Texas Personal Lines Licensing Exam || PASSED!!
Exposure correct answers an opportunity or possibility for loss
Risk correct answers Chance or potential of financial loss
Pure Risk correct answers Risk with no chance of gain or beneficial result
Speculative Risk correct answers Risk with potential for both gain and loss
Law of Large Numbers correct answers Principle related to the larger the examples of data, the
more reliable
Underwriting correct answers A function that evaluates policyholders to determine eligibility and
pricing
What are the contract parts? (Hint: "Cloac") correct answers Consideration, Legal Purpose,
Offer, Acceptance, Component Parts)
What are the contract characteristics? correct answers Personal Contract, Conditional Contract,
Adhesion, Indemnity, Aleatory, Unilateral, Utmost Good Faith
Indemnify correct answers To make whole again, help make them whole but don't let them profit
Aleatory correct answers complete unequal transfer of value
Unilateral correct answers only enforceable in one direction (i.e. cant force anyone to find dog,
but MUST pay if someone finds dog)
Representation correct answers refers to a statement that the insured believes to be true
Which party is the insured? correct answers 1st Party
Which party is the insurer? correct answers 2nd Party
Which Party is the other person involved in the accident? correct answers 3rd Party
What are the 5 parts of the Insurance Policy? (Hint: DICED) correct answers Declarations,
Insuring Agreement, Conditions, Exclusions, Definitions
Endorsement correct answers a document that modifies the insurance policy in some way
Binder correct answers temporary insurance coverage issued for a specific period of time
nonrenewal correct answers a decision not to continue the policy after the end of the policy term
Exposure correct answers an opportunity or possibility for loss
Risk correct answers Chance or potential of financial loss
Pure Risk correct answers Risk with no chance of gain or beneficial result
Speculative Risk correct answers Risk with potential for both gain and loss
Law of Large Numbers correct answers Principle related to the larger the examples of data, the
more reliable
Underwriting correct answers A function that evaluates policyholders to determine eligibility and
pricing
What are the contract parts? (Hint: "Cloac") correct answers Consideration, Legal Purpose,
Offer, Acceptance, Component Parts)
What are the contract characteristics? correct answers Personal Contract, Conditional Contract,
Adhesion, Indemnity, Aleatory, Unilateral, Utmost Good Faith
Indemnify correct answers To make whole again, help make them whole but don't let them profit
Aleatory correct answers complete unequal transfer of value
Unilateral correct answers only enforceable in one direction (i.e. cant force anyone to find dog,
but MUST pay if someone finds dog)
Representation correct answers refers to a statement that the insured believes to be true
Which party is the insured? correct answers 1st Party
Which party is the insurer? correct answers 2nd Party
Which Party is the other person involved in the accident? correct answers 3rd Party
What are the 5 parts of the Insurance Policy? (Hint: DICED) correct answers Declarations,
Insuring Agreement, Conditions, Exclusions, Definitions
Endorsement correct answers a document that modifies the insurance policy in some way
Binder correct answers temporary insurance coverage issued for a specific period of time
nonrenewal correct answers a decision not to continue the policy after the end of the policy term
