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TEXAS PROPERTY AND CASUALTY
EXAM
CORRECT SOLUTIONS.
all of the following are basic parts of an insurance contract
EXCEPT
- declarations
- conditions
- exclusions
- binders - correct answer- Binders
which of the following terms is used to describe an empty building that is not being used? - correct answer- Vacant
An insurance company takes possession of a damaged auto it has covered. when the company becomes the legal owner of the auto, it is exercising the right of? - correct answer- Salvage
all of the following are property coverage forms EXCEPT?
- special
b)basic c)broad d)base - correct answer- base 1 / 3
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which of the following legal principles allows insurance companies to collect from a negligent third party damages it paid to an insured? - correct answer- Subrogation
transferring is a method of handling risk. which of the following best describes the concept of transfer? - correct answer- purchasing insurance
the insured has a named peril policy that covers hail, fire, wind, and lightning. which one of the following events would be covered? - correct answer- A roof that is damaged in an electrical storm
(TRIPRA) the federal govt's share of compensation that exceeds the insurer's TRIPRA deductible is - correct answer- 80%
why do ins. policies usually define who is considered an insured under the policy? - correct answer- to specify who is covered in addition to the named insured
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the federal govt. is not obligated under the TRIA to make payments for any portion of losses that exceed how much annually? - correct answer- $100 BILLION
in the insurance business, the insurance comp. is also known as the? - correct answer- principle
an insurance company that sells insurance only to people who meet specific membership requirements is known as what kind of ins. comp? - correct answer- Fraternal
what is the actual cause of a loss? - correct answer- peril
the purpose of insurance is to - correct answer- Transfer risk
a warranty is a statement made by the applicant regarding the risk to be insured. which of the following statements is NOT true about warranties? - correct answer- A warranty must be refer to a material fact
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