Texas Property & Casualty Insurance,
Insurance
1. ____ damages punish the wrongdoer. - ANS-punitive
2. ____ includes burglary, safe burglary, robbery, larceny, embezzlement and forgery. -
ANS-theft
3. ____ is an all-out effort by one party to deceive. - ANS-fraud
4. ____ liability protects employees from benefit administrator mistakes or negligence. -
ANS-fiduciary
5. ____ risk is the chance of loss. - ANS-pure
6. _____ are considered special damages. - ANS-Medical expenses
7. _____ can only perform duties in the office such as giving quotes. - ANS-insurance
service representatives
8. _____ coverage must be added to a dwelling policy by endorsement. - ANS-Theft and
liability
9. _____ deals with disagreements on coverage issues. - ANS-arbitration
10. _____ deals with disagreements on the value of the loss. - ANS-appraisal
11. _____ insurance covers real property and personal property. - ANS-property
12. _____ insurance covers your legal liability to others. - ANS-casualty
13. _____ is the transfer of risk through a legal contract from the insured to the insurer. -
ANS-insurance
14. _____ protects against unreasonable profits. - ANS-Texas Department of Insurace
15. _____ protects insured's from a rate hike after credit review. - ANS-FCRA
16. ______ 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. - ANS-Coverage D
17. _____carriers provide insurance that is not available from private insurers, such as flood
insurance. - ANS-residual market
18. _____liability refers to product defect claims. - ANS-strict
19. 1st source of underwriting? - ANS-Application, Inspection, credit score, Bureau of motor
vehicles, Insurance industry bureus, Financial Info, Previous insurer, Insurance claim file
20. A ___ insurer shares profits with policy holders. - ANS-mutual
21. A ___ is a civil wrong, such as slander, libel or false arrest, other than breach of contract.
- ANS-tort
22. A ____ agent may place insurance risks with unauthorized insurers. - ANS-surplus lines
23. A ____ hazard is caused by carelessness. - ANS-morale
24. A _____ is not true, but has no effect on the insurer's decision to issue a policy. -
ANS-misrepresentation
25. A binder or temporary contract of insurance is good for up to _____ days. - ANS-30
,26. A business income policy covers lost profits, continuing expenses and _____. -
ANS-extra expenses
27. A business owners policy (BOP) can stand by itself as a ____? - ANS-commercial
package policy
28. A business owners policy is called a package policy because it insures property and
_____. - ANS-negligence
29. A car dealership would be covered by a ____ policy. - ANS-garage
30. A commercial general liability policy is the broadest business liability policy and pays
____. - ANS-actual damages
31. A deductible is also called a ____. - ANS-retention
32. A delivery boy hits a pedestrian and hurts them, is covered by ____. - ANS-operations
exposure
33. A DP1 is also known as a ____. - ANS-dwelling fire policy
34. A DP3 policy does not cover code ordinance, power interruption off premises or _____. -
ANS-theft
35. A dwelling policy is a _____ policy. - ANS-monoline
36. A dwelling policy with no endorsements attached contains personal property coverage,
dwelling coverage and _____. - ANS-medical payments coverage
37. 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 ____. - ANS-E, F, and G
38. A flood policy has a ____ waiting period, unless it is purchased with a mortgage. -
ANS-30 day
39. A garage policy includes garage liability, garage keepers, and _____. - ANS-physical
damage
40. A home owner's policy will NOT cover _____. - ANS-mudslides
41. A Lloyds company is an arrangement between an attorney and at least 10 underwriters
to provide coverage. Must be members of ____. - ANS-TWIA
42. A managing general agent is one taht - ANS-
43. A person cannot collect lost wages and _____in a personal injury protection claim. -
ANS-essential services
44. A person receiving an inquiry from the state of Texas has ___ days to respond. - ANS-15
45. 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? - ANS-$1500
46. A policy used to insure separate pieces of jewelry is called a ____. - ANS-personal
articles floater
47. A proof of loss form is required to be submitted within ___ days in Texas. - ANS-91
48. 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? - ANS-DP-3
special form and a separate tenant's policy to cover personal property.
49. A truckers contract is also called common carrier cargo ____. - ANS-liability
50. A watercraft policy for boats less than ___ feet and limited to use in the Gulf is a type of
umbrella policy. - ANS-26
, 51. Abandonment condition - ANS-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.
52. Absolute liability - ANS-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.
53. Actual cash value - ANS-The cost of replacing an item of property at the time of loss,
less an allowance for depreciation ;
54. Additional coverage for all homeowners policies? - ANS-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.
55. Additional supplementary coverage- BAILED - ANS-Bonds, Aid, Interest, Lost earnings,
exspense, defense.
56. Adhesion contract - ANS-Contract where where one party has more poer in drafting a
contract. The Insurer has the most power in a insurance contract.
57. Adverse selection - ANS-A high-risk person benefits more from insurance, so is more
likely to purchase it.
58. Adverse selection - ANS-A high-risk person benefits more from insurance, so is more
likely to purchase it.
59. Advertisements may not state or imply that future dividends are ____. - ANS-guaranteed
60. Aggregated limit - ANS-Type of policy limit found in liability policies that limits coverage
to a specific total amount for losses taking place in a policy period.
61. Aleatory contract - ANS-a contract where the values exchanged may not be equal but
depend on an uncertain event.
62. Alien Company - ANS-An insurance company incorporated in a country other than the
United States.
63. All licensed P and C agents can write business with ____. - ANS-Texas Mutual
64. An agent must give notice ____. - ANS-at time of application
65. An assignment of policy can only occur with written consent of the _____. - ANS-insurer
66. An employee may waive being covered by workers compensation and retain the right to
sue if notice is given within the first _____ days of being hired. - ANS-5
67. An employment practices liability is the only one that covers ____ claims. -
ANS-discrimination
68. An event that happens over time is an ____. - ANS-occurence
69. An excess liability policy only covers what an underlying policy covers, however a ____
policy may give extra coverage. - ANS-umbrella
70. An HO-3 would cover loss from _____. - ANS-smoke
71. An HO8 is used for older homes when the ____ far exceeds market value. -
ANS-replacement cost
72. An improperly installed dishwasher is covered by ____. - ANS-completed operations
exposure
73. An individual who owns and lives in a condominium can obtain broad coverage for
personal property in the condo under the ____. - ANS-HO6
