Texas Property & Casualty Guaranteed
Exam FX with correct answers
Restoring an insured financially after a claim is known as - correct answer>> indemnity
Prior to paying a claimant under a professional liability policy, the
insurer must - correct answer>> Obtain the consent of the insured.
The purpose of purchasing an umbrella liability policy is to provide - correct answer>> Excess insurance
over the primary liability policy.
Which of the following terms means termination of an insurance
policy at its expiration date by not offering a policy continuation or
replacement?
A
Cessation
B
Cancellation
C
Nonrenewal
D
Suspension - correct answer>> Nonrenewal
To determine the actual cash value of an insured property, what
must be deducted from the current replacement cost? - correct answer>> Depreciated value
,All of the following are factors in the determination of actual cash
value EXCEPT
A . Insurance premium paid
B Age of property.
C Replacement cost.
D. Property type. - correct answer>> Insurance premium paid
Which type of damages is intended as a form of punishment for
negligent, willful, or outrageous intent? - correct answer>> Punitive
Which method of dealing with risk is applied when insurance is
purchased? - correct answer>> to transfer
What amount of coverage is provided on HO policies for watercraft? - correct answer>> Up to $1,500
Which of the following components is NOT part of a policy
structure?
A. Benefits
B. Declarations
C. Additional coverage
D. Definitions - correct answer>> Benefits
Which of the following stipulates the procedure that insureds and
insurers can use when they cannot agree on the value of a loss? - correct answer>> Appraisal clause
Which of the following is the cause of loss? - correct answer>> peril
, If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover
losses, which of the following would be true?
A. Federal Insurance Administration will remove the insurer
from the NFIP.
B. The insurer will be reimbursed for the excess costs by the
NEIP
C. The insurer must cover the loss out of its surplus.
D. The insurer must apply for disaster relief funds. - correct answer>> The insurer will be reimbursed for
the excess costs by the NFIP.
Under an HO-2 policy, the insurer will pay no more than the actual
cash value of the property damage until - correct answer>> The property repair or replacement is
complete.
A personal umbrella policy may act as excess over any of the
following insurance coverage policies EXCEPT
A. Homeowners Section Il coverage.
B. Auto liability coverage.
C. Comprehensive personal liability.
D. Auto collision coverage - correct answer>> Auto collision coverage
When an insured and her insurer could not agree on the amount
of liability loss after her accident, the settlement was submitted to
someone whose decision was then binding on both parties. What
policy condition was applied? - correct answer>> Arbitration
In order to receive transportation expenses under the personal
auto policy following damage to your auto caused by collision, you
must have - correct answer>> collision coverage
Exam FX with correct answers
Restoring an insured financially after a claim is known as - correct answer>> indemnity
Prior to paying a claimant under a professional liability policy, the
insurer must - correct answer>> Obtain the consent of the insured.
The purpose of purchasing an umbrella liability policy is to provide - correct answer>> Excess insurance
over the primary liability policy.
Which of the following terms means termination of an insurance
policy at its expiration date by not offering a policy continuation or
replacement?
A
Cessation
B
Cancellation
C
Nonrenewal
D
Suspension - correct answer>> Nonrenewal
To determine the actual cash value of an insured property, what
must be deducted from the current replacement cost? - correct answer>> Depreciated value
,All of the following are factors in the determination of actual cash
value EXCEPT
A . Insurance premium paid
B Age of property.
C Replacement cost.
D. Property type. - correct answer>> Insurance premium paid
Which type of damages is intended as a form of punishment for
negligent, willful, or outrageous intent? - correct answer>> Punitive
Which method of dealing with risk is applied when insurance is
purchased? - correct answer>> to transfer
What amount of coverage is provided on HO policies for watercraft? - correct answer>> Up to $1,500
Which of the following components is NOT part of a policy
structure?
A. Benefits
B. Declarations
C. Additional coverage
D. Definitions - correct answer>> Benefits
Which of the following stipulates the procedure that insureds and
insurers can use when they cannot agree on the value of a loss? - correct answer>> Appraisal clause
Which of the following is the cause of loss? - correct answer>> peril
, If the premiums collected by an insurer participating in the WYO flood program are insufficient to cover
losses, which of the following would be true?
A. Federal Insurance Administration will remove the insurer
from the NFIP.
B. The insurer will be reimbursed for the excess costs by the
NEIP
C. The insurer must cover the loss out of its surplus.
D. The insurer must apply for disaster relief funds. - correct answer>> The insurer will be reimbursed for
the excess costs by the NFIP.
Under an HO-2 policy, the insurer will pay no more than the actual
cash value of the property damage until - correct answer>> The property repair or replacement is
complete.
A personal umbrella policy may act as excess over any of the
following insurance coverage policies EXCEPT
A. Homeowners Section Il coverage.
B. Auto liability coverage.
C. Comprehensive personal liability.
D. Auto collision coverage - correct answer>> Auto collision coverage
When an insured and her insurer could not agree on the amount
of liability loss after her accident, the settlement was submitted to
someone whose decision was then binding on both parties. What
policy condition was applied? - correct answer>> Arbitration
In order to receive transportation expenses under the personal
auto policy following damage to your auto caused by collision, you
must have - correct answer>> collision coverage
