TEXAS PROPERTY AND CASUALTY INSURANCE PRACTICE EXAM NEWEST 2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
Which part of an insurance policy describes the responsibilities and obligations of both the insurance
company and the insured under the policy? - (answer) Conditions
The limits of liability are found in which of the following sections of a casualty policy? - (answer)
Declarations
The _____ page in an insurance contract contains information about the risk, the effective date of
coverage, deductible, premium amounts, coinsurance percentage, and location of the insured property. -
(answer) Declarations
The insured is looking for the amount of coverage in a property and casualty policy. This information
would be found in the ______. - (answer) declarations
The coverages offered by an insurance policy are described in the ____. - (answer) insuring agreement
The purpose of the conditions section of an insurance policy is to list the ____ of the insured and the
insurance company. - (answer) obligations
The list of perils covered under a policy is found in which part of the policy? - (answer) Insuring
agreement
The Declarations page consists of 5 P's. Person or property, policy number, policy term, policy limit and
____. - (answer) premium
The Insuring agreement describes coverage provided and which ____ are covered. - (answer) perils
Lost rent is covered by _____. Limited by 20% of coverage A. - (answer) Coverage D
Under which of the dwelling forms may the insured be reimbursed for the replacement cost of a
dwelling when it is destroyed? - (answer) DP-2 and DP-3
,TEXAS PROPERTY AND CASUALTY INSURANCE PRACTICE EXAM NEWEST 2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
The insured has a DP-3 covering a home that has a replacement value of $100,000. The insured carries
$60,000 of insurance. Following a loss, it is determined that it would cost $12,000 to replace the
damaged portion of the home. How much could the insured collect, assuming the ACV of the loss is
$6,000? - (answer) $9000
Damage to covered property caused by glass breakage is covered in ___. - (answer) DP2 and DP3
Which dwelling forms pay losses to dwellings and other structures on an actual cash value basis? -
(answer) DP1
Which dwelling forms pay losses to personal property on an actual cash value basis? - (answer) DP1,
DP2 and DP3
Would an earthquake that causes a fire that destroys an insured's home be covered by a DP1? -
(answer) yes
A dwelling policy with no endorsements attached contains personal property coverage, dwelling
coverage and _____. - (answer) medical payments coverage
An unendorsed dwelling policy contains the dwelling, other structures, personal property, and _____. -
(answer) fair rental value
Other coverage included in all dwelling forms are fire department service charges, debris removal,
reasonable repairs, and _____ limited to 10% of coverage C. - (answer) glass safety material
Does the DP1 provides coverage for appurtenant structures? - (answer) yes
_____ coverage must be added to a dwelling policy by endorsement. - (answer) Theft and liability
An insured has a $60,000 special form (DP-3). When a covered loss in the amount of $10,000 damages
the attached garage, how much of that amount is paid under the Coverage B-Other Structures? -
(answer) $0
,TEXAS PROPERTY AND CASUALTY INSURANCE PRACTICE EXAM NEWEST 2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
Of the dwelling forms, which one of the following provides the broadest coverage? - (answer) special
The special form (DP-3) covers the dwelling and other structures for ____. - (answer) open perils
In the dwelling forms, damage from vandalism is not covered if the building has been vacant for more
than ____. - (answer) 60 days
A property owner wants to insure both the rental property and any of the tenant's belongings if they are
stolen. Which policy would you recommend and why? - (answer) DP-3 special form and a separate
tenant's policy to cover personal property.
The dwelling policy will provide how much additional coverage for a fire department service charge? -
(answer) $500
An insured suffers a covered loss to some rental property that forces the tenant to move to another
location. Under which section of the dwelling policy would the insured receive payment during the time
the property is being repaired? - (answer) Coverage D--Fair Rental Value
How does the dwelling policy provide theft coverage, dwelling under construction coverage or coverage
for automatic increases in insurance? - (answer) by endorsement
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to the house, the property
includes a detached garage, storage shed, and an artist's studio. During a thunderstorm, the garage and
storage shed are damaged by lightning. The loss is $3,000 to the garage and $1,000 to the shed. What
amount is covered by the policy? - (answer) $3500
Wilson owns a 4-family apartment building. Which dwelling form(s) would provide coverage against
building damage caused by the freezing of plumbing, heating, air conditioning, and sprinkler systems? -
(answer) DP2 and DP3
An insured has a dwelling policy (DP-3 special form) for $50,000. After a covered fire loss, the insured
moves to a local hotel while repairs are being made to the house. While staying in the hotel's penthouse
, TEXAS PROPERTY AND CASUALTY INSURANCE PRACTICE EXAM NEWEST 2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
suite, the insured uses room service, always choosing the most expensive food and wine. The entire stay
costs $12,000. How much of that amount will the policy cover? - (answer) $10,000
An insured has a $40,000 dwelling special form (DP-3) policy. After hosting an afternoon party, the
insured discovers that the family's credit cards and ATM cards are missing. If the cards are used, what
coverage is provided under Coverage C-Personal Property and why? - (answer) $0
An insured has a $70,000 dwelling policy (DP-1 basic) with a $500 deductible. While the insured is on
vacation, burglars enter the house and steal several items. The total loss is estimated to be $5,000. How
much of that loss will be paid under the policy? - (answer) $0
Damage caused by burglars is excluded under which of the dwelling forms? - (answer) Basic Form
The greatest difference between the dwelling basic form (DP-1) and the broad form (DP-2) is that the
DP-2 automatically includes coverage for _____. - (answer) vandalism and malicious mischief
In homeowners forms, the property coverage varies in each form and the liability coverage is _____. -
(answer) identical
Open peril coverage on the dwelling and broad coverage on personal property is covered under the
_____. - (answer) HO3
No dwelling coverage, and broad coverage on personal property is covered by the____. - (answer) HO4
Limited dwelling coverage and broad coverage on personal property is covered by the ____. - (answer)
HO6
Basic coverage on both the dwelling and personal property is covered on the ____. - (answer) HO8
Broad coverage on both the dwelling and personal property is covered by the ____. - (answer) HO2
QUESTIONS AND CORRECT DETAILED ANSWERS
Which part of an insurance policy describes the responsibilities and obligations of both the insurance
company and the insured under the policy? - (answer) Conditions
The limits of liability are found in which of the following sections of a casualty policy? - (answer)
Declarations
The _____ page in an insurance contract contains information about the risk, the effective date of
coverage, deductible, premium amounts, coinsurance percentage, and location of the insured property. -
(answer) Declarations
The insured is looking for the amount of coverage in a property and casualty policy. This information
would be found in the ______. - (answer) declarations
The coverages offered by an insurance policy are described in the ____. - (answer) insuring agreement
The purpose of the conditions section of an insurance policy is to list the ____ of the insured and the
insurance company. - (answer) obligations
The list of perils covered under a policy is found in which part of the policy? - (answer) Insuring
agreement
The Declarations page consists of 5 P's. Person or property, policy number, policy term, policy limit and
____. - (answer) premium
The Insuring agreement describes coverage provided and which ____ are covered. - (answer) perils
Lost rent is covered by _____. Limited by 20% of coverage A. - (answer) Coverage D
Under which of the dwelling forms may the insured be reimbursed for the replacement cost of a
dwelling when it is destroyed? - (answer) DP-2 and DP-3
,TEXAS PROPERTY AND CASUALTY INSURANCE PRACTICE EXAM NEWEST 2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
The insured has a DP-3 covering a home that has a replacement value of $100,000. The insured carries
$60,000 of insurance. Following a loss, it is determined that it would cost $12,000 to replace the
damaged portion of the home. How much could the insured collect, assuming the ACV of the loss is
$6,000? - (answer) $9000
Damage to covered property caused by glass breakage is covered in ___. - (answer) DP2 and DP3
Which dwelling forms pay losses to dwellings and other structures on an actual cash value basis? -
(answer) DP1
Which dwelling forms pay losses to personal property on an actual cash value basis? - (answer) DP1,
DP2 and DP3
Would an earthquake that causes a fire that destroys an insured's home be covered by a DP1? -
(answer) yes
A dwelling policy with no endorsements attached contains personal property coverage, dwelling
coverage and _____. - (answer) medical payments coverage
An unendorsed dwelling policy contains the dwelling, other structures, personal property, and _____. -
(answer) fair rental value
Other coverage included in all dwelling forms are fire department service charges, debris removal,
reasonable repairs, and _____ limited to 10% of coverage C. - (answer) glass safety material
Does the DP1 provides coverage for appurtenant structures? - (answer) yes
_____ coverage must be added to a dwelling policy by endorsement. - (answer) Theft and liability
An insured has a $60,000 special form (DP-3). When a covered loss in the amount of $10,000 damages
the attached garage, how much of that amount is paid under the Coverage B-Other Structures? -
(answer) $0
,TEXAS PROPERTY AND CASUALTY INSURANCE PRACTICE EXAM NEWEST 2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
Of the dwelling forms, which one of the following provides the broadest coverage? - (answer) special
The special form (DP-3) covers the dwelling and other structures for ____. - (answer) open perils
In the dwelling forms, damage from vandalism is not covered if the building has been vacant for more
than ____. - (answer) 60 days
A property owner wants to insure both the rental property and any of the tenant's belongings if they are
stolen. Which policy would you recommend and why? - (answer) DP-3 special form and a separate
tenant's policy to cover personal property.
The dwelling policy will provide how much additional coverage for a fire department service charge? -
(answer) $500
An insured suffers a covered loss to some rental property that forces the tenant to move to another
location. Under which section of the dwelling policy would the insured receive payment during the time
the property is being repaired? - (answer) Coverage D--Fair Rental Value
How does the dwelling policy provide theft coverage, dwelling under construction coverage or coverage
for automatic increases in insurance? - (answer) by endorsement
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to the house, the property
includes a detached garage, storage shed, and an artist's studio. During a thunderstorm, the garage and
storage shed are damaged by lightning. The loss is $3,000 to the garage and $1,000 to the shed. What
amount is covered by the policy? - (answer) $3500
Wilson owns a 4-family apartment building. Which dwelling form(s) would provide coverage against
building damage caused by the freezing of plumbing, heating, air conditioning, and sprinkler systems? -
(answer) DP2 and DP3
An insured has a dwelling policy (DP-3 special form) for $50,000. After a covered fire loss, the insured
moves to a local hotel while repairs are being made to the house. While staying in the hotel's penthouse
, TEXAS PROPERTY AND CASUALTY INSURANCE PRACTICE EXAM NEWEST 2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
suite, the insured uses room service, always choosing the most expensive food and wine. The entire stay
costs $12,000. How much of that amount will the policy cover? - (answer) $10,000
An insured has a $40,000 dwelling special form (DP-3) policy. After hosting an afternoon party, the
insured discovers that the family's credit cards and ATM cards are missing. If the cards are used, what
coverage is provided under Coverage C-Personal Property and why? - (answer) $0
An insured has a $70,000 dwelling policy (DP-1 basic) with a $500 deductible. While the insured is on
vacation, burglars enter the house and steal several items. The total loss is estimated to be $5,000. How
much of that loss will be paid under the policy? - (answer) $0
Damage caused by burglars is excluded under which of the dwelling forms? - (answer) Basic Form
The greatest difference between the dwelling basic form (DP-1) and the broad form (DP-2) is that the
DP-2 automatically includes coverage for _____. - (answer) vandalism and malicious mischief
In homeowners forms, the property coverage varies in each form and the liability coverage is _____. -
(answer) identical
Open peril coverage on the dwelling and broad coverage on personal property is covered under the
_____. - (answer) HO3
No dwelling coverage, and broad coverage on personal property is covered by the____. - (answer) HO4
Limited dwelling coverage and broad coverage on personal property is covered by the ____. - (answer)
HO6
Basic coverage on both the dwelling and personal property is covered on the ____. - (answer) HO8
Broad coverage on both the dwelling and personal property is covered by the ____. - (answer) HO2
