Texas Property and Casualty practice
exam with correct answers A+ Graded
When applying for an individual life insurance policy, an applicant states that he went to
the doctor for nausea, but fails to mention that he was also having severe chest pains.
This is an example of - CORRECT ANSWERS-concealment
A homeowner sells his house to a friend. The friend wants to keep the homeowner's
current policy in effect. Under the assignment provision, which of the following is most
likely? - CORRECT ANSWERS-The homeowner will need to get written consent from
the insurer before the policy can be reassigned.
A premium discount is the term that describes when an insured owes a total standard
premium greater than - CORRECT ANSWERS-$5,000
All of the following are considered parts of the policy structure EXCEPT - CORRECT
ANSWERS-Provisions
All of the following are true regarding deposit premium - CORRECT ANSWERS-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.
All of the following statements describe the concept of strict liability EXCEPT -
CORRECT ANSWERS-It is imposed on defendants engaged in hazardous activities
An insured is applying for a casualty insurance policy. One of the conditions of the
policy allows the insurance company to inspect the insured's books at the end of the
policy term to make sure sufficient premium has been collected for the exposure she
plans to insure. Which condition is part of the insured's policy? - CORRECT
ANSWERS-Deposit premium audit
, Deposit premium audit is a condition that allows an insurer to inspect the insured's
books at the end of the policy term to make sure sufficient payment has been collected
for the exposure.
An insured owns a building that is valued at $400,000. To comply with the 80%
coinsurance provision of his insurance policy, how much should he insure the property
for? - CORRECT ANSWERS-80% of the property's replacement cost or more
The coinsurance clause states that in consideration of a reduced rate, the insured
agrees to maintain a certain minimum amount of insurance on the insured property. In
the event of a covered loss, insurance is designed to pay replacement cost minus
depreciation.
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 ANSWERS-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.
An insured stated on her application for life insurance that she had never had a heart
attack, when in fact she had a series of minor heart attacks last year for which she
sought medical attention. Which of the following will explain the reason a death benefit
claim is denied? - CORRECT ANSWERS-Material misrepresentation
Because an insurance policy is a legal contract, it must conform to the state laws
governing contracts which require all of the following elements EXCEPT - CORRECT
ANSWERS-Conditions.
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
ANSWERS-$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.
Coverage under the builders risk form will end in all of the following situations EXCEPT
- CORRECT ANSWERS-60 days after the construction has ended
Crime insurance is usually written on the basis of - CORRECT ANSWERS-All-Risk
exam with correct answers A+ Graded
When applying for an individual life insurance policy, an applicant states that he went to
the doctor for nausea, but fails to mention that he was also having severe chest pains.
This is an example of - CORRECT ANSWERS-concealment
A homeowner sells his house to a friend. The friend wants to keep the homeowner's
current policy in effect. Under the assignment provision, which of the following is most
likely? - CORRECT ANSWERS-The homeowner will need to get written consent from
the insurer before the policy can be reassigned.
A premium discount is the term that describes when an insured owes a total standard
premium greater than - CORRECT ANSWERS-$5,000
All of the following are considered parts of the policy structure EXCEPT - CORRECT
ANSWERS-Provisions
All of the following are true regarding deposit premium - CORRECT ANSWERS-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.
All of the following statements describe the concept of strict liability EXCEPT -
CORRECT ANSWERS-It is imposed on defendants engaged in hazardous activities
An insured is applying for a casualty insurance policy. One of the conditions of the
policy allows the insurance company to inspect the insured's books at the end of the
policy term to make sure sufficient premium has been collected for the exposure she
plans to insure. Which condition is part of the insured's policy? - CORRECT
ANSWERS-Deposit premium audit
, Deposit premium audit is a condition that allows an insurer to inspect the insured's
books at the end of the policy term to make sure sufficient payment has been collected
for the exposure.
An insured owns a building that is valued at $400,000. To comply with the 80%
coinsurance provision of his insurance policy, how much should he insure the property
for? - CORRECT ANSWERS-80% of the property's replacement cost or more
The coinsurance clause states that in consideration of a reduced rate, the insured
agrees to maintain a certain minimum amount of insurance on the insured property. In
the event of a covered loss, insurance is designed to pay replacement cost minus
depreciation.
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 ANSWERS-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.
An insured stated on her application for life insurance that she had never had a heart
attack, when in fact she had a series of minor heart attacks last year for which she
sought medical attention. Which of the following will explain the reason a death benefit
claim is denied? - CORRECT ANSWERS-Material misrepresentation
Because an insurance policy is a legal contract, it must conform to the state laws
governing contracts which require all of the following elements EXCEPT - CORRECT
ANSWERS-Conditions.
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
ANSWERS-$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.
Coverage under the builders risk form will end in all of the following situations EXCEPT
- CORRECT ANSWERS-60 days after the construction has ended
Crime insurance is usually written on the basis of - CORRECT ANSWERS-All-Risk
