TEXAS PROPERTY AND CASUALTY EXAM 2024-2025, Exams of Nursing

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TEXAS PROPERTY AND CASUALTY EXAM

2024 - 2025 WITH ACTUAL CORRECT

QUESTIONS AND VERIFIED DETAILED

ANSWERS |FREQUENTLY TESTED

QUESTIONS AND SOLUTIONS |ALREADY

GRADED A+|NEWEST|GUARANTEED

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property policies do not cover damage to _____ _____, other than those used to maintain the premises (for ex riding lawn mowers) motorized vehicles _____ _____ and medical coverage cover the insured's activities both on and off the premises personal liability _____ ___ _____ covers only additional living expenses loss of use the insurer's duty to defend a lawsuit ends when the amount paid out for damages equals the ______

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limit of liability a person who is hired to maintain a premises is referred to as a ______ _____ residence employee at the insured's option, ______ ______ will be returned to the insured or retained by the insurer. If returned, the loss payment must be adjusted. recovered property after a loss, if the cost of reconstructing a home exceeds its market value, the insurer will consider it to be a _____ _____ _____ constructive total loss

_- is named peril on both the dwelling and contents HO- 2 _- is all-risk on a dwelling, but named peril on its contents HO- 3 in the _- _____ _____ policy, theft of personal property of a resident employee is covered HO-3 special form _- are property policies issued to tenants to cover contents extended coverage to losses caused by a covered peril to improvements, alterations and additions made to the described location at the tenant's expense HO- 4 on _- policy, contents coverage is named perils HO- 6 _- (unit-owners form) does not cover common area buildings HO- 6 _- was created specifically for older homes HO- 8 the _____ _____ section of a CPP (commercial package policy) permits either the insured or the insurer to cancel the policy common conditions CPPs are subject to premium audit for ___ years after policy expiration 3 business income insurance is a type of _____-_____ coverage time-element on ______ ______, replacement cost coverage, ordinance or law coverage and value reporting forms are all optional endorsements. However, valuation is a loss condition in the policy. commercial property on commercial property insurance, signs that are not attached to the building are covered as ____

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business personal property the commercial property _____ _____ ______ form protects an insured for the value of his lease in the event it is canceled as a result of physical loss or damage to the property by a covered cause of loss

leasehold interest coverage the commercial property causes of loss forms are _____, _____, and _______ basic, broad and special the coverage territory on a commercial property policy is the __, _____ _____, and ______ US, puerto rico and canada the ____ _____ _____ on a commercial property policy states that the insured has a maximum of 2 years to file a lawsuit against the insurer legal actions clause commercial fire policies only cover trees, shrubs, and plants up to $_____ each $ a ______ ______ covers bodily injury (BI), property damage (PD), and personal injury liability, but not employers liability businessowners policy (BOP) On a BOP, if the building has been vacant for more than ____ consecutive days, there is no coverage for vandalism, sprinkler leakage, glass breakage, water damage or theft. 60 an unendorsed BOP does not cover ______ ______, including liability for the operation of a nonowned auto auto liability On a BOP loss of business income is covered without dollar limit for a maximum of __ months 12 on a BOP, the optional endorsement designed to cover employee's property will not cover _____ theft according to the _____ _____ section of a BOP, an insurer may cancel a policy if the building has been vacant or unoccupied for 60 or more consecutive days common conditions _______ companies are not eligible for a BOP manufacturing a BOP may not be written for a _____ or _____ _____ bank or credit union

if an insured buys a special policy to cover his printing presses in addition to a BOP, a claim will be ____-

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pro-rated on a BOP, the _______ ______ warranty allows the insurer to deny a claim if systems are not properly maintained protective safeguards an unendorsed BOP will pay claims on an ____-____ basis all-risk a BOP written for a _____ will automatically cover tenant improvements and betterments tenant on the BOP, the inflation guard endorsement increases policy limits on each policy anniversary date by _% automatically 8% the BOP is all-risk on both building and contents, and it contains 80% coinsurance clause. it is written on a _____ _____ basis and covers theft replacement cost the ___ automatically covers business liability for BI, PD, personal in jury, advertising, fire legal liability, and medical BOP the _____ _____ endorsement when attached to a BOP requires the insured to maintain the sprinkler system or the alarm system in good working order protective safeguard the _____ ____ of liability contained in CGL and BOP is the most insurance company will pay for all occurrences during the policy period aggregate limit on a ___, the occurrence limits apply separately for each claim, but the aggregate limit applies to all claims turned in during the policy period CGL the CGL always contains 3 coverage sections: part A is liability part B is personal injury and advertising injury part C is medical payments to others there is no ______ on these coverages

deductible a ___ policy will provide liability anywhere in the world as long as the product was made within the policy territory and the lawsuit is filed there CGL the CGL policy territory is the __, ____ ____, and ______ US, Puerto Rico and canada on a CGL, the medical to others coverage applies on a ____-_____ basis per-person on a CGL, the fire coverage applies on a ____-_____ basis per-occurance _____ ______ applies only after the product is out of the control of the insured products liability _____ _____ does not cover the cost of a recall or resulting lost income products liability an ______ ______ liability policy covers claims that occur in the policy period, even if turned in after the expiration date Occurrence basis the retroactive date on a claims-made CGL only applies to Coverage __ Coverage A (BI and PD) all claims-made CGL policies contain a basic _____ _____ _____, which allows someone with a pending claim 60 additional days after expiration to notify the insurer extended reporting period (ERP) if the claimant notifies the insurer within 60 days of the pending claim, he has up to __ years to turn in the claim. The basic ERP is free. 5 the CGL policy excludes coverage for _____ _____, although this coverage may be added by optional endorsement for an additional premium pollution liability a ______ ______ liability policy requires that the claim occur after the retroactive date and be turned in during the policy period or within the extended reporting period claims made

a list of risks eligible for inland marine insurance published by the National Association of Insurance Commissioners (NAIC) is known as the ______ ______ nationwide definition on ______ _____ insurance , the insurer may inspect the insured's equipment, but they are not required to. equipment breakdown the ______ ______ ______ endorsement is used to insure personal property with high values such as furs, antiques and jewelry. scheduled personal property to properly insure computer equipment, an individual would buy a _____ _____floater data processing a _____ ______ floater will provide automatic coverage for newly acquired fine art for 90 days fine arts a ____ _____ ______ floater provides coverage on a ACV basis scheduled personal property when one party is held liable for the act of another party it is called _____ ______ (for ex employees and employers or parents and children) vicarious liability the businessowners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? 1 year a person who is not named as an insured on the declarations page of a policy but is protected by the policy is known as the ____ _____ additional insured employment practices liability insurance (EPLI) would not cover claims arising from _____ _____ _____ deliberate law violation surety bonds are written for a definite limit called ___ ____ ____ the bond penalty the _________ endorsement makes the other coverage of law or ordinance in a homeowners policy inapplicable to the policy mobilehome

the 4 additional coverages offered by the _____ _____ _____ are debris removal, fire department service charge, pollutant cleanup and the preservation of property builders risk form when insured for ____ _____, it is insured for what a willing buyer would pay prior to a loss market value the _____ ______ define how parties to the contract must act following a loss policy conditions in property and casualty insurance, what is the term for the amount of a loss that the insured must cover out of pocket, and the insurer will only pay for the additional amount of the loss above this limit? deductible what was created to pay benefits due to insureds after their insurance companies have been declared insolvent property and casualty insurance guaranty association the _____ _______ association is a voluntary association of admitted insurers whose members have been authorized by the state to provide a particular type of insurance to the public. This type of insurance is not available from a private insurer in the voluntary market. joint underwriting association (JUA) how long must producer maintain records of continuing education course completion? 4 Years The ___ sets flood insurance rates FIA (federal insurance administration) to qualify for a ____ a community must cooperate with the FIA (federal insurance administration) NFIP (national flood insurance program) _____ is defined as the temporary inundation of normally dry land flood flood insurance will not cover ___, _____, or ______ wharves, piers or docks NFIP (national flood insurance program) flood insurance does not cover ______ backup or seepage through the walls sewer

flood insurance is sold by the government and by participating private insurers, but claims are paid by the ______ _______ federal government the maximum coverage permitted under the regular NFIP (national flood insurance program) program is $______ for a single-family home $250, to be eligible for federal flood insurance, the community must participate in the ____ NFIP (national flood insurance program) the minimum deductible found in an earthquake policy is $___. Generally, the deductible on earthquake coverage is a percentage of the policy limit. $ if an insured as a ________ policy with liability and a personal umbrella policy, the liability limits on the boat policy would be priamary boatowners ______ ______ do not cover growing crops or autos driven on the highway farm policies on a farm policy, the definition of a ______ does not include a building used for agricultural purposes. dwelling _____ _____ are not covered on DP or HO forms farm risks Liability covers BI and PD to others for which an insured is proven to be _______ negligent the ____ _____ ______ plan provides a method for those who have been rejected in the normal market to obtain coverage auto assigned risk all authorized insurers selling auto insurance must participate in the ____ ____ ____ plan auto assigned risk supplementary payments under a ___ do not cover the insured's loss of earnings except when the insured is attending a hearing or trial at the insurer's request. The insured's injuries are not covered. PAP (personal auto policy)

the personal auto coverage from will provide coverage for radios and tape decks if they are ______ ______ in the dash permanently installed the ______ ______ section of the personal automobile policy pays necessary medical and funeral expenses caused by an accident and sustained by an insured medical payment the medical payments coverage found in the personal automobile policy will not pay for _____ _____ lost wages auto medical on a PAP protects the _______ and ______ in the car. it is optional coverage. it is not a supplementary payment, and it is no-fault insured and passengers on a PAP, an ____-____ driver's injuries would be covered by medical at-fault Coverage __ on a PAP is called coverage for damage to an insured's car and is optional. It is divided into collision and other than collision. D Coverage __ is written on an ACV basis and has a deductible. Other than collision coverage is also known as comprehensive coverage D Hitting a pole with an insured automobile would be an example of a ______ collision in the personal auto policy, hitting a dear is an example of _____ _____ _____ other than collision if a bird were to hit the insured's windshield, the windshield is covered under ____ ____ ____ on a PAP other than collision ______ _____ on the PAP covers colliding with another object, rollover and upset. Everything else is covered by other than collision coverage Collision coverage ______ and _____ is an optional coverage on the PAP and costs extra towing and labor the optional coverage limit for towing and labor pays on a per ____/_____ basis

event/occurrence ______ damage is covered under a PAP, but not on property policies flood in an accident, the owner's PAP is always the _______ policy; the driver's PAP, if different is always the excess policy primary Insureds purchase _____ ______ coverage because of their concern of being in an auto accident with someone who has no insurance and is at-fault Uninsured Motorist included in the definition of an uninsured motorist is a ____-____-____ driver, one whose insurer has gone bankrupt, and one who does not carry the state minimum limits hit-and-run if an individual is concerned about being in an auto accident with someone who has inadequate limits of liability and who is at-fault, they would purchase _______ _______ coverage underinsured motorist a ___ does not provide coverage in Mexico PAP a ___ does not cover an insured's property in transit PAP auto medical covers the insured and any passengers, but not _____ _____ injured pedestrians a ___ will cover small pick-up trucks, even if they are used for farming or ranching, but will NOT cover motorcycles, dump trucks or farm implements driven on the highway PAP on the PAP, exclusions under _____ ______ _______ include wear and tear, freezing and mechanical breakdown other than collision the ___ does not cover autos used as taxis or livery, but carpools are covered PAP ________ ______ coverage form does not cover an employee injured while driving a company car business auto

on a business auto policy, damage to an insured vehicle caused by a falling object would be covered under ______ ______ comprehensive coverage on a business auto policy, if the employer's partner drives his or her own car on company business, the partner would need to add _____ ______ _____ owned auto coverage on a business auto policy, if the employer wants coverage while their employees are driving their own cars on company business, the employer needs to add ______ and _______ auto coverage hired and nonowned on garage insurance, car dealers who have fluctuating inventories should utilize _____ ______ reporting forms _____ _____ covers product liability, but does not cover the cost of a recall garage liability the _____ _____ form was created for auto dealers, repair shops, service stations, parking garages and similar risks garage coverage in a garage form it is the ________ coverage that provides coverage for property in the care, custody and control of the insured garagekeepers When Workers Compensation must be purchased from a state fund, it is known as _______ monopolistic When Workers Compensation must be purchased from either the state fund or from any other authorized insured, it is known as _______ competitive workers compensation statutory coverages are set by the ______ state workers compensation covers both ______ ______ and _______ occupational injury and disease workers compensation cannot be added to a _____ _____. it always stands alone. package policy

under workers compensation, the term _____ _____ _____ refers to the inability to perform job related functions as a result of injury or disease permanent partial disability if the employee cannot currently fulfil his or her job duties but will be able to do so after recovering, the employee is considered ______ _____ temporary disability medical expenses are covered by workers compensation on a ____ _____ unlimited basis an employee who cannot return to work because of a disability is classified as ____ _____ totally disabled in an insurer issues a _____ ______ policy that does not comply with state requirements, they must pay the mandated coverages in the event of a claim workers compensation Upon work-related death, Workers Compensation will pay _____ _____ to surviving spouses and/or children income benefits workers compensation premiums are based upon _______. the ________ will not be known until after the policy period is over. payroll on workers compensation insurance, other states coverage will only apply to those states that are listed on the _____ page of the policy declarations Lawyers E&O (errors and omissions) does not cover BI and PD, only claims for _______ _______ financial damages _________ liability provides medical professionals bodily injury liability malpractice a & policy will cover a lawsuit brought by a shareholder against a director who unintentionally misstated the company's financial reports D&O (directors and officers) ______ and ______ liability policies cover the management mistakes of corporate officers and board members directors and officers

an _______ _______ _______ policy covers discrimination, harassment and unlawful termination. this coverage is NOT provided in a workers compensation policy. employment practices liability a _____ ______ _____ policy will pay on an excess basis, only after a primary policy has already paid. personal umbrella liability an _____ _____ policy, such as an umbrella, is one written over and above the primary liability policy's limits of insurance excess limits umbrella policies contain a ________ requirement that is like a deductible and must be paid by the insured in the event of a claim retention umbrella policies are not written on _____ _____ forms. standardized industry on a personal umbrella policy, the _____ _____ is defined as the policy limits of the primary policies retained limit an _____ _____ involves the solicitation, negotiation, sale, and advertisement of insurance products insurance transaction ______ insurers are those incorporated in the state of Texas domestic a _____ insurer means an insurer with home office in another state, that has obtained a license from this state's Insurance Commissioner foreign an _____ insurer is a company based in another country that has obtained a Certificate of Authority admitting it to do business in Texas alien An incorporated insurer owned by shareholders is known as a ____ ____ stock insurer ______ ______ sell nonparticipating policies and pay dividend to policyholders stock insurers _____ _____ issue participating policies, which might pay a dividend

mutual insurers ______ ______ may pay dividends to policyholders; however, dividends are never guaranteed mutual insurers _____ are a return of excess premiums in participating policies dividends a _____ ______ society provides insurance benefits for members of affiliated lodges, religious organizations, or fraternal organization with a representative form of government fraternal benefit a _____ __ ______ is a license issued by the Insurance Commissioner to insurers who meet the requirements to do business in a state Certificate of Authority the main duty of the ______ is to enforce state insurance rules and regulations for the protection of the public Commissioner the ______ ______ issues Certificates of Authority to insurers allowing them to legally do business in a specific state Insurance Commissioner the Commissioner is appointed by the Governor for __ years 2 The Commissioner must audit all authorized insurers no less frequently than once every __ years 5 the _____ is responsible for determining if an insurance company is insolvent Commissioner a _____ and _____ order may. be issued without a prior hearing cease and desist emergency cease and desist orders become final __ days after they are received 31 upon receiving a cease and desist order from the Commissioner, the aggrieved party request a hearing within __ days of the order 30

hearings must be held no more than __ days from a hearing request 10 The Commissioner must provide either enforce or annul the cease and desist order within __ days of a hearing 30 after a hearing, the Commissioner may revoke, suspend, refuse to renew, or place on probation a licensee who has violated the ______ ______ insurance code the maximum penalty for violating a cease and desist order is $1,000 per violation not to exceed $_____ for all violations $5, the maximum penalty for violation of the Insurance Code is $_____ $25, a _____ is a licensed person who sells, solicits, or negotiates insurance contract on behalf of an insurer producer ______ only need a license in the state they reside in and any state they conduct insurance business in producers to obtain a ____ , an applicant must be 18, pass the licensing exam, and pay the necessary licensing fees, as well as provide a complete set of fingerprints upon request from the Department of Insurance license a reciprocal agreement between Texas and other states allows Texas resident producers to obtain __________ licenses in those states without the need of passing a state exam nonresident a ______ ______ is a person who, for a fee, offers advice about the advantages or disadvantages of any insurance policy issued in this state insurance counselor temporary licenses are available for up to __ days without requiring a written examination 90 _____ _____ may be issued to corporations if eligibility requirements are met agent licenses

officers, directors, or employees who are not involved in and compensated for the selling of insurance are not required to receive a ____ _____ producer license salaried full-time employees who counsel or provide advice on the purchase of insurance are not required to be licensed, as long as they do not receive commissions from _____ of _____ sale of insurance an insurer may not appoint any person to act as their agent unless they are _____ licensed insurance licenses expire every __ years, on the licensee's birthday 2 applicants whose license has been expired for less than __ year may obtain a new license without an exam 1 agents must earn 24 hours of continuing education credits every __ years, including 2 hours of ethics 2 agents must maintain records of completed continuing education courses for at least __ years 4 Producers must notify the Commissioner on a ____ basis of any change in address, felony conviction or adverse administrative action taken against them in another state monthly examples of actions which warrant _______ suspension, revocation, or probation include, but are not limited to felony convictions, intentionally misstatements on a license application, and rebates on premiums license a licensee whose license has been revoked must wait __ years to file a new license application 5 _____ can only share commissions with other agents who are licensed for the same lines of insurance Agents Insurers must acknowledge, request statements, forms, and items, and begin an investigation within no more than __ business days from a receipt of notice of a claim 15

_______ is considered to be an unfair trade practice, including making misleading statements, illustrations or advertisements and/or the guarantee of future dividends misrepresentation agents may be subject to license suspension or revocation for ______ misrepresentation circulating deceptive sales material to the public is considered to be false, deceptive, or misleading _______, which is an unfair trade practice advertising false advertising is a form of _______ misrepresentation ______ is defined as making oral or written statements that are false or maliciously critical of the financial condition of an insurer or agent defamation ______ is defined as the giving of something of value in order to induce the client to purchase an insurance policy, usually part of the premium paid or the commission received rebating providing promotional materials, educational items, articles of merchandise, or traditional courtesy is not considered rebating if the materials are provided to all applicants or insureds who do not exceed $__ in value $ combining premiums collected from insurers with an agent's personal funds is considered ________ commingling _____ is considered to be a restraint of trade and is illegal Coercion refusing to make available coverage for persons of the same class would be considered an ______

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unfair discrimination the availability or amount of coverage may not be denied or reduced based upon ____ ____ marital status _____ is defined as an intentional misrepresentation or concealment used to induce a party Fraud

an agent must report suspected insurance fraud to the Insurance Fraud Unit of the Department of Insurance within __ days 30 the _______ _______ ______ is designed to protect consumers in the event an insurance company is unable to fulfil contractual obligations as a result of insolvency Insurance Guaranty Association all insurers are required to be members of the ______ ______ ______ Insurance Guaranty Association insurers are prohibited from making statements that an insurer's policies are guaranteed by the existence of the ______ _____ ____ Insurance Guaranty Association _____ coverage covers buildings, the contents of buildings, or both property _____ or liability insurance provides compensation or indemnity an insured must pay as a result of harm or wrong done to others casualty the ______ is responsible for approving all policy forms, endorsements, and rates. Commissioner Insurers must file rates and forms with the Commissioner no later than __ days before becoming effective 60 Homeowners policies may be canceled after __ days only for certain things, such as nonpayment of premium or a substantial change in the risk assumed by the company since the policy was issued 60 a __-day advance written notice of cancellation (HO) must be sent to the insured 10 an insurer may non-renew a (HO) policy if an insured has files __ or more claims over the last 3 years 3 ______ ______ refers to the value of loss being the full amount of the HO policy, in response to a total loss of insured property liquidated demand

property losses are settles on an _____ _____ _____ basis actual cash value (ACV) Insurers must acknowledge receipt of a Notice of Claim within __ days (HO) 10 Insurers must notify insureds within __ days of a claim being settled (HO) 30 The _____ _____ ______ to Insurance Requirements Plan Association establishes insurance plans to make insurance coverage available to property owners who cannot procure coverage in the voluntary insurance market Texas Fair Access all insurers must be members of the ____ Association FAIR Maximum limits of liability for resident property though the FAIR Association are $_______ for dwellings and $_______ for contents $1,000,000 and $500, The ____ _____ _____ Association was created to provide an adequate market for windstorm and hail insurance for designated areas of the state Texas Windstorm Insurance (TWIA) The TWIA may issue insurance if the ______ determines that a city or county is a catastrophe area and insurance is not reasonably available Commissioner to be eligible for coverage under the ____, structures located in a catastrophe area must be complaint with state construction, alteration, remodeling, enlargement, and repair laws TWIA (Texas Windstorm Insurance Association) (TWIA) eligible property may be subject to an ______, prior to a policy being issued inspection If the TWIA agrees cover property as insurable, the policy will be issued for __ year 1 the minimum required limits for auto policies are //__ 30/60/ ($30,000 for BI or death of one person in one accident;

$60,000 for BI or death of 2 or more persons in one accident; and $25,000 for damage to property in one accident) operating a vehicle without the required insurance is a misdemeanor, punishable by a fine of at least $____ but no more than $____ $175, $ fines for continuing to operate a vehicle without required insurance are between $____ and $_____. The violator may have his or her vehicle registration suspended, unless proof of financial responsibility is maintained for 2 years. $350 and $1, After a policy has been issued, insurers must provide the insured with a _____ _____ ____ Liability Insurance Card All auto liability insurance policies must include _____ _____ _____, unless rejected by the insurance in writing personal injury protection (PIP) Insurers must offer a minimum of PIP of $______ $2, PIPs cover payment of __% of loss of income and the cost of hiring a caregiver 80% _____ _____ _____ coverage is not mandatory in the state of Texas Auto Uninsured Motorist UM or UIM coverage cannot exceed the ____ of _____ for bodily injury or property damage limits of liability (auto) coverage for property damage is subject to a deductible of $____ $ an insurer may cancel or non-renew an auto policy for fraudulent claims, nonpayment of premium, suspension or revocation of a driver's license, or in response to a determination by the Department, as long as the policy has been in effect for __days and a 1 0 - day notice is provided to the insured 60 The _____ ______ _____ ______ Association is an nonprofit corporate entity which offers coverage to high-risk drivers, who have been rejected coverage by at least 2 auto insurers Texas Automobile Insurance Plan (TAIPA)

The _____ is compromised of all insurers authorized to write motor vehicle liability insurance in this state TAIPA (Texas Automobile Insurance Plan Association) ______ ______ covers occupational injury or sickness Workers Compensation the ____ _____ _____ date refers to the amount of time medical improvements to an injury can no longer be reasonably anticipated, or 104 weeks from the date benefits begin maximum medical improvement _____ ______ is defined as a disease arising out of or during the course of employment, resulting in damage or harm to the body occupational disease a ______ _____ is defined as any person in the service of another under a contract of hire covered employee _____ _____ establishes that an employee cannot take legal action against an employer if the employee recovers benefits through workers compensation exclusive remedy Workers Compensation disability income benefits are subject to a _-day waiting period 7 an employee must alert the employer of an injury or occupational disease sustained, no later than __ days from the injury or __ days from the time the employee knew or should have known the injury may be related to employment 30 in the event of a third-party action, the ____ _____ recovered by the claimant must be used to reimburse the insurance carrier for benefits net amount medical treatment for an injured employee is covered under _______ _______, but must be treated through approved physicians workers compensation the average weekly wage paid through workers compensation is determined by dividing the sum of wages paid in the __ weeks preceding the date of injury by __ 13 weekly temporary income benefits may not exceed ___% of the state weekly average wages

100%

weekly death benefits may not exceed ___% of the state weekly average wages 100% weekly impairment income benefits and weekly supplemental income benefits cannot exceed __% of the state weekly average wages 70% ______ _____ are paid to an employee on a weekly basis, unless otherwise requested and greed upon with the employer income benefits in the event an employee is disabled and does not attain maximum medial improvement, the employee is entitled to ______ ______ ______ temporary income benefits after an employee reaches ______ ______ ________, he or she may still be entitled to impairment income benefits, depending on the employees impairment rating maximum medical improvement employees may receive supplemental income benefits if, after impairment benefits have expired, the employee has an impairment rating of __%, has not returned to work or has returned to work but is earning 80% of their average weekly wage, and has attempted to obtain employment 15% the commission may refer an employee receiving supplemental income benefits to the _____ _____ ______ for treatment Texas Rehabilitation Commission _______ ______ are paid to an employee in the event of total or permanent loss of sight in both eyes, loss or paralysis to both feet, both hands, or one foot and one hand, or injury to the skull resulting in incurable insanity or imbecility Lifetime benefits death benefits paid to a beneficiary are equivalent to __% of the deceased employees average weekly wage 75% a spouse of a deceased employee may receive death benefits for life or ___ weeks of benefits upon remarriage 104 insurers must pay workers compensation within __ days of receiving written notice of an injury

The TX P&C ______ _______ _______ is divided into 3 accounts: auto, workers compensation, and all other lines of insurance Insurance Guaranty Association The TX P&C Insurance Guaranty Association pays the full amount of any covered claim for ______ ______ claims workers compensation (TX P&C Insurance Guaranty Association) all other claims arising from the same occurrence are covered up to a limit of $______ $300,000 _____ _____ _____ are voluntary, unincorporated associations whose member insurers provide particular forms of insurance to the public Joint underwriting associations (JUAs) (JUA) an association must have a license, which must be renewed every __ years 3 surplus lines insurance is written by ______ _____ unauthorized insurers _____ ______ insurance provides coverage on risks unavailable through authorized insurers surplus lines _____ _____ agents may be authorized as a general lines agent, managing general agent, or nonresident agent who is granted a _____ _____ license surplus lines applicants for a surplus lines license must pay an annual fee of no more than $___, submit a license application, and pass a surplus lines examination $50 When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be _____ _____ proximate cause regarding the premium computation for workers compensation insurance: A premium auditor has the right to examine the insured's compensation records at the end of the policy period to determine the

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actual premium basis Employers must list all states in which they do business on the _____ _________ page for coverage to apply in those states. policy information ______ _____ works best for items whose value does not fluctuate much Agreed value Strict liability is commonly applied in _____ ______ cases. The business is then liable for defective products, regardless of fault or negligence. product liability ______ ______ means one location is insured for a specific amount of insurance on the structure and contents. Specific coverage. ______ _______ means the employer does not have to be subject to the state's workers compensation laws, but if the employer chooses not to be subject to the laws, it loses its common law defenses against liability suits. elective law If an insurer makes a change to broaden coverage in a dwelling policy while it is in effect, the changes will apply ________ automatically ______ ______ will pay beyond the expiration date of a policy. It will pay until the business is restored or the limits of coverage are exhausted. Business income Coverage __ - Personal liability will respond if a claim is made or a suit is brought against an insured for damages due to bodily injury (BI) or property damage (PD) caused by an occurrence to which the coverage applies. E ____ _____ ______ coverage pays for losses that occur during the policy period and are found for up to 1 year after the policy is terminated. Loss sustained crime A person who is not named as an insured on the declarations page of a policy but is protected by the policy is known as the ____ _____ Additional insured An additional loss that results from a direct loss of property is called a/an ______ ______

Indirect loss. ________ and _______ are both excluded perils in all property policies. However, coverage for both or either one usually can be purchased separately for an additional premium (by endorsement). flood and earthquake What are the two types of compensatory damages? _____ and _____ Special and general Lifetime income benefits are paid at __% of the employee's average weekly wage. 75% The replacement cost method of loss valuation is contrary to the basic concept of ______ because following a loss it may provide the insured with a settlement in excess of the property's actual cash value. indemnity The part of the insurance contract that describes the covered perils and the nature of coverage of the contractual agreement between the insurer and the insured is called the _____ ______ Insuring agreement The party to a surety or fidelity bond who promises to fulfill the obligation is the ________ Principal. Which part of an insurance policy covers claims-related expenses, reasonable expenses incurred by an insured to protect damaged property from further loss, or defense expenses? ______ ______ Additional coverage Before an insurer will pay any loss under a policy, what is usually required from the insured? ____ __

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Proof of loss 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 ______

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Stated amount _____ ______ causes of loss adds falling objects; weight of ice, snow, or sleet; water damage; collapse; and breakage of glass to those perils covered under the basic causes of loss. Broad form An ____________ _________ ________ is developed by a rating bureau. The calculations relate an employer's losses, payroll, and premiums, segregated according to classifications of operations, all as reported to the bureau by the employer's insurance company.