TEXAS PROPERTY AND CASUALTY

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TEXAS PROPERTY AND CASUALTY

LICENSING EXAM

EXAM WITH CORRECT SOLUTIONS.

The policy provision found in property insurance policies that prevents the insured from collecting twice for the same loss is called

• Subrogation
• Consent to settle loss
• Right of salvage
• Appraisal - correct answer- A) Subrogation

When insureds accept loss payment from the insurance company, they must transfer their rights to recovery to the insurer. This prevents the insured from collecting twice for the same loss, and allows the insurer to indemnify the insurance company.

For a contract to be enforceable by law, the purpose of the contract must be

• For financial gain
• For the benefit of the general public
• Of pure intent 1 / 3

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• Legal and not against public policy - correct answer- D)

Legal and not against public policy

The purpose of a contract must be legal and not against public policy for the contract itself to be enforceable by law (or legal)

Greg owns several buildings, each at a different location and insured on a separate policy. What type of coverage does Greg have?

• Special
• Specific
• Schedule
• Blanket - correct answer- B) Specific

Specific insurance provides a specific amount of coverage for each property. A blanket insurance policy provides coverage for more than one property with a single limit of coverage.

Which coverage form would provide coverage for all incoming and outgoing shipments?

• Mail coverage
• Annual transit
• Trip transit - correct answer- B) Annual transit 2 / 3

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Which of the following forms provides the broadest coverage under an employee theft coverage form?

• Name schedule
• Individual
• Blanket position
• Position schedule - correct answer- C) Blanket position

Blanket position bond covers all employees in all positions on a per employee basis.

Which professional liability form provides form coverage for liability arising out of malpractice, error, or mistakes made in rendering professional services?

• Medical malpractice
• Physicians, surgeons, and dentists malpractice
• Lawyers professional liability
• Directors liability - correct answer- B) Physicians, surgeons,

and dentists malpractice

The physicians, surgeons and dentists malpractice form provides coverage for liability arising out of malpractice, error,

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