TEXAS PROPERTY AND CASUALTY INSURANCE

TEXAS PROPERTY AND CASUALTY INSURANCE

EXAM WITH 500 REAL EXAM PRACTICE

QUESTIONS AND CORRECT ANSWERS/ ACTUAL

TEXAS PROPERTY & CASUALTY INSURANCE EXAM -

Texans fair plan provides residential property insurance when unavailable in other markets or when there has been no insurance on the property in the past ______ months. - ANSWER-6 months

Commercial auto insurance may be canceled for any reason during the first _____ days of the policy. Notice of cancelation must be given within ______ days and ______ days in advance for nonrenewal. - ANSWER-90 10 60

Personal auto insurance may be canceled for any reason during the first _____ days of the policy. Notice of cancelation must be given within ______ days and ______ days in advance for nonrenewal. - ANSWER-60 10 30

To qualify for TAIPA applicant must be rejected by at least _____ insurers. -

ANSWER-2

In the dwelling forms, damage from vandalism is not covered if the building has been vacant for more than ____. - ANSWER-60 days

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? - ANSWER-DP-3 special form and a separate tenant's policy to cover personal property.

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The dwelling policy will provide how much additional coverage for a fire department service charge? - ANSWER-$500

An insured suffers a covered loss to some rental property that forces the tenant to move to another location. Under which section of the dwelling policy would the insured receive payment during the time the property is being repaired? - ANSWER-Coverage D--Fair Rental Value

How does the dwelling policy provide theft coverage, dwelling under construction coverage or coverage for automatic increases in insurance? - ANSWER-by endorsement

An insured has an $80,000 dwelling policy with a $500 deductible. In addition to the house, the property includes a detached garage, storage shed, and an artist's studio. During a thunderstorm, the garage and storage shed are damaged by lightning. The loss is $3,000 to the garage and $1,000 to the shed. What amount is covered by the policy? - ANSWER-$3500

Wilson owns a 4-family apartment building. Which dwelling form(s) would provide coverage against building damage caused by the freezing of plumbing, heating, air conditioning, and sprinkler systems? - ANSWER-DP2 and DP3

An insured has a dwelling policy (DP-3 special form) for $50,000. After a covered fire loss, the insured moves to a local hotel while repairs are being made to the house. While staying in the hotel's penthouse suite, the insured uses room service, always choosing the most expensive food and wine. The entire stay costs $12,000.How much of that amount will the policy cover? - ANSWER-$10,000

An insured has a $40,000 dwelling special form (DP-3) policy. After hosting an afternoon party, the insured discovers that the family's credit cards and ATM cards 2 / 4

are missing. If the cards are used, what coverage is provided under Coverage C- Personal Property and why? - ANSWER-$0

Monica owns a $150,000 home. She carries 2 insurance policies on it: Company A

insures $100,000 and Company B insures $50,000. If she suffers a $9,000 covered loss to her home, how much will Company A pay under the policy? - ANSWER- $6000

The insured has run a red light and hits another car causing injury to the driver and damage to the car. The insured has what type of liability? - ANSWER-direct

Which part of an insurance policy describes the responsibilities and obligations of both the insurance company and the insured under the policy? - ANSWER- Conditions

The limits of liability are found in which of the following sections of a casualty policy? - ANSWER-Declarations

The _____ page in an insurance contract contains information about the risk, the effective date of coverage, deductible, premium amounts, coinsurance percentage, and location of the insured property. - ANSWER-Declarations

The insured is looking for the amount of coverage in a property and casualty policy. This information would be found in the ______. - ANSWER-declarations

The coverages offered by an insurance policy are described in the ____. - ANSWER-insuring agreement

The purpose of the conditions section of an insurance policy is to list the ____ of the insured and the insurance company. - ANSWER-obligations 3 / 4

The list of perils covered under a policy is found in which part of the policy? - ANSWER-Insuring agreement

The Declarations page consists of 5 P's. Person or property, policy number, policy term, policy limit and ____. - ANSWER-premium

The Insuring agreement describes coverage provided and which ____ are covered.

• ANSWER-perils

Lost rent is covered by _____. Limited by 20% of coverage A. - ANSWER- Coverage D

Under which of the dwelling forms may the insured be reimbursed for the replacement cost of a dwelling when it is destroyed? - ANSWER-DP-2 and DP-3

The insured has a DP-3 covering a home that has a replacement value of $100,000.The insured carries $60,000 of insurance. Following a loss, it is determined that it would cost $12,000 to replace the damaged portion of the home. How much could the insured collect, assuming the ACV of the loss is $6,000? - ANSWER-$9000

Damage to covered property caused by glass breakage is covered in ___. - ANSWER-DP2 and DP3

Which dwelling forms pay losses to dwellings and other structures on an actual cash value basis? - ANSWER-DP1

Which dwelling forms pay losses to personal property on an actual cash value basis? - ANSWER-DP1, DP2 and DP3

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