Property and Casualty Exam - Texas
Questions with 100% Correct Answers
____ is uncertainty of loss
risk
____ is a transfer of risk from the insured to the insurer
insurance
____ risk means there is no chance of gain. It is insurable.
pure
____ risk means there is a chance of a loss or a gain. It is not insurable.
speculative
a ____ is something that increases the risk.
hazard
the principle of _____ governs property and casualty policies. It states that the purpose of the policy
is to restore the insured financially to where they were prior to the loss
indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to provide coverage.
insurable interest
the law of _____ _____ is used to predict the likelihood of loss
large numbers
____ ____ ____ is replacement cost minus depreciation.
actual cash value
________ is a tort, or civil wrong; it is grounds for a lawsuit.
Negligence
_______ is the failure to act as a reasonable person would in the same set of circumstances
negligence
an _____ happens over a period of time
Occurrence
a _____ may be oral or written
binder
a _____ provides coverage until the policy is issued. it includes all coverages provided by the policy.
,binder
a ____ is a literal truth
warranty
a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are _______ -
true to the best of their knowledge
representation
______ is an omission of a material fact.
concealment
the insurer has the right to sue a negligent third party for damages paid to an insured under the
concept of ______
subrogation
four parts of a policy
DICE (declarations, insuring agreement, conditions, and exclusions)
the ______ list the named insured, policy limits, and premium and policy period
declarations
the ____ __ ____ are found on the declaration page of the policy
limits of liability
the _______ _______ describes the coverages provided
insuring agreement
the _______ list the obligations of both parties, the insurer and the insured
conditions
the ______ list the perils that are not covered
exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide coverage, the
claim will go to _____
arbitration
in _____ each party pays for one and a half persons involved
arbitration
in arbitration there are _____ arbitrators
three
,the cancellation provisions are found in the ________ section of the policy
conditions
the insured must promptly tell the insurer about a ______
claim
the other insurance clause is also known as the ____-____ _____ _______
pro-rata liability clause
_____-____ does not mean equal, it is proportionate
pro-rata
the _____ _____ _____ act protects consumers against the circulation of inaccurate or obsolete
personal or financial information.
fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at the time the
customer relationship is initially established and thereafter annually.
gramm-leach-bliley act
the ____ ____ insurance act applies to commercial policies only
terrorism risk insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils insured against
dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an endorsement known
as a _____ ______ ______ for an additional premium charge
personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and flood but not
_____
wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a _____ _____
private garage
DP policies do not cover _______ of ______ after 60 days of vacancy
breakage of glass
DP policies do not cover _____ of _____ unless the heat was left on
freezing of plumbing
, the _____ on which the insured dwelling sits on is not insurable
land
_____ _____, also known as the automatic increase endorsement, must be added to a DP policy by
endorsement
inflation guard
a loss from rain or dust would only be covered if an opening in the dwelling ____ or ____ was first
created by wind or another covered cause of loss
roof or walls
when a dwelling is covered by more than one policy, losses are shared ____-____ under the other
insurance clause. this may also be referred to ad the _____-____ liability clause
pro-rata
the basic dwelling form __-_ is a named or specified peril policy
DP-1
the __-_ _____ ____ does not provide additional living expense under coverage D; only fair rental
value is provided
DP-1 basic form
The Extended Coverage Endorsement is added to the Standard Fire Policy to create the __-_
DP-1
a __-_ _____ _____ policy is named perils on both the dwelling and the contents
DP-2 broad form
on the dwelling broad form DP-2 building structures (Coverages A and B) are written with an ____%
coinsurance requirement
80%
on a __-_ ____ _____, Coverage B (other structures) is in addition to other coverage limits
DP-2 broad form
the __-_ policy will provide the same coverage as the DP-2 (contents broad) for personal property
coverage, should coverage for contents be declared.
DP-3
although the DP-1 Basic Form does not provide coverage for _____, _____, _____, and _____, both
the DP-2 and DP-3 do
trees, shrubs, plants, lawns
all __ policies are package policies combining property and liability coverages
HO
Questions with 100% Correct Answers
____ is uncertainty of loss
risk
____ is a transfer of risk from the insured to the insurer
insurance
____ risk means there is no chance of gain. It is insurable.
pure
____ risk means there is a chance of a loss or a gain. It is not insurable.
speculative
a ____ is something that increases the risk.
hazard
the principle of _____ governs property and casualty policies. It states that the purpose of the policy
is to restore the insured financially to where they were prior to the loss
indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to provide coverage.
insurable interest
the law of _____ _____ is used to predict the likelihood of loss
large numbers
____ ____ ____ is replacement cost minus depreciation.
actual cash value
________ is a tort, or civil wrong; it is grounds for a lawsuit.
Negligence
_______ is the failure to act as a reasonable person would in the same set of circumstances
negligence
an _____ happens over a period of time
Occurrence
a _____ may be oral or written
binder
a _____ provides coverage until the policy is issued. it includes all coverages provided by the policy.
,binder
a ____ is a literal truth
warranty
a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are _______ -
true to the best of their knowledge
representation
______ is an omission of a material fact.
concealment
the insurer has the right to sue a negligent third party for damages paid to an insured under the
concept of ______
subrogation
four parts of a policy
DICE (declarations, insuring agreement, conditions, and exclusions)
the ______ list the named insured, policy limits, and premium and policy period
declarations
the ____ __ ____ are found on the declaration page of the policy
limits of liability
the _______ _______ describes the coverages provided
insuring agreement
the _______ list the obligations of both parties, the insurer and the insured
conditions
the ______ list the perils that are not covered
exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide coverage, the
claim will go to _____
arbitration
in _____ each party pays for one and a half persons involved
arbitration
in arbitration there are _____ arbitrators
three
,the cancellation provisions are found in the ________ section of the policy
conditions
the insured must promptly tell the insurer about a ______
claim
the other insurance clause is also known as the ____-____ _____ _______
pro-rata liability clause
_____-____ does not mean equal, it is proportionate
pro-rata
the _____ _____ _____ act protects consumers against the circulation of inaccurate or obsolete
personal or financial information.
fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at the time the
customer relationship is initially established and thereafter annually.
gramm-leach-bliley act
the ____ ____ insurance act applies to commercial policies only
terrorism risk insurance act (TRIA)
the main difference between the various _____ _____ forms is the property perils insured against
dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an endorsement known
as a _____ ______ ______ for an additional premium charge
personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and flood but not
_____
wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a _____ _____
private garage
DP policies do not cover _______ of ______ after 60 days of vacancy
breakage of glass
DP policies do not cover _____ of _____ unless the heat was left on
freezing of plumbing
, the _____ on which the insured dwelling sits on is not insurable
land
_____ _____, also known as the automatic increase endorsement, must be added to a DP policy by
endorsement
inflation guard
a loss from rain or dust would only be covered if an opening in the dwelling ____ or ____ was first
created by wind or another covered cause of loss
roof or walls
when a dwelling is covered by more than one policy, losses are shared ____-____ under the other
insurance clause. this may also be referred to ad the _____-____ liability clause
pro-rata
the basic dwelling form __-_ is a named or specified peril policy
DP-1
the __-_ _____ ____ does not provide additional living expense under coverage D; only fair rental
value is provided
DP-1 basic form
The Extended Coverage Endorsement is added to the Standard Fire Policy to create the __-_
DP-1
a __-_ _____ _____ policy is named perils on both the dwelling and the contents
DP-2 broad form
on the dwelling broad form DP-2 building structures (Coverages A and B) are written with an ____%
coinsurance requirement
80%
on a __-_ ____ _____, Coverage B (other structures) is in addition to other coverage limits
DP-2 broad form
the __-_ policy will provide the same coverage as the DP-2 (contents broad) for personal property
coverage, should coverage for contents be declared.
DP-3
although the DP-1 Basic Form does not provide coverage for _____, _____, _____, and _____, both
the DP-2 and DP-3 do
trees, shrubs, plants, lawns
all __ policies are package policies combining property and liability coverages
HO
