Texas Licensing Exam Questions with Correct Answers

Texas Licensing Exam Questions with Correct Answers The Insurance Contract - CORRECT ANSWERS -A legal contract purchased to indemnify the insured against a loss, damage, or liability arising from an unexpected event. -The exchange of a relatively small and definite expense for the risk of loss that, if it occurs, may be large or small. -A contract designed to transfer risk from the insured to the insurer. Indemnity - CORRECT ANSWERS to make whole and not profit preferred risk - CORRECT ANSWERS the best risk (no accidents, conservative car) standard risk - CORRECT ANSWERS not the best, but not bad non-standard risk - CORRECT ANSWERS worst risk Insurance - CORRECT ANSWERS the transfer of risk Insured - CORRECT ANSWERS a person whose interests are protected by an insurance policy (policyholder, resident relatives, legal representative of the deceased named insured, anyone under 21 and in the care of any insured, full time students under 24 away at school) Insurer - CORRECT ANSWERS an insurance company Insurable Interest - CORRECT ANSWERS ownership (having financial stake/interest in property) When does the policyholder have to have insurable interest? - CORRECT ANSWERS at the time of loss Accident - CORRECT ANSWERS A sudden and unexpected event, occurring at ONE specific time and place.