PROPERTY AND CASUALTY EXAM - TEXAS
QUESTIONS WITH ACCURATE ANSWERS
____ is uncertainty of loss - Accurate answers risk
____ is a transfer of risk from the insured to the insurer - Accurate answers insurance
____ risk means there is no chance of gain. It is insurable. - Accurate answers pure
____ risk means there is a chance of a loss or a gain. It is not insurable. - Accurate answers
speculative
a ____ is something that increases the risk. - Accurate answers hazard
the principle of _____ governs property and casualty policies. It states that the purpose of the
policy is to restore the insured financially to where they were prior to the loss - Accurate
answers indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to provide
coverage. - Accurate answers insurable interest
the law of _____ _____ is used to predict the likelihood of loss - Accurate answers large
numbers
____ ____ ____ is replacement cost minus depreciation. - Accurate answers actual cash
value
________ is a tort, or civil wrong; it is grounds for a lawsuit. - Accurate answers
Negligence
_______ is the failure to act as a reasonable person would in the same set of circumstances -
Accurate answers negligence
an _____ happens over a period of time - Accurate answers Occurrence
a _____ may be oral or written - Accurate answers binder
a _____ provides coverage until the policy is issued. it includes all coverages provided by the
policy. - Accurate answers binder
a ____ is a literal truth - Accurate answers warranty
,a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are
_______ - true to the best of their knowledge - Accurate answers representation
______ is an omission of a material fact. - Accurate answers concealment
the insurer has the right to sue a negligent third party for damages paid to an insured under the
concept of ______ - Accurate answers subrogation
four parts of a policy - Accurate answers DICE (declarations, insuring agreement,
conditions, and exclusions)
the ______ list the named insured, policy limits, and premium and policy period - Accurate
answers declarations
the ____ __ ____ are found on the declaration page of the policy - Accurate answers limits
of liability
the _______ _______ describes the coverages provided - Accurate answers insuring
agreement
the _______ list the obligations of both parties, the insurer and the insured - Accurate
answers conditions
the ______ list the perils that are not covered - Accurate answers exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide
coverage, the claim will go to _____ - Accurate answers arbitration
in _____ each party pays for one and a half persons involved - Accurate answers
arbitration
in arbitration there are _____ arbitrators - Accurate answers three
the cancellation provisions are found in the ________ section of the policy - Accurate answers
conditions
the insured must promptly tell the insurer about a ______ - Accurate answers claim
the other insurance clause is also known as the ____-____ _____ _______ - Accurate answers
pro-rata liability clause
_____-____ does not mean equal, it is proportionate - Accurate answers pro-rata
, the _____ _____ _____ act protects consumers against the circulation of inaccurate or obsolete
personal or financial information. - Accurate answers fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at the time the
customer relationship is initially established and thereafter annually. - Accurate answers
gramm-leach-bliley act
the ____ ____ insurance act applies to commercial policies only - Accurate answers
terrorism risk insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils insured
against - Accurate answers dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an endorsement
known as a _____ ______ ______ for an additional premium charge - Accurate answers
personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and flood but not
_____ - Accurate answers wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a _____
_____ - Accurate answers private garage
DP policies do not cover _______ of ______ after 60 days of vacancy - Accurate answers
breakage of glass
DP policies do not cover _____ of _____ unless the heat was left on - Accurate answers
freezing of plumbing
the _____ on which the insured dwelling sits on is not insurable - Accurate answers land
_____ _____, also known as the automatic increase endorsement, must be added to a DP policy
by endorsement - Accurate answers inflation guard
a loss from rain or dust would only be covered if an opening in the dwelling ____ or ____ was
first created by wind or another covered cause of loss - Accurate answers roof or walls
when a dwelling is covered by more than one policy, losses are shared ____-____ under the
other insurance clause. this may also be referred to ad the _____-____ liability clause -
Accurate answers pro-rata
the basic dwelling form __-_ is a named or specified peril policy - Accurate answers DP-1
QUESTIONS WITH ACCURATE ANSWERS
____ is uncertainty of loss - Accurate answers risk
____ is a transfer of risk from the insured to the insurer - Accurate answers insurance
____ risk means there is no chance of gain. It is insurable. - Accurate answers pure
____ risk means there is a chance of a loss or a gain. It is not insurable. - Accurate answers
speculative
a ____ is something that increases the risk. - Accurate answers hazard
the principle of _____ governs property and casualty policies. It states that the purpose of the
policy is to restore the insured financially to where they were prior to the loss - Accurate
answers indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to provide
coverage. - Accurate answers insurable interest
the law of _____ _____ is used to predict the likelihood of loss - Accurate answers large
numbers
____ ____ ____ is replacement cost minus depreciation. - Accurate answers actual cash
value
________ is a tort, or civil wrong; it is grounds for a lawsuit. - Accurate answers
Negligence
_______ is the failure to act as a reasonable person would in the same set of circumstances -
Accurate answers negligence
an _____ happens over a period of time - Accurate answers Occurrence
a _____ may be oral or written - Accurate answers binder
a _____ provides coverage until the policy is issued. it includes all coverages provided by the
policy. - Accurate answers binder
a ____ is a literal truth - Accurate answers warranty
,a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are
_______ - true to the best of their knowledge - Accurate answers representation
______ is an omission of a material fact. - Accurate answers concealment
the insurer has the right to sue a negligent third party for damages paid to an insured under the
concept of ______ - Accurate answers subrogation
four parts of a policy - Accurate answers DICE (declarations, insuring agreement,
conditions, and exclusions)
the ______ list the named insured, policy limits, and premium and policy period - Accurate
answers declarations
the ____ __ ____ are found on the declaration page of the policy - Accurate answers limits
of liability
the _______ _______ describes the coverages provided - Accurate answers insuring
agreement
the _______ list the obligations of both parties, the insurer and the insured - Accurate
answers conditions
the ______ list the perils that are not covered - Accurate answers exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide
coverage, the claim will go to _____ - Accurate answers arbitration
in _____ each party pays for one and a half persons involved - Accurate answers
arbitration
in arbitration there are _____ arbitrators - Accurate answers three
the cancellation provisions are found in the ________ section of the policy - Accurate answers
conditions
the insured must promptly tell the insurer about a ______ - Accurate answers claim
the other insurance clause is also known as the ____-____ _____ _______ - Accurate answers
pro-rata liability clause
_____-____ does not mean equal, it is proportionate - Accurate answers pro-rata
, the _____ _____ _____ act protects consumers against the circulation of inaccurate or obsolete
personal or financial information. - Accurate answers fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at the time the
customer relationship is initially established and thereafter annually. - Accurate answers
gramm-leach-bliley act
the ____ ____ insurance act applies to commercial policies only - Accurate answers
terrorism risk insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils insured
against - Accurate answers dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an endorsement
known as a _____ ______ ______ for an additional premium charge - Accurate answers
personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and flood but not
_____ - Accurate answers wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a _____
_____ - Accurate answers private garage
DP policies do not cover _______ of ______ after 60 days of vacancy - Accurate answers
breakage of glass
DP policies do not cover _____ of _____ unless the heat was left on - Accurate answers
freezing of plumbing
the _____ on which the insured dwelling sits on is not insurable - Accurate answers land
_____ _____, also known as the automatic increase endorsement, must be added to a DP policy
by endorsement - Accurate answers inflation guard
a loss from rain or dust would only be covered if an opening in the dwelling ____ or ____ was
first created by wind or another covered cause of loss - Accurate answers roof or walls
when a dwelling is covered by more than one policy, losses are shared ____-____ under the
other insurance clause. this may also be referred to ad the _____-____ liability clause -
Accurate answers pro-rata
the basic dwelling form __-_ is a named or specified peril policy - Accurate answers DP-1
