Texas Insurance License Exam Prep P&C
1.What are 3 subjects an auto policy covers?: 1. Body
2.The vehicle
3. Assets
2.Bodily Injury Types: Personal
Injury Med Pay
Uninsured Motorist
3.No Fault Insurance: State stipulates that parties cannot file a claim to
the other persons insurance policy unless required in excess. Instead,
each party is required to file a primary claim against their own
insurance regardless who is at fault. EX. Florida
4.Financial Responsibility Laws: State Laws regulating that people are
to carry a minimum coverage amount set by the state to protect
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,themselves, others, and property.
5.P.A.P: Personal Automotive Policy
6.Negligence: The failure to act as a prudent person would under
similar circum- stances
7.Legal Liability: Involves proven negligence or fault
8.Vicarious Liability: Being responsible for the negligent acts of someone
else. Ex. Your children
9.Absolute or Strict Liability: Stems from hazardous or dangerous
activities that makes the owner liable WITHOUT the requirement of
proof of negligence.
10.Liability: Being responsible for the damages or injury you or
someone else you're responsible for has done.
11.The 7 Characteristics of a Contract: 1. Personal Contract
2.Conditional Contract
3. Adhesion
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,4. Indemnity
5. Aleatory
6. Unilateral
7.Utmost Good Faith
12.Personal Contract: Is stipulation of a contract that says the contract
is for the name person and cannot be transferred to another.
13.Conditional Contract: Stipulates set by a contract. "You can do this,
but.................................................................................................."
14.Adhesion: A stipulation that the contract and it's language is binding,
or "sticks" and the parties agreeing cannot back out so long as the
conditions are met.
15. Indemnity: The contract agrees to indemnify, or make whole again
the customer. Makes them no better, nor worse, just whole.
16.Aleatory: The stipulation that the contract must include and
unequal transfer of money. Ex. The insured signed a contract a month
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, ago and has paid a single
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67
1.What are 3 subjects an auto policy covers?: 1. Body
2.The vehicle
3. Assets
2.Bodily Injury Types: Personal
Injury Med Pay
Uninsured Motorist
3.No Fault Insurance: State stipulates that parties cannot file a claim to
the other persons insurance policy unless required in excess. Instead,
each party is required to file a primary claim against their own
insurance regardless who is at fault. EX. Florida
4.Financial Responsibility Laws: State Laws regulating that people are
to carry a minimum coverage amount set by the state to protect
1/
67
,themselves, others, and property.
5.P.A.P: Personal Automotive Policy
6.Negligence: The failure to act as a prudent person would under
similar circum- stances
7.Legal Liability: Involves proven negligence or fault
8.Vicarious Liability: Being responsible for the negligent acts of someone
else. Ex. Your children
9.Absolute or Strict Liability: Stems from hazardous or dangerous
activities that makes the owner liable WITHOUT the requirement of
proof of negligence.
10.Liability: Being responsible for the damages or injury you or
someone else you're responsible for has done.
11.The 7 Characteristics of a Contract: 1. Personal Contract
2.Conditional Contract
3. Adhesion
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,4. Indemnity
5. Aleatory
6. Unilateral
7.Utmost Good Faith
12.Personal Contract: Is stipulation of a contract that says the contract
is for the name person and cannot be transferred to another.
13.Conditional Contract: Stipulates set by a contract. "You can do this,
but.................................................................................................."
14.Adhesion: A stipulation that the contract and it's language is binding,
or "sticks" and the parties agreeing cannot back out so long as the
conditions are met.
15. Indemnity: The contract agrees to indemnify, or make whole again
the customer. Makes them no better, nor worse, just whole.
16.Aleatory: The stipulation that the contract must include and
unequal transfer of money. Ex. The insured signed a contract a month
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, ago and has paid a single
4/
67
