✔✔ ANSWER Joint underwriting associations (JUAs)
_____ _____ _____ coverage is not mandatory in the state of Texas -
✔✔✔ ANSWER Auto Uninsured Motorist
,_____ _____ agents may be authorized as a general lines agent,
managing general agent, or nonresident agent who is granted a _____
_____ license - ✔✔✔ ANSWER surplus lines
_____ _____ and medical coverage cover the insured's activities both
on and off the premises - ✔✔✔ ANSWER personal liability
_____ _____ are not covered on DP or HO forms - ✔✔✔ ANSWER farm
risks
_____ _____ covers product liability, but does not cover the cost of a
recall - ✔✔✔ ANSWER garage liability
_____ _____ does not cover the cost of a recall or resulting lost income
- ✔✔✔ ANSWER products liability
_____ _____ establishes that an employee cannot take legal action
against an employer if the employee recovers benefits through workers
compensation - ✔✔✔ ANSWER exclusive remedy
_____ _____ issue participating policies, which might pay a dividend -
✔✔✔ ANSWER mutual insurers
_____ _____ may be issued to corporations if eligibility requirements
are met - ✔✔✔ ANSWER agent licenses
_____ _____ must exist on a casualty policy at time of loss in order for
the policy to provide coverage. - ✔✔✔ ANSWER insurable interest
_____ ______ applies only after the product is out of the control of the
insured - ✔✔✔ ANSWER products liability
_____ ______ causes of loss adds falling objects; weight of ice, snow, or
sleet; water damage; collapse; and breakage of glass to those perils
covered under the basic causes of loss. - ✔✔✔ ANSWER Broad form
,_____ ______ insurance provides coverage on risks unavailable through
authorized insurers - ✔✔✔ ANSWER surplus lines
_____ ______ is defined as a disease arising out of or during the course
of employment, resulting in damage or harm to the body - ✔✔✔
ANSWER occupational disease
_____ _____, also known as the automatic increase endorsement, must
be added to a DP policy by endorsement - ✔✔✔ ANSWER inflation
guard
_____ are a return of excess premiums in participating policies - ✔✔✔
ANSWER dividends
_____ can only share commissions with other agents who are licensed
for the same lines of insurance - ✔✔✔ ANSWER Agents
_____ coverage covers buildings, the contents of buildings, or both -
✔✔✔ ANSWER property
_____ is considered to be a restraint of trade and is illegal - ✔✔✔
ANSWER Coercion
_____ is defined as an intentional misrepresentation or concealment
used to induce a party - ✔✔✔ ANSWER Fraud
_____ is defined as the temporary inundation of normally dry land -
✔✔✔ ANSWER flood
_____ or liability insurance provides compensation or indemnity an
insured must pay as a result of harm or wrong done to others - ✔✔✔
ANSWER casualty
, ______ _____ are paid to an employee on a weekly basis, unless
otherwise requested and greed upon with the employer - ✔✔✔
ANSWER income benefits
______ _____ on the PAP covers colliding with another object, rollover
and upset. Everything else is covered by other than collision coverage -
✔✔✔ ANSWER Collision coverage
______ _____ works best for items whose value does not fluctuate
much - ✔✔✔ ANSWER Agreed value
______ ______ (such as for trees, shrubs and plants) are in addition to
limits - ✔✔✔ ANSWER additional coverages
______ ______ covers occupational injury or sickness - ✔✔✔ ANSWER
Workers Compensation
______ ______ do not cover growing crops or autos driven on the
highway - ✔✔✔ ANSWER farm policies
______ ______ may pay dividends to policyholders; however, dividends
are never guaranteed - ✔✔✔ ANSWER mutual insurers
______ ______ means one location is insured for a specific amount of
insurance on the structure and contents. - ✔✔✔ ANSWER Specific
coverage.
______ ______ refers to the value of loss being the full amount of the
HO policy, in response to a total loss of insured property - ✔✔✔
ANSWER liquidated demand
______ ______ sell nonparticipating policies and pay dividend to
policyholders - ✔✔✔ ANSWER stock insurers
