TX P&C Final Exam questions with
verified answers
A volunteer fire department douses a fire to an insured dwelling. The dwelling sustains severe
fire, smoke, and water damage. What type of damage is loss? - correct answer ✔✔Proximate
cause.
What provision in a property policy encourages the insured to purchase & maintain insurance to
a specific value, like 80%? - correct answer ✔✔Coinsurance.
An insured's renter moves out because of damage caused by a covered peril. This would be... -
correct answer ✔✔Indirect loss.
Replacement cost minus depreciation would be called... - correct answer ✔✔Actual CASH value.
A property has obsolete parts damaged by a covered peril. How will the claim be paid? - correct
answer ✔✔Functional replacement cost.
Liability insurance is sometimes referred to as... - correct answer ✔✔2 party contract with
payments made to a 3rd party.
Aggregate means what in a commercial general liability policy? - correct answer ✔✔The most
the insurer will pay per policy period.
What would be an insured covered person in the personal auto policy? - correct answer ✔✔16
year old unlicensed person of the household.
The medical section of a personal auto policy says... - correct answer ✔✔maximum per person.
, Which is an indirect loss for an HO-3 policy? - correct answer ✔✔Additional living expense.
The HO-4 policy will provide all of coverages except... - correct answer ✔✔Incidental property
damage to the dwelling.
Which HO coverage form should be sold to pay for the personal property of a condominium unit
owner? - correct answer ✔✔HO-6.
HO-3 HO would have a standard liability amount of... - correct answer ✔✔$100k bodily injury &
property damage per occurence.
Medical expenses in a business owners policy must be filed within *blank* of the injury. -
correct answer ✔✔1 year.
Which is a supplemental coverage in the Commercial Property Policy not subject to a
deductible? - correct answer ✔✔Fire department service charge.
The building & personal property part of the commercial property policy does NOT cover... -
correct answer ✔✔liability.
The Broad Causes of Loss Form in the commercial package policy adds... - correct answer
✔✔Weight of ice, snow, or sleet.
What is NOT included in the common policy conditions of the commercial package policy? -
correct answer ✔✔The names of the insured & the insurer.
A newspaper concerned about being able to continue to provide papers while their location is
being repaired due to a covered loss should buy... - correct answer ✔✔extra expense.
verified answers
A volunteer fire department douses a fire to an insured dwelling. The dwelling sustains severe
fire, smoke, and water damage. What type of damage is loss? - correct answer ✔✔Proximate
cause.
What provision in a property policy encourages the insured to purchase & maintain insurance to
a specific value, like 80%? - correct answer ✔✔Coinsurance.
An insured's renter moves out because of damage caused by a covered peril. This would be... -
correct answer ✔✔Indirect loss.
Replacement cost minus depreciation would be called... - correct answer ✔✔Actual CASH value.
A property has obsolete parts damaged by a covered peril. How will the claim be paid? - correct
answer ✔✔Functional replacement cost.
Liability insurance is sometimes referred to as... - correct answer ✔✔2 party contract with
payments made to a 3rd party.
Aggregate means what in a commercial general liability policy? - correct answer ✔✔The most
the insurer will pay per policy period.
What would be an insured covered person in the personal auto policy? - correct answer ✔✔16
year old unlicensed person of the household.
The medical section of a personal auto policy says... - correct answer ✔✔maximum per person.
, Which is an indirect loss for an HO-3 policy? - correct answer ✔✔Additional living expense.
The HO-4 policy will provide all of coverages except... - correct answer ✔✔Incidental property
damage to the dwelling.
Which HO coverage form should be sold to pay for the personal property of a condominium unit
owner? - correct answer ✔✔HO-6.
HO-3 HO would have a standard liability amount of... - correct answer ✔✔$100k bodily injury &
property damage per occurence.
Medical expenses in a business owners policy must be filed within *blank* of the injury. -
correct answer ✔✔1 year.
Which is a supplemental coverage in the Commercial Property Policy not subject to a
deductible? - correct answer ✔✔Fire department service charge.
The building & personal property part of the commercial property policy does NOT cover... -
correct answer ✔✔liability.
The Broad Causes of Loss Form in the commercial package policy adds... - correct answer
✔✔Weight of ice, snow, or sleet.
What is NOT included in the common policy conditions of the commercial package policy? -
correct answer ✔✔The names of the insured & the insurer.
A newspaper concerned about being able to continue to provide papers while their location is
being repaired due to a covered loss should buy... - correct answer ✔✔extra expense.
