Texas Personal Lines Insurance Exam
UPDATED ACTUAL Exam Questions and
CORRECT Answers
How does the mobilehome endorsement affect the other coverage of law or ordinance in a
homeowners policy? - CORRECT ANSWER -
In insurance, an offer is usually made when - CORRECT ANSWER - An applicant
submits an application to the insurer
Under a personal auto policy, in which of the following locations would a vehicle primarily
garaged in California be covered - CORRECT ANSWER - Any other state
In a personal auto policy, the medical payments coverage is similar to - CORRECT
ANSWER - accident insurance, because it pays medical expenses regardless of fault
The Federal Fair Credit Reporting Act - CORRECT ANSWER - Regulates consumer
reports
For a contract to be enforceable by law, the purpose of the contract must be - CORRECT
ANSWER - Legal and not against public policy
In the personal auto policy, owned trailers being towed by an insured auto are automatically
covered for - CORRECT ANSWER - UM coverage
The amount an insurer will pay under Coverage D(loss of use) depends on - CORRECT
ANSWER - The amount of coverage on the dwelling
An insured's house is damaged by a fire and is uninhabitable. AS a result, the insured has to rent
an apartment until repairs are made. A dwlling insurance policy will pay for the expense of
, renting the apartment. Which type of broad or special form coverage does the insured have? -
CORRECT ANSWER - coverage E - additional living expense
All of the following are supplemental payments included in the liability section of a personal
auto policy EXCEPT - CORRECT ANSWER - Up to $100 for the cost to secure the
release of a vehicle from an impoundment lot following a covered accident
Payment for medical expenses, loss of wages, funeral expenses, - CORRECT ANSWER -
special- special damages are tangible damages that can be specifically measured in dollar
amounts (such as out of pocket expenses for medical, miscellaneous expenses, and loss of
wages)
A policy that insures all property at multiple locations for a single amount is referred to as -
CORRECT ANSWER - Blanket
All of the following statements describe the concept of strict liability EXCEPT - CORRECT
ANSWER - It is imposed on defendants engaged in hazardous activities
All of the following are conditions commonly found in the insurance policy EXCEPT -
CORRECT ANSWER - Insuring Agreement
What type of information would be found in a policy's insuring agreement? - CORRECT
ANSWER - Renewal Dates
An insurance contract must contain all of the following to be considered legally binding
EXCEPT - CORRECT ANSWER - Beneficiary's consent
In forming an insurance contract, when does acceptance usually occur? - CORRECT
ANSWER - When an insurer's underwriter approves coverage
UPDATED ACTUAL Exam Questions and
CORRECT Answers
How does the mobilehome endorsement affect the other coverage of law or ordinance in a
homeowners policy? - CORRECT ANSWER -
In insurance, an offer is usually made when - CORRECT ANSWER - An applicant
submits an application to the insurer
Under a personal auto policy, in which of the following locations would a vehicle primarily
garaged in California be covered - CORRECT ANSWER - Any other state
In a personal auto policy, the medical payments coverage is similar to - CORRECT
ANSWER - accident insurance, because it pays medical expenses regardless of fault
The Federal Fair Credit Reporting Act - CORRECT ANSWER - Regulates consumer
reports
For a contract to be enforceable by law, the purpose of the contract must be - CORRECT
ANSWER - Legal and not against public policy
In the personal auto policy, owned trailers being towed by an insured auto are automatically
covered for - CORRECT ANSWER - UM coverage
The amount an insurer will pay under Coverage D(loss of use) depends on - CORRECT
ANSWER - The amount of coverage on the dwelling
An insured's house is damaged by a fire and is uninhabitable. AS a result, the insured has to rent
an apartment until repairs are made. A dwlling insurance policy will pay for the expense of
, renting the apartment. Which type of broad or special form coverage does the insured have? -
CORRECT ANSWER - coverage E - additional living expense
All of the following are supplemental payments included in the liability section of a personal
auto policy EXCEPT - CORRECT ANSWER - Up to $100 for the cost to secure the
release of a vehicle from an impoundment lot following a covered accident
Payment for medical expenses, loss of wages, funeral expenses, - CORRECT ANSWER -
special- special damages are tangible damages that can be specifically measured in dollar
amounts (such as out of pocket expenses for medical, miscellaneous expenses, and loss of
wages)
A policy that insures all property at multiple locations for a single amount is referred to as -
CORRECT ANSWER - Blanket
All of the following statements describe the concept of strict liability EXCEPT - CORRECT
ANSWER - It is imposed on defendants engaged in hazardous activities
All of the following are conditions commonly found in the insurance policy EXCEPT -
CORRECT ANSWER - Insuring Agreement
What type of information would be found in a policy's insuring agreement? - CORRECT
ANSWER - Renewal Dates
An insurance contract must contain all of the following to be considered legally binding
EXCEPT - CORRECT ANSWER - Beneficiary's consent
In forming an insurance contract, when does acceptance usually occur? - CORRECT
ANSWER - When an insurer's underwriter approves coverage
