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EXAMFX PRACTICE FINAL SCRIPT 2026
FULLY SOLVED ANSWER COLLECTION
โ If a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person?. Answer: $50, โ Surety bonds are written for a definite limit called. Answer: The bond penalty. โ The War, Military Act, and Terrorism Exclusion will only apply to an incident of terrorism in which the total of insured damage to all types of property in the United States, its territories and possessions, Puerto Rico and Canada exceeds what amount?. Answer: $25,000, โ What term includes damage where the insured peril was the proximate cause of loss?. Answer: Direct loss โ A used car dealer takes a car in trade as partial payment for a car on its car lot. The customer promises to bring in the car's title but
does not. Another customer takes the trade-in for a test drive and has an accident. In regard to the dealership's business auto physical damage coverage, which of the following it true?. Answer: There is no coverage. โ What type of information would be found in a policy's insuring agreement?. Answer: Renewal dates โ For a contract to be enforceable by law, the purpose of the contract must be. Answer: Legal and not against public policy. โ Property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called. Answer: Specific coverage. โ A professional liability policy will provide coverage for loss in all of the following cases, except, when the insured doctor was shown to be. Answer: Criminally negligent. โ The inspections and surveys condition in a businessowners policy.
Answer: $ โ In which of the following types of property valuation will the policy pay the full value as specified on the policy schedule, regardless of the insured property's appreciation or depreciation?. Answer: Agreed value โ A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean?. Answer: There is no coverage. โ Which of the following liability exposures is most likely for a small specialty clothing retail boutique?. Answer: Premises liability exposure โ Which of the following is true regarding single dwellings that are insured to at least 80% of the replacement value?. Answer: They are automatically provided with replacement cost coverage. โ A policyholder has an equipment breakdown policy with a $200,000 limit. If a boiler explosion causes $100,000 damage to the boiler itself, $50,000 damage to the insured's building, and $30,
of expediting expenses, how much will the insured collect under the policy?. Answer: $175, โ Which of the following would be named on the declarations page of a property or liability policy?. Answer: First named insured โ Which of the following special liability coverages will provide protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?. Answer: Directors and officers liability โ Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT. Answer: Conditions โ How much is the premium for the dwelling under construction endorsement under the dwelling policy?. Answer: The average amount of insurance during construction
โ Which law is the foundation of the statistical prediction of loss upon which rates for insurance are calculated?. Answer: Law of large numbers โ In which type of commercial crime policy coverage is triggered by a loss that happens during the policy period but is not necessarily discovered during the policy period?. Answer: Loss sustained form โ Which of the following IS considered a work-related injury/occupational disease under Workers Compensation law?. Answer: Tom works as a painter in an auto body shop. The chemicals from the paint aggravate Tom's asthma to the point that he must be hospitalized for several days. โ If more than one person has an insurable interest in the property covered under a dwelling policy,. Answer: The insurer will be liable for only the insured's interest in the damaged property. โ In forming an insurance contract, when does acceptance usually occur?. Answer: When an insurer's underwriter approves coverage
โ The type of insurance used to cover goods for one specific trip is called. Answer: Trip transit. โ Robbery is. Answer: Taking of property by use of force, violence, or fear. โ Under the coverage of which of the following liability policies may an insured require the insurer to defend a claim?. Answer: Professional liability โ Which of the following is NOT an essential element of an insurance contract?. Answer: Counteroffer โ What are common carriers required to issue to every shipper that it transports goods for?. Answer: A uniform bill of lading โ Which commercial crime form would provide coverage for a loss that did not necessarily happen during the policy period but was revealed during the policy period?. Answer: Discovery form
โ In liability insurance policies, supplementary payments are made. Answer: In addition to the limit of liability. โ When would a misrepresentation on the insurance application be considered fraud?. Answer: If it is intentional and material โ A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the. Answer: Penalty โ Which of the following definitions best defines the term "accident"?. Answer: A sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage neither expected nor intended โ An employee may be eligible for supplemental income benefits upon. Answer: The expiration of the impairment income benefit period. โ A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life
insurance policy from the bank in the amount of the loan. This is an example of. Answer: Coercion. โ Which of the following best describes a misrepresentation?. Answer: Issuing sales material with exaggerated statements about policy benefits โ If a licensed agent in Texas receives a criminal conviction, that information must be reported to. Answer: Department of Insurance. โ In Texas, unless higher optional limits are purchased, the maximum amount payable for all auto personal injury protection benefits arising out of a single accident shall not exceed. Answer: $2,500. โ An insurer must acknowledge receipt of a Notice of Claim within how many days?. Answer: 15 โ All of the following are requirements for applicants for a Risk Manager license in Texas EXCEPT. Answer: Have at least 2 years of insurance experience
โ An insurer can cancel a personal auto policy by giving the named insured 10 days prior written notice for any of the following reasons EXCEPT if. Answer: The cancellation is to take effect on the 12-month anniversary of the policy. โ Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance?. Answer: Defamation โ Which of the following is a TRUE statement about a temporary license issued in this state?. Answer: It can only be issued once in any 6-month period. โ All of the following are true regarding rebates EXCEPT. Answer: Rebates are allowed if it's in the best interest of the client. โ Insurance procured from an unauthorized insurer is called. Answer: Surplus lines insurance. โ Which of the following was created to pay benefits due to insureds after their insurance companies have been declared insolvent?.
Answer: Property and Casualty Insurance Guaranty Association โ An insured has a policy with an insurance company that became insolvent. The policy has $1,600 of unearned premium. How much of this premium will the insured be able to recover from the Texas Property and Casualty Insurance Guaranty Association?. Answer: $1, โ If an agent has completed 35 hours of continuing education in one renewal period, how many CE hours will the agent have to complete in the next renewal period?. Answer: 24 โ An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?. Answer: Illegal โ For which of the following actions can an agent's license be suspended or revoked?. Answer: Rebates of premiums โ When twin brothers applied for life insurance from Company A, the company found that while neither of them smoked and both had
recuperate. Five days later, he feels better and returns to work, but the pain becomes worse, and he doesn't return for 5 more days. He then gives his medical bills to his employer for reimbursement. Based on these facts, should the workers compensation policy pay these medical bills?. Answer: Yes, the employee notified the employer within 30 days of the injury. โ If a deceased employee is survived by a eligible spouse and 3 dependent children, what percentage of the death benefit will be paid to the spouse?. Answer: 50%
