Texas Fx-Property and Casualty Exam 2024
Questions with 100% Correct Answers
To be considered an insurable risk, a loss may NOT be
catastrophic
Which of the following persons would be required to hold a producer license?
a nonresident agent who negotiates insurance contracts
Which of the following is the oldest known type of insurance?
ocean marine
The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of
golden candlesticks?
the difference in the actual cash value as a pair and as a single
Which of the following additional perils is covered under both of the Basic and Broad forms in
dwelling policies?
internal explosion
When would a misrepresentation on the insurance application be considered fraud?
If it is intentional and material
A bond is written for a set limit, and the surety will be liable only for this amount. This limit is known
as the
penalty
In insurance, an offer is usually made when
the application is submitted
All of the following actions by a producer may be grounds for license revocation or non-renewal
EXCEPT
participating in controlled business
In personal auto policies, the term "you" refers to
the named insured
Business personal property coverage form covers all of the following except:
automobiles held for sale
in dwelling policies, automatic increase in insurance is
coverage by endorsement
To be eligible for businessowners policy (BOP) coverage, an office building CANNOT be higher than
6 stories
, Elaborate homes with replacement costs greater than ACV or market value are insured on the
HO-8 Form
Which of the following dwelling coverage forms would pay replacement cost for the dwelling?
DP-2 and DP-3
Business personal property coverage insures property out in the open if it is
Within 100 feet of the described premises
A runaway shopping cart injures a customer in a supermarket's parking lot. Coverage for this claim
would be provided under
premises and operations
Which of the following businesses would be eligible for a businessowners policy?
Hill & Morton Funeral Home
The designation symbols used in commercial auto policies can be found in which policy section?
covered auto
Which of the following is used in the formula for calculating the actual cash value (ACV) of a property?
replacement cost
What type of bond guarantees that the principal will complete the contract as agreed upon?
performance bond
Peril is most easily defined as
The cause of loss insured against
An insured building has had no residents for 10 years and it is empty of personal belongings. From an
insurance standpoint, the building is
vacant
Under a workers compensation policy, premiums will be determined when
the policy period ends
Which commercial property form is used to insure buildings while under construction?
Builders risk
Which of the following information will be found in the Declarations page of the commercial property
policy?
description of the policy insured
Questions with 100% Correct Answers
To be considered an insurable risk, a loss may NOT be
catastrophic
Which of the following persons would be required to hold a producer license?
a nonresident agent who negotiates insurance contracts
Which of the following is the oldest known type of insurance?
ocean marine
The contents coverage on a homeowners policy would pay how much after the loss of one of a pair of
golden candlesticks?
the difference in the actual cash value as a pair and as a single
Which of the following additional perils is covered under both of the Basic and Broad forms in
dwelling policies?
internal explosion
When would a misrepresentation on the insurance application be considered fraud?
If it is intentional and material
A bond is written for a set limit, and the surety will be liable only for this amount. This limit is known
as the
penalty
In insurance, an offer is usually made when
the application is submitted
All of the following actions by a producer may be grounds for license revocation or non-renewal
EXCEPT
participating in controlled business
In personal auto policies, the term "you" refers to
the named insured
Business personal property coverage form covers all of the following except:
automobiles held for sale
in dwelling policies, automatic increase in insurance is
coverage by endorsement
To be eligible for businessowners policy (BOP) coverage, an office building CANNOT be higher than
6 stories
, Elaborate homes with replacement costs greater than ACV or market value are insured on the
HO-8 Form
Which of the following dwelling coverage forms would pay replacement cost for the dwelling?
DP-2 and DP-3
Business personal property coverage insures property out in the open if it is
Within 100 feet of the described premises
A runaway shopping cart injures a customer in a supermarket's parking lot. Coverage for this claim
would be provided under
premises and operations
Which of the following businesses would be eligible for a businessowners policy?
Hill & Morton Funeral Home
The designation symbols used in commercial auto policies can be found in which policy section?
covered auto
Which of the following is used in the formula for calculating the actual cash value (ACV) of a property?
replacement cost
What type of bond guarantees that the principal will complete the contract as agreed upon?
performance bond
Peril is most easily defined as
The cause of loss insured against
An insured building has had no residents for 10 years and it is empty of personal belongings. From an
insurance standpoint, the building is
vacant
Under a workers compensation policy, premiums will be determined when
the policy period ends
Which commercial property form is used to insure buildings while under construction?
Builders risk
Which of the following information will be found in the Declarations page of the commercial property
policy?
description of the policy insured
