TEXAS Personal Lines Insurance
UPDATED Exam Questions and CORRECT
Answers
An insurance company that is organized under the laws of a different state within the United
States is known as a:
-Alien insurer
-Authorized insurer
-Foreign insurer
-Domestic insurer - CORRECT ANSWER - Foreign insurer
Which insurance company department selects the risks that the insurance company will insure?
-Actuarial
-Executive
-Underwriting
-Claims - CORRECT ANSWER - Underwriting
Property underwriters may use all of the following factors to evaluate a risk, except:
-Claims history
-Marital status
-Building occupancy and construction
-Hazards - CORRECT ANSWER - Marital status
In experience rating, the underwriter will:
, -Use their best judgment to establish an insured's rate
-Adjust the insured's premium based on loss experience within the current policy year
-Determine an insured's rate based only on the rates published in the insurer's manuals
-Use an insured's previous claims history over a certain time period to adjust the policy premium
- CORRECT ANSWER - Use an insured's previous claims history over a certain time
period to adjust the policy premium
Which of the following individuals represents the insurance company when selling an insurance
policy?
-Adjuster
-Insurer
-Producer
-Broker - CORRECT ANSWER - Producer
All of the following are types of property NOT covered under Coverage C - Personal Property of
a Dwelling policy, except:
-Canoes
-A dog
-Personal property of a tenant
-Credit cards or fund transfer cards - CORRECT ANSWER - Canoes
Which of the following Dwelling forms covers buildings on an open perils basis? - CORRECT
ANSWER - DP-3 Special Form
Under the Dwelling Program, what limit is provided for worldwide coverage? - CORRECT
ANSWER - 10% of the Coverage C limit, included in the Coverage C limit
UPDATED Exam Questions and CORRECT
Answers
An insurance company that is organized under the laws of a different state within the United
States is known as a:
-Alien insurer
-Authorized insurer
-Foreign insurer
-Domestic insurer - CORRECT ANSWER - Foreign insurer
Which insurance company department selects the risks that the insurance company will insure?
-Actuarial
-Executive
-Underwriting
-Claims - CORRECT ANSWER - Underwriting
Property underwriters may use all of the following factors to evaluate a risk, except:
-Claims history
-Marital status
-Building occupancy and construction
-Hazards - CORRECT ANSWER - Marital status
In experience rating, the underwriter will:
, -Use their best judgment to establish an insured's rate
-Adjust the insured's premium based on loss experience within the current policy year
-Determine an insured's rate based only on the rates published in the insurer's manuals
-Use an insured's previous claims history over a certain time period to adjust the policy premium
- CORRECT ANSWER - Use an insured's previous claims history over a certain time
period to adjust the policy premium
Which of the following individuals represents the insurance company when selling an insurance
policy?
-Adjuster
-Insurer
-Producer
-Broker - CORRECT ANSWER - Producer
All of the following are types of property NOT covered under Coverage C - Personal Property of
a Dwelling policy, except:
-Canoes
-A dog
-Personal property of a tenant
-Credit cards or fund transfer cards - CORRECT ANSWER - Canoes
Which of the following Dwelling forms covers buildings on an open perils basis? - CORRECT
ANSWER - DP-3 Special Form
Under the Dwelling Program, what limit is provided for worldwide coverage? - CORRECT
ANSWER - 10% of the Coverage C limit, included in the Coverage C limit
