TEXAS PERSONAL LINES INSURANCE EXAM

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TEXAS PERSONAL LINES INSURANCE EXAM

Qs and Ans - Expert- Explanation - ing score -90 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: the limit of liability is the greater of the 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 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 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