TEXAS PROPERTY AND CASUALTY PRACTICE
EXAM COMPLETE 40 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
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? -
CORRECT 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 - CORRECT 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 - CORRECT ANSWER ✔✔- Equipment
dealers coverage form
1
, 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 - CORRECT 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? -
CORRECT ANSWER ✔✔- counteroffer
To purchase insurance, the policyowner must have financial interest in the property
being insured. This is known as - CORRECT 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.
2
EXAM COMPLETE 40 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND
NEW VERSION!!
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? -
CORRECT 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 - CORRECT 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 - CORRECT ANSWER ✔✔- Equipment
dealers coverage form
1
, 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 - CORRECT 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? -
CORRECT ANSWER ✔✔- counteroffer
To purchase insurance, the policyowner must have financial interest in the property
being insured. This is known as - CORRECT 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.
2
