1
TEXAS
TEXAS PROPERTY & CASUALTY INSURANCE, INSURANCE
EXAM QUESTIONS WITH VERIFIED ANSWERS, ALREADY
PASSED! (COMPLETE & ACCURATE)
The insured had a pair of antique silver candlesticks valued at $2,000. A
thief stole 1 candlestick. Because the set was "broken", the remaining
candlestick's value was reduced to $250. Disregarding the deductible, the
insurer would pay _____. - ANS ✓$1750
Monica owns a $150,000 home. She carries 2 insurance policies on it:
Company A insures $100,000 and Company B insures $50,000. If she suffers
a $9,000 covered loss to her home, how much will Company A pay under
the policy? - ANS ✓$6000
The insured has run a red light and hits another car causing injury to the
driver and damage to the car. The insured has what type of liability? - ANS
✓direct
A policy used to insure separate pieces of jewellery is called a ____. - ANS
✓personal articles floater
Which part of the insurance contract contains information about the
effective date of coverage, deductible, premium, and location of the insured
property? - ANS ✓declarations page
The personal auto policy's comprehensive physical damage coverage
covers damage from hitting an animal, theft, and ____. - ANS ✓flood
Which of the elements of a legal contract does an insurance premium
represent? - ANS ✓Consideration
Using simple, layman's language while discussing insurance concepts,
refraining from making inaccurate remarks about other agents or insurers,
and placing customer interests above one's own are all examples of an
agent's _____. - ANS ✓ethical conduct
TEXAS PROPERTY
, 2
TEXAS
If the insured has a policy that covers liability, where in the policy do you
find the insurers duty to defend the insured? - ANS ✓insuring agreement
Which part of the dwelling property policy would cover lost rental revenue
if the dwelling was being used as a rental property? - ANS ✓Coverage D
Open peril coverage for both the dwelling and personal property is
provided by the _____. - ANS ✓HO5
The garage policy does not cover ____. - ANS ✓insured's medical bills
A business income policy covers lost profits, continuing expenses and _____. -
ANS ✓extra expenses
A ____ agent may place insurance risks with unauthorized insurers. - ANS
✓surplus lines
Which of the following commercial general liability (CGL) coverages would
protect a policyholder for assumed liability under a construction contract
to install water lines for a city? - ANS ✓contractual
Which of the following could be scheduled under a miscellaneous type
vehicles endorsement to the personal auto policy? - ANS ✓motorcycle
The insurance company that Alan represents has just been placed into
rehabilitation, but Alan continues to tell his clients the company is
"financially strong" and he uses an outdated financial rating to back up his
claim. What unfair trade practice has Alan committed? - ANS ✓false financial
statements
Which of the following coverages is included in the homeowners policy but
is not included in an unendorsed dwelling policy? - ANS ✓liability
Business owners policies are perfect for _____ businesses. - ANS ✓small
Lease of premises, easement agreements, agreements with municipalities,
side-track agreements and ____ agreements are insured contracts under the
commercial general liability (CGL) policy. - ANS ✓elevator maintenance
Lisa has a commercial general liability (CGL) policy for her bakery. She
moves the bakery to a new location in another part of town. When does the
coverage at the new location end? - ANS ✓end of the policy term
TEXAS PROPERTY
, 3
TEXAS
What risk is not insurable? - ANS ✓speculative
Which of following is not a proximate cause by fire: Fire fighters breaking
window
Water damage to put out fire
Water on others' property to keep fire from spreading
Fire truck getting into wreck on way to fight the fire - ANS ✓Fire truck
wrecking on the way to the fire.
The insured pays a premium and in exchange the insurer gives a promise to
pay in the future. This is called ____. - ANS ✓consideration
What section of the contract contains promises made by the insurer? - ANS
✓consideration
What document is required to be submitted by the insured? - ANS ✓Proof of
loss
The transfer to the insurance company of the insured's right to collect
damages from another party is _____. - ANS ✓Subrogation
_____ deals with disagreements on the value of the loss. - ANS ✓appraisal
_____ deals with disagreements on coverage issues. - ANS ✓arbitration
_____ is the transfer of risk through a legal contract from the insured to the
insurer. - ANS ✓insurance
_____ insurance covers your legal liability to others. - ANS ✓casualty
_____ insurance covers real property and personal property. - ANS ✓property
____ risk is the chance of loss. - ANS ✓pure
A ____ hazard is caused by carelessness. - ANS ✓morale
Elements of a legal contract (CALC):
Competent parties
Agreement
Legal purpose
________ - ANS ✓consideration
TEXAS PROPERTY
, 4
TEXAS
A _____ is not true, but has no effect on the insurer's decision to issue a
policy. - ANS ✓misrepresentation
____ is an all-out effort by one party to deceive. - ANS ✓fraud
A binder or temporary contract of insurance is good for up to _____ days. -
ANS ✓30
Where do you find the policy number, parties, property description, policy
term, policy limits and premium? - ANS ✓declarations
A deductible is also called a ____. - ANS ✓retention
The ____ contains the promise to pay and covered perils, and duties of
insurer. - ANS ✓insuring agreement
A proof of loss form is required to be submitted within ___ days in Texas. -
ANS ✓91
In an insurance contract, assignment, duties of the insured, subrogation
rights, termination provisions, territory, and loss settlement provisions are
listed in the ____. - ANS ✓conditions
When an insured cancels a policy, it is called a _____ cancellation. - ANS
✓short rate
When an insurer cancels a policy, it is called a _____ cancellation. - ANS ✓pro
rata
The _____ clause broadens or extends coverage. - ANS ✓liberalization
When insuring multiple buildings in an apartment complex, ____coverage
has a single limit of insurance while specific coverage listed each building
separately. - ANS ✓blanket
Replacement cost minus depreciation is ____. - ANS ✓actual cash value
When a building is destroyed by fire, insured has the right to demand ____
for the building, but not personal property. - ANS ✓policy limits
TEXAS PROPERTY
TEXAS
TEXAS PROPERTY & CASUALTY INSURANCE, INSURANCE
EXAM QUESTIONS WITH VERIFIED ANSWERS, ALREADY
PASSED! (COMPLETE & ACCURATE)
The insured had a pair of antique silver candlesticks valued at $2,000. A
thief stole 1 candlestick. Because the set was "broken", the remaining
candlestick's value was reduced to $250. Disregarding the deductible, the
insurer would pay _____. - ANS ✓$1750
Monica owns a $150,000 home. She carries 2 insurance policies on it:
Company A insures $100,000 and Company B insures $50,000. If she suffers
a $9,000 covered loss to her home, how much will Company A pay under
the policy? - ANS ✓$6000
The insured has run a red light and hits another car causing injury to the
driver and damage to the car. The insured has what type of liability? - ANS
✓direct
A policy used to insure separate pieces of jewellery is called a ____. - ANS
✓personal articles floater
Which part of the insurance contract contains information about the
effective date of coverage, deductible, premium, and location of the insured
property? - ANS ✓declarations page
The personal auto policy's comprehensive physical damage coverage
covers damage from hitting an animal, theft, and ____. - ANS ✓flood
Which of the elements of a legal contract does an insurance premium
represent? - ANS ✓Consideration
Using simple, layman's language while discussing insurance concepts,
refraining from making inaccurate remarks about other agents or insurers,
and placing customer interests above one's own are all examples of an
agent's _____. - ANS ✓ethical conduct
TEXAS PROPERTY
, 2
TEXAS
If the insured has a policy that covers liability, where in the policy do you
find the insurers duty to defend the insured? - ANS ✓insuring agreement
Which part of the dwelling property policy would cover lost rental revenue
if the dwelling was being used as a rental property? - ANS ✓Coverage D
Open peril coverage for both the dwelling and personal property is
provided by the _____. - ANS ✓HO5
The garage policy does not cover ____. - ANS ✓insured's medical bills
A business income policy covers lost profits, continuing expenses and _____. -
ANS ✓extra expenses
A ____ agent may place insurance risks with unauthorized insurers. - ANS
✓surplus lines
Which of the following commercial general liability (CGL) coverages would
protect a policyholder for assumed liability under a construction contract
to install water lines for a city? - ANS ✓contractual
Which of the following could be scheduled under a miscellaneous type
vehicles endorsement to the personal auto policy? - ANS ✓motorcycle
The insurance company that Alan represents has just been placed into
rehabilitation, but Alan continues to tell his clients the company is
"financially strong" and he uses an outdated financial rating to back up his
claim. What unfair trade practice has Alan committed? - ANS ✓false financial
statements
Which of the following coverages is included in the homeowners policy but
is not included in an unendorsed dwelling policy? - ANS ✓liability
Business owners policies are perfect for _____ businesses. - ANS ✓small
Lease of premises, easement agreements, agreements with municipalities,
side-track agreements and ____ agreements are insured contracts under the
commercial general liability (CGL) policy. - ANS ✓elevator maintenance
Lisa has a commercial general liability (CGL) policy for her bakery. She
moves the bakery to a new location in another part of town. When does the
coverage at the new location end? - ANS ✓end of the policy term
TEXAS PROPERTY
, 3
TEXAS
What risk is not insurable? - ANS ✓speculative
Which of following is not a proximate cause by fire: Fire fighters breaking
window
Water damage to put out fire
Water on others' property to keep fire from spreading
Fire truck getting into wreck on way to fight the fire - ANS ✓Fire truck
wrecking on the way to the fire.
The insured pays a premium and in exchange the insurer gives a promise to
pay in the future. This is called ____. - ANS ✓consideration
What section of the contract contains promises made by the insurer? - ANS
✓consideration
What document is required to be submitted by the insured? - ANS ✓Proof of
loss
The transfer to the insurance company of the insured's right to collect
damages from another party is _____. - ANS ✓Subrogation
_____ deals with disagreements on the value of the loss. - ANS ✓appraisal
_____ deals with disagreements on coverage issues. - ANS ✓arbitration
_____ is the transfer of risk through a legal contract from the insured to the
insurer. - ANS ✓insurance
_____ insurance covers your legal liability to others. - ANS ✓casualty
_____ insurance covers real property and personal property. - ANS ✓property
____ risk is the chance of loss. - ANS ✓pure
A ____ hazard is caused by carelessness. - ANS ✓morale
Elements of a legal contract (CALC):
Competent parties
Agreement
Legal purpose
________ - ANS ✓consideration
TEXAS PROPERTY
, 4
TEXAS
A _____ is not true, but has no effect on the insurer's decision to issue a
policy. - ANS ✓misrepresentation
____ is an all-out effort by one party to deceive. - ANS ✓fraud
A binder or temporary contract of insurance is good for up to _____ days. -
ANS ✓30
Where do you find the policy number, parties, property description, policy
term, policy limits and premium? - ANS ✓declarations
A deductible is also called a ____. - ANS ✓retention
The ____ contains the promise to pay and covered perils, and duties of
insurer. - ANS ✓insuring agreement
A proof of loss form is required to be submitted within ___ days in Texas. -
ANS ✓91
In an insurance contract, assignment, duties of the insured, subrogation
rights, termination provisions, territory, and loss settlement provisions are
listed in the ____. - ANS ✓conditions
When an insured cancels a policy, it is called a _____ cancellation. - ANS
✓short rate
When an insurer cancels a policy, it is called a _____ cancellation. - ANS ✓pro
rata
The _____ clause broadens or extends coverage. - ANS ✓liberalization
When insuring multiple buildings in an apartment complex, ____coverage
has a single limit of insurance while specific coverage listed each building
separately. - ANS ✓blanket
Replacement cost minus depreciation is ____. - ANS ✓actual cash value
When a building is destroyed by fire, insured has the right to demand ____
for the building, but not personal property. - ANS ✓policy limits
TEXAS PROPERTY
