Texas Property & Casualty Insurance EXAM LATEST VERSIONS COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS

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? - ANSWERS,$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? - ANSWERS,$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? - ANSWERS,$0 Damage caused by burglars is excluded under which of the dwelling forms? - ANSWERS,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 _____. - ANSWERS,vandalism and malicious mischief In homeowners forms, the property coverage varies in each form and the liability coverage is _____. - ANSWERS,identical Open peril coverage on the dwelling and broad coverage on personal property is covered under the _____. - ANSWERS,HO3 No dwelling coverage, and broad coverage on personal property is covered by the____. - ANSWERS,HO4 Limited dwelling coverage and broad coverage on personal property is covered by the ____. - ANSWERS,HO6 Basic coverage on both the dwelling and personal property is covered on the ____. - ANSWERS,HO8 Broad coverage on both the dwelling and personal property is covered by the ____. - ANSWERS,HO2 The standard limit for Coverage A on a HO6 is ____. - ANSWERS,$1000 Personal property kept offsite on a Homeowner's policy is covered for up to 10% of the coverage C limit or $1000, whichever is ____. - ANSWERS,greater ______ on a Homeowner's policy takes care of loss of use and provides additional living expenses and lost rental values if a portion is rented out. - ANSWERS,Coverage D On a Homeowners policy, Coverage A covers ____. - ANSWERS,dwelling Coverage B on a Homeowner's policy covers ____. - ANSWERS,other structures Coverage C on a Homeowner's policy covers ____. - ANSWERS,personal property States give an insurer permission to transact insurance with a certificate of ____. - ANSWERS,authority Vandalism, fire and _____ are covered under the Basic Commercial Property Causes of Loss. - ANSWERS,sprinkler leakage A business owners policy is called a package policy because it insures property and _____. - ANSWERS,negligence Which of the following requires a person to prove that automobile liability insurance is in effect and is usually tied to vehicle registration? - ANSWERS,Financial responsibility law The business auto policy (BAP) uses symbols to denote the vehicles to which each of the policy's coverage applies. _____ allows coverage of all vehicles: owned, non-owned, and hired. - ANSWERS,Symbol 1 _____ are considered special damages. - ANSWERS,Medical expenses Business personal property must be within ____ feet of the premises to be covered on a commercial property policy. - ANSWERS,100 Which of the following is inland marine insurance? - ANSWERS,Commercial property floaters The FAIR Plan was brought into being to cover dwellings for minimum amounts that companies would not accept, and to spread the business ____ among all companies. - ANSWERS,equitably A business owners policy (BOP) can stand by itself as a ____? - ANSWERS,commercial package policy If you own and drive a car, you have ____. - ANSWERS,exposure The owner of an old building buys insurance to protect himself from a possible lawsuit. This is an example of risk ____. - ANSWERS,transfer The only newspaper in Clarksville was severely damaged by a tornado. The paper must be printed for several weeks at another printing facility in a distant town. Under which insurance coverage would that loss be covered? - ANSWERS,Extra expense Under the homeowners policy, in order to receive replacement cost on a partial loss, the amount of insurance carried must be at least ____ of replacement cost. - ANSWERS,80% The deductible in an umbrella policy is referred to as _____. - ANSWERS,self-insured retention An insurance policy covers fire, will not cover nuclear contamination, and loss must be reported as soon as possible. In this order, where are these facts found in the policy? - ANSWERS,Insuring agreement, exclusions, and proof of loss The ____ section includes the insurance company's promise to pay the claim. - ANSWERS,insuring agreement Ralph owns an antique pen and pencil set that is insured under a personal articles floater. The value of the set is $30,000. After the loss of the pen, the pencil is valued at $20,000. The insurance company will pay the maximum amount of ____. - ANSWERS,$10,000 The 3 parties to a surety bond are the principal, the surety and the ____. - ANSWERS,obligee