Texas Property / Casualty Questions With Correct Verified Answers

TEXAS PROPERTY / CASUALTY QUESTIONS WITH CORRECT VERIFIED ANSWERSWhat is the formula for finding Actual Cash Value (ACV) ? Answer Deprecation Cost - Replacement Cost (Dep - Rep) Define the appraisal process - Answer When there is a disagreement on the value of an insured item, an appraiser can be called in to make the final call. If he is called in, his word is law. Which Personal Auto Policy Coverage covers loss of income? Answer PiP - Personal injury protection What is a hazard? Answer Increases chances of loss What percent of coverage A is coverage B on an HO 3 policy? Answer Personal Injury Protection What is an Insurable Interest and when must it exist? Answer When there is a financial interest in an accident at the time of loss What is the maximum an insured can collect from their homeowner policy per tree for a covered loss? Answer Up to $500 PER TREE What coverage's are included in a Standard Fire Policy? Answer Fire, Lightning and Removal - Extra coverage can be added on How many hours of ethics must you have to complete your continuing education requirements each license renewal? Answer 2 Hours for Ethics What determines if an adjuster should total a vehicle? Answer When the repair cost is greater than the car's original value What are the minimum splits of automobile liability in Texas? Answer 30 / 60 / 25 What is the maximum number of days a property can be vacant before coverage increases? Answer 60 days and only 30 days under the Standard Fire Policy (SFP) Define mono-line coverage - Answer Coverage with only ONE line (mono = 1) Does the insured have to admit blame in order for an adjuster to pay a claim? Answer No What is hanger keepers coverage Answer Coverage for aircraft An insurance contract has how many parties? Answer Two A bond has how many parties to the contract? Answer 3 - The Obligee, Obligor, and insured (OOi) In a bond, which party guarantees the actions of the principal? Answer Surety Define barratry Answer Illegal actions of a ship caption and or his crew What is hull coverage for aviation and ocean marine insurance? Answer Coverage for physical damage on airplanes and ships A commercial property policy provides how much coverage for an unattached sign? Answer The Commercial Property Policy allows $1000 for an unattached, covered sign When would an insured homeowner use Loss of Use? Answer When the home is uninhabitable and covered What would an owner of a commercial property policy use Extra Expense? Answer After a covered loss when the business needs to stay open. Give an example of a premises liability claim - Answer a simple slip and fall on the premises Define civil tort Answer A tort is a civil wrong that is not abruptly stated in the contract. What is article 21.21 Answer Article 21.21 is the Unfair Claims Practices Act Can an insured buy back his totaled vehicle from the insurance company? Answer Yes List the time restraints for response and payment of claims in Texas - Answer 15 Days to acknowledge the claim, 15 days to review the claim, and 5 days to pay out any money owed, if that is the case. (15 / 15 / 5 - Acknowledge, Review, Pay) What is section ii (2) of the HO 3 Policy? What does it cover? Answer Section 2 of an HO 3 Policy covers liability, bodily injury, personal damages, med pay and supplementary pay. What is the purpose of Co-Insurance? Answer