Texas Insurance License- Quiz Questions with Complete Solutions

Texas Insurance License- Quiz Questions with Complete Solutions Susie set fire to her house to collect the insurance. This is an example of a(n) MORAL HAZARDS Henry's tires on his SUV are so worn that the steel belt is showing through the tread. The condition of the tires is known as PHYSICAL HAZARDS When a driver of an auto breaks the posted speed limit, the driver's liability imposed by the law is known as ABOSLUTE LIABILITY Under compensatory damages, medical expenses are an example of SPECIAL damages. Josh attends a hockey game. While at the game he is hit in the head by the hockey puck resulting in a broken cheek bone. Josh immediately sues the hockey team for damages. What might be the most logical defense for the hockey team? ASSUMPTION OF RISK The Smith family is planning to build a new house. They want the house to be constructed entirely of fire resistance materials. This construction type is an example of a FIRE RESISTIVE building. ________ contracts are written for a specified amount and they list the value of the insured property as agreed to by both the insured and the insurer at policy inception. Susie set fire to her house to collect the insurance. This is an example of a(n) MORAL HAZARDS Henry's tires on his SUV are so worn that the steel belt is showing through the tread. The condition of the tires is known as PHYSICAL HAZARDS When a driver of an auto breaks the posted speed limit, the driver's liability imposed by the law is known as ABOSLUTE LIABILITY Under compensatory damages, medical expenses are an example of SPECIAL damages. Josh attends a hockey game. While at the game he is hit in the head by the hockey puck resulting in a broken cheek bone. Josh immediately sues the hockey team for damages. What might be the most logical defense for the hockey team? ASSUMPTION OF RISK The Smith family is planning to build a new house. They want the house to be constructed entirely of fire resistance materials. This construction type is an example of a FIRE RESISTIVE building. ______contracts are written for a specified amount and they list the value of the insured property as agreed to by both the insured and the insurer at policy inception. VALUED The ABC Company has several business locations. They want to cover all the locations under one policy. They should purchase a(n) BLANKET policy A building has a market value of $100,000, a replacement cost of $80,000 and a depreciated amount of $25,000. Based on these factors, what is the ACV amount of the building? ($80,000 - $25,000 = $55,000) Actual cash value, or ACV is usually calculated by determining the item's replacement cost (what it would cost to buy a replacement) and subtracting an amount for depreciation. Here's what it looks like written as a formula: ACV = Replacement Cost - Depreciation Joe has just purchased a new house. He wants to obtain the broadest possible insurance coverage. Joe should purchase a(n) SPECIAL FORMS policy. Which of the following is NOT a method by which an insured can collect for damages? In general, the insured can collect the lesser of: Insurable interest; Policy limits; Actual cash value; Cost to repair; or Replacement cost. Which one of the following terms can be defined as a policy provision that omits certain risks from coverage? EXCLUSIONS Joe asked his insurance agent to explain the purpose of the conditions section of his insurance policy. Joe's agent stated that it is used to _____. Policy conditions Jane has decided to add towing to her current auto policy with the ABC Insurance Company. What must the ABC Insurance Company do to add the requested change to the policy? ENDORSEMENTS Doug has just received his insurance policy. Where would Doug look to find the applicable deductibles declared in the insurance policy? DECLARATIONS The XYZ Insurance Company is developing a new auto insurance contract. Which of the following is NOT considered a major component of this insurance contract? The contract does not require the naming of senior officers of the insurance company. Crossroad's commercial insurance coverage is automatically extended to cover newly acquired or constructed locations and personal property covered off-premises within the policy territory. Which is generally NOT covered under the policy territory? . On commercial policies, the policy territory is usually the United States, Canada and Puerto Rico. The State Insurance Company has decided to non-renew Craig's auto insurance policy. The State Insurance Company must GIVE AT LEAST 30 DAYS NOTICE OF NONRENEWAL. The State Insurance Company has decided to non-rene