TEXAS PROPERTY & CASUALTY INSURANCE,
INSURANCE EXAM WITH 480+ REAL QUESTIONS
AND VERIFIED CORRECT ANSWERS ALREADY
GRADED A+ |GUARANTEED SUCCESS
Which part of an insurance policy describes the responsibilities and obligations of
both the insurance company and the insured under the policy? - CORRECT
ANSWER ✔✔- Conditions
The limits of liability are found in which of the following sections of a casualty
policy? - CORRECT ANSWER ✔✔- Declarations
The _____ page in an insurance contract contains information about the risk, the
effective date of coverage, deductible, premium amounts, coinsurance percentage,
and location of the insured property. - CORRECT ANSWER ✔✔- Declarations
The insured is looking for the amount of coverage in a property and casualty
policy. This information would be found in the ______. - CORRECT ANSWER
✔✔- declarations
The coverages offered by an insurance policy are described in the ____. -
CORRECT ANSWER ✔✔- insuring agreement
The purpose of the conditions section of an insurance policy is to list the ____ of
the insured and the insurance company. - CORRECT ANSWER ✔✔- obligations
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,The list of perils covered under a policy is found in which part of the policy? -
CORRECT ANSWER ✔✔- Insuring agreement
The Declarations page consists of 5 P's. Person or property, policy number, policy
term, policy limit and ____. - CORRECT ANSWER ✔✔- premium
The Insuring agreement describes coverage provided and which ____ are covered.
- CORRECT ANSWER ✔✔- perils
Lost rent is covered by _____. Limited by 20% of coverage A. - CORRECT
ANSWER ✔✔- Coverage D
Under which of the dwelling forms may the insured be reimbursed for the
replacement cost of a dwelling when it is destroyed? - CORRECT ANSWER ✔✔-
DP-2 and DP-3
The insured has a DP-3 covering a home that has a replacement value of $100,000.
The insured carries $60,000 of insurance. Following a loss, it is determined that it
would cost $12,000 to replace the damaged portion of the home. How much could
the insured collect, assuming the ACV of the loss is $6,000? - CORRECT
ANSWER ✔✔- $9000
Damage to covered property caused by glass breakage is covered in ___. -
CORRECT ANSWER ✔✔- DP2 and DP3
Which dwelling forms pay losses to dwellings and other structures on an actual
cash value basis? - CORRECT ANSWER ✔✔- DP1
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,Which dwelling forms pay losses to personal property on an actual cash value
basis? - CORRECT ANSWER ✔✔- DP1, DP2 and DP3
Would an earthquake that causes a fire that destroys an insured's home be covered
by a DP1? - CORRECT ANSWER ✔✔- yes
A dwelling policy with no endorsements attached contains personal property
coverage, dwelling coverage and _____. - CORRECT ANSWER ✔✔- medical
payments coverage
An unendorsed dwelling policy contains the dwelling, other structures, personal
property, and _____. - CORRECT ANSWER ✔✔- fair rental value
Other coverage included in all dwelling forms are fire department service charges,
debris removal, reasonable repairs, and _____ limited to 10% of coverage C. -
CORRECT ANSWER ✔✔- glass safety material
Does the DP1 provides coverage for appurtenant structures? - CORRECT
ANSWER ✔✔- yes
_____ coverage must be added to a dwelling policy by endorsement. - CORRECT
ANSWER ✔✔- Theft and liability
An insured has a $60,000 special form (DP-3). When a covered loss in the amount
of $10,000 damages the attached garage, how much of that amount is paid under
the Coverage B-Other Structures? - CORRECT ANSWER ✔✔- $0
3|Page
, Of the dwelling forms, which one of the following provides the broadest coverage?
- CORRECT ANSWER ✔✔- special
The special form (DP-3) covers the dwelling and other structures for ____. -
CORRECT ANSWER ✔✔- open perils
In the dwelling forms, damage from vandalism is not covered if the building has
been vacant for more than ____. - CORRECT ANSWER ✔✔- 60 days
A property owner wants to insure both the rental property and any of the tenant's
belongings if they are stolen. Which policy would you recommend and why? -
CORRECT ANSWER ✔✔- DP-3 special form and a separate tenant's policy to
cover personal property.
The dwelling policy will provide how much additional coverage for a fire
department service charge? - CORRECT ANSWER ✔✔- $500
An insured suffers a covered loss to some rental property that forces the tenant to
move to another location. Under which section of the dwelling policy would the
insured receive payment during the time the property is being repaired? -
CORRECT ANSWER ✔✔- Coverage D--Fair Rental Value
How does the dwelling policy provide theft coverage, dwelling under construction
coverage or coverage for automatic increases in insurance? - CORRECT
ANSWER ✔✔- by endorsement
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to
the house, the property includes a detached garage, storage shed, and an artist's
studio. During a thunderstorm, the garage and storage shed are damaged by
4|Page
INSURANCE EXAM WITH 480+ REAL QUESTIONS
AND VERIFIED CORRECT ANSWERS ALREADY
GRADED A+ |GUARANTEED SUCCESS
Which part of an insurance policy describes the responsibilities and obligations of
both the insurance company and the insured under the policy? - CORRECT
ANSWER ✔✔- Conditions
The limits of liability are found in which of the following sections of a casualty
policy? - CORRECT ANSWER ✔✔- Declarations
The _____ page in an insurance contract contains information about the risk, the
effective date of coverage, deductible, premium amounts, coinsurance percentage,
and location of the insured property. - CORRECT ANSWER ✔✔- Declarations
The insured is looking for the amount of coverage in a property and casualty
policy. This information would be found in the ______. - CORRECT ANSWER
✔✔- declarations
The coverages offered by an insurance policy are described in the ____. -
CORRECT ANSWER ✔✔- insuring agreement
The purpose of the conditions section of an insurance policy is to list the ____ of
the insured and the insurance company. - CORRECT ANSWER ✔✔- obligations
1|Page
,The list of perils covered under a policy is found in which part of the policy? -
CORRECT ANSWER ✔✔- Insuring agreement
The Declarations page consists of 5 P's. Person or property, policy number, policy
term, policy limit and ____. - CORRECT ANSWER ✔✔- premium
The Insuring agreement describes coverage provided and which ____ are covered.
- CORRECT ANSWER ✔✔- perils
Lost rent is covered by _____. Limited by 20% of coverage A. - CORRECT
ANSWER ✔✔- Coverage D
Under which of the dwelling forms may the insured be reimbursed for the
replacement cost of a dwelling when it is destroyed? - CORRECT ANSWER ✔✔-
DP-2 and DP-3
The insured has a DP-3 covering a home that has a replacement value of $100,000.
The insured carries $60,000 of insurance. Following a loss, it is determined that it
would cost $12,000 to replace the damaged portion of the home. How much could
the insured collect, assuming the ACV of the loss is $6,000? - CORRECT
ANSWER ✔✔- $9000
Damage to covered property caused by glass breakage is covered in ___. -
CORRECT ANSWER ✔✔- DP2 and DP3
Which dwelling forms pay losses to dwellings and other structures on an actual
cash value basis? - CORRECT ANSWER ✔✔- DP1
2|Page
,Which dwelling forms pay losses to personal property on an actual cash value
basis? - CORRECT ANSWER ✔✔- DP1, DP2 and DP3
Would an earthquake that causes a fire that destroys an insured's home be covered
by a DP1? - CORRECT ANSWER ✔✔- yes
A dwelling policy with no endorsements attached contains personal property
coverage, dwelling coverage and _____. - CORRECT ANSWER ✔✔- medical
payments coverage
An unendorsed dwelling policy contains the dwelling, other structures, personal
property, and _____. - CORRECT ANSWER ✔✔- fair rental value
Other coverage included in all dwelling forms are fire department service charges,
debris removal, reasonable repairs, and _____ limited to 10% of coverage C. -
CORRECT ANSWER ✔✔- glass safety material
Does the DP1 provides coverage for appurtenant structures? - CORRECT
ANSWER ✔✔- yes
_____ coverage must be added to a dwelling policy by endorsement. - CORRECT
ANSWER ✔✔- Theft and liability
An insured has a $60,000 special form (DP-3). When a covered loss in the amount
of $10,000 damages the attached garage, how much of that amount is paid under
the Coverage B-Other Structures? - CORRECT ANSWER ✔✔- $0
3|Page
, Of the dwelling forms, which one of the following provides the broadest coverage?
- CORRECT ANSWER ✔✔- special
The special form (DP-3) covers the dwelling and other structures for ____. -
CORRECT ANSWER ✔✔- open perils
In the dwelling forms, damage from vandalism is not covered if the building has
been vacant for more than ____. - CORRECT ANSWER ✔✔- 60 days
A property owner wants to insure both the rental property and any of the tenant's
belongings if they are stolen. Which policy would you recommend and why? -
CORRECT ANSWER ✔✔- DP-3 special form and a separate tenant's policy to
cover personal property.
The dwelling policy will provide how much additional coverage for a fire
department service charge? - CORRECT ANSWER ✔✔- $500
An insured suffers a covered loss to some rental property that forces the tenant to
move to another location. Under which section of the dwelling policy would the
insured receive payment during the time the property is being repaired? -
CORRECT ANSWER ✔✔- Coverage D--Fair Rental Value
How does the dwelling policy provide theft coverage, dwelling under construction
coverage or coverage for automatic increases in insurance? - CORRECT
ANSWER ✔✔- by endorsement
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to
the house, the property includes a detached garage, storage shed, and an artist's
studio. During a thunderstorm, the garage and storage shed are damaged by
4|Page
