Texas Insurance Practice Exam |101
Questions with Verified Answers
Subrogration may follow which of the following events? - -An insured collects
from her insurance company for damages caused by a third party
- Medical payments coverage under a BOP applies to expenses incurred by
non-insureds for bodily injury and reported to the insurer within: - -One year
after the accident
- Claims expenses covered under Section II - Personal Liability of the
standard Homeowners forms do NOT pay for which of the following? - -Loss
of the insured's earnings subject to a pre-determined limit of $300 per day
- Which statement best describes "defense" coverage under the Section II -
Liability coverage of the Businessowners policy? - -Defense costs are not
subject to a limit
- Under an aircraft policy what is NOT a covered territory usually covered
(unless endorsed) while the aircraft is in flight? - -Costa Rico
- Under a standard Equipment Breakdown policy, the full replacement cost
will be paid on the claim, if the equipment is repaired within what time
period following the loss? - -24 months
- When a licensee in Texas receives an inquiry from the Insurance
Department regarding their insurance transactions, he or she must respond
in writing: - -Not later than the 15th day after the date the inquiry is
received
- The sprinkler leakage coverage of a Commercial Property form does not
provide coverage for: - -damage to growing crops from malfunctioning
sprinklers
- Under the appraisal clause in a commercial inland form, which of the
following is true? - -the insurer still retains its right to deny the claim entirely
- All of the following statements are true regarding state Guaranty
Associations, Except: - -The fund assists insurers in gaining new insurance
business by allowing them to advertise their membership in the Guaranty
Association.
, - The Personal Inland Marine coverage form that covers clothing, cameras
and other portable property worn or carried by tourists and travelers is
known as a: - -Personal Effects floater.
- Each of the following is a feature of Business Income Coverage, EXCEPT - -
Monetary deductibles. .
- The limits of the Employers' Liability section of a standard workers'
compensation policy are: - -Listed on the Information page..
- The term "time element coverage" is used when the amount of loss
depends on: - -The time it takes to repair, rebuild or restore damaged
property.
- Under a personal automobile policy with uninsured motorists coverage, a
disagreement between an insurance company and an insured on the amount
of a loss can be settled by: - -Arbitration
- Aaron purchases a Homeowners insurance policy for $700,000 with a 4%
deductible. A few months later, a heavy hailstorm destroys his roof, porch,
and windows, causing $50,000 in damages. How much should Aaron expect
to receive from the insurance company to pay for the damages? - -$22,000
- A Personal Umbrella policy will cover an insured for an "occurrence" or
"offense" that occurs - -Anywhere in the world.
- The NAIC Model Unfair Claim Settlement Practice Act provides for a
financial penalty of _________ for each violation of the Act. - -$1,000
- If a building insured under a BOP has been vacant or unoccupied beyond
_____ the insurer can send the insured a notice of cancellation. - -60 days
- Risk retention and purchasing groups are used to provide which of the
following types of coverage? - -Products Liability insurance..
- The Now Company carries a special BOP policy with a liability limit of
$500,000. The company is involved in an accident causing $200,000 bodily
injury damage and $200,000 property damage. The total amount collectible
under the policy is: - -$400,000
- Which of the following would be covered under an aviation policy? - -A
temporary substitute aircraft.
- Generally, an employee's average weekly wage is determined in Texas by
which of the following computations? - -The employee's wages for the 13
consecutive weeks preceding the injury divided by 13..
Questions with Verified Answers
Subrogration may follow which of the following events? - -An insured collects
from her insurance company for damages caused by a third party
- Medical payments coverage under a BOP applies to expenses incurred by
non-insureds for bodily injury and reported to the insurer within: - -One year
after the accident
- Claims expenses covered under Section II - Personal Liability of the
standard Homeowners forms do NOT pay for which of the following? - -Loss
of the insured's earnings subject to a pre-determined limit of $300 per day
- Which statement best describes "defense" coverage under the Section II -
Liability coverage of the Businessowners policy? - -Defense costs are not
subject to a limit
- Under an aircraft policy what is NOT a covered territory usually covered
(unless endorsed) while the aircraft is in flight? - -Costa Rico
- Under a standard Equipment Breakdown policy, the full replacement cost
will be paid on the claim, if the equipment is repaired within what time
period following the loss? - -24 months
- When a licensee in Texas receives an inquiry from the Insurance
Department regarding their insurance transactions, he or she must respond
in writing: - -Not later than the 15th day after the date the inquiry is
received
- The sprinkler leakage coverage of a Commercial Property form does not
provide coverage for: - -damage to growing crops from malfunctioning
sprinklers
- Under the appraisal clause in a commercial inland form, which of the
following is true? - -the insurer still retains its right to deny the claim entirely
- All of the following statements are true regarding state Guaranty
Associations, Except: - -The fund assists insurers in gaining new insurance
business by allowing them to advertise their membership in the Guaranty
Association.
, - The Personal Inland Marine coverage form that covers clothing, cameras
and other portable property worn or carried by tourists and travelers is
known as a: - -Personal Effects floater.
- Each of the following is a feature of Business Income Coverage, EXCEPT - -
Monetary deductibles. .
- The limits of the Employers' Liability section of a standard workers'
compensation policy are: - -Listed on the Information page..
- The term "time element coverage" is used when the amount of loss
depends on: - -The time it takes to repair, rebuild or restore damaged
property.
- Under a personal automobile policy with uninsured motorists coverage, a
disagreement between an insurance company and an insured on the amount
of a loss can be settled by: - -Arbitration
- Aaron purchases a Homeowners insurance policy for $700,000 with a 4%
deductible. A few months later, a heavy hailstorm destroys his roof, porch,
and windows, causing $50,000 in damages. How much should Aaron expect
to receive from the insurance company to pay for the damages? - -$22,000
- A Personal Umbrella policy will cover an insured for an "occurrence" or
"offense" that occurs - -Anywhere in the world.
- The NAIC Model Unfair Claim Settlement Practice Act provides for a
financial penalty of _________ for each violation of the Act. - -$1,000
- If a building insured under a BOP has been vacant or unoccupied beyond
_____ the insurer can send the insured a notice of cancellation. - -60 days
- Risk retention and purchasing groups are used to provide which of the
following types of coverage? - -Products Liability insurance..
- The Now Company carries a special BOP policy with a liability limit of
$500,000. The company is involved in an accident causing $200,000 bodily
injury damage and $200,000 property damage. The total amount collectible
under the policy is: - -$400,000
- Which of the following would be covered under an aviation policy? - -A
temporary substitute aircraft.
- Generally, an employee's average weekly wage is determined in Texas by
which of the following computations? - -The employee's wages for the 13
consecutive weeks preceding the injury divided by 13..
