Texas Property and Casualty Exam - Practice Questions with Complete Solutions (Latest 2025) ____ is uncertainty of loss - Correct Answers ✅risk ____ is a transfer of risk from the insured to the insurer - Correct Answers ✅insurance ____ risk means there is no chance of gain. It is insurable. - Correct Answers ✅pure ____ risk means there is a chance of a loss or a gain. It is not insurable. - Correct Answers ✅speculative a ____ is something that increases the risk. - Correct Answers ✅hazard the principle of _____ governs property and casualty policies.It states that the purpose of the policy is to restore the insured financially to where they were prior to the loss - Correct Answers ✅indemnity _____ _____ must exist on a casualty policy at time of loss in order for the policy to provide coverage. - Correct Answers ✅insurable interest the law of _____ _____ is used to predict the likelihood of loss - Correct Answers ✅large numbers 1 / 4
Texas Property and Casualty Exam - Practice Questions with Complete Solutions (Latest 2025) ____ ____ ____ is replacement cost minus depreciation. - Correct Answers ✅actual cash value ________ is a tort, or civil wrong; it is grounds for a lawsuit. - Correct Answers ✅Negligence _______ is the failure to act as a reasonable person would in the same set of circumstances - Correct Answers ✅negligence an _____ happens over a period of time - Correct Answers ✅Occurrence a _____ may be oral or written - Correct Answers ✅binder a _____ provides coverage until the policy is issued. it includes all coverages provided by the policy. - Correct Answers ✅binder a ____ is a literal truth - Correct Answers ✅warranty 2 / 4
Texas Property and Casualty Exam - Practice Questions with Complete Solutions (Latest 2025) a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are _______ - true to the best of their knowledge - Correct Answers ✅representation ______ is an omission of a material fact. - Correct Answers ✅concealment the insurer has the right to sue a negligent third party for damages paid to an insured under the concept of ______ - Correct Answers ✅subrogation four parts of a policy - Correct Answers ✅DICE (declarations, insuring agreement, conditions, and exclusions) the ______ list the named insured, policy limits, and premium and policy period - Correct Answers ✅declarations the ____ __ ____ are found on the declaration page of the policy - Correct Answers ✅limits of liability the _______ _______ describes the coverages provided - Correct Answers ✅insuring agreement 3 / 4
Texas Property and Casualty Exam - Practice Questions with Complete Solutions (Latest 2025) the _______ list the obligations of both parties, the insurer and the insured - Correct Answers ✅conditions the ______ list the perils that are not covered - Correct Answers ✅exclusions If the Insurer and the Insured disagree that the liability policy does or does not provide coverage, the claim will go to _____ - Correct Answers ✅arbitration in _____ each party pays for one and a half persons involved - Correct Answers ✅arbitration in arbitration there are _____ arbitrators - Correct Answers ✅three the cancellation provisions are found in the ________ section of the policy - Correct Answers ✅conditions the insured must promptly tell the insurer about a ______ - Correct Answers ✅claim the other insurance clause is also known as the ____-____ _____ _______ - Correct Answers ✅pro-rata liability clause
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