TEXAS PROPERTY AND CASUALTY 2024 EXAM AND
PRACTICE QUESTIONS NEWEST ACTUAL EXAM 200
QUESTIONS AND CORRECT ANSWERS ALREADY GRADED
A
The coinsurance clause states that in consideration of a reduced rate, the insured
agrees to maintain a certain minimum amount of insurance on the insured property. In
the event of a covered loss, insurance is designed to pay replacement cost minus
depreciation.
#28.
When applying for an individual life insurance policy, an applicant states that he went to
the doctor for nausea, but fails to mention that he was also having severe chest pains.
This is an example of - concealment
Which of the following is true regarding the fire department service charge under the
builders risk form? - it is an additional coverage
When an insured makes truthful statements on the application for insurance and pays
the required premium, it is known as which of the following? - consideration
Which of the following is a statement that is guaranteed to be true, and if untrue, may
breach an insurance contract? - Warranty
With respect to commercial auto policies, the Garage Coverage Form provides liability
protection for all of the following EXCEPT - The insured's business income losses due
to personal injury.
An insured is applying for a casualty insurance policy. One of the conditions of the
policy allows the insurance company to inspect the insured's books at the end of the
policy term to make sure sufficient premium has been collected for the exposure she
plans to insure. Which condition is part of the insured's policy? - Deposit premium audit
Deposit premium audit is a condition that allows an insurer to inspect the insured's
books at the end of the policy term to make sure sufficient payment has been collected
for the exposure.
All of the following are considered parts of the policy structure EXCEPT - Provisions
, A premium discount is the term that describes when an insured owes a total standard
premium greater than - $5,000
Under a personal auto policy, in which of the following locations would a vehicle
primarily garaged in California be covered? - any other state
Coverage for water backup or sump pump overflow is excluded from the Dwelling
Policy. However, with the purchase of the water backup and sump pump overflow
endorsement, coverage for up to $5,000 in loss or damage can be provided for an
additional premium. What is the deductible associated with this coverage? - $250
Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be
provided for an additional premium with this endorsement.
An insured relocated to another state for work. However, she still owns and insures a
house in this state, but has had no one living in it for 3 months. She is also storing some
furniture and clothes in the house. From an insurance standpoint, the insured's house is
considered - Unoccupied
Unoccupancy refers to an insured structure in which no people have been living or
working within the required period of time, but the structure contains contents.
Individuals in the business of selling construction equipment and mobile equipment
should insure with a/an - Equipment dealers coverage form
An equipment dealer's coverage form covers a dealer's stock in trade consisting
primarily of mobile agricultural equipment and construction equipment. It also covers
property of others in the dealer's care, custody, or control. It excludes coverage for
autos, motorcycles, aircraft, and watercraft.
All of the following are true regarding deposit premium - It must be paid in advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time the policy is
issued that may be adjusted by the audit based on actual exposures.
Which of the following is NOT an essential element of an insurance contract? -
counteroffer
To purchase insurance, the policyowner must have financial interest in the property
being insured. This is known as - Insurable Interest
PRACTICE QUESTIONS NEWEST ACTUAL EXAM 200
QUESTIONS AND CORRECT ANSWERS ALREADY GRADED
A
The coinsurance clause states that in consideration of a reduced rate, the insured
agrees to maintain a certain minimum amount of insurance on the insured property. In
the event of a covered loss, insurance is designed to pay replacement cost minus
depreciation.
#28.
When applying for an individual life insurance policy, an applicant states that he went to
the doctor for nausea, but fails to mention that he was also having severe chest pains.
This is an example of - concealment
Which of the following is true regarding the fire department service charge under the
builders risk form? - it is an additional coverage
When an insured makes truthful statements on the application for insurance and pays
the required premium, it is known as which of the following? - consideration
Which of the following is a statement that is guaranteed to be true, and if untrue, may
breach an insurance contract? - Warranty
With respect to commercial auto policies, the Garage Coverage Form provides liability
protection for all of the following EXCEPT - The insured's business income losses due
to personal injury.
An insured is applying for a casualty insurance policy. One of the conditions of the
policy allows the insurance company to inspect the insured's books at the end of the
policy term to make sure sufficient premium has been collected for the exposure she
plans to insure. Which condition is part of the insured's policy? - Deposit premium audit
Deposit premium audit is a condition that allows an insurer to inspect the insured's
books at the end of the policy term to make sure sufficient payment has been collected
for the exposure.
All of the following are considered parts of the policy structure EXCEPT - Provisions
, A premium discount is the term that describes when an insured owes a total standard
premium greater than - $5,000
Under a personal auto policy, in which of the following locations would a vehicle
primarily garaged in California be covered? - any other state
Coverage for water backup or sump pump overflow is excluded from the Dwelling
Policy. However, with the purchase of the water backup and sump pump overflow
endorsement, coverage for up to $5,000 in loss or damage can be provided for an
additional premium. What is the deductible associated with this coverage? - $250
Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be
provided for an additional premium with this endorsement.
An insured relocated to another state for work. However, she still owns and insures a
house in this state, but has had no one living in it for 3 months. She is also storing some
furniture and clothes in the house. From an insurance standpoint, the insured's house is
considered - Unoccupied
Unoccupancy refers to an insured structure in which no people have been living or
working within the required period of time, but the structure contains contents.
Individuals in the business of selling construction equipment and mobile equipment
should insure with a/an - Equipment dealers coverage form
An equipment dealer's coverage form covers a dealer's stock in trade consisting
primarily of mobile agricultural equipment and construction equipment. It also covers
property of others in the dealer's care, custody, or control. It excludes coverage for
autos, motorcycles, aircraft, and watercraft.
All of the following are true regarding deposit premium - It must be paid in advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time the policy is
issued that may be adjusted by the audit based on actual exposures.
Which of the following is NOT an essential element of an insurance contract? -
counteroffer
To purchase insurance, the policyowner must have financial interest in the property
being insured. This is known as - Insurable Interest
