Insurance Personal lines Texas UPDATED
Exam Questions and CORRECT Answers
Under A homeowners policy, medical payments provided by coverage E are :
A. Paid to parties injured by war or radiation while on the residence properties
B. Paid to the insured or their legal representative
C. Not an admission of the insured liability
D. Not paid to cover funeral expenses
Relevancy (homeowners policy) - CORRECT ANSWER - C. Not an admission of the
insureds liability
Which statement is true regarding the personal liability supplement to the dwelling policy ?
A. The limit of liability is the same as the coverage A amount
B. The supplement covers professional services rendered by the insured
C. The supplement provides coverage for claim expenses
D. The supplement covers damage to the insureds personal autos
Relevancy (Dwelling policy) - CORRECT ANSWER - C. The supplement provides
coverage for claim expenses
All of the following would be included in the definition of insured location except
A. Land upon which a 4- family dwelling is being built as a residence for the named insured
B. A boat slip used by the name insured
C. A summer vacation home rented by the insured
D. A 5- dwelling in which the insured lives in one of the units, including the structures and
grounds
Relevancy (homeowners policy) - CORRECT ANSWER - D. A 5- family dwelling in
which the insured lives in one of the units, including the structures and grounds
When an underlying policy does not cover a particular loss, the insureds umbrella liability policy
will drop down and cover the entire loss, after a payment by the insured if a :
,A. Copayment
B. Commission
C. Deductible
D. Self-insured retention
Relevancy (miscellaneous personal lines coverage) - CORRECT ANSWER - D. Self-
insured retention
All of the following are true of negligence, except :
A. It does not include breach of contract
B. It is the failure to use ordinary care
C.it does not require a duty to be owed
D. It is a type of tort
Relevancy (casualty liability basis) - CORRECT ANSWER - C. It does not require a duty
to be owed
A new policy form must be submitted to the commissioner at least ____ days before the date the
policy form will be used.
A. 45
B. 120
C. 60
D. 90 - CORRECT ANSWER - C. 60
All of the following perils are included under the dwelling program broad form except
A. Volcanic eruption
B. Smoke damage from agricultural smudging
C. Falling objects
D. Damage by burglars
Relevancy (dwelling policy) - CORRECT ANSWER - B. Smoke damage from agricultural
smudging
,Which of the following is an example of risk reduction ?
A. Transferring risk to an insurance company
B. Eliminating exposure to a specific risk
C. Insuring only those risks that threaten the financial stability of the insured
D. Taking action to minimize the severity of a potential loss
Relevancy (general insurance) - CORRECT ANSWER - D. Taking action to minimize the
severity of a potential loss
Which of the following is true regarding the HO-4 and HO-6 forms ?
A. Both forms provide open perils coverage on the personal property
B. The amount of insurance on the dwelling containing personal property is 10% of the coverage
c amount of insurance
C. Both forms are used to insure the personal property and personal liability of the insured, but
not necessarily the structure itself
D. All losses are paid on a replacement cost basis
Relevancy (homeowners policy) - CORRECT ANSWER - C. Both forms are used to
insure the personal property and personal liability of the insured, but not necessarily the structure
itself
The minimum limits of auto liability insurance required to establish financial responsibility in
Texas are:
A. $60,000,$30,000,$25,000
B. $30,000,$60,000,$25,000
C. $25,000,$50,000,$10,000
D. $25,000,$60,000,$30,000 - CORRECT ANSWER - B. $30,000,$60,000,$25,000
Which of the following is not included in the declarations of a property policy ?
A. Limit of liability
B. The perils that are not insured against
, C. A description of the property being insured
D. The expiration date of the policy
Relevancy ( property basics ) - CORRECT ANSWER - B. The perils that are not insured
against
H's jewelry is covered under Coverage C of their broad form homeowners policy, but theft of
jewelry is subject to a special limit of liability. If H wants better coverage for a $10,000 necklace
inherited from their mother, including insurance against more perils and a higher limit of
liability, which endorsement might H's agent recommended
A. Increased limits- coverage C endorsement
B. Personal property replacement cost endorsement
C. Open peril personal property endorsement
D. Scheduled personal property endorsement
Relevancy (homeowners policy) - CORRECT ANSWER - D. Scheduled personal property
endorsement
Which of the following are the territorial limits of the personal auto policy ?
A. The United States, it's territories , and possessions Canada and Mexico
B. The United States, it's territories and possessions,puerto Rico and Canada
C. The United States Puerto Rico Canada and Mexico
D. The United States Mexico and Canada
Relevancy ( personal auto policy ) - CORRECT ANSWER - B. The United States it's
territories and possessions Puerto Rico Canada
The Texas automobile insurance plan association (TAIPA) would provide insurance for which of
the following reasons ?
A. No prior insurance
B. Rejected by 2 insurers
C. License suspension
D. Claim history
Exam Questions and CORRECT Answers
Under A homeowners policy, medical payments provided by coverage E are :
A. Paid to parties injured by war or radiation while on the residence properties
B. Paid to the insured or their legal representative
C. Not an admission of the insured liability
D. Not paid to cover funeral expenses
Relevancy (homeowners policy) - CORRECT ANSWER - C. Not an admission of the
insureds liability
Which statement is true regarding the personal liability supplement to the dwelling policy ?
A. The limit of liability is the same as the coverage A amount
B. The supplement covers professional services rendered by the insured
C. The supplement provides coverage for claim expenses
D. The supplement covers damage to the insureds personal autos
Relevancy (Dwelling policy) - CORRECT ANSWER - C. The supplement provides
coverage for claim expenses
All of the following would be included in the definition of insured location except
A. Land upon which a 4- family dwelling is being built as a residence for the named insured
B. A boat slip used by the name insured
C. A summer vacation home rented by the insured
D. A 5- dwelling in which the insured lives in one of the units, including the structures and
grounds
Relevancy (homeowners policy) - CORRECT ANSWER - D. A 5- family dwelling in
which the insured lives in one of the units, including the structures and grounds
When an underlying policy does not cover a particular loss, the insureds umbrella liability policy
will drop down and cover the entire loss, after a payment by the insured if a :
,A. Copayment
B. Commission
C. Deductible
D. Self-insured retention
Relevancy (miscellaneous personal lines coverage) - CORRECT ANSWER - D. Self-
insured retention
All of the following are true of negligence, except :
A. It does not include breach of contract
B. It is the failure to use ordinary care
C.it does not require a duty to be owed
D. It is a type of tort
Relevancy (casualty liability basis) - CORRECT ANSWER - C. It does not require a duty
to be owed
A new policy form must be submitted to the commissioner at least ____ days before the date the
policy form will be used.
A. 45
B. 120
C. 60
D. 90 - CORRECT ANSWER - C. 60
All of the following perils are included under the dwelling program broad form except
A. Volcanic eruption
B. Smoke damage from agricultural smudging
C. Falling objects
D. Damage by burglars
Relevancy (dwelling policy) - CORRECT ANSWER - B. Smoke damage from agricultural
smudging
,Which of the following is an example of risk reduction ?
A. Transferring risk to an insurance company
B. Eliminating exposure to a specific risk
C. Insuring only those risks that threaten the financial stability of the insured
D. Taking action to minimize the severity of a potential loss
Relevancy (general insurance) - CORRECT ANSWER - D. Taking action to minimize the
severity of a potential loss
Which of the following is true regarding the HO-4 and HO-6 forms ?
A. Both forms provide open perils coverage on the personal property
B. The amount of insurance on the dwelling containing personal property is 10% of the coverage
c amount of insurance
C. Both forms are used to insure the personal property and personal liability of the insured, but
not necessarily the structure itself
D. All losses are paid on a replacement cost basis
Relevancy (homeowners policy) - CORRECT ANSWER - C. Both forms are used to
insure the personal property and personal liability of the insured, but not necessarily the structure
itself
The minimum limits of auto liability insurance required to establish financial responsibility in
Texas are:
A. $60,000,$30,000,$25,000
B. $30,000,$60,000,$25,000
C. $25,000,$50,000,$10,000
D. $25,000,$60,000,$30,000 - CORRECT ANSWER - B. $30,000,$60,000,$25,000
Which of the following is not included in the declarations of a property policy ?
A. Limit of liability
B. The perils that are not insured against
, C. A description of the property being insured
D. The expiration date of the policy
Relevancy ( property basics ) - CORRECT ANSWER - B. The perils that are not insured
against
H's jewelry is covered under Coverage C of their broad form homeowners policy, but theft of
jewelry is subject to a special limit of liability. If H wants better coverage for a $10,000 necklace
inherited from their mother, including insurance against more perils and a higher limit of
liability, which endorsement might H's agent recommended
A. Increased limits- coverage C endorsement
B. Personal property replacement cost endorsement
C. Open peril personal property endorsement
D. Scheduled personal property endorsement
Relevancy (homeowners policy) - CORRECT ANSWER - D. Scheduled personal property
endorsement
Which of the following are the territorial limits of the personal auto policy ?
A. The United States, it's territories , and possessions Canada and Mexico
B. The United States, it's territories and possessions,puerto Rico and Canada
C. The United States Puerto Rico Canada and Mexico
D. The United States Mexico and Canada
Relevancy ( personal auto policy ) - CORRECT ANSWER - B. The United States it's
territories and possessions Puerto Rico Canada
The Texas automobile insurance plan association (TAIPA) would provide insurance for which of
the following reasons ?
A. No prior insurance
B. Rejected by 2 insurers
C. License suspension
D. Claim history
