Texas Insurance License Exam Prep P&C.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
Texas Insurance License Exam Prep P&C
Questions & Answers
1. What are 3 subjects an auto policy covers?
Answer 1. Body
2. The vehicle
3. Assets
2. Bodily Injury Types
Answer Personal Injury Med Pay
Uninsured Motorist
3. No Fault Insurance
Answer State stipulates that parties cannot file a claim to the other persons
insurance policy unless required in excess. Instead, each party is required to file a
primary claim against their own insurance regardless who is at fault. EX. Florida
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,Texas Insurance License Exam Prep P&C.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
4. Financial Responsibility Laws
Answer State Laws regulating that people are to carry a minimum coverage amount
set by the state to protect themselves, others, and property.
5. P.A.P
Answer Personal Automotive Policy
6. Negligence
Answer The failure to act as a prudent person would under similar circum- stances
7. Legal Liability
Answer Involves proven negligence or fault
8. Vicarious Liability
Answer Being responsible for the negligent acts of someone else.Ex. Your children
9. Absolute or Strict Liability
Answer Stems from hazardous or dangerous activities that makes the owner liable
WITHOUT the requirement of proof of negligence.
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,Texas Insurance License Exam Prep P&C.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
10. Liability
Answer Being responsible for the damages or injury you or someone else you're
responsible for has done.
11. The 7 Characteristics of a Contract
Answer 1. Personal Contract
2. Conditional Contract
3. Adhesion
4. Indemnity
5. Aleatory
6. Unilateral
7. Utmost Good Faith
12. Personal Contract
Answer Is stipulation of a contract that says the contract is for the name person and
cannot be transferred to another.
13. Conditional Contract
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,Texas Insurance License Exam Prep P&C.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
Answer Stipulates set by a contract. "You can do this, but.......................................... "
14. Adhesion
Answer A stipulation that the contract and it's language is binding, or "sticks" and the
parties agreeing cannot back out so long as the conditions are met.
15. Indemnity
Answer The contract agrees to indemnify, or make whole again the customer. Makes
them no better, nor worse, just whole.
16. Aleatory
Answer The stipulation that the contract must include and unequal transfer of
money. Ex. The insured signed a contract a month ago and has paid a single
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Texas Insurance License Exam Prep P&C
Questions & Answers
1. What are 3 subjects an auto policy covers?
Answer 1. Body
2. The vehicle
3. Assets
2. Bodily Injury Types
Answer Personal Injury Med Pay
Uninsured Motorist
3. No Fault Insurance
Answer State stipulates that parties cannot file a claim to the other persons
insurance policy unless required in excess. Instead, each party is required to file a
primary claim against their own insurance regardless who is at fault. EX. Florida
1 of 66 12/11/2024, 12:31
,Texas Insurance License Exam Prep P&C.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
4. Financial Responsibility Laws
Answer State Laws regulating that people are to carry a minimum coverage amount
set by the state to protect themselves, others, and property.
5. P.A.P
Answer Personal Automotive Policy
6. Negligence
Answer The failure to act as a prudent person would under similar circum- stances
7. Legal Liability
Answer Involves proven negligence or fault
8. Vicarious Liability
Answer Being responsible for the negligent acts of someone else.Ex. Your children
9. Absolute or Strict Liability
Answer Stems from hazardous or dangerous activities that makes the owner liable
WITHOUT the requirement of proof of negligence.
2 of 66 12/11/2024, 12:31
,Texas Insurance License Exam Prep P&C.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
10. Liability
Answer Being responsible for the damages or injury you or someone else you're
responsible for has done.
11. The 7 Characteristics of a Contract
Answer 1. Personal Contract
2. Conditional Contract
3. Adhesion
4. Indemnity
5. Aleatory
6. Unilateral
7. Utmost Good Faith
12. Personal Contract
Answer Is stipulation of a contract that says the contract is for the name person and
cannot be transferred to another.
13. Conditional Contract
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,Texas Insurance License Exam Prep P&C.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
Answer Stipulates set by a contract. "You can do this, but.......................................... "
14. Adhesion
Answer A stipulation that the contract and it's language is binding, or "sticks" and the
parties agreeing cannot back out so long as the conditions are met.
15. Indemnity
Answer The contract agrees to indemnify, or make whole again the customer. Makes
them no better, nor worse, just whole.
16. Aleatory
Answer The stipulation that the contract must include and unequal transfer of
money. Ex. The insured signed a contract a month ago and has paid a single
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