TEXAS PROPERTY AND CASUALTY
INSURANCE PRACTICE EXAM
NEWEST ACTUAL EXAM 350
QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Question 1: Coverage for water backup or sump pump
overflow is excluded from the Dwelling Policy. However, with the purchase of the water backup and sump pump overflow endorsement, coverage for up to $5,000 in loss or damage can be provided for an additional premium. What is the deductible associated with this coverage?
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 : It must be paid in advance.
It is an estimated premium paid at the policy issue.It could be adjusted by the audit.
Question 5: Which of the following is NOT an essential
element of an insurance contract?
- counteroffer
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?
- An employee of a medical facility who suffers from a
common cold
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