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Property and Casualty Exam - Texas QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A+
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Property and Casualty Exam - Texas QUESTIONS AND CORRECT DETAILED ANSWERS |ALREADY GRADED A+
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Property and Casualty Exam - Texas1. ____ ____ ____ is replacement cost minus depreciation. - ANS-actual cash value
2. ____ _____ ______ coverage pays for losses that occur during the policy period and are
found for up to 1 year after the policy is terminated. - ANS-Loss sustained crime
3. ____ is a transfer of risk from the insured to the insurer - ANS-insurance
4. ____ is uncertainty of loss - ANS-risk
5. ____ risk means there is a chance of a loss or a gain. It is not insurable. -
ANS-speculative
6. ____ risk means there is no chance of gain. It is insurable. - ANS-pure
7. _____ ___ _____ covers only additional living expenses - ANS-loss of use
8. _____ _____ _____ are voluntary, unincorporated associations whose member insurers
provide particular forms of insurance to the public - ANS-Joint underwriting associations
(JUAs)
9. _____ _____ _____ coverage is not mandatory in the state of Texas - ANS-Auto
Uninsured Motorist
10. _____ _____ agents may be authorized as a general lines agent, managing general
agent, or nonresident agent who is granted a _____ _____ license - ANS-surplus lines
11. _____ _____ and medical coverage cover the insured's activities both on and off the
premises - ANS-personal liability
12. _____ _____ are not covered on DP or HO forms - ANS-farm risks
13. _____ _____ covers product liability, but does not cover the cost of a recall -
ANS-garage liability
14. _____ _____ does not cover the cost of a recall or resulting lost income - ANS-products
liability
15. _____ _____ establishes that an employee cannot take legal action against an employer
if the employee recovers benefits through workers compensation - ANS-exclusive
remedy
16. _____ _____ issue participating policies, which might pay a dividend - ANS-mutual
insurers
17. _____ _____ may be issued to corporations if eligibility requirements are met -
ANS-agent licenses
18. _____ _____ must exist on a casualty policy at time of loss in order for the policy to
provide coverage. - ANS-insurable interest
19. _____ ______ applies only after the product is out of the control of the insured -
ANS-products liability
20. _____ ______ causes of loss adds falling objects; weight of ice, snow, or sleet; water
damage; collapse; and breakage of glass to those perils covered under the basic causes
of loss. - ANS-Broad form
21. _____ ______ insurance provides coverage on risks unavailable through authorized
insurers - ANS-surplus lines
,22. _____ ______ is defined as a disease arising out of or during the course of employment,
resulting in damage or harm to the body - ANS-occupational disease
23. _____ _____, also known as the automatic increase endorsement, must be added to a
DP policy by endorsement - ANS-inflation guard
24. _____ are a return of excess premiums in participating policies - ANS-dividends
25. _____ can only share commissions with other agents who are licensed for the same
lines of insurance - ANS-Agents
26. _____ coverage covers buildings, the contents of buildings, or both - ANS-property
27. _____ is considered to be a restraint of trade and is illegal - ANS-Coercion
28. _____ is defined as an intentional misrepresentation or concealment used to induce a
party - ANS-Fraud
29. _____ is defined as the temporary inundation of normally dry land - ANS-flood
30. _____ or liability insurance provides compensation or indemnity an insured must pay as
a result of harm or wrong done to others - ANS-casualty
31. ______ _____ are paid to an employee on a weekly basis, unless otherwise requested
and greed upon with the employer - ANS-income benefits
32. ______ _____ on the PAP covers colliding with another object, rollover and upset.
Everything else is covered by other than collision coverage - ANS-Collision coverage
33. ______ _____ works best for items whose value does not fluctuate much - ANS-Agreed
value
34. ______ ______ (such as for trees, shrubs and plants) are in addition to limits -
ANS-additional coverages
35. ______ ______ covers occupational injury or sickness - ANS-Workers Compensation
36. ______ ______ do not cover growing crops or autos driven on the highway - ANS-farm
policies
37. ______ ______ may pay dividends to policyholders; however, dividends are never
guaranteed - ANS-mutual insurers
38. ______ ______ means one location is insured for a specific amount of insurance on the
structure and contents. - ANS-Specific coverage.
39. ______ ______ refers to the value of loss being the full amount of the HO policy, in
response to a total loss of insured property - ANS-liquidated demand
40. ______ ______ sell nonparticipating policies and pay dividend to policyholders -
ANS-stock insurers
41. ______ ______ will pay beyond the expiration date of a policy. It will pay until the
business is restored or the limits of coverage are exhausted. - ANS-Business income
42. ______ _______ ______ for false arrest, libel, slander, defamation, and invasion of
privacy is not automatically covered on an HO, but it can be added by endorsement for
an additional premium - ANS-personal injury liability
43. ______ _______ means the employer does not have to be subject to the state's workers
compensation laws, but if the employer chooses not to be subject to the laws, it loses its
common law defenses against liability suits. - ANS-elective law
44. ______ and _____ is an optional coverage on the PAP and costs extra - ANS-towing
and labor
, 45. ______ and ______ liability policies cover the management mistakes of corporate
officers and board members - ANS-directors and officers
46. ______ damage is covered under a PAP, but not on property policies - ANS-flood
47. ______ insurers are those incorporated in the state of Texas - ANS-domestic
48. ______ is an omission of a material fact. - ANS-concealment
49. ______ is defined as making oral or written statements that are false or maliciously
critical of the financial condition of an insurer or agent - ANS-defamation
50. ______ is defined as the giving of something of value in order to induce the client to
purchase an insurance policy, usually part of the premium paid or the commission
received - ANS-rebating
51. ______ only need a license in the state they reside in and any state they conduct
insurance business in - ANS-producers
52. _______ ______ are paid to an employee in the event of total or permanent loss of sight
in both eyes, loss or paralysis to both feet, both hands, or one foot and one hand, or
injury to the skull resulting in incurable insanity or imbecility - ANS-Lifetime benefits
53. _______ ______ will cover charges for medical, surgical, x-ray, dental, ambulance,
hospital, nursing, prosthetic devices and funeral services - ANS-medical coverage
54. _______ companies are not eligible for a BOP - ANS-manufacturing
55. _______ is considered to be an unfair trade practice, including making misleading
statements, illustrations or advertisements and/or the guarantee of future dividends -
ANS-misrepresentation
56. _______ is the failure to act as a reasonable person would in the same set of
circumstances - ANS-negligence
57. ________ ______ coverage form does not cover an employee injured while driving a
company car - ANS-business auto
58. ________ ________ is commonly applied in product liability cases. The business is then
liable for defective products, regardless of fault or negligence. - ANS-Strict liability
59. ________ and _______ are both excluded perils in all property policies. However,
coverage for both or either one usually can be purchased separately for an additional
premium (by endorsement). - ANS-flood and earthquake
60. ________ is a tort, or civil wrong; it is grounds for a lawsuit. - ANS-Negligence
61. _________ _________, which takes the form of a monetary benefit, is paid without any
consideration of fault or negligence on the part of either the employee or employer. -
ANS-Workers compensation
62. _________ liability provides medical professionals bodily injury liability -
ANS-malpractice
63. ___________ compensatory damages are for intangible elements that cannot be
specifically measured in terms of dollars. (pain and suffering and disfigurement) -
ANS-general
64. _____-____ does not mean equal, it is proportionate - ANS-pro-rata
65. __-_ (unit-owners form) does not cover common area buildings - ANS-HO-6
66. __-_ are property policies issued to tenants to cover contents extended coverage to
losses caused by a covered peril to improvements, alterations and additions made to the
described location at the tenant's expense - ANS-HO-4
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