TEXAS PROPERTY AND CASUALTY EXAM AND PRACTICE
QUESTIONS NEWEST 2024 ACTUAL EXAM 215
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A (PDF)
Property vs Casualty: What is considered property? - SELECTED ANSWER 👀 ***
Structure & Personal Property
Property vs Casualty: What is considered casualty? - SELECTED ANSWER 👀 ***
Non-property losses. Legal liability to others. 3rd Party
Risk - SELECTED ANSWER 👀 *** uncertainty of financial loss
Pure Risk - SELECTED ANSWER 👀 *** Chance of Loss
Speculative Risk - SELECTED ANSWER 👀 *** Chance of Loss or Gain (Gamble)
Insurance (covers which type of risk?) - SELECTED ANSWER 👀 *** Pure Risk Only
How does the law of large numbers apply in insurance? - SELECTED ANSWER 👀 ***
Actuaries use the law of large numbers to estimate claims
What is the law of large numbers? - SELECTED ANSWER 👀 *** as the number of a
similar loss exposure increases, the more accurate claims can be predicted from the
group.
,What is a peril? - SELECTED ANSWER 👀 *** cause of loss
What is a hazard? - SELECTED ANSWER 👀 *** things that increase the chance of a
peril happening
Three types of hazards - SELECTED ANSWER 👀 *** Physical: visible characteristic
(dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause - SELECTED ANSWER 👀 *** First cause in an unbroken chain of
events
Elements of a legal contract (CALC) - SELECTED ANSWER 👀 *** C - Competent
parties (18/Right frame of mind)
A - Agreement (Both parties agree)
L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? - SELECTED ANSWER 👀 *** Information believed to be true.
What is misrepresentation? - SELECTED ANSWER 👀 *** Information that is not true.
False information.
, What is material misrepresentation? - SELECTED ANSWER 👀 *** Information that is
not true but would have caused the insurer not to issue the policy. (4 prev spd tix)
What is fraud? - SELECTED ANSWER 👀 *** An all out effort by one party to deceive
and cheat the other.
What is warranty? - SELECTED ANSWER 👀 *** Guarantee that an insured will or will
not do something
What are the four major parts to an insurance policy structure? (DICE) - SELECTED
ANSWER 👀 *** D - Declarations Page (First Page)
I - Insuring Agreement (Insurers promise to pay)
C - Conditions (Rules)
E - Exclusions (Not covered)
What information is on the declarations page? (Remember 6 Ps) - SELECTED
ANSWER 👀 *** Policy Number
Parties
Property Description/Location
Policy Term
Policy Limits/Deductibles
Premium
What is Limit of Liability? - SELECTED ANSWER 👀 *** The max amount of coverage
agreed to be paid per loss
QUESTIONS NEWEST 2024 ACTUAL EXAM 215
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A (PDF)
Property vs Casualty: What is considered property? - SELECTED ANSWER 👀 ***
Structure & Personal Property
Property vs Casualty: What is considered casualty? - SELECTED ANSWER 👀 ***
Non-property losses. Legal liability to others. 3rd Party
Risk - SELECTED ANSWER 👀 *** uncertainty of financial loss
Pure Risk - SELECTED ANSWER 👀 *** Chance of Loss
Speculative Risk - SELECTED ANSWER 👀 *** Chance of Loss or Gain (Gamble)
Insurance (covers which type of risk?) - SELECTED ANSWER 👀 *** Pure Risk Only
How does the law of large numbers apply in insurance? - SELECTED ANSWER 👀 ***
Actuaries use the law of large numbers to estimate claims
What is the law of large numbers? - SELECTED ANSWER 👀 *** as the number of a
similar loss exposure increases, the more accurate claims can be predicted from the
group.
,What is a peril? - SELECTED ANSWER 👀 *** cause of loss
What is a hazard? - SELECTED ANSWER 👀 *** things that increase the chance of a
peril happening
Three types of hazards - SELECTED ANSWER 👀 *** Physical: visible characteristic
(dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause - SELECTED ANSWER 👀 *** First cause in an unbroken chain of
events
Elements of a legal contract (CALC) - SELECTED ANSWER 👀 *** C - Competent
parties (18/Right frame of mind)
A - Agreement (Both parties agree)
L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
What is representation? - SELECTED ANSWER 👀 *** Information believed to be true.
What is misrepresentation? - SELECTED ANSWER 👀 *** Information that is not true.
False information.
, What is material misrepresentation? - SELECTED ANSWER 👀 *** Information that is
not true but would have caused the insurer not to issue the policy. (4 prev spd tix)
What is fraud? - SELECTED ANSWER 👀 *** An all out effort by one party to deceive
and cheat the other.
What is warranty? - SELECTED ANSWER 👀 *** Guarantee that an insured will or will
not do something
What are the four major parts to an insurance policy structure? (DICE) - SELECTED
ANSWER 👀 *** D - Declarations Page (First Page)
I - Insuring Agreement (Insurers promise to pay)
C - Conditions (Rules)
E - Exclusions (Not covered)
What information is on the declarations page? (Remember 6 Ps) - SELECTED
ANSWER 👀 *** Policy Number
Parties
Property Description/Location
Policy Term
Policy Limits/Deductibles
Premium
What is Limit of Liability? - SELECTED ANSWER 👀 *** The max amount of coverage
agreed to be paid per loss
