TEXAS PROPERTY AND CASUALTY
EXAM AND PRACTICE QUESTIONS
WITH CORRECT DETAILED
ANSWERS || ALREADY GRADED A+
< UPDATED>
Which of the following statements most accurately describes the
coverage provided by the Texas Uninsured/Underinsured Motorists
Coverage?
A
The coverage applies to the insured, their family members and
passengers in the insured's car, but not to others driving the insured's car
B
The coverage pays for property damage, including auto repairs, a rental
car, and damage to items carried in the insured's car, subject a deductible
of $250
C
The coverage pays for property damage, including auto repairs, a rental
car, and damage to items carried in the insured's car without application
of a deductible
D
The coverage pays for bodily injury for medical bills, lost wages, pain
and suffering, disfigurement, and permanent or partial disability, subject
a deductible of $250 - ANSWER ✔ B
,The coverage pays for property damage, including auto repairs, a rental
car, and damage to items carried in the insured's car, subject a deductible
of $250
The coverage pays for property damage, including auto repairs, a rental
car, and damage to items carried in the insured's car, subject a deductible
of $250. The coverage pays for bodily injury, without deductibles, for
medical bills, lost wages, pain and suffering, disfigurement, and
permanent or partial disability. The coverage applies to the insured, their
family members, passengers in the insured's car, and others driving the
insured's car with permission.
An insurer in Texas is required to provide information regarding a
fraudulent claim to all of the following upon request, except:
A
Attorney General
B
Commissioner of Insurance
C
Insurance agent
D
Law enforcement agency - ANSWER ✔ C, Insurance agent
Any government agency, including the Commissioner, local law
enforcement agency, and the attorney general, may require information
from an insurer who must provide the information within 15 days from
receiving the written request. An insurance agent or the insured to not
have the authority the require such information.
Under a Commercial General Liability policy written on the Claims-
Made Form, which of the following claims is NOT covered?
A
The loss occurred during the mini tail, and the claim was made during
the midi tail
B
,The loss occurred during the policy period, the loss was reported during
the mini tail, and the claim was made during the midi tail
C
The loss occurred during the policy period, and the claim was made
during the extended reporting period
D
The loss occurred after the retroactive date, and the claim was made
during the policy period - ANSWER ✔ A
The loss occurred during the mini tail, and the claim was made during
the midi tail
Under CGL policies written on the Claims-Made Form, losses must
occur after the retroactive date and prior to the end of the policy period.
The extended reporting periods are not considered part of the policy
period, and they only provide an extended period to report the claim. An
occurrence that takes place during the extended reporting period is not a
covered occurrence.
An insured purchased an insurance policy 5 years ago. Last year, she
received a dividend check from the insurance company that was not
taxable. This year, she did not receive a check from the insurer. From
what type of insurer did the insured purchase the policy?
A. Reciprocal
B. Stock
C. Mutual
D. Risk-retention - ANSWER ✔ C. Mutual
Mutual companies are owned and controlled by their policyholders. Any
surplus money is returned to the policyholders as dividends.
Which of the following describes the insurer's responsibility for
payment under a policy, as stated in the common policy provisions?
A. Limits of Liability
B. Premiums
C. Consideration
, D. Utmost good faith - ANSWER ✔ A. Limits of Liability
Limits of liability are the insurer's liability for payment as stated in an
insurance policy.
All of the following are supplemental payments found in liability
policies EXCEPT
A. Reasonable expenses incurred by the insured
B. All expenses and defense costs incurred by the insurer
C. Costs the insured incurred in hiring an attorney
D. Limited amounts for bonds related to a claim - ANSWER ✔ C. Costs
the insured incurred in hiring an attorney
Supplemental payments pay the insurance company's expenses and will
not pay expenses incurred by the insured unless incurred at the insurers
request.
Which policy consists of the declarations, conditions, endorsements,
and other attachments applicable to a single coverage part?
A. Casualty
B. Businessowners
C. Monoline
D. Commercial Product - ANSWER ✔ C. Monoline
Monoline policy is a policy that contains only one coverage part.
Which of the following is the amount of loss assessment coverage
included under an HO Liability coverage section?
A. Up to $10k aggregate for the policy period
B. Up to $2.5k per occurence
C. Up to 5k aggregate for the policy period
D. Up to $1k per occurence - ANSWER ✔ D. Up to 1k per occurence
