TEXAS PROPERTY AND CASUALTY INSURANCE STATE EXAM 2024 ACTUAL EXAM AND PRACTICE QUESTIONS 450 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT) /A+ GRADE ASSURED

TEXAS PROPERTY AND CASUALTY
INSURANCE STATE EXAM 2024 ACTUAL
EXAM AND PRACTICE QUESTIONS 450
QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT) /A+ GRADE
ASSURED
Which of the following requires a person to prove that
automobile liability insurance is in effect and is usually tied to
vehicle registration? - ....ANSWER...Financial responsibility
law
The business auto policy (BAP) uses symbols to denote the
vehicles to which each of the policy's coverage applies. _____
allows coverage of all vehicles: owned, non-owned, and hired.
- ....ANSWER...Symbol 1
Business personal property must be within ____ feet of the
premises to be covered on a commercial property policy. -
....ANSWER...100
Which of the following is inland marine insurance? -
....ANSWER...Commercial property floaters
The FAIR Plan was brought into being to cover dwellings for
minimum amounts that companies would not accept, and to
spread the business ____ among all companies. -
....ANSWER...equitably
A business owners policy (BOP) can stand by itself as a
____? - ....ANSWER...commercial package policy
The owner of an old building buys insurance to protect
himself from a possible lawsuit. This is an example of risk
____. - ....ANSWER...transfer
The only newspaper in Clarksville was severely damaged by a
tornado. The paper must be printed for several weeks at
another printing facility in a distant town. Under which
insurance coverage would that loss be covered? -
....ANSWER...Extra expense
Under the homeowners policy, in order to receive replacement
cost on a partial loss, the amount of insurance carried must be
at least ____ of replacement cost. - ....ANSWER...80%
The deductible in an umbrella policy is referred to as _____. -
....ANSWER...self-insured retention
An insurance policy covers fire, will not cover nuclear
contamination, and loss must be reported as soon as possible.
In this order, where are these facts found in the policy? -
....ANSWER...Insuring agreement, exclusions, and proof of
loss
The ____ section includes the insurance company's promise to
pay the claim. - ....ANSWER...insuring agreement
Ralph owns an antique pen and pencil set that is insured under
a personal articles floater. The value of the set is $30,000.
After the loss of the pen, the pencil is valued at $20,000. The
insurance company will pay the maximum amount of ____. -
....ANSWER...$10,000
The 3 parties to a surety bond are the principal, the surety and
the ____. - ....ANSWER...obligee
The ordinance and law coverage provides an additional
amount of insurance for the increased costs of repair due to
____. - ....ANSWER...zoning laws
An individual who owns and lives in a condominium can
obtain broad coverage for personal property in the condo
under the ____. - ....ANSWER...HO6
An HO-3 would cover loss from _____. -
....ANSWER...smoke
The insured has an auto policy with liability limits of
$30,000/$60,000/$10,000. He negligently runs off the road
and causes $70,000 damage to an apartment building. How
much will the policy pay? - ....ANSWER...$10,000
A piece of jewelry valued at $10,000 is stolen from the
insured while at the mall. How much will an HO-3 policy pay
for this loss? - ....ANSWER...$1500
An insured item is destroyed by a covered cause of loss. The
insurer and the insured have determined the value of the loss
in advance, and the full amount is payable under the ____
contract. - ....ANSWER...valued
The listing of the perils covered under a policy is found in the
____. - ....ANSWER...insuring agreement
The following are excluded from the liability portion of
commercial auto coverage: injuries sustained by an employee,
mobile equipment, organized racing and ___. -
....ANSWER...pollution
An insured rents a car while on vacation in Canada and causes
an accident. He is covered under an ____ personal auto
policy. - ....ANSWER...unendorsed
The State Guaranty Fund was established to protect all
annuitants, policyholders and _____. -
....ANSWER...beneficiaries
Replacement cost coverage on the dwelling forms may be
written for coverage ______. - ....ANSWER...A and B only
The ____ form should be used when it is difficult to provide
the insurance company with an accurate statement of values
because of fluctuations in inventory from month to month. -
....ANSWER...reporting
The method used to determine coverage if the adjuster and the
insured disagree about whether the peril is covered is called
the _____ method. - ....ANSWER...appraisal
The commercial package policy excludes ____ coverage. -
....ANSWER...ocean marine
The procedure for resolving a disagreement between the
insured and insurer about a loss is outlined in the ____. -
....ANSWER...conditions
Under the Valued Policy Law, the claim is payable at _____. -
....ANSWER...full limit of liability
The insured had a pair of antique silver candlesticks valued at
$2,000. A thief stole 1 candlestick. Because the set was
"broken", the remaining candlestick's value was reduced to
$250. Disregarding the deductible, the insurer would pay
_____. - ....ANSWER...$1750
Monica owns a $150,000 home. She carries 2 insurance
policies on it: Company A insures $100,000 and Company B
insures $50,000. If she suffers a $9,000 covered loss to her
home, how much will Company A pay under the policy? -
....ANSWER...$6000