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TEXAS INSURANCE LICENSE EXA1
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TEXAS INSURANCE LICENSE EXA1
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TEXAS INSURANCE LICENSE EXAMUnless otherwise stated by the policy, property covered by the Building and Personal
Property Coverage Form is valued on what basis? - ANSWER Actual cash value
Under a Commercial General Liability policy, all of the following statements about the
supplemental extended reporting period are correct, except: - ANSWER The insurer
may cancel the SERP after the insured pays the premium
Which of the following statements is correct regarding PIP coverage in Texas? -
ANSWER PIP coverage covers insureds and their guests without regard to fault or
to coordination of benefits
Which of the following statements regarding types of property loss is incorrect? -
ANSWER Direct losses include additional living expenses
What is the maximum amount supplementary payments coverage provided by a
Business Auto policy will pay for the cost of bail bonds related to a covered
accident? - ANSWER $2,000
Under a Business Auto policy, which of the following statements about towing
coverage provided under the policy's physical damage coverage is correct? -
ANSWER Labor must be performed at the place of disablement to be covered
Commercial Crime insurance policies are typically able to cover losses resulting from
all of the following, except: - ANSWER The mysterious disappearance of property
An insured with a Personal Auto policy on their car is using a non-owned auto to run
errands. Under the insured's policy, liability coverage for use of the non-owned auto
is: - ANSWER Provided on an excess basis
After unintentionally running a red light, L causes an accident with T. T's sedan is
badly damaged, and T's arm is broken. A few months after the accident, T brings a
suit against L, asking for damages for medical costs incurred for the broken arm and
other injuries sustained in the accident. Under Part A of L's Personal Auto policy,
supplementary payments in connection with the insurer's defense will: - ANSWER
Be paid in addition to the policy's liability limits
All of the following are common law defenses against negligence, except: -
ANSWER Statute of limitations
Under Coverage C - Household Personal Property on a Farm Property policy,
coverage is provided for: - ANSWER Furniture in the dwelling
Which of the following must participate in a Workers' Compensation Assigned Risk
Plan? - ANSWER Insurers that are authorized to write Workers' Compensation in
the voluntary market
, A company that sells mobile equipment has its stock protected under an Equipment
Dealers Floater. Records of the company's business, including itemized inventories
and sales records, must be retained for at least how long after the policy ends? -
ANSWER 3 years
Which is true of Coverage C of the Dwelling Policy? - ANSWER Coverage C
provides coverage for the personal property of a guest
After a building loss, the insured on a Businessowners policy incurs extra expenses
to minimize the suspension of business. Extra expense coverage is provided during
the period of restoration and for up to: - ANSWER 12 months after the direct
physical loss
J owns a home protected by a property insurance policy. A severe windstorm
creates an opening in the roof that exposes the upstairs guest suite in J's home and
causes rain damage to the carpet. In order to collect claim payments from the carrier
for the damaged roof and carpet, J is required to: - ANSWER Tarp the roof to
protect the the roof and the guest suite from further damage
Under the U.S. Longshore and Harbor Workers' Compensation Act, all of the
following are covered, except: - ANSWER The crew of a ship
A claimant brings suit against the insured for negligence. The insured's defense
argues that the claimant participated in causing the loss and was partially negligent,
meaning the claimant is not owed any damages for the loss. This is an example of: -
ANSWER Contributory negligence
Y has an unendorsed Special Form Homeowners policy (HO-3) on their home with a
$500 deductible. The home's old sewer system backs up, resulting in $1,500 of
damage to floors and Y's personal property. When Y submits information related to
the loss to the insurer, the insurer will: - ANSWER Deny coverage
Which of the following coverages is not available under a Businessowners policy? -
ANSWER Workers' Compensation
A corporation applying for an agency license in Texas must meet which of the
following requirements? - ANSWER At least one officer or active partner is
individually licensed in the same or greater line of authority as the agency
Which of the following is considered an offer of a legal contract? - ANSWER An
applicant who submits a completed application and initial premium to the insurer
Which of the following is not covered under comprehensive coverage under the
Business Auto Coverage Form? - ANSWER Collision
Within how many days after an insured acquires new business property must the
property be added to the BOP policy? - ANSWER 30
An LLC has a Commercial General Liability policy. Which of the following is
considered an insured? - ANSWER The LLC's volunteer workers
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