Texas Insurance Practice Exam UPDATED
Study Guide ACTUAL QUESTIONS AND
CORRECT ANSWERS
Which of the following property is not covered under Coverage C of a Homeowners Policy? -
CORRECT ANSWER Property of a tenant
Although D rented a furnished apartment and purchased an HO4 policy for his $10,000 of
personal belongings. If the apartment were burglarized and $2,000 of D's belongings were
stolen, as well as $3,000 of the landlord's furnishings, how much will the policy pay?
(Disregard the deductible.) - CORRECT ANSWER $2,000
A Mobile Home Insurance Policy is similar to? - CORRECT ANSWER A homeowners
policy
A person with an HO-3 homeowners policy opens a Bed & Breakfast in their home. Which of
these is true? - CORRECT ANSWER It's not covered under a Homeowners policy
In an HO 3 homeowners a person has $6000 personal property stolen and $100 of cash. The
insured has a $100 deductible. The policy will pay? - CORRECT ANSWER $6000
An insurer may non-renew a homeowner policy if the insured submitted how many claims in
the past 3 years? - CORRECT ANSWER 3
Which of the following is correct regarding Section II of the Homeowners Policy Forms? -
CORRECT ANSWER Section II is the same in all Homeowners Forms
The Homeowners Policy excludes Coverage for which of the following? - CORRECT
ANSWER A motorized golf cart being driven on a public road
,All property policies list the duties of the insured after a loss. Identify which of the following
is NOT a duty of an insured after a loss. - CORRECT ANSWER File charges against a
burglar
The HO-4 policy would be sold to? - CORRECT ANSWER Tenants
Coverage E of a Homeowners Policy would cover which of the following? - CORRECT
ANSWER Bodily Injury to a guest which is caused by the insured's dog
Under Section II of the Homeowners Policy, all of the following would be considered an
Insured Location, EXCEPT? - CORRECT ANSWER A secondary location that the
insured used for a business
Necessary additional expenses incurred during the "period of restoration" are covered under
what property form in commercial insurance? - CORRECT ANSWER Extra Expense
Coverage Form
Which of these perils is added on the Broad Form of the Commercial Package Policy? -
CORRECT ANSWER Weight of Ice, Snow, or Sleet
Which of the following is incorrect in a commercial property policy? - CORRECT
ANSWER The insurer has the obligation to inspect the property
Where in the Commercial Package Policy would you find the total premium charged for all
the coverage parts in the policy? - CORRECT ANSWER Declarations
Under the Basic Cause of Loss Form of the commercial package policy, how long is vacancy
allowed before the peril of vandalism coverage is suspended? - CORRECT
ANSWER 60 days
A building valued at $200,000 is insured for $150,000; and coverage is written with an 80%
coinsurance requirement and a $1,000 deductible. The building is totally destroyed and the
, debris removal expenses amount to $10,000. How much will the Building and Personal
Property Coverage Form pay? - CORRECT ANSWER $159,000
In a commercial package policy, the first named insured dies. What happens to the insureds
right to the policy? - CORRECT ANSWER The policy automatically transfers to the
insureds legal representative
Which of the following is not included on the Common Policy Declarations of a commercial
package policy? - CORRECT ANSWER Policy changes
Choose the false statement about commercial property policies. - CORRECT
ANSWER The insurer has the obligation to inspect the property
Under the Basic Cause of Loss Form, vacancy is allowed for ___________ days before the
peril of vandalism coverage is suspended. - CORRECT ANSWER 60
The Basic form of the Commercial Package Policy includes coverage for all the following
perils, EXCEPT? - CORRECT ANSWER Smoke from industrial operations
In the Business Income and Extra Expense coverages the Period of Restoration begins how
many hours after the time of loss? - CORRECT ANSWER 72 hours
Which of the following is covered under the Building and Personal Property Coverage Form?
- CORRECT ANSWER Personal property of others in a vehicle within 100 feet of the
business
Which of these is not added under the Broad Form of the Commercial Package Policy? -
CORRECT ANSWER Sinkhole
The Extra Expense form pays the necessary expenses incurred by the insured during which of
the following? - CORRECT ANSWER Period of Restoration
Study Guide ACTUAL QUESTIONS AND
CORRECT ANSWERS
Which of the following property is not covered under Coverage C of a Homeowners Policy? -
CORRECT ANSWER Property of a tenant
Although D rented a furnished apartment and purchased an HO4 policy for his $10,000 of
personal belongings. If the apartment were burglarized and $2,000 of D's belongings were
stolen, as well as $3,000 of the landlord's furnishings, how much will the policy pay?
(Disregard the deductible.) - CORRECT ANSWER $2,000
A Mobile Home Insurance Policy is similar to? - CORRECT ANSWER A homeowners
policy
A person with an HO-3 homeowners policy opens a Bed & Breakfast in their home. Which of
these is true? - CORRECT ANSWER It's not covered under a Homeowners policy
In an HO 3 homeowners a person has $6000 personal property stolen and $100 of cash. The
insured has a $100 deductible. The policy will pay? - CORRECT ANSWER $6000
An insurer may non-renew a homeowner policy if the insured submitted how many claims in
the past 3 years? - CORRECT ANSWER 3
Which of the following is correct regarding Section II of the Homeowners Policy Forms? -
CORRECT ANSWER Section II is the same in all Homeowners Forms
The Homeowners Policy excludes Coverage for which of the following? - CORRECT
ANSWER A motorized golf cart being driven on a public road
,All property policies list the duties of the insured after a loss. Identify which of the following
is NOT a duty of an insured after a loss. - CORRECT ANSWER File charges against a
burglar
The HO-4 policy would be sold to? - CORRECT ANSWER Tenants
Coverage E of a Homeowners Policy would cover which of the following? - CORRECT
ANSWER Bodily Injury to a guest which is caused by the insured's dog
Under Section II of the Homeowners Policy, all of the following would be considered an
Insured Location, EXCEPT? - CORRECT ANSWER A secondary location that the
insured used for a business
Necessary additional expenses incurred during the "period of restoration" are covered under
what property form in commercial insurance? - CORRECT ANSWER Extra Expense
Coverage Form
Which of these perils is added on the Broad Form of the Commercial Package Policy? -
CORRECT ANSWER Weight of Ice, Snow, or Sleet
Which of the following is incorrect in a commercial property policy? - CORRECT
ANSWER The insurer has the obligation to inspect the property
Where in the Commercial Package Policy would you find the total premium charged for all
the coverage parts in the policy? - CORRECT ANSWER Declarations
Under the Basic Cause of Loss Form of the commercial package policy, how long is vacancy
allowed before the peril of vandalism coverage is suspended? - CORRECT
ANSWER 60 days
A building valued at $200,000 is insured for $150,000; and coverage is written with an 80%
coinsurance requirement and a $1,000 deductible. The building is totally destroyed and the
, debris removal expenses amount to $10,000. How much will the Building and Personal
Property Coverage Form pay? - CORRECT ANSWER $159,000
In a commercial package policy, the first named insured dies. What happens to the insureds
right to the policy? - CORRECT ANSWER The policy automatically transfers to the
insureds legal representative
Which of the following is not included on the Common Policy Declarations of a commercial
package policy? - CORRECT ANSWER Policy changes
Choose the false statement about commercial property policies. - CORRECT
ANSWER The insurer has the obligation to inspect the property
Under the Basic Cause of Loss Form, vacancy is allowed for ___________ days before the
peril of vandalism coverage is suspended. - CORRECT ANSWER 60
The Basic form of the Commercial Package Policy includes coverage for all the following
perils, EXCEPT? - CORRECT ANSWER Smoke from industrial operations
In the Business Income and Extra Expense coverages the Period of Restoration begins how
many hours after the time of loss? - CORRECT ANSWER 72 hours
Which of the following is covered under the Building and Personal Property Coverage Form?
- CORRECT ANSWER Personal property of others in a vehicle within 100 feet of the
business
Which of these is not added under the Broad Form of the Commercial Package Policy? -
CORRECT ANSWER Sinkhole
The Extra Expense form pays the necessary expenses incurred by the insured during which of
the following? - CORRECT ANSWER Period of Restoration
