Property & Casualty Final Exam with precise detailed answers || || || || || || || ||
Which of the following licensees works for a person who is licensed as a property and
|| || || || || || || || || || || || || || || ||
casualty agent and explains coverage, describes insurance products and quotes premium
|| || || || || || || || || || ||
rates? - ✔✔Insurance service representative
|| || || ||
Steven was having lunch with a group of agents when he made some false statements about
|| || || || || || || || || || || || || || || ||
a competitor's financial condition in order to hurt their reputation. In this case, Steven has
|| || || || || || || || || || || || || || ||
committed which of the following acts? - ✔✔Defamation || || || || || || ||
Which of the following protects policyholders and claimants of impaired or insolvent
|| || || || || || || || || || || ||
insurers that cannot pay their claims or benefits? - ✔✔Texas Property and Casualty
|| || || || || || || || || || || || ||
Insurance Guaranty Association || ||
Janet has been continuously licensed as an agent in Texas for the past 25 years. Her friend
|| || || || || || || || || || || || || || || || ||
Steven is a nonresident licensee in Texas and every year completes his state's continuing
|| || || || || || || || || || || || || ||
education requirements. When they ask you for advice on meeting the Texas continuing
|| || || || || || || || || || || || ||
education requirements, you inform them that: - ✔✔Neither Steve nor Janet needs to
|| || || || || || || || || || || || ||
comply with Texas's continuing education requirements
|| || || || ||
Which of the following statements BEST describes the transfer of risk via an insurance
|| || || || || || || || || || || || || ||
contract? - ✔✔Not all risks are transferable via insurance contracts
|| || || || || || || || ||
Angela cannot obtain a homeowners insurance policy from a licensed insurance company
|| || || || || || || || || || || ||
in Texas. From which entity will she likely be able to obtain coverage? - ✔✔Fair Housing
|| || || || || || || || || || || || || || || ||
Plan
Kent stated on his application for property insurance that the roof of the building being
|| || || || || || || || || || || || || || ||
insured had been recently replaced. In fact, the replacement occurred 12 years ago. Kent
|| || || || || || || || || || || || || ||
made a false statement of a material fact, which is also known as a - ✔✔Misrepresentation
|| || || || || || || || || || || || || || ||
,The Texas Department of Insurance receives a written complaint about an insurer that
|| || || || || || || || || || || || ||
prompts an investigation. The Department uncovers evidence of an elaborate money-
|| || || || || || || || || ||
laundering operation and determines that an undercover investigation is necessary to obtain
|| || || || || || || || || || ||
enough evidence to pursue a conviction of the company's officers. Which of the following
|| || || || || || || || || || || || || || ||
statements is true? - ✔✔TDI can withhold any notices to the complaining party until the
|| || || || || || || || || || || || || || ||
investigation is completed || ||
Alex asks your advice seeking objective information about the financial reliability of an
|| || || || || || || || || || || || ||
insurance company from which he is considering the purchase of insurance. You might
|| || || || || || || || || || || || ||
suggest that he - ✔✔Check the company's financial rating from an established rating
|| || || || || || || || || || || || ||
organization
Many large organizations self-insure up to a specific limit but buy insurance to cover losses
|| || || || || || || || || || || || || || ||
beyond that limit. Setting up a self-insurance program is an example of which method of
|| || || || || || || || || || || || || || ||
handling risk? - ✔✔Risk retention || || || ||
Esther has just bought an expensive painting as an addition to her art
|| || || || || || || || || || || || ||
collection.Considering the high price she paid for it, she wants to be sure there will be no || || || || || || || || || || || || || || || || ||
dispute with the insurer in the event it is damaged or stolen. What type of policy would you
|| || || || || || || || || || || || || || || || || ||
recommend Esther purchase? - ✔✔Valued policy || || || || ||
Main Street Corp. owns a shopping center. It buys liability and property insurance to cover
|| || || || || || || || || || || || || || ||
losses stemming from its business. It also requires tenants of the shopping center to hold
|| || || || || || || || || || || || || || ||
Main Street harmless from injuries sustained on tenant property. This is an example of
|| || || || || || || || || || || || || ||
which method of handling risk? - ✔✔Risk transfer
|| || || || || || ||
Which of the following is NOT an unfair claims settlement practice if committed by an
|| || || || || || || || || || || || || || ||
insurance company in Texas? - ✔✔Failing to promptly settle a claim for which liability is
|| || || || || || || || || || || || || || ||
uncertain
, Flo is an insurance agent who suspects her client isn't eligible for insurance with her
|| || || || || || || || || || || || || || ||
standard insurers because the client has an unusual exposure. Flo knows that insurers like
|| || || || || || || || || || || || || ||
to have a sizeable pool of exposure units before issuing insurance because it enables them to
|| || || || || || || || || || || || || || ||
more accurately predict losses. What mathematical principle is Flo thinking about? -
|| || || || || || || || || || || || ||
✔✔Law of large numbers || || ||
Which of the following licensees writes property and casualty insurance that is used
|| || || || || || || || || || || || ||
primarily for personal or household purposes by individuals? - ✔✔Personal lines agent
|| || || || || || || || || || ||
A party to a contract may not enforce a right it has voluntarily waived by its past conduct.
|| || || || || || || || || || || || || || || || || ||
This is known as - ✔✔estoppel
|| || || || ||
Which of the following is NOT a requirement to obtain an agent's license? - ✔✔Being
|| || || || || || || || || || || || || || ||
appointed by at least two insurers || || || || ||
Mary Beth is employed by the JKL Insurance Company to market its insurance policies. She
|| || || || || || || || || || || || || ||
is employed by what type of marketing system or arrangement? - ✔✔Direct marketing
|| || || || || || || || || || || || || ||
system
Geraldo had been working at his own property and casualty agency when he died suddenly
|| || || || || || || || || || || || || || ||
from a massive heart attack. The Department of Insurance issued an emergency property
|| || || || || || || || || || || || ||
and casualty agent license to his surviving spouse to wrap up the agency's business. How
|| || || || || || || || || || || || || || ||
long will the license be valid? - ✔✔90 days
|| || || || || || || ||
Tom, Henry, Stacey, and Allison are licensed agents in Texas. Given the following
|| || || || || || || || || || || || ||
circumstances, which of them will NOT be subject to disciplinary action by the Texas || || || || || || || || || || || || || ||
Department of Insurance? - ✔✔Allison, who was convicted of a misdemeanor traffic || || || || || || || || || || || ||
violation
How many days' notice must an insurance company give to a policyholder before it will not
|| || || || || || || || || || || || || || || ||
renew a liability insurance policy? - ✔✔60 || || || || || ||
Which of the following licensees works for a person who is licensed as a property and
|| || || || || || || || || || || || || || || ||
casualty agent and explains coverage, describes insurance products and quotes premium
|| || || || || || || || || || ||
rates? - ✔✔Insurance service representative
|| || || ||
Steven was having lunch with a group of agents when he made some false statements about
|| || || || || || || || || || || || || || || ||
a competitor's financial condition in order to hurt their reputation. In this case, Steven has
|| || || || || || || || || || || || || || ||
committed which of the following acts? - ✔✔Defamation || || || || || || ||
Which of the following protects policyholders and claimants of impaired or insolvent
|| || || || || || || || || || || ||
insurers that cannot pay their claims or benefits? - ✔✔Texas Property and Casualty
|| || || || || || || || || || || || ||
Insurance Guaranty Association || ||
Janet has been continuously licensed as an agent in Texas for the past 25 years. Her friend
|| || || || || || || || || || || || || || || || ||
Steven is a nonresident licensee in Texas and every year completes his state's continuing
|| || || || || || || || || || || || || ||
education requirements. When they ask you for advice on meeting the Texas continuing
|| || || || || || || || || || || || ||
education requirements, you inform them that: - ✔✔Neither Steve nor Janet needs to
|| || || || || || || || || || || || ||
comply with Texas's continuing education requirements
|| || || || ||
Which of the following statements BEST describes the transfer of risk via an insurance
|| || || || || || || || || || || || || ||
contract? - ✔✔Not all risks are transferable via insurance contracts
|| || || || || || || || ||
Angela cannot obtain a homeowners insurance policy from a licensed insurance company
|| || || || || || || || || || || ||
in Texas. From which entity will she likely be able to obtain coverage? - ✔✔Fair Housing
|| || || || || || || || || || || || || || || ||
Plan
Kent stated on his application for property insurance that the roof of the building being
|| || || || || || || || || || || || || || ||
insured had been recently replaced. In fact, the replacement occurred 12 years ago. Kent
|| || || || || || || || || || || || || ||
made a false statement of a material fact, which is also known as a - ✔✔Misrepresentation
|| || || || || || || || || || || || || || ||
,The Texas Department of Insurance receives a written complaint about an insurer that
|| || || || || || || || || || || || ||
prompts an investigation. The Department uncovers evidence of an elaborate money-
|| || || || || || || || || ||
laundering operation and determines that an undercover investigation is necessary to obtain
|| || || || || || || || || || ||
enough evidence to pursue a conviction of the company's officers. Which of the following
|| || || || || || || || || || || || || || ||
statements is true? - ✔✔TDI can withhold any notices to the complaining party until the
|| || || || || || || || || || || || || || ||
investigation is completed || ||
Alex asks your advice seeking objective information about the financial reliability of an
|| || || || || || || || || || || || ||
insurance company from which he is considering the purchase of insurance. You might
|| || || || || || || || || || || || ||
suggest that he - ✔✔Check the company's financial rating from an established rating
|| || || || || || || || || || || || ||
organization
Many large organizations self-insure up to a specific limit but buy insurance to cover losses
|| || || || || || || || || || || || || || ||
beyond that limit. Setting up a self-insurance program is an example of which method of
|| || || || || || || || || || || || || || ||
handling risk? - ✔✔Risk retention || || || ||
Esther has just bought an expensive painting as an addition to her art
|| || || || || || || || || || || || ||
collection.Considering the high price she paid for it, she wants to be sure there will be no || || || || || || || || || || || || || || || || ||
dispute with the insurer in the event it is damaged or stolen. What type of policy would you
|| || || || || || || || || || || || || || || || || ||
recommend Esther purchase? - ✔✔Valued policy || || || || ||
Main Street Corp. owns a shopping center. It buys liability and property insurance to cover
|| || || || || || || || || || || || || || ||
losses stemming from its business. It also requires tenants of the shopping center to hold
|| || || || || || || || || || || || || || ||
Main Street harmless from injuries sustained on tenant property. This is an example of
|| || || || || || || || || || || || || ||
which method of handling risk? - ✔✔Risk transfer
|| || || || || || ||
Which of the following is NOT an unfair claims settlement practice if committed by an
|| || || || || || || || || || || || || || ||
insurance company in Texas? - ✔✔Failing to promptly settle a claim for which liability is
|| || || || || || || || || || || || || || ||
uncertain
, Flo is an insurance agent who suspects her client isn't eligible for insurance with her
|| || || || || || || || || || || || || || ||
standard insurers because the client has an unusual exposure. Flo knows that insurers like
|| || || || || || || || || || || || || ||
to have a sizeable pool of exposure units before issuing insurance because it enables them to
|| || || || || || || || || || || || || || ||
more accurately predict losses. What mathematical principle is Flo thinking about? -
|| || || || || || || || || || || || ||
✔✔Law of large numbers || || ||
Which of the following licensees writes property and casualty insurance that is used
|| || || || || || || || || || || || ||
primarily for personal or household purposes by individuals? - ✔✔Personal lines agent
|| || || || || || || || || || ||
A party to a contract may not enforce a right it has voluntarily waived by its past conduct.
|| || || || || || || || || || || || || || || || || ||
This is known as - ✔✔estoppel
|| || || || ||
Which of the following is NOT a requirement to obtain an agent's license? - ✔✔Being
|| || || || || || || || || || || || || || ||
appointed by at least two insurers || || || || ||
Mary Beth is employed by the JKL Insurance Company to market its insurance policies. She
|| || || || || || || || || || || || || ||
is employed by what type of marketing system or arrangement? - ✔✔Direct marketing
|| || || || || || || || || || || || || ||
system
Geraldo had been working at his own property and casualty agency when he died suddenly
|| || || || || || || || || || || || || || ||
from a massive heart attack. The Department of Insurance issued an emergency property
|| || || || || || || || || || || || ||
and casualty agent license to his surviving spouse to wrap up the agency's business. How
|| || || || || || || || || || || || || || ||
long will the license be valid? - ✔✔90 days
|| || || || || || || ||
Tom, Henry, Stacey, and Allison are licensed agents in Texas. Given the following
|| || || || || || || || || || || || ||
circumstances, which of them will NOT be subject to disciplinary action by the Texas || || || || || || || || || || || || || ||
Department of Insurance? - ✔✔Allison, who was convicted of a misdemeanor traffic || || || || || || || || || || || ||
violation
How many days' notice must an insurance company give to a policyholder before it will not
|| || || || || || || || || || || || || || || ||
renew a liability insurance policy? - ✔✔60 || || || || || ||
