TEXAS INSURANCE LICENSE EXAM PREP PC

PDF Download TEXAS INSURANCE LICENSE EXAM PREP P&C Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Insurance Exclusions

Answer:

Things not covered. Ex. Intentional Acts

Question 2: Absolute or Strict Liability

Answer:

Stems from hazardous or dangerous activities that makes the owner liable WITHOUT the requirement of proof of negligence.

Question 3: P.A.P

Answer:

Personal Automotive Policy

Question 4: UMPD

Answer:

Uninsured Motorist Property Damage $250 Deductible

Question 5: Coverage

Answer:

Defines what is covered and what is insured against within an insurance contract

Question 6: 4 Means of Managing Risk

Answer:

1.Reduction 2.Retain 3.Avoid 4.Transfer

Question 7: Adhesion

Answer:

A stipulation that the contract and it's language is binding, or "sticks" and the parties agreeing cannot back out so long as the conditions are met.

Question 8: UIM

Answer:

Underinsured Motorist

Question 9: PAP Supplementary Payments

Answer:

Bail Bonds Appeal Bonds Loss of Earnings

Question 10: Reduction

Answer:

reduce the risk shared by the insured and insurer Ex. Good maintenance

Question 11: Exclusions to Coverage A- Auto

Answer:

NOT Covered:

-Personal Property -Damage to rented dwellings owned by insured -Intentional Acts -Business use -Theft -Racing -Livery -Auto business (selling, parking, service, storing) Less than 4 wheels -Off road vehicles

-Vehicles used regularly without being insured on policy

Question 12: Liability Insurance

Answer:

Protects insured from the risk they might be held legally liable due to injury, harm or negligence

Question 13: Risk

Answer:

Possibility of financial loss

Question 14: Unilateral

Answer:

Stipulation that the contract is one-sided. Ex. The customer doesn't HAVE to pay the insurance company, but IF they do, then the insurance company HAS to pay out.

Question 15: Policy Supplementary Payments

Answer:

Doesn't reduce coverage available and doesn't increase the premium

Question 16: Property Insurance

Answer:

Specifically to protect from financial losses on property that is owned, damaged or destroyed.Ex. Dwelling Insurance

Question 17: Deductibles

Answer:

AKA S.I.R (Self Insured Retention) is the portion of the loss paid by the insured

Question 18: Financial Responsibility Laws

Answer:

State Laws regulating that people are to carry a minimum coverage amount set by the state to protect themselves, others, and property.

Question 19: Exposure

Answer:

An opportunity for risk or loss

Question 20: The 7 Characteristics of a Contract

Answer:

• Personal Contract

• Conditional Contract

• Adhesion

• Indemnity

• Aleatory
• Unilateral
• Utmost Good Faith

Question 21: HO-3

Answer:

Most common form of HO Policy for owners/landlords who reside on property Provides special coverage on dwelling (A) and other structures (B) and Broad coverage on personal items (C)

Question 22: Retain

Answer:

Taking risks by retaining the risk to ones self. Ex. Not reporting an accident to the insurance company, or not getting insurance at all.

Question 23: Order of Insurance Payout

Answer:

• Workers Comp

2. PIP

• Med Pay

• Liability

• Uninsured Motorist