TEXAS PROPERTY AND CASUALTY
TEST FINAL EXAM 2 VERSIONS
(VERSION A AND B) COMPLETE 500
QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100%
CORRECT ANSWERS) /A+ STUDY
MATERIAL
Which of these is defined as the maximum limit of
coverage available under a liability policy during a policy
year, regardless of the number of claims that may be made
or the number of accidents that may occur? -
....ANSWER...Aggregate limit of liability
Coverage under the builders risk form will end in all of the
following situations EXCEPT - ....ANSWER...60 days
after the construction has ended
,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 -
....ANSWER...Conditions.
he insured purchased a $200,000 extra expense policy. If
the percentages applying to the limit of insurance are
40%, 80%, and 100%, what would be the maximum
payable for a 47-day loss? - ....ANSWER...160,000
Which professional liability form provides coverage for
liability arising out of errors or mistakes made in rendering
medical services? - ....ANSWER...Physicians, surgeons
and dentists malpractice
To be eligible for coverage under the National Flood
Insurance Program, an insured must live in which of the
following communities? - ....ANSWER...That has met the
minimum floodplain management guidelines
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? -
....ANSWER...Material misrepresentation
All of the following statements describe the concept of
strict liability EXCEPT - ....ANSWER...It is imposed on
defendants engaged in hazardous activities
When a parent is required to pay for damages caused by
his or her children, this is an example of -
....ANSWER...Vicarious liability
____ is uncertainty of loss - ....ANSWER...risk
____ is a transfer of risk from the insured to the insurer -
....ANSWER...insurance
____ risk means there is no chance of gain. It is insurable. -
....ANSWER...pure
____ risk means there is a chance of a loss or a gain. It is
not insurable. - ....ANSWER...speculative
, a ____ is something that increases the risk. -
....ANSWER...hazard
the principle of _____ governs property and casualty
policies. It states that the purpose of the policy is to
restore the insured financially to where they were prior to
the loss - ....ANSWER...indemnity
_____ _____ must exist on a casualty policy at time of loss
in order for the policy to provide coverage. -
....ANSWER...insurable interest
the law of _____ _____ is used to predict the likelihood of
loss - ....ANSWER...large numbers
____ ____ ____ is replacement cost minus depreciation. -
....ANSWER...actual cash value
________ is a tort, or civil wrong; it is grounds for a
lawsuit. - ....ANSWER...Negligence
TEST FINAL EXAM 2 VERSIONS
(VERSION A AND B) COMPLETE 500
QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100%
CORRECT ANSWERS) /A+ STUDY
MATERIAL
Which of these is defined as the maximum limit of
coverage available under a liability policy during a policy
year, regardless of the number of claims that may be made
or the number of accidents that may occur? -
....ANSWER...Aggregate limit of liability
Coverage under the builders risk form will end in all of the
following situations EXCEPT - ....ANSWER...60 days
after the construction has ended
,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 -
....ANSWER...Conditions.
he insured purchased a $200,000 extra expense policy. If
the percentages applying to the limit of insurance are
40%, 80%, and 100%, what would be the maximum
payable for a 47-day loss? - ....ANSWER...160,000
Which professional liability form provides coverage for
liability arising out of errors or mistakes made in rendering
medical services? - ....ANSWER...Physicians, surgeons
and dentists malpractice
To be eligible for coverage under the National Flood
Insurance Program, an insured must live in which of the
following communities? - ....ANSWER...That has met the
minimum floodplain management guidelines
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? -
....ANSWER...Material misrepresentation
All of the following statements describe the concept of
strict liability EXCEPT - ....ANSWER...It is imposed on
defendants engaged in hazardous activities
When a parent is required to pay for damages caused by
his or her children, this is an example of -
....ANSWER...Vicarious liability
____ is uncertainty of loss - ....ANSWER...risk
____ is a transfer of risk from the insured to the insurer -
....ANSWER...insurance
____ risk means there is no chance of gain. It is insurable. -
....ANSWER...pure
____ risk means there is a chance of a loss or a gain. It is
not insurable. - ....ANSWER...speculative
, a ____ is something that increases the risk. -
....ANSWER...hazard
the principle of _____ governs property and casualty
policies. It states that the purpose of the policy is to
restore the insured financially to where they were prior to
the loss - ....ANSWER...indemnity
_____ _____ must exist on a casualty policy at time of loss
in order for the policy to provide coverage. -
....ANSWER...insurable interest
the law of _____ _____ is used to predict the likelihood of
loss - ....ANSWER...large numbers
____ ____ ____ is replacement cost minus depreciation. -
....ANSWER...actual cash value
________ is a tort, or civil wrong; it is grounds for a
lawsuit. - ....ANSWER...Negligence
