Exam (elaborations)
Texas State Property and Casualty Insurance Policies Test Answered 2023/2024
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Texas State Property and Casualty Insurance Policies Test Answered 2023/2024
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Texas Property and Casualty Exam 2023/2024 ____ is uncertainty of loss - ANSWER-risk____ is a transfer of risk from the insured to the insurer - ANSWER-insurance
____ risk means there is no chance of gain. It is insurable. - ANSWER-pure
____ risk means there is a chance of a loss or a gain. It is not insurable. - ANSWER-
speculative
a ____ is something that increases the risk. - ANSWER-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 - ANSWER-indemnity
_____ _____ must exist on a casualty policy at time of loss in order for the policy to provide coverage. - ANSWER-insurable interest
the law of _____ _____ is used to predict the likelihood of loss - ANSWER-large numbers
____ ____ ____ is replacement cost minus depreciation. - ANSWER-actual cash value
________ is a tort, or civil wrong; it is grounds for a lawsuit. - ANSWER-Negligence
_______ is the failure to act as a reasonable person would in the same set of circumstances - ANSWER-negligence
an _____ happens over a period of time - ANSWER-Occurrence
a _____ may be oral or written - ANSWER-binder
a _____ provides coverage until the policy is issued. it includes all coverages provided by the policy. - ANSWER-binder
a ____ is a literal truth - ANSWER-warranty
a _______ is a substantial truth. in insurance, statements of the applicant/policyowner are _______ - true to the best of their knowledge - ANSWER-representation
______ is an omission of a material fact. - ANSWER-concealment the insurer has the right to sue a negligent third party for damages paid to an insured under the concept of ______ - ANSWER-subrogation
four parts of a policy - ANSWER-DICE (declarations, insuring agreement, conditions, and exclusions)
the ______ list the named insured, policy limits, and premium and policy period - ANSWER-declarations
the ____ __ ____ are found on the declaration page of the policy - ANSWER-limits of liability
the _______ _______ describes the coverages provided - ANSWER-insuring agreement
the _______ list the obligations of both parties, the insurer and the insured - ANSWER-
conditions
the ______ list the perils that are not covered - ANSWER-exclusions
If the Insurer and the Insured disagree that the liability policy does or does not provide coverage, the claim will go to _____ - ANSWER-arbitration
in _____ each party pays for one and a half persons involved - ANSWER-arbitration
in arbitration there are _____ arbitrators - ANSWER-three
the cancellation provisions are found in the ________ section of the policy - ANSWER-
conditions
the insured must promptly tell the insurer about a ______ - ANSWER-claim
the other insurance clause is also known as the ____-____ _____ _______ - ANSWER-
pro-rata liability clause
_____-____ does not mean equal, it is proportionate - ANSWER-pro-rata
the _____ _____ _____ act protects consumers against the circulation of inaccurate or obsolete personal or financial information. - ANSWER-fair credit reporting act
the ____-____-____ act requires that a customer be given out a privacy notice at the time the customer relationship is initially established and thereafter annually. - ANSWER-gramm-leach-bliley act
the ____ ____ insurance act applies to commercial policies only - ANSWER-terrorism risk insurance act (TRIA) the main difference between the various _____ _____ forms is the property perils insured against - ANSWER-dwelling policy (DP)
DP policies do not cover personal liability, although it can be added by adding an endorsement known as a _____ ______ ______ for an additional premium charge - ANSWER-personal liability supplement
DP policies contain general exclusions for damage due to war, nuclear hazard, and flood but not _____ - ANSWER-wind
on a dwelling policy, other structures coverage will apply to a structure rented out as a _____ _____ - ANSWER-private garage
DP policies do not cover _______ of ______ after 60 days of vacancy - ANSWER-
breakage of glass
DP policies do not cover _____ of _____ unless the heat was left on - ANSWER-
freezing of plumbing
the _____ on which the insured dwelling sits on is not insurable - ANSWER-land
_____ _____, also known as the automatic increase endorsement, must be added to a DP policy by endorsement - ANSWER-inflation guard
a loss from rain or dust would only be covered if an opening in the dwelling ____ or ____ was first created by wind or another covered cause of loss - ANSWER-roof or walls
when a dwelling is covered by more than one policy, losses are shared ____-____ under the other insurance clause. this may also be referred to ad the _____-____ liability clause - ANSWER-pro-rata
the basic dwelling form __-_ is a named or specified peril policy - ANSWER-DP-1
the __-_ _____ ____ does not provide additional living expense under coverage D; only fair rental value is provided - ANSWER-DP-1 basic form
The Extended Coverage Endorsement is added to the Standard Fire Policy to create the __-_ - ANSWER-DP-1
a __-_ _____ _____ policy is named perils on both the dwelling and the contents - ANSWER-DP-2 broad form
on the dwelling broad form DP-2 building structures (Coverages A and B) are written with an ____% coinsurance requirement - ANSWER-80%
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