TEXAS PERSONAL LINES INSURANCE EXAM

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TEXAS PERSONAL LINES INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -90 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: the limit of liability is the greater of the actual cash value of the vehicle at the time of loss or the amount necessary to repair or replace the vehicle

Answer:

Under the personal auto policy, liability for BI resulting from the insured's use of a nonowned automobile is

Question 2: HO6 provides limited dwelling coverage as well as contents coverage

Answer:

an additonal loss that results from a direct loss of property is called a/an

Question 3: Homeowners policy

Answer:

Which of the following perils is covered by the HO2 and HO3

Question 4: It is imposed on defendants engaged in hazardous activities

Answer:

All of the following are conditions commonly found in the insurance policy EXCEPT Question 5: How does the mobilehome endorsement affect the other coverage of law or ordinance in a homeowners policy?

Answer:

In insurance, an offer is usually made when

Question 6: 30 days

Answer:

a sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called

Question 7: The applicant has a prior felony conviction

Answer:

The proof of loss statement must be

Question 8: a pickup or van titled to and used in the named insured's business

Answer:

which of the following would NOT qualify as a hired auto?

Question 9: Pro Rata liability

Answer:

Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract?

Question 10: the license holder's sister-in-law

Answer:

which of the following statements is true concerning the special form dwelling policy Question 11: giving a client a $25 pen w/ the insurer's logo during the insurance application process

Answer:

homeowners policies provide coverage for Question 12: full replacement of property at its current cost ,new and w/out reduction for depreciation

Answer:

when an umbrella policy is broader than underlying insurance and it pays a loss that is not covered by the underlying policy, it usually only pays

Question 13: all property losses under the basic form are settled on a replacement cost basis - all property losses under the basic form are settled on an actual cash value (AVC) basis

Answer:

what is a required notice of cancellation of a homeowners policy to the insured

Question 14: Coverage C

Answer:

If an insured covered under a Mobile Homeowners Policy moves the mobile home to protect it from a covered peril, the policy will pay up to Question 15: declarations- tell who, what, when & where, this information is different in each contract

Answer:

under the dwelling policy, if an insurer chooses to repair or replace damaged or lost property, it must inform the insured w/in how many days of receiving proof of loss Question 16: all liscensed agents must comply by January 1 of even-numbered years -- CE reporting period coincides witht he license renewal date every 2 years

Answer:

an agent explains the details of a life insurance policy to a client. the agent does not realize, however, that the state has recently rewritten two of the provisions. As a result, the agent inadvertently misrepresents the policy, making it more attractive than it really is. what best describe this situation Question 17: its for property that is portable - personal property floater (all risk any where in the world)//personal article floaters (furs jewelry, cameras, fine art, etc)// Personal Effects floaters (personal effects carried or worn by travelers anywhere in the world, but not while the property is at home

Answer:

an insured owns a large dog. 1st day has to leave the dog home alone, he comes back to find his $400 couch torn apart, 100 coffee table chewed, his 50 window curtains shredded, and 200 window pane shattered. The insured has personal property coverage under a special form dwelling policy. how much of this loss will the policy cover?

Question 18: commissioner of insurance

Answer:

a Managing General Agent must complete the continuing education requirments that are set for

Question 19: business property while on the residence premises - contents will cover up to a 2,500 for loss of business prop on premises

Answer:

which of the following is NOT the consideration in policy

Question 20: handling insurer funds in a trust capacity

Answer:

what percentage of CE hrs must be in a classroom or classroom equivalent setting approved by the dept

Question 21: Any other state

Answer:

In a personal auto policy, the medical payments coverage is similar to

Question 22: submits an unsigned insurance policy application

Answer:

an insurer that holds a certificate of authority in the state in which it transacts business is considered a/an

Question 23: the coinsurance formula will also be applied to total losses

Answer:

which of the following is mandatory part of an insurance policy that varies with each individual policy?

Question 24: Warranty

Answer:

Which of the following would qualify as a competent party in an insurance contract

Question 25: the amount negotiated by the insured

Answer:

with respect to the personal auto policy, which of the following vehicles could be classified as a nonowned auto?

Question 26: A Local Recording Agent or a Legal Reserve Life Agent

Answer:

A person who, for a fee, examines, evaluates and assesses contracts of insurance for another and offers advice on methods of reducing risk, must be licensed as