Texas Property and Casualty
practice exam Comprehensive
Questions with Verified
Answers Graded A+
Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy.
However, with the purchase of the water backup and sump pump overflow endorsement,
coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is
the deductible associated with this coverage? - Answer: $250
Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for
an additional premium with this endorsement.
An insured relocated to another state for work. However, she still owns and insures a house in
this state, but has had no one living in it for 3 months. She is also storing some furniture and
clothes in the house. From an insurance standpoint, the insured's house is considered - Answer:
Unoccupied
Unoccupancy refers to an insured structure in which no people have been living or working
within the required period of time, but the structure contains contents.
Individuals in the business of selling construction equipment and mobile equipment should
insure with a/an - Answer: Equipment dealers coverage form
, An equipment dealer's coverage form covers a dealer's stock in trade consisting primarily of
mobile agricultural equipment and construction equipment. It also covers property of others in
the dealer's care, custody, or control. It excludes coverage for autos, motorcycles, aircraft, and
watercraft.
All of the following are true regarding deposit premium - Answer: It must be paid in advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time the policy is issued that
may be adjusted by the audit based on actual exposures.
Which of the following is NOT an essential element of an insurance contract? - Answer:
counteroffer
To purchase insurance, the policyowner must have financial interest in the property being
insured. This is known as - Answer: Insurable Interest
The insured must have an insurable interest in the person or property covered by an insurance
policy. In property insurance, this means the insured would incur a financial loss if the insured
property was damaged.
practice exam Comprehensive
Questions with Verified
Answers Graded A+
Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy.
However, with the purchase of the water backup and sump pump overflow endorsement,
coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is
the deductible associated with this coverage? - Answer: $250
Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for
an additional premium with this endorsement.
An insured relocated to another state for work. However, she still owns and insures a house in
this state, but has had no one living in it for 3 months. She is also storing some furniture and
clothes in the house. From an insurance standpoint, the insured's house is considered - Answer:
Unoccupied
Unoccupancy refers to an insured structure in which no people have been living or working
within the required period of time, but the structure contains contents.
Individuals in the business of selling construction equipment and mobile equipment should
insure with a/an - Answer: Equipment dealers coverage form
, An equipment dealer's coverage form covers a dealer's stock in trade consisting primarily of
mobile agricultural equipment and construction equipment. It also covers property of others in
the dealer's care, custody, or control. It excludes coverage for autos, motorcycles, aircraft, and
watercraft.
All of the following are true regarding deposit premium - Answer: It must be paid in advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time the policy is issued that
may be adjusted by the audit based on actual exposures.
Which of the following is NOT an essential element of an insurance contract? - Answer:
counteroffer
To purchase insurance, the policyowner must have financial interest in the property being
insured. This is known as - Answer: Insurable Interest
The insured must have an insurable interest in the person or property covered by an insurance
policy. In property insurance, this means the insured would incur a financial loss if the insured
property was damaged.
