Texas Property and Casualty Insurance Exam
Questions with 100% Correct Answers
The list of perils covered under a policy is found in which part of the policy
Insuring agreement
3 multiple choice options
Which of the following statements pertaining to insurance companies is CORRECT?
The primary purpose of a stock company is to earn profit for its stockholders.
3 multiple choice options
The business Auto Coverage Form uses symbols to denote the vehicles to which each of the policy's
coverages applies. Which symbol is the most restrictive?
Symbol 7
3 multiple choice options
A property that is vacant is described as having an absence of
people and property
3 multiple choice options
Cecil sells his car and buys another one to replace it. How does the liability coverage in his personal
auto policy apply to the replacement vehicle?
It is automatically covered.
3 multiple choice options
A producer whose license has expired will de required to retake the licensing exam if the license has
been expired for more than:
1 year
3 multiple choice options
A policy under which the insured and insurer agree on the property value and list the value in the
policy is known as
An agreed value policy
3 multiple choice options
The insured is looking for the amount of coverage in a property and casualty policy. This information
would be found in the
Declarations
3 multiple choice options
A personal auto insurer may cancel a policy fo all of the following reasons EXCEPT:
the age of insured
3 multiple choice options
All of then following constitute the transaction of insurance EXCEPT:
purchasing an insurance policy
3 multiple choice options
, 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?
A warranty is must refer to a material fact
3 multiple choice options
Two insurance policies apply to Monica's home. The limit for Policy A is $100,000, and the limit for
Policy B is $50,000. Both policies have a pro rata other insurance clause. If she suffers a $9,000
covered loss to her home, how much will Policy A pay?
A= A/(A+B) x Loss
$6,000
3 multiple choice options
Stephanie is an agent in a local insurance agency. While visiting a client in his home, Stephanie
accidentally leaves a coffee cup on an antique coffee table, damaging the wood surface. She asks her
sales manager whether she has coverage under her homeowners policy. Which of the following is the
best advice given to Stephanie?
The business pursuits endorsement should be added to your homeowners policy to protect you if you
personally damage property while conducting business.
3 multiple choice options
Which of the following is NOT a requirement of a dwelling policy?
Required to be owner occupied
3 multiple choice options
The minimum limits under the Texas Motor Vehicles Safety Responsibility Law are:
$30,000 per Person, $60,000 per accident for Bodily Injury, and $25,000 for Property Damage
3 multiple choice options
Which of the following is NOT a basic way in which underwriters assign rates?
Expense rating
3 multiple choice options
The insuring agreement section of a policy describes
perils insured against
3 multiple choice options
All of the following must be involved to establish negligence EXEPT
approximate cause
3 multiple choice options
Joan and Steven have applied for automobile insurance with ABC Auto Insurers. They do not tell the
agent that their neighbor, George, who lost his drivers license due to drunk driving, uses one of their
cars on a regular basis to drive to work. Once the company found out about George after he had an
accident, they denied the claim, citing what legal concept as the reason?
Fraud.
3 multiple choice options
Questions with 100% Correct Answers
The list of perils covered under a policy is found in which part of the policy
Insuring agreement
3 multiple choice options
Which of the following statements pertaining to insurance companies is CORRECT?
The primary purpose of a stock company is to earn profit for its stockholders.
3 multiple choice options
The business Auto Coverage Form uses symbols to denote the vehicles to which each of the policy's
coverages applies. Which symbol is the most restrictive?
Symbol 7
3 multiple choice options
A property that is vacant is described as having an absence of
people and property
3 multiple choice options
Cecil sells his car and buys another one to replace it. How does the liability coverage in his personal
auto policy apply to the replacement vehicle?
It is automatically covered.
3 multiple choice options
A producer whose license has expired will de required to retake the licensing exam if the license has
been expired for more than:
1 year
3 multiple choice options
A policy under which the insured and insurer agree on the property value and list the value in the
policy is known as
An agreed value policy
3 multiple choice options
The insured is looking for the amount of coverage in a property and casualty policy. This information
would be found in the
Declarations
3 multiple choice options
A personal auto insurer may cancel a policy fo all of the following reasons EXCEPT:
the age of insured
3 multiple choice options
All of then following constitute the transaction of insurance EXCEPT:
purchasing an insurance policy
3 multiple choice options
, 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?
A warranty is must refer to a material fact
3 multiple choice options
Two insurance policies apply to Monica's home. The limit for Policy A is $100,000, and the limit for
Policy B is $50,000. Both policies have a pro rata other insurance clause. If she suffers a $9,000
covered loss to her home, how much will Policy A pay?
A= A/(A+B) x Loss
$6,000
3 multiple choice options
Stephanie is an agent in a local insurance agency. While visiting a client in his home, Stephanie
accidentally leaves a coffee cup on an antique coffee table, damaging the wood surface. She asks her
sales manager whether she has coverage under her homeowners policy. Which of the following is the
best advice given to Stephanie?
The business pursuits endorsement should be added to your homeowners policy to protect you if you
personally damage property while conducting business.
3 multiple choice options
Which of the following is NOT a requirement of a dwelling policy?
Required to be owner occupied
3 multiple choice options
The minimum limits under the Texas Motor Vehicles Safety Responsibility Law are:
$30,000 per Person, $60,000 per accident for Bodily Injury, and $25,000 for Property Damage
3 multiple choice options
Which of the following is NOT a basic way in which underwriters assign rates?
Expense rating
3 multiple choice options
The insuring agreement section of a policy describes
perils insured against
3 multiple choice options
All of the following must be involved to establish negligence EXEPT
approximate cause
3 multiple choice options
Joan and Steven have applied for automobile insurance with ABC Auto Insurers. They do not tell the
agent that their neighbor, George, who lost his drivers license due to drunk driving, uses one of their
cars on a regular basis to drive to work. Once the company found out about George after he had an
accident, they denied the claim, citing what legal concept as the reason?
Fraud.
3 multiple choice options
