Texas Insurance Practice Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
Texas Insurance Practice Exam
Questions & Answers
1. Subrogration may follow which of the following events?
Answer An insured collectsfrom her insurance company for damages caused by a
third party
2. Medical payments coverage under a BOP applies to expenses incurred by
non-insureds for bodily injury and reported to the insurer within
Answer One year after the accident
3. Claims expenses covered under Section II - Personal Liability of the stan-
dard Homeowners forms do NOT pay for which of the following?
Answer Loss of theinsured's earnings subject to a pre-determined limit of $300 per
day
4. Which statement best describes "defense" coverage under the Section II -
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Liability coverage of the Businessowners policy?
Answer Defense costs are not subjectto a limit
5. Under an aircraft policy what is NOT a covered territory usually covered
(unless endorsed) while the aircraft is in flight?
Answer Costa Rico
6. 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?
Answer 24 months
7. When a licensee in Texas receives an inquiry from the Insurance Department
regarding their insurance transactions, he or she must respond in writing
Answer Notlater than the 15th day after the date the inquiry is received
8. The sprinkler leakage coverage of a Commercial Property form does not
provide coverage for
Answer damage to growing crops from malfunctioning sprinklers
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9. Under the appraisal clause in a commercial inland form, which of the follow-
ing is true?
Answer the insurer still retains its right to deny the claim entirely
10. All of the following statements are true regarding state Guaranty Associ-
ations, Except
Answer The fund assists insurers in gaining new insurance business by allowing
them to advertise their membership in the Guaranty Association.
11. 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
Answer Personal Effects floater.
12. Each of the following is a feature of Business Income Coverage, EXCEPT-
Answer Monetary deductibles. .
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Texas Insurance Practice Exam
Questions & Answers
1. Subrogration may follow which of the following events?
Answer An insured collectsfrom her insurance company for damages caused by a
third party
2. Medical payments coverage under a BOP applies to expenses incurred by
non-insureds for bodily injury and reported to the insurer within
Answer One year after the accident
3. Claims expenses covered under Section II - Personal Liability of the stan-
dard Homeowners forms do NOT pay for which of the following?
Answer Loss of theinsured's earnings subject to a pre-determined limit of $300 per
day
4. Which statement best describes "defense" coverage under the Section II -
1/9
1 of 27 12/11/2024, 12:32
,Texas Insurance Practice Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
Liability coverage of the Businessowners policy?
Answer Defense costs are not subjectto a limit
5. Under an aircraft policy what is NOT a covered territory usually covered
(unless endorsed) while the aircraft is in flight?
Answer Costa Rico
6. 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?
Answer 24 months
7. When a licensee in Texas receives an inquiry from the Insurance Department
regarding their insurance transactions, he or she must respond in writing
Answer Notlater than the 15th day after the date the inquiry is received
8. The sprinkler leakage coverage of a Commercial Property form does not
provide coverage for
Answer damage to growing crops from malfunctioning sprinklers
2/9
2 of 27 12/11/2024, 12:32
,Texas Insurance Practice Exam.pdf file:///C:/Users/HP/Desktop/New%20folder%20(2)/Texas%20Insura
9. Under the appraisal clause in a commercial inland form, which of the follow-
ing is true?
Answer the insurer still retains its right to deny the claim entirely
10. All of the following statements are true regarding state Guaranty Associ-
ations, Except
Answer The fund assists insurers in gaining new insurance business by allowing
them to advertise their membership in the Guaranty Association.
11. 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
Answer Personal Effects floater.
12. Each of the following is a feature of Business Income Coverage, EXCEPT-
Answer Monetary deductibles. .
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