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Texas Personal Lines Test – Property and Casualty
Latest Prep Test Bank B with 240 Exam Prep
Questions and Correct Answers Plus Study Guide/
TX Personal Lines License Exam Latest Test Bank
Absolute Liability - ...✔✔ANSWER✔✔...Liability that arises
from an extremely dangerous situation. Absolute liability
is often found in cases involving explosives. Also known
as "strict" liability. For ex. , you are absolutely liable if you
keep a wild animal as a pet.
Accident - ...✔✔ANSWER✔✔...A sudden & unexpected
event, occurring at a specific time & place.
Actual Cash Value (ACV) - ...✔✔ANSWER✔✔...The cost to
replace an item of property @ the time of loss, less an
allowance for depreciation. Often used to determine
amount of reimbursement for a loss (Replacement cost
minus Depreciation).
Additional Insured - ...✔✔ANSWER✔✔...A person, firm, or
corporation other than the Named Insured on a policy, or
a lender named in a mortgage clause, who is protected
against loss by the terms of the policy.
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Additional Living Expenses - ...✔✔ANSWER✔✔...A
coverage designed to reimburse the insured for an
increase in living expenses necessitated by loss to the
dwelling. This Indirect Loss must be the result of Direct
Loss by a covered Peril.
Adjuster - ...✔✔ANSWER✔✔...Represents the insurance
company and acts for the company in working on
agreements as to the amount of a loss and the liability of
the company.
Admitted Company - ...✔✔ANSWER✔✔...A company that
meets the state insurance department 's standards and is
authorized by the Director to do business in the state.
Agent/Producer - ...✔✔ANSWER✔✔...An individual
appointed by an insurance company to solicit, negotiate,
effect, or countersign insurance contracts on its behalf.
Aggregate/Producer - ...✔✔ANSWER✔✔...A type of policy
limit found in liability policies that limits coverage to a
specified total amount for all losses occurring within the
policy period.
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Alien Company - ...✔✔ANSWER✔✔...An insurance
company incorporated in a country other than the United
States.
Allied Lines - ...✔✔ANSWER✔✔...Property coverages that
are closely associated w/ & frequently sold w/ fire
insurance: Dwelling Buildings & Contents form,
Earthquake insurance, Sprinkler Leakage, etc.
All-Risk Insurance - ...✔✔ANSWER✔✔...Insurance
protecting the insured from loss arising from any Peril
other than those specifically excluded by name. This
contrasts with Named Peril Insurance, which names the
Peril or Perils insured against.
Application - ...✔✔ANSWER✔✔...A questionnaire that is
filled out by an agent & the prospect seeking insurance.
The form contains rating & underwriting information. The
applicant is expected to make representations by
answering questions to the best of his knowledge
(truthfully).
Texas Personal Lines Test – Property and Casualty
Latest Prep Test Bank B with 240 Exam Prep
Questions and Correct Answers Plus Study Guide/
TX Personal Lines License Exam Latest Test Bank
Absolute Liability - ...✔✔ANSWER✔✔...Liability that arises
from an extremely dangerous situation. Absolute liability
is often found in cases involving explosives. Also known
as "strict" liability. For ex. , you are absolutely liable if you
keep a wild animal as a pet.
Accident - ...✔✔ANSWER✔✔...A sudden & unexpected
event, occurring at a specific time & place.
Actual Cash Value (ACV) - ...✔✔ANSWER✔✔...The cost to
replace an item of property @ the time of loss, less an
allowance for depreciation. Often used to determine
amount of reimbursement for a loss (Replacement cost
minus Depreciation).
Additional Insured - ...✔✔ANSWER✔✔...A person, firm, or
corporation other than the Named Insured on a policy, or
a lender named in a mortgage clause, who is protected
against loss by the terms of the policy.
,2|Page
Additional Living Expenses - ...✔✔ANSWER✔✔...A
coverage designed to reimburse the insured for an
increase in living expenses necessitated by loss to the
dwelling. This Indirect Loss must be the result of Direct
Loss by a covered Peril.
Adjuster - ...✔✔ANSWER✔✔...Represents the insurance
company and acts for the company in working on
agreements as to the amount of a loss and the liability of
the company.
Admitted Company - ...✔✔ANSWER✔✔...A company that
meets the state insurance department 's standards and is
authorized by the Director to do business in the state.
Agent/Producer - ...✔✔ANSWER✔✔...An individual
appointed by an insurance company to solicit, negotiate,
effect, or countersign insurance contracts on its behalf.
Aggregate/Producer - ...✔✔ANSWER✔✔...A type of policy
limit found in liability policies that limits coverage to a
specified total amount for all losses occurring within the
policy period.
, 3|Page
Alien Company - ...✔✔ANSWER✔✔...An insurance
company incorporated in a country other than the United
States.
Allied Lines - ...✔✔ANSWER✔✔...Property coverages that
are closely associated w/ & frequently sold w/ fire
insurance: Dwelling Buildings & Contents form,
Earthquake insurance, Sprinkler Leakage, etc.
All-Risk Insurance - ...✔✔ANSWER✔✔...Insurance
protecting the insured from loss arising from any Peril
other than those specifically excluded by name. This
contrasts with Named Peril Insurance, which names the
Peril or Perils insured against.
Application - ...✔✔ANSWER✔✔...A questionnaire that is
filled out by an agent & the prospect seeking insurance.
The form contains rating & underwriting information. The
applicant is expected to make representations by
answering questions to the best of his knowledge
(truthfully).
