AD BANKER TEXAS PERSONAL LINES ONLINE COURSE

PDF Download

AD BANKER TEXAS PERSONAL LINES ONLINE COURSE

EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: F has a Basic Form Dwelling policy with Extended Coverages and VMM

coverage. The policy insures losses caused by all of the following perils, except:

Answer:

Radioactive contamination Radioactive contamination is excluded from all Dwelling forms by the Nuclear Hazard exclusion.

Question 2: Which of the following is considered a hostile fire?

Answer:

An uncontrolled campfire in the woods Fire insurance is intended to insure against uncontrolled or hostile fires. Friendly fires, which are those fires that are confined to their intended place, are not subject to coverage.Question 3: Losses that cannot be calculated objectively, such as pain and suffering or mental

anguish, are considered:

Answer:

General damages General damages are awarded to an injured party for pain, suffering, mental anguish, disfigurement, and similar losses. These losses cannot be calculated objectively and are assigned a dollar value based on the circumstances of the injury or loss.

Question 4: If the insured does not agree with the insurer's decision regarding a claim, what process helps decide the outcome?

Answer:

Arbitration During arbitration a neutral third party decides the outcome of a claim.Question 5: The risk management technique of an insured who continues to have responsibility

for a loss is known as:

Answer:

Retention When the risk is retained, the insured party continues to have responsibility for covering the loss, as with self-insurance or a deductible. It is the opposite of risk transfer, which is when another party becomes responsible for the risk.Question 6: Which of the following licensees identifies loss exposures for a person wishing to obtain a property and casualty insurance policy on Texas?

Answer:

Risk Manager A risk manager identifies loss exposures and examines, assesses, or evaluated risks for a person wishing to obtain or renew a property and casualty insurance policy in Texas.Question 7: As used in casualty insurance, bodily injury is best described as:

Answer:

Physical injury, sickness, or death arising from the negligent acts of an insured Bodily injury is any physical injury, including sickness, disease, and death caused by the acts or omissions of an insured. Bodily injury liability expenses can include medical bills, lost wages, mental anguish, and pain and suffering.Question 8: An insurer in Texas is required to provide information regarding a fraudulent claim

to all of the following upon request, except:

Answer:

Insurance agent Any government agency, including the Commissioner, local law enforcement agency, and the attorney general, may require information from an insurer who must provide the information within 15 days from receiving the written request. An insurance agent or the insured to not have the authority the require such information.

Question 9: Liability for use of which of the following vehicles is not covered by a Homeowners policy?

Answer:

Recreational dune buggy that is owned by the insured and used on a public beach An owned vehicle designed for recreational use off public roads must be used on the insured premises for coverage to apply.Question 10: Generally, liability policies include all of the following in its coverage territory,

except:

Answer:

Mexico The policy territory is usually limited to the United States, its territories and possessions, Puerto Rico, and Canada. This is a common coverage territory, even though some policies may offer worldwide coverage, or may expand the territory by endorsement.Question 11: The most common means of managing risk is:

Answer:

Purchasing insurance Purchasing insurance, an example of risk transfer, is the most common way to manage risk. Avoiding all risks is impossible, and self-insuring is very costly.Question 12: The insurance provided by a liability policies applies:

Answer:

To each insured separately, except for policy limits Under the Severability condition, the insurance provided by a liability policy applies to each insured separately (severally), except for the limits of liability.Question 13: A licensed agent is required to obtain which of the following before transacting insurance in Texas?

Answer:

An appointment from an insurer Licensed agents are not permitted to transact insurance as an agent until they have been appointed by an insurer authorized to transact insurance in this state.Question 14: After passing the licensing exam in Texas, what is the maximum time an applicant has to submit an application to the Department of Insurance?

Answer:

12 months To obtain a license, the applicant must submit an application within 12 months of passing the state

exam.Question 15: Which of the following statements about continuing education is correct?

Answer:

Every licensee must complete 3 continuing education hours on the topic of ethics Each licensed individual must complete 3 continuing education hours on the topic of ethics during every license renewal period.Question 16: Which of the following is a type of authority producers have when they represent an insurer?

Answer:

Implied authority Agents have three kinds of authority: express, implied, and apparent. Implied authority is not specifically stated in the contract, but is reasonable and necessary for the producer to perform specifically stated duties.Question 17: Liability coverage under Part A of a Personal Auto policy would be excluded for all

of the following, except:

Answer:

A vehicle driven by an unlicensed driver Part A will not provide coverage for intentional damage caused by the insured, damage caused by an insured who is using a vehicle without reasonable belief of entitlement, or damage caused by vehicles designed for use off public roads, such as ATVs. As long as the unlicensed driver is using a covered auto with permission, the driver's liability is covered. For example, property damage caused by a student driver using the named insured's car would be covered.

Question 18: Which of the following statements regarding deductibles is true?

Answer:

Deductibles help reduce the number of frivolous or small claims The deductible is the amount of each loss that the insured must bear before the policy responds to the loss. Deductibles eliminate the expense of processing small claims, resulting in reduced premiums.Question 19: An insured has a casualty insurance policy. If the insured becomes insolvent during the policy period, how does the insurer respond to a claim?

Answer:

The insurer responds normally, as it is not relieved of its policy obligations The Bankruptcy condition states that the insured's insolvency or bankruptcy does not relieve the insurer of any duties or obligations under the policy, so the insurer will respond to the claim as usual.