TEXAS INSURANCE LIMITED LINES EXAM QUESTIONS

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TEXAS INSURANCE LIMITED LINES EXAM QUESTIONS

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -82 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Representation

Answer:

Making an oral/written TRUE statement

Question 2: Limited of Liability

Answer:

the maximum amount the insured can collect per occurrence. (on the Declaration Page)

Question 3: Book of Business

Answer:

Agent/Insurance company customers & policy holders.

Question 4: Alien Insurer

Answer:

Companies organized under law of another country. (MEXICO)

Question 5: Vacancy

Answer:

Both the occupant and the contents have been removed from the premises.

Question 6: Morale Hazard

Answer:

Any hazard that's NOT ILLEGAL

Question 7: Alien

Answer:

If a Texas insurance company is set up to business in a foreign country it is known as..

Question 8: Arbitration

Answer:

a process of settling an argument or disagreement in which the people or groups on both sides present their opinions and ideas to a third person or group

Question 9: Someone with a temporary licenses

Answer:

has a strict limitations on the type of business that he can conduct..

Question 10: Subrogation

Answer:

Right to recovery. To keep insured from collecting twice.

Question 11: Expressed

Answer:

If an agent is told that he can do something that is not in his duties he is operating under the power of..

Question 12: Endorsements

Answer:

Added to policy to modify it's terms.

Question 13: Insured who refers to company

Answer:

Who is not required to obtain a license..

Question 14: Another agent with a limited liability licenses.

Answer:

A person with a limited liability license may share his commission with.

Question 15: Stock Companies

Answer:

Do not always have stocks that pay dividends.

Question 16: Insured

Answer:

The customer buying the policies.

Question 17: Loss

Answer:

Reduction in quality, quantity, or value.

Question 18: Speculative Risk

Answer:

Possibility of a gain or loss.

Question 19: Prior Hearing

Answer:

A cease and desist order may be issued without..

Question 20: Direct Loss

Answer:

Actual item that was loss.

Ex: Water damage as in a result of firefighters putting out a fire.

Question 21: Insurer Provisions

Answer:

The first party named in the contract. Insuring agreement in the policy contains their promises to pay covered claims as per the terms of the policy.

Question 22: Salvage

Answer:

Totaled out property deemed not repairable by the insurance company.

Question 23: Rebates

Answer:

Offering to pay rebates of premium or any special favor valuable consideration as an inducement to purchase insurance.

Question 24: Domestic

Answer:

An insurance agency that conducts business in its home state is know as..

Question 25: The Commissioner

Answer:

enforces the insurance laws.

Question 26: Binder

Answer:

temporary insurance contract either verbal/written.

Question 27: Third Party Provision

Answer:

Property and Casualty polices also contain various provisions affecting the rights of third-parties.

Question 28: Deductibles

Answer:

Prevent covering small claims, also reducing the premium.

Question 29: Indemnity

Answer:

to INSURE & RESTORE to the same financial condition.