Property and Casualty Exam -
Texas Comprehensive
Questions with Verified
Answers Graded A+
____ is uncertainty of loss - Answer: risk
____ is a transfer of risk from the insured to the insurer - Answer: insurance
____ risk means there is no chance of gain. It is insurable. - Answer: pure
____ risk means there is a chance of a loss or a gain. It is not insurable. - Answer: speculative
a ____ is something that increases the risk. - Answer: hazard
the principle of _____ governs property and casualty policies. It states that the purpose of the
policy is to restore the insured financially to where they were prior to the loss - Answer:
indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to provide
coverage. - Answer: insurable interest
the law of _____ _____ is used to predict the likelihood of loss - Answer: large numbers
,____ ____ ____ is replacement cost minus depreciation. - Answer: actual cash value
________ is a tort, or civil wrong; it is grounds for a lawsuit. - Answer: Negligence
_______ is the failure to act as a reasonable person would in the same set of circumstances -
Answer: negligence
an _____ happens over a period of time - Answer: Occurrence
a _____ may be oral or written - Answer: binder
a _____ provides coverage until the policy is issued. it includes all coverages provided by the
policy. - Answer: binder
a ____ is a literal truth - Answer: warranty
a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are
_______ - true to the best of their knowledge - Answer: representation
______ is an omission of a material fact. - Answer: concealment
the insurer has the right to sue a negligent third party for damages paid to an insured under the
concept of ______ - Answer: subrogation
four parts of a policy - Answer: DICE (declarations, insuring agreement, conditions, and
exclusions)
,the ______ list the named insured, policy limits, and premium and policy period - Answer:
declarations
the ____ __ ____ are found on the declaration page of the policy - Answer: limits of liability
the _______ _______ describes the coverages provided - Answer: insuring agreement
the _______ list the obligations of both parties, the insurer and the insured - Answer:
conditions
the ______ list the perils that are not covered - Answer: exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide
coverage, the claim will go to _____ - Answer: arbitration
in _____ each party pays for one and a half persons involved - Answer: arbitration
in arbitration there are _____ arbitrators - Answer: three
the cancellation provisions are found in the ________ section of the policy - Answer: conditions
the insured must promptly tell the insurer about a ______ - Answer: claim
the other insurance clause is also known as the ____-____ _____ _______ - Answer: pro-rata
liability clause
_____-____ does not mean equal, it is proportionate - Answer: pro-rata
, the _____ _____ _____ act protects consumers against the circulation of inaccurate or obsolete
personal or financial information. - Answer: fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at the time the
customer relationship is initially established and thereafter annually. - Answer: gramm-leach-
bliley act
the ____ ____ insurance act applies to commercial policies only - Answer: terrorism risk
insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils insured
against - Answer: dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an endorsement
known as a _____ ______ ______ for an additional premium charge - Answer: personal liability
supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and flood but not
_____ - Answer: wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a _____
_____ - Answer: private garage
DP policies do not cover _______ of ______ after 60 days of vacancy - Answer: breakage of
glass
DP policies do not cover _____ of _____ unless the heat was left on - Answer: freezing of
plumbing
Texas Comprehensive
Questions with Verified
Answers Graded A+
____ is uncertainty of loss - Answer: risk
____ is a transfer of risk from the insured to the insurer - Answer: insurance
____ risk means there is no chance of gain. It is insurable. - Answer: pure
____ risk means there is a chance of a loss or a gain. It is not insurable. - Answer: speculative
a ____ is something that increases the risk. - Answer: hazard
the principle of _____ governs property and casualty policies. It states that the purpose of the
policy is to restore the insured financially to where they were prior to the loss - Answer:
indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to provide
coverage. - Answer: insurable interest
the law of _____ _____ is used to predict the likelihood of loss - Answer: large numbers
,____ ____ ____ is replacement cost minus depreciation. - Answer: actual cash value
________ is a tort, or civil wrong; it is grounds for a lawsuit. - Answer: Negligence
_______ is the failure to act as a reasonable person would in the same set of circumstances -
Answer: negligence
an _____ happens over a period of time - Answer: Occurrence
a _____ may be oral or written - Answer: binder
a _____ provides coverage until the policy is issued. it includes all coverages provided by the
policy. - Answer: binder
a ____ is a literal truth - Answer: warranty
a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are
_______ - true to the best of their knowledge - Answer: representation
______ is an omission of a material fact. - Answer: concealment
the insurer has the right to sue a negligent third party for damages paid to an insured under the
concept of ______ - Answer: subrogation
four parts of a policy - Answer: DICE (declarations, insuring agreement, conditions, and
exclusions)
,the ______ list the named insured, policy limits, and premium and policy period - Answer:
declarations
the ____ __ ____ are found on the declaration page of the policy - Answer: limits of liability
the _______ _______ describes the coverages provided - Answer: insuring agreement
the _______ list the obligations of both parties, the insurer and the insured - Answer:
conditions
the ______ list the perils that are not covered - Answer: exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide
coverage, the claim will go to _____ - Answer: arbitration
in _____ each party pays for one and a half persons involved - Answer: arbitration
in arbitration there are _____ arbitrators - Answer: three
the cancellation provisions are found in the ________ section of the policy - Answer: conditions
the insured must promptly tell the insurer about a ______ - Answer: claim
the other insurance clause is also known as the ____-____ _____ _______ - Answer: pro-rata
liability clause
_____-____ does not mean equal, it is proportionate - Answer: pro-rata
, the _____ _____ _____ act protects consumers against the circulation of inaccurate or obsolete
personal or financial information. - Answer: fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at the time the
customer relationship is initially established and thereafter annually. - Answer: gramm-leach-
bliley act
the ____ ____ insurance act applies to commercial policies only - Answer: terrorism risk
insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils insured
against - Answer: dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an endorsement
known as a _____ ______ ______ for an additional premium charge - Answer: personal liability
supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and flood but not
_____ - Answer: wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a _____
_____ - Answer: private garage
DP policies do not cover _______ of ______ after 60 days of vacancy - Answer: breakage of
glass
DP policies do not cover _____ of _____ unless the heat was left on - Answer: freezing of
plumbing
