Texas Property & Casualty License Exam Questions and Answers (Solved Papers)
Property vs Casualty: What is considered property? - Correct
Answers ✅Structure & Personal Property
Property vs Casualty: What is considered casualty? - Correct
Answers ✅Non-property losses. Legal liability to others. 3rd Party Risk - Correct Answers ✅uncertainty of financial loss Pure Risk - Correct Answers ✅Chance of Loss Speculative Risk - Correct Answers ✅Chance of Loss or Gain (Gamble) Insurance (covers which type of risk?) - Correct Answers ✅Pure Risk Only How does the law of large numbers apply in insurance? - Correct Answers ✅Actuaries use the law of large numbers to estimate claims What is the law of large numbers? - Correct Answers ✅as the number of a similar loss exposure increases, the more accurate claims can be predicted from the group. 1 / 3
Texas Property & Casualty License Exam Questions and Answers (Solved Papers) What is a peril? - Correct Answers ✅cause of loss What is a hazard? - Correct Answers ✅things that increase the chance of a peril happening
Three types of hazards - Correct Answers ✅Physical:
visible characteristic (dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
Proximate Cause - Correct Answers ✅First cause in an unbroken chain of events Elements of a legal contract (CALC) - Correct Answers ✅C - Competent parties (18/Right frame of mind) A - Agreement (Both parties agree) L - Legal Purpose (The risk is LEGAL) C - Consideration (It has to be fair) What is representation? - Correct Answers ✅Information believed to be true.What is misrepresentation? - Correct Answers ✅Information that is not true. False information. 2 / 3
Texas Property & Casualty License Exam Questions and Answers (Solved Papers) What is material misrepresentation? - Correct Answers ✅Information that is not true but would have caused the insurer not to issue the policy. (4 prev spd tix) What is fraud? - Correct Answers ✅An all out effort by one party to deceive and cheat the other.What is warranty? - Correct Answers ✅Guarantee that an insured will or will not do something What are the four major parts to an insurance policy structure? (DICE) - Correct Answers ✅D - Declarations Page (First Page) I - Insuring Agreement (Insurers promise to pay) C - Conditions (Rules) E - Exclusions (Not covered) What information is on the declarations page? (Remember 6 Ps) - Correct Answers ✅Policy Number Parties Property Description/Location Policy Term Policy Limits/Deductibles Premium
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