Texas Property & Casualty Insurance,
Insurance test with correct answers
____ damages punish the wrongdoer. - CORRECT ANSWERS-punitive
____ includes burglary, safe burglary, robbery, larceny, embezzlement and forgery. -
CORRECT ANSWERS-theft
____ is an all-out effort by one party to deceive. - CORRECT ANSWERS-fraud
____ liability protects employees from benefit administrator mistakes or negligence. -
CORRECT ANSWERS-fiduciary
____ risk is the chance of loss. - CORRECT ANSWERS-pure
_____ are considered special damages. - CORRECT ANSWERS-Medical expenses
_____ can only perform duties in the office such as giving quotes. - CORRECT
ANSWERS-insurance service representatives
_____ coverage must be added to a dwelling policy by endorsement. - CORRECT
ANSWERS-Theft and liability
_____ deals with disagreements on coverage issues. - CORRECT ANSWERS-
arbitration
_____ deals with disagreements on the value of the loss. - CORRECT ANSWERS-
appraisal
_____ insurance covers real property and personal property. - CORRECT ANSWERS-
property
_____ insurance covers your legal liability to others. - CORRECT ANSWERS-casualty
,_____ is the transfer of risk through a legal contract from the insured to the insurer. -
CORRECT ANSWERS-insurance
_____ protects against unreasonable profits. - CORRECT ANSWERS-Texas
Department of Insurace
_____ protects insured's from a rate hike after credit review. - CORRECT ANSWERS-
FCRA
______ on a Homeowner's policy takes care of loss of use and provides additional living
expenses and lost rental values if a portion is rented out. - CORRECT ANSWERS-
Coverage D
_____carriers provide insurance that is not available from private insurers, such as flood
insurance. - CORRECT ANSWERS-residual market
_____liability refers to product defect claims. - CORRECT ANSWERS-strict
1st source of underwriting? - CORRECT ANSWERS-Application, Inspection, credit
score, Bureau of motor vehicles, Insurance industry bureus, Financial Info, Previous
insurer, Insurance claim file
A ___ insurer shares profits with policy holders. - CORRECT ANSWERS-mutual
A ___ is a civil wrong, such as slander, libel or false arrest, other than breach of
contract. - CORRECT ANSWERS-tort
A ____ agent may place insurance risks with unauthorized insurers. - CORRECT
ANSWERS-surplus lines
A ____ hazard is caused by carelessness. - CORRECT ANSWERS-morale
A _____ is not true, but has no effect on the insurer's decision to issue a policy. -
CORRECT ANSWERS-misrepresentation
A binder or temporary contract of insurance is good for up to _____ days. - CORRECT
ANSWERS-30
A business income policy covers lost profits, continuing expenses and _____. -
CORRECT ANSWERS-extra expenses
A business owners policy (BOP) can stand by itself as a ____? - CORRECT
ANSWERS-commercial package policy
A business owners policy is called a package policy because it insures property and
_____. - CORRECT ANSWERS-negligence
,A car dealership would be covered by a ____ policy. - CORRECT ANSWERS-garage
A commercial general liability policy is the broadest business liability policy and pays
____. - CORRECT ANSWERS-actual damages
A deductible is also called a ____. - CORRECT ANSWERS-retention
A delivery boy hits a pedestrian and hurts them, is covered by ____. - CORRECT
ANSWERS-operations exposure
A DP1 is also known as a ____. - CORRECT ANSWERS-dwelling fire policy
A DP3 policy does not cover code ordinance, power interruption off premises or _____.
- CORRECT ANSWERS-theft
A dwelling policy is a _____ policy. - CORRECT ANSWERS-monoline
A dwelling policy with no endorsements attached contains personal property coverage,
dwelling coverage and _____. - CORRECT ANSWERS-medical payments coverage
A farm policy is like a home owner's policy A, B, C and D, with some changes to insure
the farm and property coverage ____. - CORRECT ANSWERS-E, F, and G
A flood policy has a ____ waiting period, unless it is purchased with a mortgage. -
CORRECT ANSWERS-30 day
A garage policy includes garage liability, garage keepers, and _____. - CORRECT
ANSWERS-physical damage
A home owner's policy will NOT cover _____. - CORRECT ANSWERS-mudslides
A Lloyds company is an arrangement between an attorney and at least 10 underwriters
to provide coverage. Must be members of ____. - CORRECT ANSWERS-TWIA
A managing general agent is one taht - CORRECT ANSWERS-
A person cannot collect lost wages and _____in a personal injury protection claim. -
CORRECT ANSWERS-essential services
A person receiving an inquiry from the state of Texas has ___ days to respond. -
CORRECT ANSWERS-15
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? - CORRECT ANSWERS-$1500
, A policy used to insure separate pieces of jewelry is called a ____. - CORRECT
ANSWERS-personal articles floater
A proof of loss form is required to be submitted within ___ days in Texas. - CORRECT
ANSWERS-91
A property owner wants to insure both the rental property and any of the tenant's
belongings if they are stolen. Which policy would you recommend and why? -
CORRECT ANSWERS-DP-3 special form and a separate tenant's policy to cover
personal property.
A truckers contract is also called common carrier cargo ____. - CORRECT ANSWERS-
liability
A watercraft policy for boats less than ___ feet and limited to use in the Gulf is a type of
umbrella policy. - CORRECT ANSWERS-26
Abandonment condition - CORRECT ANSWERS-A condition often contained in
property insurance policies that states that the insured cannot abandon damaged
property to the insurer and demand to be reimbursed for its full value.
Absolute liability - CORRECT ANSWERS-A type of liability that occurs due to extremely
dangerous operations, such as the use of explosives or working at extreme heights May
be held responsible for the damage of anothers property even though the are not
negligent.
Actual cash value - CORRECT ANSWERS-The cost of replacing an item of property at
the time of loss, less an allowance for depreciation ;
Additional coverage for all homeowners policies? - CORRECT ANSWERS-Fesonable
repairs, Trees,shrubs and other plants, fire department(500) Property removal-30 days,
credit cards and forgery to 500 with no deductable,Broken glass, Loss assesment by
homeowbners association.
Additional supplementary coverage- BAILED - CORRECT ANSWERS-Bonds, Aid,
Interest, Lost earnings, exspense, defense.
Adhesion contract - CORRECT ANSWERS-Contract where where one party has more
poer in drafting a contract. The Insurer has the most power in a insurance contract.
Adverse selection - CORRECT ANSWERS-A high-risk person benefits more from
insurance, so is more likely to purchase it.
Adverse selection - CORRECT ANSWERS-A high-risk person benefits more from
insurance, so is more likely to purchase it.
