Texas Property & Casualty Insurance Exam Questions with Verified Solutions (420 Questions) Update
Question 1: What is the deductible associated with this
coverage? Coverage for up to $5,000 in loss or damage can be provided for an additional premium with the water backup and sump pump overflow endorsement.
CORRECT ANSWER : $250
Question 2: 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
CORRECT ANSWER : Unoccupied
Question 3: Individuals in the business of selling construction
equipment and mobile equipment should insure with a/an
CORRECT ANSWER : Equipment dealers coverage form
Question 4: All of the following are true regarding deposit
premium
- It must be paid in advance.
- It is an estimated premium paid at the policy issue.
- It could be adjusted by the audit.
CORRECT ANSWER : A, B, and C
Question 5: Which of the following is NOT an essential
element of an insurance contract?
CORRECT ANSWER : counteroffer
Question 6: To purchase insurance, the policyowner must
have financial interest in the property being insured. This is known as
CORRECT ANSWER : Insurable Interest
Question 7: What type of property does a Personal Floaters
policy cover?
CORRECT ANSWER : Movable personal property,
wherever it may be located
Question 8: Events or conditions that increase the chances of
an insured loss occurring are referred to as
CORRECT ANSWER : Hazards
Question 9: 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?
CORRECT ANSWER : An employee of a medical facility
who suffers from a common cold
Question 10: When a direct chain of events resulting from a
negligent act causes injury or damage, that act is considered to be
CORRECT ANSWER : The proximate case
Question 11: The causes of loss insured against in an
insurance policy are known as
CORRECT ANSWER : Perils
Question 12: Surety bonds are written for a definite limit
called
CORRECT ANSWER : The Bond Penalty
Question 13: Insurance is the transfer of
CORRECT ANSWER : Risk
Question 14: Crime insurance is usually written on the basis
of
CORRECT ANSWER : All-Risk
Question 15: 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?
CORRECT ANSWER : The homeowner will need to get
written consent from the insurer before the policy can be reassigned.