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PDF Download TEXAS INSURANCE LICENSE EXAM PREP P&C Qs and Ans - Expert- Explanation - ing 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
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