Texas Insurance License Exam Questions With Correct Answers Already Passed!!

What are 3 subjects an auto policy covers? - 1. Body 2. The vehicle 3. Assets Bodily Injury Types - Personal Injury Med Pay Uninsured Motorist No Fault Insurance - State stipulates that parties cannot file a claim to the other persons insurance policy unless required in excess. Instead, each party is required to file a primary claim against their own insurance regardless who is at fault. EX. Florida Financial Responsibility Laws - State Laws regulating that people are to carry a minimum coverage amount set by the state to protect themselves, others, and property. P.A.P - Personal Automotive Policy Negligence - The failure to act as a prudent person would under similar circumstances Legal Liability - Involves proven negligence or fault Vicarious Liability - Being responsible for the negligent acts of someone else. Ex. Your children Absolute or Strict Liability - Stems from hazardous or dangerous activities that makes the owner liable WITHOUT the requirement of proof of negligence.Liability - Being responsible for the damages or injury you or someone else you're responsible for has done. The 7 Characteristics of a Contract - 1. Personal Contract 2. Conditional Contract 3. Adhesion 4. Indemnity 5. Aleatory 6. Unilateral 7. Utmost Good Faith Personal Contract - Is stipulation of a contract that says the contract is for the name person and cannot be transferred to another. Conditional Contract - Stipulates set by a contract. "You can do this, but...." Adhesion - A stipulation that the contract and it's language is binding, or "sticks" and the parties agreeing cannot back out so long as the conditions are met. Indemnity - The contract agrees to indemnify, or make whole again the customer. Makes them no better, nor worse, just whole