TEXAS PROPERTY AND CASUALTY ACTUAL EXAM AND
PRACTICE QUESTIONS NEWEST 2024 ACTUAL EXAM 400
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A
Under a Personal Auto policy, which of the following will be paid by supplementary payments provided by Part A?
A
A $250 bail bond
B
A judgment against the insured for damages related to a third party's bodily injury
C
Medical expenses when the insured's daughter is injured in an auto accident
D
$1,000 for loss of earnings when the insured is disabled - (correct answer) A, A $250 bail bond
What is the term for continuous exposure to the same harmful conditions?
A
Proximate cause
B
Risk
C
Accident
D
Occurrence - (correct answer) D, Occurrence
Under a Boatowners policy, which of the following is correct about the deductible?
A
Watercraft policies do not have a deductible
B
The policy's deductible applies per occurrence
C
The deductible only applies to liability claims
D
The policy includes one deductible for collision losses and another deductible for other than collision losses -
(correct answer) B, The policy's deductible applies per occurrence
Under the Building and Personal Property Coverage Form, what limit of insurance applies when coverage is
extended to cover business personal property temporarily away from the premises?
A
$15,000
B
$5,000
C
$10,000
D
$2,500 - (correct answer) C, $10,000
If an insured submits a fraudulent claim, the insurer may:
A
Void the policy from the beginning
B
Cancel the policy with 10 days' notice and retain the unearned premium
C
Cancel the policy immediately
D
,Refuse to renew the policy at the expiration of the policy period - (correct answer) A, Void the policy from the
beginning
Part Six - Conditions of a Workers' Compensation and Employers Liability policy includes which of the following?
A
The supplementary coverages
B
Name, address, and type of business of the insured
C
The list of states where coverage applies
D
The cancellation provision - (correct answer) D, The cancellation provision
After an earthquake damages an insured's property, an Earthquake policy would provide coverage for which of the
following losses?
A
Loss to the insured's vehicles
B
Loss to retaining walls
C
Loss to awnings and outdoor antennas
D
Loss to furniture inside a structure held for rent - (correct answer) D, Loss to furniture inside a structure held
for rent
Which of the following cannot be used to show proof of financial responsibility to operate a motor vehicle in Texas?
A
Surety bond
B
Certificate of self-insurance
C
Motor vehicle insurance policy
D
Driver's license - (correct answer) D, Drivers license
L has a Business Auto policy covering autos used for L's small business. All of the following are an insured under
Section II - Covered Autos Liability Coverage of L's BAP, except:
A
B, the sales director at L's company, using a covered auto with permission
B
L, the named insured
C
T, an employee driving a covered auto L rented for business purposes
D
D, who owns a private passenger auto L borrows for the business - (correct answer) D, D, who owns a private
passenger auto L borrows for the business
Which of the following vehicles could be considered an uninsured motor vehicle by a Personal Auto policy?
A
A company car furnished to the named insured's family member
B
An SUV covered by a bankrupt self-insurer
C
An ATV owned by the named insured
, D
A bulldozer - (correct answer) B, an SUV covered by a bankrupt self-insurer
When a commercial Auto policy is written with the Auto Medical Payments Coverage Endorsement, medical
payments coverage is provided to which of the following?
A
An insured incurs X-ray expenses as a result of a racing activity
B
An insured incurs funeral expenses as a result of an auto accident
C
An insured incurs hospital expenses while using a covered auto without reasonable belief of entitlement
D
An employee insured is injured in an accident while on the job - (correct answer) B, An insured incurs funeral
expenses as a result of an auto accident.
After a direct physical loss, the Accounts Receivable Coverage Extension on a Businessowners policy provides
coverage for:
A
Related interest charges
B
Reasonable expenses to re-establish accounts receivable
C
Amounts the insured owes to customers
D
Amounts the insured owes to customers - (correct answer) C, Amounts the insured owes to customers
Under Section II of a Homeowners policy, which of the following may receive medical payments for expenses
incurred following a bodily injury?
A
A guest of the insured on the residence premises
B
A residence employee who is injured on the way home from work
C
A tenant who lives in a portion of the insured's residence
D
The named insured - (correct answer) A, A guest of the insured on the residence premises
Under the Businessowners Coverage Form, an actual cash value loss settlement basis is always used for the
following items of property, except:
A
Landlord's furnishings
B
Works of art and manuscripts
C
Property of others in the insured's care and custody
D
Antiques and rare articles - (correct answer) A, Landlord's furnishings
Which of the following licensees identifies loss exposures for a person wishing to obtain a property and casualty
insurance policy on Texas?
A
Limited Lines agent
B
Surplus Lines agent
C
PRACTICE QUESTIONS NEWEST 2024 ACTUAL EXAM 400
QUESTIONS AND CORRECT DETAILED ANSWERS
|ALREADY GRADED A
Under a Personal Auto policy, which of the following will be paid by supplementary payments provided by Part A?
A
A $250 bail bond
B
A judgment against the insured for damages related to a third party's bodily injury
C
Medical expenses when the insured's daughter is injured in an auto accident
D
$1,000 for loss of earnings when the insured is disabled - (correct answer) A, A $250 bail bond
What is the term for continuous exposure to the same harmful conditions?
A
Proximate cause
B
Risk
C
Accident
D
Occurrence - (correct answer) D, Occurrence
Under a Boatowners policy, which of the following is correct about the deductible?
A
Watercraft policies do not have a deductible
B
The policy's deductible applies per occurrence
C
The deductible only applies to liability claims
D
The policy includes one deductible for collision losses and another deductible for other than collision losses -
(correct answer) B, The policy's deductible applies per occurrence
Under the Building and Personal Property Coverage Form, what limit of insurance applies when coverage is
extended to cover business personal property temporarily away from the premises?
A
$15,000
B
$5,000
C
$10,000
D
$2,500 - (correct answer) C, $10,000
If an insured submits a fraudulent claim, the insurer may:
A
Void the policy from the beginning
B
Cancel the policy with 10 days' notice and retain the unearned premium
C
Cancel the policy immediately
D
,Refuse to renew the policy at the expiration of the policy period - (correct answer) A, Void the policy from the
beginning
Part Six - Conditions of a Workers' Compensation and Employers Liability policy includes which of the following?
A
The supplementary coverages
B
Name, address, and type of business of the insured
C
The list of states where coverage applies
D
The cancellation provision - (correct answer) D, The cancellation provision
After an earthquake damages an insured's property, an Earthquake policy would provide coverage for which of the
following losses?
A
Loss to the insured's vehicles
B
Loss to retaining walls
C
Loss to awnings and outdoor antennas
D
Loss to furniture inside a structure held for rent - (correct answer) D, Loss to furniture inside a structure held
for rent
Which of the following cannot be used to show proof of financial responsibility to operate a motor vehicle in Texas?
A
Surety bond
B
Certificate of self-insurance
C
Motor vehicle insurance policy
D
Driver's license - (correct answer) D, Drivers license
L has a Business Auto policy covering autos used for L's small business. All of the following are an insured under
Section II - Covered Autos Liability Coverage of L's BAP, except:
A
B, the sales director at L's company, using a covered auto with permission
B
L, the named insured
C
T, an employee driving a covered auto L rented for business purposes
D
D, who owns a private passenger auto L borrows for the business - (correct answer) D, D, who owns a private
passenger auto L borrows for the business
Which of the following vehicles could be considered an uninsured motor vehicle by a Personal Auto policy?
A
A company car furnished to the named insured's family member
B
An SUV covered by a bankrupt self-insurer
C
An ATV owned by the named insured
, D
A bulldozer - (correct answer) B, an SUV covered by a bankrupt self-insurer
When a commercial Auto policy is written with the Auto Medical Payments Coverage Endorsement, medical
payments coverage is provided to which of the following?
A
An insured incurs X-ray expenses as a result of a racing activity
B
An insured incurs funeral expenses as a result of an auto accident
C
An insured incurs hospital expenses while using a covered auto without reasonable belief of entitlement
D
An employee insured is injured in an accident while on the job - (correct answer) B, An insured incurs funeral
expenses as a result of an auto accident.
After a direct physical loss, the Accounts Receivable Coverage Extension on a Businessowners policy provides
coverage for:
A
Related interest charges
B
Reasonable expenses to re-establish accounts receivable
C
Amounts the insured owes to customers
D
Amounts the insured owes to customers - (correct answer) C, Amounts the insured owes to customers
Under Section II of a Homeowners policy, which of the following may receive medical payments for expenses
incurred following a bodily injury?
A
A guest of the insured on the residence premises
B
A residence employee who is injured on the way home from work
C
A tenant who lives in a portion of the insured's residence
D
The named insured - (correct answer) A, A guest of the insured on the residence premises
Under the Businessowners Coverage Form, an actual cash value loss settlement basis is always used for the
following items of property, except:
A
Landlord's furnishings
B
Works of art and manuscripts
C
Property of others in the insured's care and custody
D
Antiques and rare articles - (correct answer) A, Landlord's furnishings
Which of the following licensees identifies loss exposures for a person wishing to obtain a property and casualty
insurance policy on Texas?
A
Limited Lines agent
B
Surplus Lines agent
C
