Texas Property and Casualty Insurance Exam
with All Questions and Answers
Which of the following statements regarding a warranty is correct? -
ANSWER>>They are statements which are supposed to be absolutely true
Statements made by an applicant for property insurance which in the opinion of
the applicant, are true to the best of his or her knowledge are called: -
ANSWER>>Representations
K owns a factory and has an Equipment Breakdown Policy on his business.
Which of the following would be covered as a "pure accident" under the
contract language? - ANSWER>>A boiler malfunctions and blows up
M has committed an act of dishonesty and has triggered a bond payment known
as the limit of liability. The bond in question is a: - ANSWER>>Fidelity Bond
If the local police refuse to let a busines owner gain access to his business due to
safety concerns for a couple of weeks, the owner is entitled to Business income
because of which assitional expense coverage? - ANSWER>>Civil Authority
H owns a small retail store which sells handbags. Which type of exposure would
be most threatening to H's business? - ANSWER>>Premises and Operations
,Actual Cash Value (ACV) takes usage of property into consideration when an
insurer pays a claim so that the insured becomes whole again after a loss. To
restore an insured in this manner is known as: - ANSWER>>indemnity
While not normally required, if it is determined there is a lack of competition or
availability in the marketplace, the Commissioner can require that all rates be -
ANSWER>>pre-approved
Which of the following descriptions of Dwelling Program coverage forms is
incorrect? - ANSWER>>The basic form pays for loss to the dwelling and
detached other structures on a replacement cost basis
A change made by an insurer on an auto policy that deletes benefits after a
policy has been issues is known as an: - ANSWER>>endorsement
A married couple owns a single family dwelling with Special Forum coverage
with replacement cost coverage equaling $150,000. If their home and garage are
total losses, how much will the homeowners policy pay? - ANSWER>>$165,000-
Coverage B Other Structures provides up to
10% of the dwelling coverage amount in additional to the amount paid under
Coverage A
Which of the following Coverage D statements in incorrect as it pertains to
Dwelling Program forms? - ANSWER>>Coverage D is up to 20% of the coverage
A amount in DP-1
In Dp-1 up to 20% of the coverage A amount can be applied only at the
maximum rate of 1/12 per month if the lost rental value warrants it. Also an
amount paid under Coverage D reduces the Coverage A amount dollar for dollar
under a DP-1
, Other than for nonpayment of premium, any time a property policy is canceled,
a notice must be included stating that coverage may be available from -
ANSWER>>Georgia Fair Access to Insurance Requirements Plan (FAIR)
J has a policy on his business that protects against almost all liability losses. One
of J's customers suffered a terrible loss to his workplace that caused several
thousands in claims. J's insurer notifies J that because of all the claims that were
paid, they are discontinuing coverage at the end of the policy period. J's policy
has been - ANSWER>>Nonrenewed
Convincing a prospective insured to buy an insurance policy based on
exaggerations is called - ANSWER>>Misrepresentation
B owns a home with a Basic Dwelling Policy (DP1) and rents it out to a family.
One day, a burglar tries to break into the house causing $2,000 of damage. After
submitting the claim, B is informed that since burglar damage is not covered
under the policy, the damage will not be paid by the policy. B's policy is a: -
ANSWER>>Named Peril Policy
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to find it completely empty with no
people or contents. The warehouse has a - ANSWER>>Vacancy
Who would be eligible for temporary license issued in Georgia - ANSWER>>The
personal representative of a deceased agent to provide service to existing
policyowners
with All Questions and Answers
Which of the following statements regarding a warranty is correct? -
ANSWER>>They are statements which are supposed to be absolutely true
Statements made by an applicant for property insurance which in the opinion of
the applicant, are true to the best of his or her knowledge are called: -
ANSWER>>Representations
K owns a factory and has an Equipment Breakdown Policy on his business.
Which of the following would be covered as a "pure accident" under the
contract language? - ANSWER>>A boiler malfunctions and blows up
M has committed an act of dishonesty and has triggered a bond payment known
as the limit of liability. The bond in question is a: - ANSWER>>Fidelity Bond
If the local police refuse to let a busines owner gain access to his business due to
safety concerns for a couple of weeks, the owner is entitled to Business income
because of which assitional expense coverage? - ANSWER>>Civil Authority
H owns a small retail store which sells handbags. Which type of exposure would
be most threatening to H's business? - ANSWER>>Premises and Operations
,Actual Cash Value (ACV) takes usage of property into consideration when an
insurer pays a claim so that the insured becomes whole again after a loss. To
restore an insured in this manner is known as: - ANSWER>>indemnity
While not normally required, if it is determined there is a lack of competition or
availability in the marketplace, the Commissioner can require that all rates be -
ANSWER>>pre-approved
Which of the following descriptions of Dwelling Program coverage forms is
incorrect? - ANSWER>>The basic form pays for loss to the dwelling and
detached other structures on a replacement cost basis
A change made by an insurer on an auto policy that deletes benefits after a
policy has been issues is known as an: - ANSWER>>endorsement
A married couple owns a single family dwelling with Special Forum coverage
with replacement cost coverage equaling $150,000. If their home and garage are
total losses, how much will the homeowners policy pay? - ANSWER>>$165,000-
Coverage B Other Structures provides up to
10% of the dwelling coverage amount in additional to the amount paid under
Coverage A
Which of the following Coverage D statements in incorrect as it pertains to
Dwelling Program forms? - ANSWER>>Coverage D is up to 20% of the coverage
A amount in DP-1
In Dp-1 up to 20% of the coverage A amount can be applied only at the
maximum rate of 1/12 per month if the lost rental value warrants it. Also an
amount paid under Coverage D reduces the Coverage A amount dollar for dollar
under a DP-1
, Other than for nonpayment of premium, any time a property policy is canceled,
a notice must be included stating that coverage may be available from -
ANSWER>>Georgia Fair Access to Insurance Requirements Plan (FAIR)
J has a policy on his business that protects against almost all liability losses. One
of J's customers suffered a terrible loss to his workplace that caused several
thousands in claims. J's insurer notifies J that because of all the claims that were
paid, they are discontinuing coverage at the end of the policy period. J's policy
has been - ANSWER>>Nonrenewed
Convincing a prospective insured to buy an insurance policy based on
exaggerations is called - ANSWER>>Misrepresentation
B owns a home with a Basic Dwelling Policy (DP1) and rents it out to a family.
One day, a burglar tries to break into the house causing $2,000 of damage. After
submitting the claim, B is informed that since burglar damage is not covered
under the policy, the damage will not be paid by the policy. B's policy is a: -
ANSWER>>Named Peril Policy
D just purchased a warehouse at an auction. When D receives the keys and
documents, he arrives at the building to find it completely empty with no
people or contents. The warehouse has a - ANSWER>>Vacancy
Who would be eligible for temporary license issued in Georgia - ANSWER>>The
personal representative of a deceased agent to provide service to existing
policyowners
