Texas Property and Casualty License Exam Questions with Correct Detailed Answers| Latest Update

Texas Property and Casualty Exam
Questions with Correct Detailed Answers|
Latest Update




Property vs Casualty: What is considered property?
Structure & Personal Property




Property vs Casualty: What is considered casualty?
Non-property losses. Legal liability to others. 3rd Party




Risk
uncertainty of financial loss




Pure Risk
Chance of Loss

,Speculative Risk
Chance of Loss or Gain (Gamble)




Insurance (covers which type of risk?)
Pure Risk Only




How does the law of large numbers apply in insurance?
Actuaries use the law of large numbers to estimate claims




What is the law of large numbers?
as the number of a similar loss exposure increases, the more accurate claims can
be predicted from the group.




What is a peril?
cause of loss




What is a hazard?

, things that increase the chance of a peril happening




Three types of hazards
Physical: visible characteristic (dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness




Proximate Cause
First cause in an unbroken chain of events




Elements of a legal contract (CALC)
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?
Information believed to be true.