Texas Property and Casualty (2026) comprehensive
questions and verified detailed solutions
all |of |the |following |are |basic |parts |of |an |insurance |contract |EXCEPT
a) |declarations |
b) |conditions |
c) |exclusions
d) |binders |- |CORRECT |ANSWER✔✔-Binders
which |of |the |following |terms |is |used |to |describe |an |empty |building |that |is |not |being |used? |- |
CORRECT |ANSWER✔✔-Vacant
An |insurance |company |takes |possession |of |a |damaged |auto |it |has |covered. |when |the |company
|becomes |the |legal |owner |of |the |auto, |it |is |exercising |the |right |of? |- |CORRECT |ANSWER✔✔-
Salvage
all |of |the |following |are |property |coverage |forms |EXCEPT?
a) |special
b)basic
c)broad
d)base |- |CORRECT |ANSWER✔✔-base
which |of |the |following |legal |principles |allows |insurance |companies |to |collect |from |a |negligent |
third |party |damages |it |paid |to |an |insured? |- |CORRECT |ANSWER✔✔-Subrogation
,transferring |is |a |method |of |handling |risk. |which |of |the |following |best |describes |the |concept |of
|transfer? |- |CORRECT |ANSWER✔✔-purchasing |insurance
the |insured |has |a |named |peril |policy |that |covers |hail, |fire, |wind, |and |lightning. |which |one |of |
the |following |events |would |be |covered? |- |CORRECT |ANSWER✔✔-A |roof |that |is |damaged |in |an
|electrical |storm
(TRIPRA) |the |federal |govt's |share |of |compensation |that |exceeds |the |insurer's |TRIPRA |
deductible |is |- |CORRECT |ANSWER✔✔-80%
why |do |ins. |policies |usually |define |who |is |considered |an |insured |under |the |policy? |- |CORRECT |
ANSWER✔✔-to |specify |who |is |covered |in |addition |to |the |named |insured
the |federal |govt. |is |not |obligated |under |the |TRIA |to |make |payments |for |any |portion |of |losses |
that |exceed |how |much |annually? |- |CORRECT |ANSWER✔✔-$100 |BILLION
in |the |insurance |business, |the |insurance |comp. |is |also |known |as |the? |- |CORRECT |ANSWER✔✔-
principle
an |insurance |company |that |sells |insurance |only |to |people |who |meet |specific |membership |
requirements |is |known |as |what |kind |of |ins. |comp? |- |CORRECT |ANSWER✔✔-Fraternal
what |is |the |actual |cause |of |a |loss? |- |CORRECT |ANSWER✔✔-peril
the |purpose |of |insurance |is |to |- |CORRECT |ANSWER✔✔-Transfer |risk
a |warranty |is |a |statement |made |by |the |applicant |regarding |the |risk |to |be |insured. |which |of |
the |following |statements |is |NOT |true |about |warranties? |- |CORRECT |ANSWER✔✔-A |warranty |
must |be |refer |to |a |material |fact
, all |of |the |following |are |basic |ways |in |which |underwriters |assign |rates |EXCEPT?
a) |manual |(class) |rating
b) |judgement |rating
c) |application |rating |
d) |experience |(merit) |rating |- |CORRECT |ANSWER✔✔-c) |application |rating
Bob |has |a |liability |policy |in |the |amount |of |300/500/100 |how |much |coverage |does |he |have |per
|occurrence |for |property |damage |liability? |- |CORRECT |ANSWER✔✔-100,000
an |insurance |binder |is |best |described |as |- |CORRECT |ANSWER✔✔-temporary, |short-term |
evidence |of |coverage.
an |insured |owns |a |pet |lion |that |is |caged |on |the |homeowner's |property. |the |owner |takes |great |
care |to |warn |neighbors |of |the |possible |danger |by |posting |signs, |fencing |the |yard, |and |locking |
the |cage |at |all |times. |when |a |neighbor's |child |manages |to |open |the |cage |and |is |bitten, |what |
type |of |liability |would |apply |to |the |lion |owner? |- |CORRECT |ANSWER✔✔-Absolute |liability
which |of |the |following |risks |are |insurable?
a) |pure
b) |whole
c)partial
d) |speculative |- |CORRECT |ANSWER✔✔-a) |pure
methods |of |handling |risk |- |CORRECT |ANSWER✔✔-STARR |
Sharing
Transfer
Avoidance
questions and verified detailed solutions
all |of |the |following |are |basic |parts |of |an |insurance |contract |EXCEPT
a) |declarations |
b) |conditions |
c) |exclusions
d) |binders |- |CORRECT |ANSWER✔✔-Binders
which |of |the |following |terms |is |used |to |describe |an |empty |building |that |is |not |being |used? |- |
CORRECT |ANSWER✔✔-Vacant
An |insurance |company |takes |possession |of |a |damaged |auto |it |has |covered. |when |the |company
|becomes |the |legal |owner |of |the |auto, |it |is |exercising |the |right |of? |- |CORRECT |ANSWER✔✔-
Salvage
all |of |the |following |are |property |coverage |forms |EXCEPT?
a) |special
b)basic
c)broad
d)base |- |CORRECT |ANSWER✔✔-base
which |of |the |following |legal |principles |allows |insurance |companies |to |collect |from |a |negligent |
third |party |damages |it |paid |to |an |insured? |- |CORRECT |ANSWER✔✔-Subrogation
,transferring |is |a |method |of |handling |risk. |which |of |the |following |best |describes |the |concept |of
|transfer? |- |CORRECT |ANSWER✔✔-purchasing |insurance
the |insured |has |a |named |peril |policy |that |covers |hail, |fire, |wind, |and |lightning. |which |one |of |
the |following |events |would |be |covered? |- |CORRECT |ANSWER✔✔-A |roof |that |is |damaged |in |an
|electrical |storm
(TRIPRA) |the |federal |govt's |share |of |compensation |that |exceeds |the |insurer's |TRIPRA |
deductible |is |- |CORRECT |ANSWER✔✔-80%
why |do |ins. |policies |usually |define |who |is |considered |an |insured |under |the |policy? |- |CORRECT |
ANSWER✔✔-to |specify |who |is |covered |in |addition |to |the |named |insured
the |federal |govt. |is |not |obligated |under |the |TRIA |to |make |payments |for |any |portion |of |losses |
that |exceed |how |much |annually? |- |CORRECT |ANSWER✔✔-$100 |BILLION
in |the |insurance |business, |the |insurance |comp. |is |also |known |as |the? |- |CORRECT |ANSWER✔✔-
principle
an |insurance |company |that |sells |insurance |only |to |people |who |meet |specific |membership |
requirements |is |known |as |what |kind |of |ins. |comp? |- |CORRECT |ANSWER✔✔-Fraternal
what |is |the |actual |cause |of |a |loss? |- |CORRECT |ANSWER✔✔-peril
the |purpose |of |insurance |is |to |- |CORRECT |ANSWER✔✔-Transfer |risk
a |warranty |is |a |statement |made |by |the |applicant |regarding |the |risk |to |be |insured. |which |of |
the |following |statements |is |NOT |true |about |warranties? |- |CORRECT |ANSWER✔✔-A |warranty |
must |be |refer |to |a |material |fact
, all |of |the |following |are |basic |ways |in |which |underwriters |assign |rates |EXCEPT?
a) |manual |(class) |rating
b) |judgement |rating
c) |application |rating |
d) |experience |(merit) |rating |- |CORRECT |ANSWER✔✔-c) |application |rating
Bob |has |a |liability |policy |in |the |amount |of |300/500/100 |how |much |coverage |does |he |have |per
|occurrence |for |property |damage |liability? |- |CORRECT |ANSWER✔✔-100,000
an |insurance |binder |is |best |described |as |- |CORRECT |ANSWER✔✔-temporary, |short-term |
evidence |of |coverage.
an |insured |owns |a |pet |lion |that |is |caged |on |the |homeowner's |property. |the |owner |takes |great |
care |to |warn |neighbors |of |the |possible |danger |by |posting |signs, |fencing |the |yard, |and |locking |
the |cage |at |all |times. |when |a |neighbor's |child |manages |to |open |the |cage |and |is |bitten, |what |
type |of |liability |would |apply |to |the |lion |owner? |- |CORRECT |ANSWER✔✔-Absolute |liability
which |of |the |following |risks |are |insurable?
a) |pure
b) |whole
c)partial
d) |speculative |- |CORRECT |ANSWER✔✔-a) |pure
methods |of |handling |risk |- |CORRECT |ANSWER✔✔-STARR |
Sharing
Transfer
Avoidance
