Texas Property and Casualty Insurance
Policies. (State Test) with correct
answers
A beauty parlor burns to the ground. What type of loss is this to the owner? - CORRECT
ANSWERS-Direct
A property insurance policy that is not subject to any coinsurance requirements but has
a set amount of insurance scheduled for the property would use what valuation
method? - CORRECT ANSWERS-Stated amount
All of the following are true of coverage B - Other structures EXCEPT - CORRECT
ANSWERS-It must be added by endorsement to a homeowners policy
All of the following situations would be covered under a professional liability policy
EXCEPT - CORRECT ANSWERS-The failure of an attorney to properly defend a client
due to his personal dislike of the client
All the following are major coverages included in the homeowners policy EXCEPT -
CORRECT ANSWERS-Loss of income
An insurance agency could purchase an errors omission insurance policy which would
provide protection in the event of the following events EXCEPT - CORRECT
ANSWERS-The agency loses commission income from policies that were not issued by
the insurer
Coverage for all the following is found in Section I of a homeowners policy EXCEPT -
CORRECT ANSWERS-Personal Liability
If the actual values exceed the limit of insurance, the buisnessowners policy (BOP)
contains a seasonal increase provision that automatically increases the limit of
insurance for business personal property by - CORRECT ANSWERS-25%
In which of the following types of property valuation will the policy pay the full value
specified on the policy schedule, regardless of the insured property's appreciation or
depreciation? - CORRECT ANSWERS-Agreed Value
Policies. (State Test) with correct
answers
A beauty parlor burns to the ground. What type of loss is this to the owner? - CORRECT
ANSWERS-Direct
A property insurance policy that is not subject to any coinsurance requirements but has
a set amount of insurance scheduled for the property would use what valuation
method? - CORRECT ANSWERS-Stated amount
All of the following are true of coverage B - Other structures EXCEPT - CORRECT
ANSWERS-It must be added by endorsement to a homeowners policy
All of the following situations would be covered under a professional liability policy
EXCEPT - CORRECT ANSWERS-The failure of an attorney to properly defend a client
due to his personal dislike of the client
All the following are major coverages included in the homeowners policy EXCEPT -
CORRECT ANSWERS-Loss of income
An insurance agency could purchase an errors omission insurance policy which would
provide protection in the event of the following events EXCEPT - CORRECT
ANSWERS-The agency loses commission income from policies that were not issued by
the insurer
Coverage for all the following is found in Section I of a homeowners policy EXCEPT -
CORRECT ANSWERS-Personal Liability
If the actual values exceed the limit of insurance, the buisnessowners policy (BOP)
contains a seasonal increase provision that automatically increases the limit of
insurance for business personal property by - CORRECT ANSWERS-25%
In which of the following types of property valuation will the policy pay the full value
specified on the policy schedule, regardless of the insured property's appreciation or
depreciation? - CORRECT ANSWERS-Agreed Value
