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Texas Property and Casualty practice
exam / Complete Questions & Correct
Detailed Answers (100% Correct) 2025 /
_____________Quiz____________? 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? -
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Coverage for up to $5,000 in loss or damage, subject to a $250 deductible, can be provided for an additional premium with this endorsement. _____________Quiz____________? 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 -
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Unoccupied Unoccupancy refers to an insured structure in which no people have been living or working within the required period of time, but the structure contains contents.
_____________Quiz____________? Individuals in the business of selling construction equipment and mobile equipment should insure with a/an -
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Equipment dealers coverage form An equipment dealer's coverage form covers a dealer's stock in trade consisting primarily of mobile agricultural equipment and construction equipment. It also covers property of others in the dealer's care, custody, or control. It excludes coverage for autos, motorcycles, aircraft, and watercraft. _____________Quiz____________? All of the following are true regarding deposit premium -
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It must be paid in advance. It is an estimated premium paid at the policy issue. It could be adjusted by the audit. Deposit premium is an estimated premium paid in advance at the time the policy is issued that may be adjusted by the audit based on actual exposures. _____________Quiz____________? Which of the following is NOT an essential element of an insurance contract? -
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An employee of a medical facility who suffers from a common cold _____________Quiz____________? When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be -
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The proximate case _____________Quiz____________? The causes of loss insured against in an insurance policy are known as -
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Perils Perils are the causes of loss insured against in an insurance policy. _____________Quiz____________? Surety bonds are written for a definite limit called -
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The Bond Penalty _____________Quiz____________? Insurance is the transfer of -
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Risk _____________Quiz____________? Crime insurance is usually written on the basis of -
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All-Risk _____________Quiz____________? 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? -
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The homeowner will need to get written consent from the insurer before the policy can be reassigned. _____________Quiz____________? What term best describes the act of withholding material information that would be crucial to an underwriting decision? -
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Concealment _____________Quiz____________? The at-fault driver in an insured's auto crash had the state required minimums for auto liability coverage, but not enough to pay for all the damage done to the insured. This driver is -
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Considered uninsured _____________Quiz____________? An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? -
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80% of the property's replacement cost or more
_____________Quiz____________? With respect to commercial auto policies, the Garage Coverage Form provides liability protection for all of the following EXCEPT -
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The insured's business income losses due to personal injury. _____________Quiz____________? An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure. Which condition is part of the insured's policy? -
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Deposit premium audit Deposit premium audit is a condition that allows an insurer to inspect the insured's books at the end of the policy term to make sure sufficient payment has been collected for the exposure. _____________Quiz____________? All of the following are considered parts of the policy structure EXCEPT -
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Provisions _____________Quiz____________? A premium discount is the term that describes when an insured owes a total standard premium greater than -
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_____________Quiz____________? Under a personal auto policy, in which of the following locations would a vehicle primarily garaged in California be covered? -
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any other state _____________Quiz____________? Which of the following is an additional coverage that is covered by the broad causes of loss form? -
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collapse _____________Quiz____________? The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT -
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$1,000 on silverware _____________Quiz____________? The employee theft crime policy includes a coverage extension that applies to employees temporarily outside the coverage territory for up to -
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90 days _____________Quiz____________? Which of the following policies will help an auto dealership cover most of its liability exposures? -
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Physicians, surgeons and dentists malpractice _____________Quiz____________? To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities? -
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That has met the minimum floodplain management guidelines _____________Quiz____________? An insured stated on her application for life insurance that she had never had a heart attack, when in fact she had a series of minor heart attacks last year for which she sought medical attention. Which of the following will explain the reason a death benefit claim is denied? -
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Material misrepresentation _____________Quiz____________? All of the following statements describe the concept of strict liability EXCEPT -
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It is imposed on defendants engaged in hazardous activities _____________Quiz____________? When a parent is required to pay for damages caused by his or her children, this is an example of -
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Vicarious liability
