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Personal Lines Exam FX study session
indirect loss - Answer-An additional loss that results from a direct loss of property is called a/an It provides errors and omissions coverage for an agency - Answer-Which of the following statements is NOT true regarding a personal umbrella liability policy? Renewal dates - Answer-What type of information would be found in a policy's insuring agreement? Per occurrence - Answer-An insured has a liability policy that sets the amount for all claims that arise from a single incident at $50,000. Which type of limit of liability does this insured's policy have? Owned or leased by the resident of the mobile home - Answer-The mobilehome endorsement alters the homeowners policy to cover a mobilehome and other structures on land warranty - Answer-Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? Mechanical breakdown - Answer-Which of the following is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP?
market value - Answer-The insured's house is located one mile from the county's new landfill and across the road from the entrance of a rock quarry. It would cost $150,000 to rebuild the house is something happened to it, but when the insured tried to sell it, the best offer he received was $80,000. The insurance company will insure the house for only $80,000. What method of valuation is used to insure this property? Each policy will pay $25,000 of the loss - Answer-An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay? declarations - Answer-Which of the following is a mandatory part of an insurance policy that varies with each individual policy? Insuring agreement - Answer-All of the following are conditions commonly found in the insurance policy EXCEPT Burglary - Answer-The crime of forced entry into the premises of another by a person or persons with felonious intent is defined as dwelling policy form - Answer-Residential structures, including individual condominium units, and their contents are insured by what part of the National Flood Insurance Program? transportation/permission to move endorsement - Answer-An insured covered under a Mobile Homeowners Policy wants to move the location of the covered mobile home. Which of the following must the insured obtain from the insurer? Consideration - Answer-An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
residual market risk. From which type of automobile insurance plan can the applicant purchase insurance? alien insurer - Answer-When transacting business in this state an insurer formed under the laws of another country is known as a/an misrepresentation - Answer-on its advertisement, a company claims that it has funds in its possession that are, in fact, not available for the payment of losses or claims. The company is guilty of The policy will not be affected. - Answer-An individual applies for a life policy. two years ago he suffered from a head injury from an accident, so he cannot remember parts of his past, but is otherwise competent. He has also been hospitalized for drug abuse, but does not remember this when applying for insurance. The insurer issues the policy and learns of his history one year later. What will probably happen? 60 days - Answer-Insurers must file all rates and forms for Commissioner's approval within how many days prior to use? The trust that a client places in the producer in regard to handling premiums - Answer-Which of the following is an example of a producer's fiduciary duty? Specific definitions as to their meaning as used in the policy - Answer-words or terms that appear in an insurance policy in bold face print include pay dividends to the policy owner - Answer-A participating insurance policy may do which of the following? Property and Casualty Insurance Guaranty Association - Answer-Which of the following was created to pay benefits due to insured's after their insurance companies have been declared insolvent?
First named insured - Answer-Which of the following would be named on the declarations page of a property or liability policy? consideration - Answer-Something of value exchanged between the insurer and the insured is considered an The coinsurance formula will also be applied to total losses. - Answer-All of the following statements concerning coinsurance are true EXCEPT stated amount - Answer-when the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as full replacement of property as its current cost, new and without reduction for depreciation - Answer- replacement cost is defined as $500 - 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 Insuring Agreement - Answer-The part of the insurance contact that described the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the to pre-establish the amount of coverage available for property items that are difficult to value - Answer- Which of the following best expresses the purpose of a stated value contract? conditions - Answer-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 replacement cost - Answer-which method of loss valuation is contrary to the basic concept of indemnity
this loss is not covered - Answer-an insured is driving her auto and strikes a large pothole, causing a flat tire. Which coverage of the insured's personal auto policy will pay for the repair? 2 weeks - Answer-Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered in the insured's policy, loss would be covered for up to 80% of the property's replacement cost or more - Answer-An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? The application given to a prospective insured - Answer-Which of the following is NOT the consideration in a policy? The promise to pay covered losses Something of value exchanged between parties The premium amount paid at the time of application - Answer-What is the consideration in a policy? $6,000 would be paid under other-than-collision coverage - Answer-An insured hits a deer and crashes his car into a tree. The total damage to the vehicle is $6,000. How will this loss be covered? Commingling - Answer-A producer who fails to segregate premium monies from his own personal funds is guilty of? Certificate of authority - Answer-What must an insurer obtain in order to transact insurance within a given state? Assigned risk auto plan Joint underwriting association
FAIR plan - Answer-What is considered a residual market? State property and casualty guaranty association - Answer-A mechanism for assisting the policyholders of bankrupt insurers? It is issued to group insurance participants. - Answer-Which of the following is NOT true regarding a Certificate of Authority? liability insurance - Answer-Adam is injured in a car accident caused by John. What kind of insurance would cover John's obligation to pay for Adam's injuries? any change in business name - Answer-An individual licensed as an agent must notify the Texas Department of Insurance, on a monthly basis, of all of the following EXCEPT The lesser of the above amounts - Answer-Under the Texas Property and Casualty Insurance Guaranty Association, what is the maximum amount that a claimant may recover from an occurrence under a policy issued by an insolvent insurer? Draft insurance laws - Answer-The commissioner has full power and authority to do all of the following EXCEPT misrepresentation - Answer-During a sales presentation a produce intentionally makes a statement which may mislead the insurance applicant. This describes The hearing must be held within 10 days of receiving a request, unless both parties agree to a later date.
- Answer-An agent receives an Emergency Cease and Desist Order for chronically misrepresenting his insurance policies. The agent knows that he did not commit the violations stated in the Emergency Cease and Desist Order. He wants to contest the charges in a court hearing. Which of the following is true?
