TEXAS PROPERTY AND CASUALTY TEST FINAL
EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /A+ STUDY MATERIAL
all of the following are basic parts of an insurance contract EXCEPT
a) declarations
b) conditions
c) exclusions
d) binders - ANSWERBinders
which of the following terms is used to describe an empty building that is not being used? - ANSWERVacant
An insurance company takes possession of a damaged auto it has covered. when the company becomes the
legal owner of the auto, it is exercising the right of? - ANSWERSalvage
all of the following are property coverage forms EXCEPT?
a) special
b)basic
c)broad
d)base - ANSWERbase
which of the following legal principles allows insurance companies to collect from a negligent third party
damages it paid to an insured? - ANSWERSubrogation
transferring is a method of handling risk. which of the following best describes the concept of transfer? -
ANSWERpurchasing insurance
, the insured has a named peril policy that covers hail, fire, wind, and lightning. which one of the following
events would be covered? - ANSWERA roof that is damaged in an electrical storm
(TRIPRA) the federal govt's share of compensation that exceeds the insurer's TRIPRA deductible is -
ANSWER80%
why do ins. policies usually define who is considered an insured under the policy? - ANSWERto specify who is
covered in addition to the named insured
the federal govt. is not obligated under the TRIA to make payments for any portion of losses that exceed how
much annually? - ANSWER$100 BILLION
in the insurance business, the insurance comp. is also known as the? - ANSWERprinciple
an insurance company that sells insurance only to people who meet specific membership requirements is
known as what kind of ins. comp? - ANSWERFraternal
what is the actual cause of a loss? - ANSWERperil
the purpose of insurance is to - ANSWERTransfer risk
a warranty is a statement made by the applicant regarding the risk to be insured. which of the following
statements is NOT true about warranties? - ANSWERA warranty must be refer to a material fact
all of the following are basic ways in which underwriters assign rates EXCEPT?
a) manual (class) rating
b) judgement rating
c) application rating
d) experience (merit) rating - ANSWERc) application rating
EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT
ANSWERS) /A+ STUDY MATERIAL
all of the following are basic parts of an insurance contract EXCEPT
a) declarations
b) conditions
c) exclusions
d) binders - ANSWERBinders
which of the following terms is used to describe an empty building that is not being used? - ANSWERVacant
An insurance company takes possession of a damaged auto it has covered. when the company becomes the
legal owner of the auto, it is exercising the right of? - ANSWERSalvage
all of the following are property coverage forms EXCEPT?
a) special
b)basic
c)broad
d)base - ANSWERbase
which of the following legal principles allows insurance companies to collect from a negligent third party
damages it paid to an insured? - ANSWERSubrogation
transferring is a method of handling risk. which of the following best describes the concept of transfer? -
ANSWERpurchasing insurance
, the insured has a named peril policy that covers hail, fire, wind, and lightning. which one of the following
events would be covered? - ANSWERA roof that is damaged in an electrical storm
(TRIPRA) the federal govt's share of compensation that exceeds the insurer's TRIPRA deductible is -
ANSWER80%
why do ins. policies usually define who is considered an insured under the policy? - ANSWERto specify who is
covered in addition to the named insured
the federal govt. is not obligated under the TRIA to make payments for any portion of losses that exceed how
much annually? - ANSWER$100 BILLION
in the insurance business, the insurance comp. is also known as the? - ANSWERprinciple
an insurance company that sells insurance only to people who meet specific membership requirements is
known as what kind of ins. comp? - ANSWERFraternal
what is the actual cause of a loss? - ANSWERperil
the purpose of insurance is to - ANSWERTransfer risk
a warranty is a statement made by the applicant regarding the risk to be insured. which of the following
statements is NOT true about warranties? - ANSWERA warranty must be refer to a material fact
all of the following are basic ways in which underwriters assign rates EXCEPT?
a) manual (class) rating
b) judgement rating
c) application rating
d) experience (merit) rating - ANSWERc) application rating
