Texas Insurance Practice Exam
Questions and Answers 100%
PASS
Subrogration may follow which of the following events? - CORRECT ANSWER-
An insured collects from her insurance company for damages caused by a third
party
Medical payments coverage under a BOP applies to expenses incurred by non-
insureds for bodily injury and reported to the insurer within: - CORRECT
ANSWER-One year after the accident
Claims expenses covered under Section II - Personal Liability of the standard
Homeowners forms do NOT pay for which of the following? - CORRECT
ANSWER-Loss of the insured's earnings subject to a pre-determined limit of $300
per day
Which statement best describes "defense" coverage under the Section II - Liability
coverage of the Businessowners policy? - CORRECT ANSWER-Defense costs are
not subject to a limit
Under an aircraft policy what is NOT a covered territory usually covered (unless
endorsed) while the aircraft is in flight? - CORRECT ANSWER-Costa Rico
,Under a standard Equipment Breakdown policy, the full replacement cost will be
paid on the claim, if the equipment is repaired within what time period following
the loss? - CORRECT ANSWER-24 months
When a licensee in Texas receives an inquiry from the Insurance Department
regarding their insurance transactions, he or she must respond in writing: -
CORRECT ANSWER-Not later than the 15th day after the date the inquiry is
received
The sprinkler leakage coverage of a Commercial Property form does not provide
coverage for: - CORRECT ANSWER-damage to growing crops from
malfunctioning sprinklers
Under the appraisal clause in a commercial inland form, which of the following is
true? - CORRECT ANSWER-the insurer still retains its right to deny the claim
entirely
All of the following statements are true regarding state Guaranty Associations,
Except: - CORRECT ANSWER-The fund assists insurers in gaining new
insurance business by allowing them to advertise their membership in the
Guaranty Association.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, The Personal Inland Marine coverage form that covers clothing, cameras and other
portable property worn or carried by tourists and travelers is known as a: -
CORRECT ANSWER-Personal Effects floater.
Each of the following is a feature of Business Income Coverage, EXCEPT -
CORRECT ANSWER-Monetary deductibles. .
The limits of the Employers' Liability section of a standard workers' compensation
policy are: - CORRECT ANSWER-Listed on the Information page..
The term "time element coverage" is used when the amount of loss depends on: -
CORRECT ANSWER-The time it takes to repair, rebuild or restore damaged
property.
Under a personal automobile policy with uninsured motorists coverage, a
disagreement between an insurance company and an insured on the amount of a
loss can be settled by: - CORRECT ANSWER-Arbitration
Aaron purchases a Homeowners insurance policy for $700,000 with a 4%
deductible. A few months later, a heavy hailstorm destroys his roof, porch, and
windows, causing $50,000 in damages. How much should Aaron expect to receive
from the insurance company to pay for the damages? - CORRECT ANSWER-
$22,000
A Personal Umbrella policy will cover an insured for an "occurrence" or "offense"
that occurs - CORRECT ANSWER-Anywhere in the world.
Questions and Answers 100%
PASS
Subrogration may follow which of the following events? - CORRECT ANSWER-
An insured collects from her insurance company for damages caused by a third
party
Medical payments coverage under a BOP applies to expenses incurred by non-
insureds for bodily injury and reported to the insurer within: - CORRECT
ANSWER-One year after the accident
Claims expenses covered under Section II - Personal Liability of the standard
Homeowners forms do NOT pay for which of the following? - CORRECT
ANSWER-Loss of the insured's earnings subject to a pre-determined limit of $300
per day
Which statement best describes "defense" coverage under the Section II - Liability
coverage of the Businessowners policy? - CORRECT ANSWER-Defense costs are
not subject to a limit
Under an aircraft policy what is NOT a covered territory usually covered (unless
endorsed) while the aircraft is in flight? - CORRECT ANSWER-Costa Rico
,Under a standard Equipment Breakdown policy, the full replacement cost will be
paid on the claim, if the equipment is repaired within what time period following
the loss? - CORRECT ANSWER-24 months
When a licensee in Texas receives an inquiry from the Insurance Department
regarding their insurance transactions, he or she must respond in writing: -
CORRECT ANSWER-Not later than the 15th day after the date the inquiry is
received
The sprinkler leakage coverage of a Commercial Property form does not provide
coverage for: - CORRECT ANSWER-damage to growing crops from
malfunctioning sprinklers
Under the appraisal clause in a commercial inland form, which of the following is
true? - CORRECT ANSWER-the insurer still retains its right to deny the claim
entirely
All of the following statements are true regarding state Guaranty Associations,
Except: - CORRECT ANSWER-The fund assists insurers in gaining new
insurance business by allowing them to advertise their membership in the
Guaranty Association.
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, The Personal Inland Marine coverage form that covers clothing, cameras and other
portable property worn or carried by tourists and travelers is known as a: -
CORRECT ANSWER-Personal Effects floater.
Each of the following is a feature of Business Income Coverage, EXCEPT -
CORRECT ANSWER-Monetary deductibles. .
The limits of the Employers' Liability section of a standard workers' compensation
policy are: - CORRECT ANSWER-Listed on the Information page..
The term "time element coverage" is used when the amount of loss depends on: -
CORRECT ANSWER-The time it takes to repair, rebuild or restore damaged
property.
Under a personal automobile policy with uninsured motorists coverage, a
disagreement between an insurance company and an insured on the amount of a
loss can be settled by: - CORRECT ANSWER-Arbitration
Aaron purchases a Homeowners insurance policy for $700,000 with a 4%
deductible. A few months later, a heavy hailstorm destroys his roof, porch, and
windows, causing $50,000 in damages. How much should Aaron expect to receive
from the insurance company to pay for the damages? - CORRECT ANSWER-
$22,000
A Personal Umbrella policy will cover an insured for an "occurrence" or "offense"
that occurs - CORRECT ANSWER-Anywhere in the world.
