Texas Property & Casualty License Exam with Answers
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Course
Texas Property & Casualty License
Institution
Texas Property & Casualty License
Texas Property & Casualty License Exam with Answers
1. Property vs Casualty: What
is considered property?
2. Property vs Casualty: What
is considered casualty?
Structure & Personal Property
Non-property losses. Legal liability to others.
3rd Party
3. Risk uncertainty of financial loss
4. P...
Texas Property & Casualty License Exam with Answers
1. Property vs Casualty: What Structure & Personal Property
is considered property?
2. Property vs Casualty: What Non-property losses. Legal liability to others.
is considered casualty? 3rd Party
3. Risk uncertainty of financial loss
4. Pure Risk Chance of Loss
5. Speculative Risk Chance of Loss or Gain (Gamble)
6. Insurance (covers which Pure Risk Only
type of risk?)
7. How does the law of large Actuaries use the law of large numbers to
numbers apply in insur- estimate claims
ance?
8. What is the law of large num- as the number of a similar loss exposure
bers? increases, the more accurate claims can be
predicted from the group.
9. What is a peril? cause of loss
10. What is a hazard? things that increase the chance of a peril
happening
11. Three types of hazards Physical: visible characteristic (dead tree)
Moral: Dishonest tendencies
Morale: Attitude of carelessness
12. Proximate Cause First cause in an unbroken chain of events
13. Elements of a legal contract C - Competent parties (18/Right frame of
(CALC) mind)
A - Agreement (Both parties agree)
L - Legal Purpose (The risk is LEGAL)
C - Consideration (It has to be fair)
, Texas Property & Casualty License Exam with Answers
14. What is representation? Information believed to be true.
15. What is misrepresentation? Information that is not true. False information.
16. What is material misrepre- Information that is not true but would have
sentation? caused the insurer not to issue the policy. (4
prev spd tix)
17. What is fraud? An all out effort by one party to deceive and
cheat the other.
18. What is warranty? Guarantee that an insured will or will not do
something
19. What are the four major parts D - Declarations Page (First Page)
to an insurance policy struc- I - Insuring Agreement (Insurers promise to
ture? (DICE) pay)
C - Conditions (Rules)
E - Exclusions (Not covered)
20. What information is on the Policy Number
declarations page? (Remem- Parties
ber 6 Ps) Property Description/Location
Policy Term
Policy Limits/Deductibles
Premium
21. What is Limit of Liability? The max amount of coverage agreed to be
paid per loss
22. What is Aggregate Limit? The max amount of the total of all claims paid
per policy period
23. Insuring Agreement? Insurers promise to pay
24. Conditions Contains the duties and rights of both parties
25. What are the Insured's du- Submit a proof of loss or sworn statement
ties after a loss? within 91 days. Protect property from further
damage. Cooperate with the insurer.
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