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TEXAS PROPERTY AND CASUALTY PRACTICE EXAM
PREP . 2025
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? -
...(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.
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 - ...(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.
Individuals in the business of selling construction equipment and mobile
equipment should insure with a/an - ...(ANSWERS)....Equipment dealers coverage
form
An equipment dealer's coverage form covers a dealer's stock in trade consisting
primarily of mobile agricultural equipment and construction equipment. It also
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covers property of others in the dealer's care, custody, or control. It excludes
coverage for autos, motorcycles, aircraft, and watercraft.
All of the following are true regarding deposit premium - ...(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.
Which of the following is NOT an essential element of an insurance contract? -
...(ANSWERS)....counteroffer
To purchase insurance, the policyowner must have financial interest in the
property being insured. This is known as - ...(ANSWERS)....Insurable Interest
TEXAS PROPERTY AND CASUALTY PRACTICE EXAM
PREP . 2025
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? -
...(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.
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 - ...(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.
Individuals in the business of selling construction equipment and mobile
equipment should insure with a/an - ...(ANSWERS)....Equipment dealers coverage
form
An equipment dealer's coverage form covers a dealer's stock in trade consisting
primarily of mobile agricultural equipment and construction equipment. It also
, 2
covers property of others in the dealer's care, custody, or control. It excludes
coverage for autos, motorcycles, aircraft, and watercraft.
All of the following are true regarding deposit premium - ...(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.
Which of the following is NOT an essential element of an insurance contract? -
...(ANSWERS)....counteroffer
To purchase insurance, the policyowner must have financial interest in the
property being insured. This is known as - ...(ANSWERS)....Insurable Interest
