Texas Property & Casualty Insurance License Exam Prep 2

- correct answers A commercial package policy (CPP) lets an insured customize their policy and choose the coverage needed to meet the needs of their business. In a CPP, the business owner can choose from all of the following coverage types - correct answersBoiler and machinery coverage General liability coverage Crime coverage (Workers compensation coverage is not available through the commercial package policy (CPP).) A plasterer has completed a job. What kind of liability coverage would protect them if the plaster falls and hurts someone because they did not perform the job correctly? - correct answersCompleted operations (The plasterer's completed operations pays because their negligence caused the loss. It does not pay to redo the job.) A policy condition that stipulates how the amount of lost or damaged property will be determined if the principal and the insured do not agree on the value of a property loss is known as - correct answersAppraisal If there is a disagreement between the insurer and the insured on the value of any property loss, either party can make a written demand for an appraisal. A policy that covers all property at several locations for a single amount is referred to as - correct answersBlanket (Blanket coverage provides one limit of insurance for multiple classes of property or locations with the entire limit of insurance available to respond to any loss. No single item is assigned a specific amount of insurance. However, different amounts of insurance can be listed for buildings in general and contents in general.) A policyowner has four separate but identical policies written by different insurance providers to cover a $100,000 building. Each policy is written for $100,000, and each includes the pro rata liability other insurance clause. What would each insurance provider pay in the event of a total loss to the building? - correct answersEach policy will pay $25,000 of the loss. (In this scenario, each policy will pay its pro rata share of the loss, but not more than the amount of loss in total.). A professional who wants to cover all of their liability exposures should buy what form of liability insurance? - correct answersCommercial general