TEXAS INSURANCE LICENSE EXAM

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TEXAS INSURANCE LICENSE EXAM

UPDATED ACTUAL EXAM WITH CORRECT

SOLUTIONS.

Unless otherwise stated by the policy, property covered by the Building and Personal Property Coverage Form is valued on what basis? - correct answer- Actual cash value

Under a Commercial General Liability policy, all of the following statements about the supplemental extended reporting period

are correct, except: - correct 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? - correct 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? - correct answer- Direct losses include additional living expenses

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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? - correct 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? - 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: - correct

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: - correct

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 2 / 3

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with the insurer's defense will: - correct answer- Be paid in

addition to the policy's liability limits

All of the following are common law defenses against

negligence, except: - correct answer- Statute of limitations

Under Coverage C - Household Personal Property on a Farm

Property policy, coverage is provided for: - correct answer-

Furniture in the dwelling

Which of the following must participate in a Workers' Compensation Assigned Risk Plan? - correct 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? - correct answer- 3 years

Which is true of Coverage C of the Dwelling Policy? - correct answer- Coverage C provides coverage for the personal property of a guest

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