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TEXAS INSURANCE LICENSE Exam
Version A&B | Certified Exam Questions
And Correct Answers
Unless otherwise stated by the policy, property covered by the Building and
Personal Property Coverage Form is valued on what basis? - Correct-answer-
Actual cash value
Under a Commercial General Liability policy, all of the following statements about
the supplemental extended reporting period are correct, except: - Correct-
answer-The insurer may cancel the SERP after the insured pays the premium
Which of the following statements is correct regarding PIP coverage in Texas? -
Correct-answer-PIP coverage covers insureds and their guests without regard to
fault or to coordination of benefits
Which of the following statements regarding types of property loss is incorrect? -
Correct-answer-Direct losses include additional living expenses
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What is the maximum amount supplementary payments coverage provided by a
Business Auto policy will pay for the cost of bail bonds related to a covered
accident? - Correct-answer-$2,000
Under a Business Auto policy, which of the following statements about towing
coverage provided under the policy's physical damage coverage is correct? -
Correct-answer-Labor must be performed at the place of disablement to be
covered
Commercial Crime insurance policies are typically able to cover losses resulting
from all of the following, except: - Correct-answer-The mysterious disappearance
of property
An insured with a Personal Auto policy on their car is using a non-owned auto to
run errands. Under the insured's policy, liability coverage for use of the non-
owned auto is: - Correct-answer-Provided on an excess basis
After unintentionally running a red light, L causes an accident with T. T's sedan is
badly damaged, and T's arm is broken. A few months after the accident, T brings a
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suit against L, asking for damages for medical costs incurred for the broken arm
and other injuries sustained in the accident. Under Part A of L's Personal Auto
policy, supplementary payments in connection with the insurer's defense will: -
Correct-answer-Be paid in addition to the policy's liability limits
All of the following are common law defenses against negligence, except: -
Correct-answer-Statute of limitations
Under Coverage C - Household Personal Property on a Farm Property policy,
coverage is provided for: - Correct-answer-Furniture in the dwelling
Which of the following must participate in a Workers' Compensation Assigned
Risk Plan? - Correct-answer-Insurers that are authorized to write Workers'
Compensation in the voluntary market
A company that sells mobile equipment has its stock protected under an
Equipment Dealers Floater. Records of the company's business, including itemized
inventories and sales records, must be retained for at least how long after the
policy ends? - Correct-answer-3 years
TEXAS INSURANCE LICENSE Exam
Version A&B | Certified Exam Questions
And Correct Answers
Unless otherwise stated by the policy, property covered by the Building and
Personal Property Coverage Form is valued on what basis? - Correct-answer-
Actual cash value
Under a Commercial General Liability policy, all of the following statements about
the supplemental extended reporting period are correct, except: - Correct-
answer-The insurer may cancel the SERP after the insured pays the premium
Which of the following statements is correct regarding PIP coverage in Texas? -
Correct-answer-PIP coverage covers insureds and their guests without regard to
fault or to coordination of benefits
Which of the following statements regarding types of property loss is incorrect? -
Correct-answer-Direct losses include additional living expenses
,2|Page
What is the maximum amount supplementary payments coverage provided by a
Business Auto policy will pay for the cost of bail bonds related to a covered
accident? - Correct-answer-$2,000
Under a Business Auto policy, which of the following statements about towing
coverage provided under the policy's physical damage coverage is correct? -
Correct-answer-Labor must be performed at the place of disablement to be
covered
Commercial Crime insurance policies are typically able to cover losses resulting
from all of the following, except: - Correct-answer-The mysterious disappearance
of property
An insured with a Personal Auto policy on their car is using a non-owned auto to
run errands. Under the insured's policy, liability coverage for use of the non-
owned auto is: - Correct-answer-Provided on an excess basis
After unintentionally running a red light, L causes an accident with T. T's sedan is
badly damaged, and T's arm is broken. A few months after the accident, T brings a
, 3|Page
suit against L, asking for damages for medical costs incurred for the broken arm
and other injuries sustained in the accident. Under Part A of L's Personal Auto
policy, supplementary payments in connection with the insurer's defense will: -
Correct-answer-Be paid in addition to the policy's liability limits
All of the following are common law defenses against negligence, except: -
Correct-answer-Statute of limitations
Under Coverage C - Household Personal Property on a Farm Property policy,
coverage is provided for: - Correct-answer-Furniture in the dwelling
Which of the following must participate in a Workers' Compensation Assigned
Risk Plan? - Correct-answer-Insurers that are authorized to write Workers'
Compensation in the voluntary market
A company that sells mobile equipment has its stock protected under an
Equipment Dealers Floater. Records of the company's business, including itemized
inventories and sales records, must be retained for at least how long after the
policy ends? - Correct-answer-3 years
