Texas Property and Casualty practice
Exam
Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy.
However, with the purchase of the water backup and sump pump overflow endorsement,
coverage for up to $5,000 in loss or damage can be provided for an additional premium.
What is the deductible associated with this coverage? - ANS- $250
Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be
provided for an additional premium with this endorsement.
An insured relocated to another state for work. However, she still owns and insures a
house in this state, but has had no one living in it for 3 months. She is also storing some
furniture and clothes in the house. From an insurance standpoint, the insured's house is
considered - ANS- Unoccupied
Unoccupancy refers to an insured structure in which no people have been living or
working within the required period of time, but the structure contains contents.
Individuals in the business of selling construction equipment and mobile equipment
should insure with a/an - ANS- Equipment dealers coverage form
An equipment dealer's coverage form covers a dealer's stock in trade consisting
primarily of mobile agricultural equipment and construction equipment. It also covers
property of others in the dealer's care, custody, or control. It excludes coverage for
autos, motorcycles, aircraft, and watercraft.
All of the following are true regarding deposit premium - ANS- It must be paid in
advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time the policy is
issued that may be adjusted by the audit based on actual exposures.
, Which of the following is NOT an essential element of an insurance contract? - ANS-
counteroffer
To purchase insurance, the policyowner must have financial interest in the property
being insured. This is known as - ANS- Insurable Interest
The insured must have an insurable interest in the person or property covered by an
insurance policy. In property insurance, this means the insured would incur a financial
loss if the insured property was damaged.
What type of property does a Personal Floaters policy cover? - ANS- Movable personal
property, wherever it may be located
Events or conditions that increase the chances of an insured loss occurring are referred
to as - ANS- Hazards
Workers compensation statutes provide coverage for diseases that occur as a result of
working in the employer's working environment. Which of the following is an example of
a disease that would NOT be covered by such provisions? - ANS- An employee of a
medical facility who suffers from a common cold
When a direct chain of events resulting from a negligent act causes injury or damage,
that act is considered to be - ANS- The proximate case
The causes of loss insured against in an insurance policy are known as - ANS- Perils
Perils are the causes of loss insured against in an insurance policy.
Surety bonds are written for a definite limit called - ANS- The Bond Penalty
Insurance is the transfer of - ANS- Risk
Crime insurance is usually written on the basis of - ANS- All-Risk
A homeowner sells his house to a friend. The friend wants to keep the homeowner's
current policy in effect. Under the assignment provision, which of the following is most
likely? - ANS- The homeowner will need to get written consent from the insurer before
the policy can be reassigned.
What term best describes the act of withholding material information that would be
crucial to an underwriting decision? - ANS- Concealment
Exam
Coverage for water backup or sump pump overflow is excluded from the Dwelling Policy.
However, with the purchase of the water backup and sump pump overflow endorsement,
coverage for up to $5,000 in loss or damage can be provided for an additional premium.
What is the deductible associated with this coverage? - ANS- $250
Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be
provided for an additional premium with this endorsement.
An insured relocated to another state for work. However, she still owns and insures a
house in this state, but has had no one living in it for 3 months. She is also storing some
furniture and clothes in the house. From an insurance standpoint, the insured's house is
considered - ANS- Unoccupied
Unoccupancy refers to an insured structure in which no people have been living or
working within the required period of time, but the structure contains contents.
Individuals in the business of selling construction equipment and mobile equipment
should insure with a/an - ANS- Equipment dealers coverage form
An equipment dealer's coverage form covers a dealer's stock in trade consisting
primarily of mobile agricultural equipment and construction equipment. It also covers
property of others in the dealer's care, custody, or control. It excludes coverage for
autos, motorcycles, aircraft, and watercraft.
All of the following are true regarding deposit premium - ANS- It must be paid in
advance.
It is an estimated premium paid at the policy issue.
It could be adjusted by the audit.
Deposit premium is an estimated premium paid in advance at the time the policy is
issued that may be adjusted by the audit based on actual exposures.
, Which of the following is NOT an essential element of an insurance contract? - ANS-
counteroffer
To purchase insurance, the policyowner must have financial interest in the property
being insured. This is known as - ANS- Insurable Interest
The insured must have an insurable interest in the person or property covered by an
insurance policy. In property insurance, this means the insured would incur a financial
loss if the insured property was damaged.
What type of property does a Personal Floaters policy cover? - ANS- Movable personal
property, wherever it may be located
Events or conditions that increase the chances of an insured loss occurring are referred
to as - ANS- Hazards
Workers compensation statutes provide coverage for diseases that occur as a result of
working in the employer's working environment. Which of the following is an example of
a disease that would NOT be covered by such provisions? - ANS- An employee of a
medical facility who suffers from a common cold
When a direct chain of events resulting from a negligent act causes injury or damage,
that act is considered to be - ANS- The proximate case
The causes of loss insured against in an insurance policy are known as - ANS- Perils
Perils are the causes of loss insured against in an insurance policy.
Surety bonds are written for a definite limit called - ANS- The Bond Penalty
Insurance is the transfer of - ANS- Risk
Crime insurance is usually written on the basis of - ANS- All-Risk
A homeowner sells his house to a friend. The friend wants to keep the homeowner's
current policy in effect. Under the assignment provision, which of the following is most
likely? - ANS- The homeowner will need to get written consent from the insurer before
the policy can be reassigned.
What term best describes the act of withholding material information that would be
crucial to an underwriting decision? - ANS- Concealment
