Texas Statutes and Rules Pertinent to Property
& Casualty Insurance Exam Questions With
Correct Answers
Property Insurance - CORRECT ANSWER✔✔-Usually covers a building, the
| | | | | | | | |
contents of a building or both
| | | | |
Casualty or Liability Insurance - CORRECT ANSWER✔✔-Provides compensation or
| | | | | | | | |
indemnity for harm or wrong done to others that the insured is legally obligated
| | | | | | | | | | | | | |
to pay.
|
Texas P&C Definition - CORRECT ANSWER✔✔-It is lawful for any insurance
| | | | | | | | | | |
company doing business in Texas under the proper certificate of authority, except
| | | | | | | | | | | |
life insurance companies, to insure houses, buildings and all other kinds of
| | | | | | | | | | | |
property against loss or damage by fire: to take all kinds of insurance on goods,
| | | | | | | | | | | | | | |
merchandise, or other property in the course of transportation, whether on land
| | | | | | | | | | | |
or water, or any vessel afloat, wherever the same may be; to lend money on
| | | | | | | | | | | | | | |
bottomry or respondentia; to cause itself to be insured against any loss or risk it
| | | | | | | | | | | | | | |
may have incurred in the course of its business.
| | | | | | | |
Approval of Rates and Forms - CORRECT ANSWER✔✔-All policy forms,
| | | | | | | | | |
endorsements and rates must be approved by the Commissioner and filed no
| | | | | | | | | | | |
more than 60 days before the date of delivery or use. After these 60 days, the
| | | | | | | | | | | | | | | |
filed form or endorsement is considered approved, unless otherwise disapproved
| | | | | | | | | |
by the Commissioner.
| |
, Cancellation of Homeowner's Insurance in effect over 60 Days - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Failure of the Insured to pay the premium, increase in the hazard | | | | | | | | | | | |
that is in control of the insured and would cause a premium increase on the
| | | | | | | | | | | | | | |
policy, Insured submits a fraudulent claim and/or the Department discovers the
| | | | | | | | | | |
continuation of this policy would violate the Insurance Code or any other law
| | | | | | | | | | | | |
governing the business of insurance in this state
| | | | | | |
Written Notice - CORRECT ANSWER✔✔-Insurer may cancel a policy my mail to
| | | | | | | | | | | |
the Insured at least 10 days before the effective date of cancellation
| | | | | | | | | | |
2 or more Claims - CORRECT ANSWER✔✔-An Insurer issuing standard fire,
| | | | | | | | | | |
homeowners, and farm or ranchowners insurance policies may assess a premium
| | | | | | | | | | |
surcharge at the time a policy is renewing if this amount of claims happened in
| | | | | | | | | | | | | | |
the preceding policy year. Not losses from natural causes or that were filed and
| | | | | | | | | | | | | |
not paid by the Insurer
| | | |
Additional Premium Surchage - CORRECT ANSWER✔✔-If there is another claim
| | | | | | | | | |
made following the year of the 2 claims. The board will set the amount of any
| | | | | | | | | | | | | | | |
surcharge except that it cannot exceed 10% of the total premium
| | | | | | | | | |
3 or more Claims - CORRECT ANSWER✔✔-Insurer can decline to renew policy if
| | | | | | | | | | | | |
the insured has filed this many claims in the last 3 year period
| | | | | | | | | | | |
Liquidated Demand - CORRECT ANSWER✔✔-In case of total loss of insured
| | | | | | | | | | |
property by fire, a fire insurance policy must be held and considered to be a
| | | | | | | | | | | | | | |
____________________ ____________________ against the company for the full | | | | | | |
amount of the policy. This regulation does not apply to personal property.
| | | | | | | | | | | | |
& Casualty Insurance Exam Questions With
Correct Answers
Property Insurance - CORRECT ANSWER✔✔-Usually covers a building, the
| | | | | | | | |
contents of a building or both
| | | | |
Casualty or Liability Insurance - CORRECT ANSWER✔✔-Provides compensation or
| | | | | | | | |
indemnity for harm or wrong done to others that the insured is legally obligated
| | | | | | | | | | | | | |
to pay.
|
Texas P&C Definition - CORRECT ANSWER✔✔-It is lawful for any insurance
| | | | | | | | | | |
company doing business in Texas under the proper certificate of authority, except
| | | | | | | | | | | |
life insurance companies, to insure houses, buildings and all other kinds of
| | | | | | | | | | | |
property against loss or damage by fire: to take all kinds of insurance on goods,
| | | | | | | | | | | | | | |
merchandise, or other property in the course of transportation, whether on land
| | | | | | | | | | | |
or water, or any vessel afloat, wherever the same may be; to lend money on
| | | | | | | | | | | | | | |
bottomry or respondentia; to cause itself to be insured against any loss or risk it
| | | | | | | | | | | | | | |
may have incurred in the course of its business.
| | | | | | | |
Approval of Rates and Forms - CORRECT ANSWER✔✔-All policy forms,
| | | | | | | | | |
endorsements and rates must be approved by the Commissioner and filed no
| | | | | | | | | | | |
more than 60 days before the date of delivery or use. After these 60 days, the
| | | | | | | | | | | | | | | |
filed form or endorsement is considered approved, unless otherwise disapproved
| | | | | | | | | |
by the Commissioner.
| |
, Cancellation of Homeowner's Insurance in effect over 60 Days - CORRECT
| | | | | | | | | | |
ANSWER✔✔-Failure of the Insured to pay the premium, increase in the hazard | | | | | | | | | | | |
that is in control of the insured and would cause a premium increase on the
| | | | | | | | | | | | | | |
policy, Insured submits a fraudulent claim and/or the Department discovers the
| | | | | | | | | | |
continuation of this policy would violate the Insurance Code or any other law
| | | | | | | | | | | | |
governing the business of insurance in this state
| | | | | | |
Written Notice - CORRECT ANSWER✔✔-Insurer may cancel a policy my mail to
| | | | | | | | | | | |
the Insured at least 10 days before the effective date of cancellation
| | | | | | | | | | |
2 or more Claims - CORRECT ANSWER✔✔-An Insurer issuing standard fire,
| | | | | | | | | | |
homeowners, and farm or ranchowners insurance policies may assess a premium
| | | | | | | | | | |
surcharge at the time a policy is renewing if this amount of claims happened in
| | | | | | | | | | | | | | |
the preceding policy year. Not losses from natural causes or that were filed and
| | | | | | | | | | | | | |
not paid by the Insurer
| | | |
Additional Premium Surchage - CORRECT ANSWER✔✔-If there is another claim
| | | | | | | | | |
made following the year of the 2 claims. The board will set the amount of any
| | | | | | | | | | | | | | | |
surcharge except that it cannot exceed 10% of the total premium
| | | | | | | | | |
3 or more Claims - CORRECT ANSWER✔✔-Insurer can decline to renew policy if
| | | | | | | | | | | | |
the insured has filed this many claims in the last 3 year period
| | | | | | | | | | | |
Liquidated Demand - CORRECT ANSWER✔✔-In case of total loss of insured
| | | | | | | | | | |
property by fire, a fire insurance policy must be held and considered to be a
| | | | | | | | | | | | | | |
____________________ ____________________ against the company for the full | | | | | | |
amount of the policy. This regulation does not apply to personal property.
| | | | | | | | | | | | |
