Texas Insurance Practice Exam With Correct Solution
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Course
Texas insurance
Institution
Texas Insurance
Subrogration may follow which of the following events? - ANSWER-An insured collects from her insurance company for damages caused by a third party
Medical payments coverage under a BOP applies to expenses incurred by non-insureds for bodily injury and reported to the insurer within: - ANSWER-One...
Texas Insurance Practice Exam With Correct
Solution
Subrogration may follow which of the following events? - ANSWER-An insured collects
from her insurance company for damages caused by a third party
Medical payments coverage under a BOP applies to expenses incurred by non-insureds
for bodily injury and reported to the insurer within: - ANSWER-One year after the
accident
Claims expenses covered under Section II - Personal Liability of the standard
Homeowners forms do NOT pay for which of the following? - ANSWER-Loss of the
insured's earnings subject to a pre-determined limit of $300 per day
Which statement best describes "defense" coverage under the Section II - Liability
coverage of the Businessowners policy? - ANSWER-Defense costs are not subject to a
limit
Under an aircraft policy what is NOT a covered territory usually covered (unless
endorsed) while the aircraft is in flight? - ANSWER-Costa Rico
Under a standard Equipment Breakdown policy, the full replacement cost will be paid on
the claim, if the equipment is repaired within what time period following the loss? -
ANSWER-24 months
When a licensee in Texas receives an inquiry from the Insurance Department regarding
their insurance transactions, he or she must respond in writing: - ANSWER-Not later
than the 15th day after the date the inquiry is received
The sprinkler leakage coverage of a Commercial Property form does not provide
coverage for: - ANSWER-damage to growing crops from malfunctioning sprinklers
Under the appraisal clause in a commercial inland form, which of the following is true? -
ANSWER-the insurer still retains its right to deny the claim entirely
All of the following statements are true regarding state Guaranty Associations, Except: -
ANSWER-The fund assists insurers in gaining new insurance business by allowing
them to advertise their membership in the Guaranty Association.
The Personal Inland Marine coverage form that covers clothing, cameras and other
portable property worn or carried by tourists and travelers is known as a: - ANSWER-
Personal Effects floater.
, Each of the following is a feature of Business Income Coverage, EXCEPT - ANSWER-
Monetary deductibles. .
The limits of the Employers' Liability section of a standard workers' compensation policy
are: - ANSWER-Listed on the Information page..
The term "time element coverage" is used when the amount of loss depends on: -
ANSWER-The time it takes to repair, rebuild or restore damaged property.
Under a personal automobile policy with uninsured motorists coverage, a disagreement
between an insurance company and an insured on the amount of a loss can be settled
by: - ANSWER-Arbitration
Aaron purchases a Homeowners insurance policy for $700,000 with a 4% deductible. A
few months later, a heavy hailstorm destroys his roof, porch, and windows, causing
$50,000 in damages. How much should Aaron expect to receive from the insurance
company to pay for the damages? - ANSWER-$22,000
A Personal Umbrella policy will cover an insured for an "occurrence" or "offense" that
occurs - ANSWER-Anywhere in the world.
The NAIC Model Unfair Claim Settlement Practice Act provides for a financial penalty of
_________ for each violation of the Act. - ANSWER-$1,000
If a building insured under a BOP has been vacant or unoccupied beyond _____ the
insurer can send the insured a notice of cancellation. - ANSWER-60 days
Risk retention and purchasing groups are used to provide which of the following types of
coverage? - ANSWER-Products Liability insurance..
The Now Company carries a special BOP policy with a liability limit of $500,000. The
company is involved in an accident causing $200,000 bodily injury damage and
$200,000 property damage. The total amount collectible under the policy is: - ANSWER-
$400,000
Which of the following would be covered under an aviation policy? - ANSWER-A
temporary substitute aircraft.
Generally, an employee's average weekly wage is determined in Texas by which of the
following computations? - ANSWER-The employee's wages for the 13 consecutive
weeks preceding the injury divided by 13..
All of the following injuries occurring on the job would probably be deemed
compensable, EXCEPT - ANSWER-A cerebral hemorrhage occurring at work and
caused from years of high blood pressure.
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