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Texas Property & Casualty Insurance QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A+
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Texas Property & Casualty Insurance QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A+
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Texas Property & Casualty Insurance1. ____ damages punish the wrongdoer. - ANS-punitive
2. ____ includes burglary, safe burglary, robbery, larceny, embezzlement and forgery. -
ANS-theft
3. ____ is an all-out effort by one party to deceive. - ANS-fraud
4. ____ liability protects employees from benefit administrator mistakes or negligence. -
ANS-fiduciary
5. ____ risk is the chance of loss. - ANS-pure
6. _____ are considered special damages. - ANS-Medical expenses
7. _____ can only perform duties in the office such as giving quotes. - ANS-insurance
service representatives
8. _____ coverage must be added to a dwelling policy by endorsement. - ANS-Theft and
liability
9. _____ damages pay for the actual losses that were sustained. The two types are special
(medical bills, lost wages, etc...) and general (pain and suffering). - ANS-Compensatory
10. _____ deals with disagreements on coverage issues. - ANS-arbitration
11. _____ deals with disagreements on the value of the loss. - ANS-appraisal
12. _____ insurance covers real property and personal property. - ANS-property
13. _____ insurance covers your legal liability to others. - ANS-casualty
14. _____ is the transfer of risk through a legal contract from the insured to the insurer. -
ANS-insurance
15. _____ protects against unreasonable profits. - ANS-Texas Department of Insurace
16. _____ protects insured's from a rate hike after credit review. - ANS-FCRA
17. ______ 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. - ANS-Coverage D
18. ________ is when people with a greater than average exposure to loss to purchase
insurance. - ANS-Adverse selection
19. _____carriers provide insurance that is not available from private insurers, such as flood
insurance. - ANS-residual market
20. _____liability refers to product defect claims. - ANS-strict
21. 3 types of authority are expressed (what you can do per the contract), implied and
_____. - ANS-apparent
22. A ___ insurer shares profits with policy holders. - ANS-mutual
23. A ___ is a civil wrong, such as slander, libel or false arrest, other than breach of contract.
- ANS-tort
24. A ___ policy lists the specific perils or causes of loss insured against under the contract.
- ANS-Named peril
25. A ____ agent may place insurance risks with unauthorized insurers. - ANS-surplus lines
26. A ____ hazard is caused by carelessness. - ANS-morale
27. A ____ is a condition that increases the chance of loss. - ANS-hazard
,28. A ____ is considered personal property under a dwelling policy. - ANS-pool table
29. A _____ is not true, but has no effect on the insurer's decision to issue a policy. -
ANS-misrepresentation
30. A _____ policy is a good option when insuring artwork. - ANS-Values or Agreed Value
31. A binder or temporary contract of insurance is good for up to _____ days. - ANS-30
32. A business income policy covers lost profits, continuing expenses and _____. -
ANS-extra expenses
33. A business owners policy (BOP) can stand by itself as a ____? - ANS-commercial
package policy
34. A business owners policy is called a package policy because it insures property and
_____. - ANS-negligence
35. A car dealership would be covered by a ____ policy. - ANS-garage
36. A chance, possibility, or uncertainty of loss is known as? - ANS-risk
37. A commercial general liability policy is the broadest business liability policy and pays
____. - ANS-actual damages
38. A condition or situation that presents a possibility of loss is a (an): - ANS-exposure
39. A contract that must be accepted exactly as written, no changes is a _____. -
ANS-Contract of adhesion
40. A deductible is also called a ____. - ANS-retention
41. A delivery boy hits a pedestrian and hurts them, is covered by ____. - ANS-operations
exposure
42. A DP1 is also known as a ____. - ANS-dwelling fire policy
43. A DP3 policy does not cover code ordinance, power interruption off premises or _____. -
ANS-theft
44. A dwelling policy is a _____ policy. - ANS-monoline
45. A dwelling policy with no endorsements attached contains personal property coverage,
dwelling coverage and _____. - ANS-medical payments coverage
46. A farm policy is like a home owner's policy A, B, C and D, with some changes to insure
the farm and property coverage ____. - ANS-E, F, and G
47. A flood policy has a ____ waiting period, unless it is purchased with a mortgage. -
ANS-30 day
48. A garage policy includes garage liability, garage keepers, and _____. - ANS-physical
damage
49. A heavy snowfall causes the roof over Amaya's living room to collapse. The insurance
company asks her to move her belongings out of the living room to protect them from
further damage and put a tarp over the roof until it can be repaired. It also asks her to
complete a proof of loss form listing the items that were damaged. This is an example of
the application of what policy condition? - ANS-Duties after loss
50. A home owner's policy will NOT cover _____. - ANS-mudslides
51. A Lloyds company is an arrangement between an attorney and at least 10 underwriters
to provide coverage. Must be members of ____. - ANS-TWIA
52. A parking valet at a hotel uses a guest's car to do a personal errand and damages the
car in a collision. The guest has a personal auto policy (PAP). The insurance company
will pay the claim and ____ against the valet. - ANS-subrogate
, 53. A person becomes seriously ill after eating unrefrigerated raw oysters from a street
vendor. When the vendor is sued for negligence, what defense might best be used? -
ANS-Assumption of risk
54. A person cannot collect lost wages and _____in a personal injury protection claim. -
ANS-essential services
55. A person or organization that has temporary possession of someone else's personal
property. (like a dry cleaner with people's clothes) is called a ___. - ANS-bailee
56. A person receiving an inquiry from the state of Texas has ___ days to respond. - ANS-15
57. A piece of jewelry valued at $10,000 is stolen from the insured while at the mall. How
much will an HO-3 policy pay for this loss? - ANS-$1500
58. A policy limit that applies to all losses occurring within any one policy period and that is
not restored after payment of a loss is _____. - ANS-an aggregate limit
59. A policy may be amended only with a(n): - ANS-endorsement
60. A policy under which the insured and insurer agree on the property value and list the
value in the policy is known as ________. - ANS-an agreed value policy
61. A policy used to insure separate pieces of jewelry is called a ____. - ANS-personal
articles floater
62. A proof of loss form is required to be submitted within ___ days in Texas. - ANS-91
63. 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? - ANS-DP-3
special form and a separate tenant's policy to cover personal property.
64. A Statement considered to be guaranteed true is a ____. - ANS-warranty
65. A Tort is a civil wrong against _____. - ANS-an individual
66. A truckers contract is also called common carrier cargo ____. - ANS-liability
67. A type of loss that results from a direct loss is called___. - ANS-an indirect loss
68. A watercraft policy for boats less than ___ feet and limited to use in the Gulf is a type of
umbrella policy. - ANS-26
69. Additional living expenses are covered with an endorsement on DP1 by _____. It is
included on DP2 and DP3, but limited to 20% of coverage A. - ANS-Coverage E
70. Advertisements may not state or imply that future dividends are ____. - ANS-guaranteed
71. All licensed P and C agents can write business with ____. - ANS-Texas Mutual
72. All of the following must be present to establish negligence: legal duty owed, breach of
that duty, proximate cause, and _____. - ANS-Damages
73. All of your belongings in the house are covered by ____ in a dwelling policy. -
ANS-Coverage C
74. An action that, in a natural and continuous sequence, produces a loss is _____. -
ANS-the proximate cause
75. An agent must give notice ____. - ANS-at time of application
76. An aggregate limit is the most a company will pay____. - ANS-over the policy year
77. An all-risk or open-perils policy protects against any peril except those specifically ____.
- ANS-excluded
78. An assignment of policy can only occur with written consent of the _____. - ANS-insurer
79. An auto is sold for salvage value following payment of a loss. Who receives the
proceeds? - ANS-insurance company
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