TEXAS PROPERTY AND CASUALTY INSURANCE STATE EXAM /ACTUAL EXAM AND PRACTICE
QUESTIONS 450 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT) /A+ GRADE
ASSURED
Which part of an insurance policy describes the responsibilities and obligations of both the
insurance company and the insured under the policy? - correct answer Conditions
The limits of liability are found in which of the following sections of a casualty policy? - correct
answer Declarations
The _____ page in an insurance contract contains information about the risk, the effective date
of coverage, deductible, premium amounts, coinsurance percentage, and location of the
insured property. - correct answer Declarations
The insured is looking for the amount of coverage in a property and casualty policy. This
information would be found in the ______. - correct answer declarations
The coverages offered by an insurance policy are described in the ____. - correct answer
insuring agreement
The purpose of the conditions section of an insurance policy is to list the ____ of the insured
and the insurance company. - correct answer obligations
The list of perils covered under a policy is found in which part of the policy? - correct answer
Insuring agreement
The Declarations page consists of 5 P's. Person or property, policy number, policy term, policy
limit and ____. - correct answer premium
The Insuring agreement describes coverage provided and which ____ are covered. - correct
answer perils
Lost rent is covered by _____. Limited by 20% of coverage A. - correct answer Coverage D
Under which of the dwelling forms may the insured be reimbursed for the replacement cost of
a dwelling when it is destroyed? - correct answer DP-2 and DP-3
The insured has a DP-3 covering a home that has a replacement value of $100,000. The insured
carries $60,000 of insurance. Following a loss, it is determined that it would cost $12,000 to
replace the damaged portion of the home. How much could the insured collect, assuming the
ACV of the loss is $6,000? - correct answer $9000
Damage to covered property caused by glass breakage is covered in ___. - correct answer DP2
and DP3
Which dwelling forms pay losses to dwellings and other structures on an actual cash value
basis? - correct answer DP1
Which dwelling forms pay losses to personal property on an actual cash value basis? - correct
answer DP1, DP2 and DP3
,TEXAS PROPERTY AND CASUALTY INSURANCE STATE EXAM /ACTUAL EXAM AND PRACTICE
QUESTIONS 450 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT) /A+ GRADE
ASSURED
Would an earthquake that causes a fire that destroys an insured's home be covered by a DP1? -
correct answer yes
A dwelling policy with no endorsements attached contains personal property coverage,
dwelling coverage and _____. - correct answer medical payments coverage
An unendorsed dwelling policy contains the dwelling, other structures, personal property, and
_____. - correct answer fair rental value
Other coverage included in all dwelling forms are fire department service charges, debris
removal, reasonable repairs, and _____ limited to 10% of coverage C. - correct answer glass
safety material
Does the DP1 provides coverage for appurtenant structures? - correct answer yes
_____ coverage must be added to a dwelling policy by endorsement. - correct answer Theft and
liability
An insured has a $60,000 special form (DP-3). When a covered loss in the amount of $10,000
damages the attached garage, how much of that amount is paid under the Coverage B-Other
Structures? - correct answer $0
Of the dwelling forms, which one of the following provides the broadest coverage? - correct
answer special
The special form (DP-3) covers the dwelling and other structures for ____. - correct answer
open perils
In the dwelling forms, damage from vandalism is not covered if the building has been vacant for
more than ____. - correct answer 60 days
A property owner wants to insure both the rental property and any of the tenant's belongings if
they are stolen. Which policy would you recommend and why? - correct answer DP-3 special
form and a separate tenant's policy to cover personal property.
The dwelling policy will provide how much additional coverage for a fire department service
charge? - correct answer $500
An insured suffers a covered loss to some rental property that forces the tenant to move to
another location. Under which section of the dwelling policy would the insured receive
payment during the time the property is being repaired? - correct answer Coverage D--Fair
Rental Value
How does the dwelling policy provide theft coverage, dwelling under construction coverage or
coverage for automatic increases in insurance? - correct answer by endorsement
, TEXAS PROPERTY AND CASUALTY INSURANCE STATE EXAM /ACTUAL EXAM AND PRACTICE
QUESTIONS 450 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT) /A+ GRADE
ASSURED
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to the house, the
property includes a detached garage, storage shed, and an artist's studio. During a
thunderstorm, the garage and storage shed are damaged by lightning. The loss is $3,000 to the
garage and $1,000 to the shed. What amount is covered by the policy? - correct answer $3500
Wilson owns a 4-family apartment building. Which dwelling form(s) would provide coverage
against building damage caused by the freezing of plumbing, heating, air conditioning, and
sprinkler systems? - correct answer DP2 and DP3
An insured has a dwelling policy (DP-3 special form) for $50,000. After a covered fire loss, the
insured moves to a local hotel while repairs are being made to the house. While staying in the
hotel's penthouse suite, the insured uses room service, always choosing the most expensive
food and wine. The entire stay costs $12,000. How much of that amount will the policy cover? -
correct answer $10,000
An insured has a $40,000 dwelling special form (DP-3) policy. After hosting an afternoon party,
the insured discovers that the family's credit cards and ATM cards are missing. If the cards are
used, what coverage is provided under Coverage C-Personal Property and why? - correct
answer $0
An insured has a $70,000 dwelling policy (DP-1 basic) with a $500 deductible. While the insured
is on vacation, burglars enter the house and steal several items. The total loss is estimated to be
$5,000. How much of that loss will be paid under the policy? - correct answer $0
Damage caused by burglars is excluded under which of the dwelling forms? - correct answer
Basic Form
The greatest difference between the dwelling basic form (DP-1) and the broad form (DP-2) is
that the DP-2 automatically includes coverage for _____. - correct answer vandalism and
malicious mischief
In homeowners forms, the property coverage varies in each form and the liability coverage is
_____. - correct answer identical
Open peril coverage on the dwelling and broad coverage on personal property is covered under
the _____. - correct answer HO3
No dwelling coverage, and broad coverage on personal property is covered by the____. -
correct answer HO4
Limited dwelling coverage and broad coverage on personal property is covered by the ____. -
correct answer HO6
Basic coverage on both the dwelling and personal property is covered on the ____. - correct
answer HO8
QUESTIONS 450 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT) /A+ GRADE
ASSURED
Which part of an insurance policy describes the responsibilities and obligations of both the
insurance company and the insured under the policy? - correct answer Conditions
The limits of liability are found in which of the following sections of a casualty policy? - correct
answer Declarations
The _____ page in an insurance contract contains information about the risk, the effective date
of coverage, deductible, premium amounts, coinsurance percentage, and location of the
insured property. - correct answer Declarations
The insured is looking for the amount of coverage in a property and casualty policy. This
information would be found in the ______. - correct answer declarations
The coverages offered by an insurance policy are described in the ____. - correct answer
insuring agreement
The purpose of the conditions section of an insurance policy is to list the ____ of the insured
and the insurance company. - correct answer obligations
The list of perils covered under a policy is found in which part of the policy? - correct answer
Insuring agreement
The Declarations page consists of 5 P's. Person or property, policy number, policy term, policy
limit and ____. - correct answer premium
The Insuring agreement describes coverage provided and which ____ are covered. - correct
answer perils
Lost rent is covered by _____. Limited by 20% of coverage A. - correct answer Coverage D
Under which of the dwelling forms may the insured be reimbursed for the replacement cost of
a dwelling when it is destroyed? - correct answer DP-2 and DP-3
The insured has a DP-3 covering a home that has a replacement value of $100,000. The insured
carries $60,000 of insurance. Following a loss, it is determined that it would cost $12,000 to
replace the damaged portion of the home. How much could the insured collect, assuming the
ACV of the loss is $6,000? - correct answer $9000
Damage to covered property caused by glass breakage is covered in ___. - correct answer DP2
and DP3
Which dwelling forms pay losses to dwellings and other structures on an actual cash value
basis? - correct answer DP1
Which dwelling forms pay losses to personal property on an actual cash value basis? - correct
answer DP1, DP2 and DP3
,TEXAS PROPERTY AND CASUALTY INSURANCE STATE EXAM /ACTUAL EXAM AND PRACTICE
QUESTIONS 450 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT) /A+ GRADE
ASSURED
Would an earthquake that causes a fire that destroys an insured's home be covered by a DP1? -
correct answer yes
A dwelling policy with no endorsements attached contains personal property coverage,
dwelling coverage and _____. - correct answer medical payments coverage
An unendorsed dwelling policy contains the dwelling, other structures, personal property, and
_____. - correct answer fair rental value
Other coverage included in all dwelling forms are fire department service charges, debris
removal, reasonable repairs, and _____ limited to 10% of coverage C. - correct answer glass
safety material
Does the DP1 provides coverage for appurtenant structures? - correct answer yes
_____ coverage must be added to a dwelling policy by endorsement. - correct answer Theft and
liability
An insured has a $60,000 special form (DP-3). When a covered loss in the amount of $10,000
damages the attached garage, how much of that amount is paid under the Coverage B-Other
Structures? - correct answer $0
Of the dwelling forms, which one of the following provides the broadest coverage? - correct
answer special
The special form (DP-3) covers the dwelling and other structures for ____. - correct answer
open perils
In the dwelling forms, damage from vandalism is not covered if the building has been vacant for
more than ____. - correct answer 60 days
A property owner wants to insure both the rental property and any of the tenant's belongings if
they are stolen. Which policy would you recommend and why? - correct answer DP-3 special
form and a separate tenant's policy to cover personal property.
The dwelling policy will provide how much additional coverage for a fire department service
charge? - correct answer $500
An insured suffers a covered loss to some rental property that forces the tenant to move to
another location. Under which section of the dwelling policy would the insured receive
payment during the time the property is being repaired? - correct answer Coverage D--Fair
Rental Value
How does the dwelling policy provide theft coverage, dwelling under construction coverage or
coverage for automatic increases in insurance? - correct answer by endorsement
, TEXAS PROPERTY AND CASUALTY INSURANCE STATE EXAM /ACTUAL EXAM AND PRACTICE
QUESTIONS 450 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT) /A+ GRADE
ASSURED
An insured has an $80,000 dwelling policy with a $500 deductible. In addition to the house, the
property includes a detached garage, storage shed, and an artist's studio. During a
thunderstorm, the garage and storage shed are damaged by lightning. The loss is $3,000 to the
garage and $1,000 to the shed. What amount is covered by the policy? - correct answer $3500
Wilson owns a 4-family apartment building. Which dwelling form(s) would provide coverage
against building damage caused by the freezing of plumbing, heating, air conditioning, and
sprinkler systems? - correct answer DP2 and DP3
An insured has a dwelling policy (DP-3 special form) for $50,000. After a covered fire loss, the
insured moves to a local hotel while repairs are being made to the house. While staying in the
hotel's penthouse suite, the insured uses room service, always choosing the most expensive
food and wine. The entire stay costs $12,000. How much of that amount will the policy cover? -
correct answer $10,000
An insured has a $40,000 dwelling special form (DP-3) policy. After hosting an afternoon party,
the insured discovers that the family's credit cards and ATM cards are missing. If the cards are
used, what coverage is provided under Coverage C-Personal Property and why? - correct
answer $0
An insured has a $70,000 dwelling policy (DP-1 basic) with a $500 deductible. While the insured
is on vacation, burglars enter the house and steal several items. The total loss is estimated to be
$5,000. How much of that loss will be paid under the policy? - correct answer $0
Damage caused by burglars is excluded under which of the dwelling forms? - correct answer
Basic Form
The greatest difference between the dwelling basic form (DP-1) and the broad form (DP-2) is
that the DP-2 automatically includes coverage for _____. - correct answer vandalism and
malicious mischief
In homeowners forms, the property coverage varies in each form and the liability coverage is
_____. - correct answer identical
Open peril coverage on the dwelling and broad coverage on personal property is covered under
the _____. - correct answer HO3
No dwelling coverage, and broad coverage on personal property is covered by the____. -
correct answer HO4
Limited dwelling coverage and broad coverage on personal property is covered by the ____. -
correct answer HO6
Basic coverage on both the dwelling and personal property is covered on the ____. - correct
answer HO8
