Texas Property & Casualty Guaranteed Exam FX Questions With Complete Solutions

Restoring an insured financially after a claim is known as correct answer: indemnity Prior to paying a claimant under a professional liability policy, the insurer must correct answer: Obtain the consent of the insured. The purpose of purchasing an umbrella liability policy is to provide correct answer: Excess insurance over the primary liability policy. Which of the following terms means termination of an insurance policy at its expiration date by not offering a policy continuation or replacement? A Cessation B Cancellation C Nonrenewal D Suspension correct answer: Nonrenewal To determine the actual cash value of an insured property, what must be deducted from the current replacement cost? correct answer: Depreciated value All of the following are factors in the determination of actual cash value EXCEPT A . Insurance premium paid B Age of property. C Replacement cost. D. Property type. correct answer: Insurance premium paid Which type of damages is intended as a form of punishment for negligent, willful, or outrageous intent? correct answer: Punitive Which method of dealing with risk is applied when insurance is purchased? correct answer: to transfer