Texas Property & Casualty Guaranteed Exam FX with verified detailed solutions

Texas Property & Casualty Guaranteed Exam FX with verified
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detailed solutions ||




Restoring an insured financially after a claim is known as - ✔✔indemnity
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Prior to paying a claimant under a professional liability policy, the
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insurer must - ✔✔Obtain the consent of the insured.
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The purpose of purchasing an umbrella liability policy is to provide - ✔✔Excess insurance
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over the primary liability policy.
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Which of the following terms means termination of an insurance
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policy at its expiration date by not offering a policy continuation or
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replacement?



A

|| Cessation

B

|| Cancellation

C

|| Nonrenewal

D

|| Suspension - ✔✔Nonrenewal || ||




To determine the actual cash value of an insured property, what
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,must be deducted from the current replacement cost? - ✔✔Depreciated value
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All of the following are factors in the determination of actual cash
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value EXCEPT ||




A . Insurance premium paid
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B Age of property.
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C Replacement cost.
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D. Property type. - ✔✔Insurance premium paid
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Which type of damages is intended as a form of punishment for
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negligent, willful, or outrageous intent? - ✔✔Punitive
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Which method of dealing with risk is applied when insurance is
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purchased? - ✔✔to transfer || || ||




What amount of coverage is provided on HO policies for watercraft? - ✔✔Up to $1,500
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Which of the following components is NOT part of a policy
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structure?

A. Benefits
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B. Declarations
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C. Additional coverage
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D. Definitions - ✔✔Benefits
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Which of the following stipulates the procedure that insureds and
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, insurers can use when they cannot agree on the value of a loss? - ✔✔Appraisal clause
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Which of the following is the cause of loss? - ✔✔peril
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If the premiums collected by an insurer participating in the WYO flood program are
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insufficient to cover losses, which of the following would be true? || || || || || || || || || ||




A. Federal Insurance Administration will remove the insurer
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from the NFIP. || ||




B. The insurer will be reimbursed for the excess costs by the
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NEIP

C. The insurer must cover the loss out of its surplus.
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D. The insurer must apply for disaster relief funds. - ✔✔The insurer will be reimbursed for
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the excess costs by the NFIP.
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Under an HO-2 policy, the insurer will pay no more than the actual
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cash value of the property damage until - ✔✔The property repair or replacement is
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complete.



A personal umbrella policy may act as excess over any of the
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following insurance coverage policies EXCEPT || || || ||




A. Homeowners Section Il coverage.
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B. Auto liability coverage.
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C. Comprehensive personal liability.
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D. Auto collision coverage - ✔✔Auto collision coverage
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When an insured and her insurer could not agree on the amount
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of liability loss after her accident, the settlement was submitted to
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