TEXAS PROPERTY AND CASUALTY

TEXAS PROPERTY AND CASUALTY

EXAM AND PRACTICE QUESTIONS

NEWEST ACTUAL EXAM 200 +

QUESTIONS AND CORRECT DETAILED

ANSWERS |ALREADY GRADED A

Under a Personal Auto policy, which of the following will be paid by supplementary payments provided by Part A?A A $250 bail bond B A judgment against the insured for damages related to a third party's bodily injury C Medical expenses when the insured's daughter is injured in an auto accident D $1,000 for loss of earnings when the insured is disabled Correct Answer A, A $250 bail bond

What is the term for continuous exposure to the same harmful conditions?A Proximate cause B Risk C Accident D Occurrence Correct Answer D, Occurrence

Under a Boatowners policy, which of the following is correct about the deductible?

A Watercraft policies do not have a deductible B The policy's deductible applies per occurrence C The deductible only applies to liability claims D The policy includes one deductible for collision losses and another deductible for other than collision losses Correct Answer B, The policy's deductible applies per occurrence 1 / 4

Under the Building and Personal Property Coverage Form, what limit of insurance applies when coverage is extended to cover business personal property temporarily away from the premises?

A $15,000

B $5,000

C $10,000

D $2,500 Correct Answer C, $10,000

If an insured submits a fraudulent claim, the insurer may:

A Void the policy from the beginning B Cancel the policy with 10 days' notice and retain the unearned premium C Cancel the policy immediately D Refuse to renew the policy at the expiration of the policy period Correct Answer A, Void the policy from the beginning

Part Six - Conditions of a Workers' Compensation and Employers Liability policy includes which of the following?

A The supplementary coverages B Name, address, and type of business of the insured C The list of states where coverage applies D The cancellation provision Correct Answer D, The cancellation provision

After an earthquake damages an insured's property, an Earthquake policy would provide coverage for which of the following losses?

A Loss to the insured's vehicles B Loss to retaining walls C Loss to awnings and outdoor antennas 2 / 4

D Loss to furniture inside a structure held for rent Correct Answer D, Loss to furniture inside a structure held for rent

Which of the following cannot be used to show proof of financial responsibility to operate a motor vehicle in Texas?

A Surety bond B Certificate of self-insurance C Motor vehicle insurance policy D Driver's license Correct Answer D, Drivers license

L has a Business Auto policy covering autos used for L's small business. All of the following are an insured under Section II -

Covered Autos Liability Coverage of L's BAP, except:

A B, the sales director at L's company, using a covered auto with permission B L, the named insured C T, an employee driving a covered auto L rented for business purposes D D, who owns a private passenger auto L borrows for the business Correct Answer D, D, who owns a private passenger auto L borrows for the business

Which of the following vehicles could be considered an uninsured motor vehicle by a Personal Auto policy?

A A company car furnished to the named insured's family member B An SUV covered by a bankrupt self-insurer C An ATV owned by the named insured D A bulldozer Correct Answer B, an SUV covered by a bankrupt self-insurer

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When a commercial Auto policy is written with the Auto Medical Payments Coverage Endorsement, medical payments coverage is provided to which of the following?

A An insured incurs X-ray expenses as a result of a racing activity B An insured incurs funeral expenses as a result of an auto accident C An insured incurs hospital expenses while using a covered auto without reasonable belief of entitlement D An employee insured is injured in an accident while on the job Correct Answer B, An insured incurs funeral expenses as a result of an auto accident.

After a direct physical loss, the Accounts Receivable Coverage

Extension on a Businessowners policy provides coverage for:

A Related interest charges B Reasonable expenses to re-establish accounts receivable C Amounts the insured owes to customers D Amounts the insured owes to customers Correct Answer C, Amounts the insured owes to customers

Under Section II of a Homeowners policy, which of the following may receive medical payments for expenses incurred following a bodily injury?A A guest of the insured on the residence premises B A residence employee who is injured on the way home from work C A tenant who lives in a portion of the insured's residence D The named insured Correct Answer A, A guest of the insured on the residence premises

Under the Businessowners Coverage Form, an actual cash value loss settlement basis is always used for the following items of

property, except:

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