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TX INSURANCE EXAM PRACTICE
Extended 5 Coverage 5 Perils 5 - 5 ans-- ✔✔Wind, 5 Civil 5 Commotion, 5 Smoke, 5 Hail, 5 Aircraft, 5 Vehicles, 5 Volcanos, 5 Explosion, 5 Riot 5 WC 5 SHAVVER Perils 5 on 5 an 5 Unendorsed 5 DP1 5 Policy 5 - 5 ans--✔✔Fire, 5 Lightening, 5 Internal 5 Explosion Coverage 5 amount 5 for 5 Trees 5 and 5 Shrubs 5 on 5 a 5 DP1 5 policy 5 - 5 ans--✔✔ 0 Part 5 of 5 the 5 Policy 5 that 5 lists 5 the 5 insured's 5 limits 5 - 5 ans--✔✔Declarations 5 page Subrogation 5 is 5 listed 5 in 5 what 5 part 5 of 5 the 5 contract 5 - 5 ans--✔✔Conditions Part 5 of 5 the 5 contract 5 that 5 tells 5 you 5 what 5 is 5 not 5 covered 5 - 5 ans--✔✔Exclusions Coverage 5 A 5 on 5 a 5 Home 5 Policy 5 - 5 ans-- ✔✔The 5 structure 5 and 5 anything 5 attached 5 to 5 it, 5 as 5 well 5 as 5 materials 5 used 5 for 5 the 5 home. Coverage 5 B 5 on 5 a 5 Home 5 Policy 5 - 5 ans--✔✔other 5 structures Coverage 5 C 5 on 5 a 5 Home 5 Policy 5 - 5 ans--✔✔Contents Coverage 5 B, 5 coverage 5 limit 5 on 5 an 5 HO 5 - 5 ans--✔✔10% 5 of 5 Coverage 5 A Coverage 5 C, 5 coverage 5 limit 5 on 5 an 5 HO 5 - 5 ans--✔✔50% 5 of 5 Coverage 5 A Coverage 5 D, 5 coverage 5 limit 5 on 5 an 5 HO4 5 - 5 ans--✔✔30% 5 of 5 Coverage 5 C Coverage 5 D, 5 coverage 5 limit 5 on 5 an 5 HO3 5 - 5 ans--✔✔30% 5 of 5 Coverage 5 A Coverage 5 D, 5 coverage 5 limit 5 on 5 an 5 HO6 5 - 5 ans--✔✔50% 5 of 5 Coverage 5 C Loss 5 Settlement 5 on 5 an 5 HO3 5 for 5 Contents 5 (Cov 5 B) 5 - 5 ans--✔✔ACV Loss 5 Settlement 5 on 5 an 5 HO3 5 for 5 the 5 Structure 5 (Cov 5 A) 5 - 5 ans--✔✔Replacement 5 Cost ACV 5 - 5 ans--✔✔Replacement 5 Cost 5 - 5 Depreciation Deductible 5 - 5 ans--✔✔Portion 5 of 5 the 5 loss 5 that 5 the 5 customer 5 pays 5 out 5 of 5 pocket
Indeminity 5 - 5 ans-- ✔✔insureds 5 suffering 5 a 5 covered 5 loss 5 are 5 entitled 5 to 5 recover 5 an 5 amount 5 not 5 greater 5 th an 5 that 5 which 5 would 5 be 5 necessary 5 to 5 place 5 the 5 insured 5 in 5 the 5 same 5 preloss 5 financial 5 position. Insurable 5 Interest 5 - 5 ans-- ✔✔A 5 financial 5 interest 5 in 5 property 5 permits 5 someone 5 to 5 buy 5 insurance 5 to 5 protect 5 again st 5 the 5 financial 5 loss 5 to 5 that 5 property. Speculative 5 Risk 5 - 5 ans--✔✔a 5 risk 5 in 5 which 5 there 5 is 5 a 5 chance 5 of 5 either 5 loss 5 or 5 gain Pure 5 Risk 5 - 5 ans--✔✔chance 5 of 5 only 5 loss Risk 5 - 5 ans--✔✔chance 5 of 5 a 5 loss Moral 5 Hazard 5 - 5 ans-- ✔✔A 5 condition 5 that 5 increases 5 the 5 likelihood 5 that 5 a 5 person 5 will 5 intentionally 5 cause 5 or 5 e xaggerate 5 a 5 loss Hazard 5 - 5 ans--✔✔Increases 5 the 5 chance 5 of 5 a 5 loss Physical 5 Hazard 5 - 5 ans-- ✔✔a 5 physical 5 condition 5 that 5 increases 5 the 5 frequency 5 or 5 severity 5 of 5 loss. 5 example 5 skat eboard 5 on 5 the 5 sidewalk Morale 5 Hazard 5 - 5 ans-- ✔✔A 5 condition 5 of 5 carelessness 5 or 5 indifference 5 that 5 increases 5 the 5 frequency 5 or 5 severit y 5 of 5 loss. 5 example 5 leaving 5 your 5 keys 5 in 5 the 5 car, 5 not 5 locking 5 your 5 house 5 up 5 when 5 you 5 l eave Peril 5 - 5 ans--✔✔cause 5 of 5 a 5 loss Occurance 5 - 5 ans--✔✔An 5 event 5 that 5 happens 5 at 5 any 5 given 5 time Auto 5 medical 5 payments 5 - 5 ans-- ✔✔pays 5 injury 5 to 5 you 5 or 5 your 5 passengers 5 due 5 to 5 a 5 traffic 5 accidnet 5 regardless 5 of 5 fault. 535 years 5 to 5 file 5 the 5 claim Texas 5 PIP 5 - 5 ans-- ✔✔pays 5 injury 5 and 5 income 5 loss 5 to 5 you 5 or 5 your 5 passengers 5 due 5 to 5 a 5 traffic 5 accidnet 5 re gardless 5 of 5 fault. 535 years 5 to 5 file 5 the 5 claim. 5 Also 5 pays 5 out 5 essential 5 services. 5 Pays 5100 % 5 of 5 Medical 5 and 5 80% 5 of 5 workloss. 5 You 5 have 5 the 5 right 5 to 5 reject 5 it 5 in 5 writing.
Twisting 5 - 5 ans-- ✔✔A 5 form 5 of 5 misrepresentation 5 in 5 which 5 an 5 agent 5 persuades 5 an 5 insured/ owner 5 to 5 cancel, 5 lapse, 5 or 5 switch 5 policies, 5 even 5 when 5 it's 5 to 5 the 5 insured's 5 disadvantag e. Cease 5 and 5 desist 5 - 5 ans-- ✔✔an 5 order 5 by 5 an 5 enforcement 5 agency 5 requiring 5 the 5 seller 5 to 5 discontinue 5 a 5 specific 5 a ction 5 that 5 may 5 violate 5 the 5 law. Texas 5 Auto 5 minimum 5 Limits 5 for 5 Liability 5 - 5 ans--✔✔30/60/ Texas 5 mimimum 5 Limits 5 for 5 PIP 5 - 5 ans--✔✔ 25005 with 5 right 5 to 5 reject 5 in 5 writing Texas 5 Auto 5 Mimimum 5 Limits 5 for 5 Uninsured 5 Motorist 5 - 5 ans-- ✔✔30/60/25 5 with 5 right 5 to 5 reject 5 in 5 writing Absolute 5 Liability 5 - 5 ans-- ✔✔some 5 things 5 are 5 inherently 5 so 5 dangerous 5 that 5 liability 5 is 5 absolute 5 or 5 statutory, 5 as 5 i n 5 keeping 5 a 5 tiger 5 as 5 a 5 pet, 5 or 5 keeping 5 explosives 5 in 5 the 5 home Strict 5 Liability 5 - 5 ans-- ✔✔responsibility 5 of 5 a 5 seller 5 or 5 manufacturer 5 for 5 any 5 defective 5 product 5 unduly 5 threaten ing 5 personal 5 safety Negligence 5 - 5 ans-- ✔✔failure 5 to 5 act 5 with 5 the 5 prudence 5 that 5 a 5 reasonable 5 person 5 would 5 exercise 5 under 5 th e 5 same 5 circumstances Binder 5 - 5 ans-- ✔✔An 5 oral 5 or 5 written 5 statement 5 verifying 5 insurance 5 coverage 5 before 5 the 5 regular 5 policy 5 is 5 issued 5 by 5 the 5 insurance 5 company 5 Good 5 for 5305 days Endorsements 5 - 5 ans--✔✔something 5 added 5 to 5 the 5 policy 5 to 5 make 5 it 5 better; Burglary 5 - 5 ans-- ✔✔The 5 breaking 5 into, 5 and 5 entering 5 of, 5 a 5 dwelling 5 house 5 or 5 place 5 with 5 the 5 intent 5 to 5 co mmit 5 a 5 felony Robbery 5 - 5 ans-- ✔✔the 5 forcible 5 stealing 5 of 5 the 5 personal 5 property 5 of 5 another 5 either 5 from 5 his 5 or 5 her 5 pers on 5 or 5 in 5 the 5 immediate 5 presence 5 of 5 the 5 victim
Mysterious 5 Disappearance 5 - 5 ans-- ✔✔A 5 disappearance 5 of 5 property 5 that 5 cannot 5 be 5 explained 5 as 5 to 5 the 5 location, 5 time 5 or 5 t he 5 manner 5 of 5 property 5 loss. Warranties 5 - 5 ans-- ✔✔absolutely 5 true 5 statement 5 upon 5 which 5 the 5 validity 5 of 5 the 5 insurance 5 policy 5 depends Representations 5 - 5 ans-- ✔✔Statements 5 made 5 by 5 the 5 applicant 5 on 5 the 5 insurance 5 application 5 that 5 are 5 believed 5 t o 5 be 5 true, 5 but 5 are 5 not 5 guaranteed 5 to 5 be 5 true. Misrepresentations 5 - 5 ans-- ✔✔a 5 false 5 statement 5 in 5 the 5 application 5 that 5 can 5 render 5 the 5 contract 5 void 5 if 5 material 5 to 5 acceptance 5 of 5 the 5 risk 5 (does 5 not 5 reflect 5 the 5 truth). Concealment 5 - 5 ans-- ✔✔occurs 5 when 5 an 5 individual 5 makes 5 a 5 false 5 representation 5 by 5 choosing 5 not 5 to 5 reveal 5 important 5 information Certificate 5 of 5 Insurance 5 - 5 ans-- ✔✔A 5 document 5 provided 5 by 5 an 5 insurance 5 company 5 as 5 proof 5 that 5 a 5 policy 5 has 5 been 5 is sued 5 and 5 coverage 5 is 5 in 5 effect. Special 5 Damages 5 - 5 ans-- ✔✔A 5 form 5 of 5 compensatory 5 damages 5 that 5 awards 5 a 5 sum 5 of 5 money 5 for 5 specific, 5 identi fiable 5 expenses 5 associated 5 with 5 the 5 injured 5 person's 5 loss, 5 such 5 as 5 medical 5 expenses 5 or 5 lost 5 wages. General 5 Damages 5 - 5 ans-- ✔✔A 5 monetary 5 award 5 to 5 compensate 5 a 5 victim 5 for 5 losses, 5 such 5 as 5 pain 5 and 5 suffering, 5 that 5 do 5 not 5 involve 5 specific 5 measurable 5 expenses. Punitive 5 Damages 5 - 5 ans-- ✔✔(law) 5 compensation 5 in 5 excess 5 of 5 actual 5 damages 5 (a 5 form 5 of 5 punishment 5 awarded 5 i n 5 cases 5 of 5 malicious 5 or 5 willful 5 misconduct) FCRA 5 - 5 ans-- ✔✔Fair 5 Credit 5 Reporting 5 Act, 5 federal 5 law 5 giving 5 consumers 5 the 5 right 5 to 5 view 5 and 5 corr ect 5 their 5 credit 5 information Declarations 5 Page 5 - 5 ans-- ✔✔Part 5 of 5 a 5 policy 5 that 5 identifies 5 the 5 specifics 5 that 5 are 5 unique 5 to 5 the 5 insured, 5 such 5 as 5 the 5 covered 5 location, 5 and 5 also 5 lists 5 policy 5 limits, 5 period 5 of 5 coverage, 5 the 5 name 5 of 5 the 5 insurer, 5 and 5 similar 5 information.
Domestic 5 Insurer 5 - 5 ans--✔✔An 5 insurer 5 doing 5 business 5 in 5 its 5 home 5 state Alien 5 Insurer 5 - 5 ans-- ✔✔An 5 insurance 5 company 5 that 5 is 5 incorporated 5 outside 5 the 5 United 5 States. Stock 5 Company 5 - 5 ans--✔✔a 5 type 5 of 5 insurance 5 company 5 owned 5 by 5 stockholders Mutual 5 Company 5 - 5 ans-- ✔✔a 5 type 5 of 5 insurance 5 company 5 owned 5 by 5 its 5 policyholders. 5 Dividends 5 may 5 be 5 paye d 5 if 5 the 5 insurance 5 company 5 makes 5 a 5 profit. 5 It 5 is 5 illegal 5 to 5 guaranty 5 dividends. Admitted 5 Company 5 - 5 ans-- ✔✔An 5 insurer 5 that 5 meets 5 the 5 licensing 5 criteria 5 of 5 the 5 state 5 it 5 wishes 5 to 5 do 5 buisnes 5 in 5 has 5 received 5 a 5 certificate 5 of 5 authority. 5 Also 5 known 5 as 5 authorized 5 company. Non 5 Admitted 5 Company 5 - 5 ans-- ✔✔An 5 insurance 5 company 5 not 5 licensed 5 to 5 do 5 business 5 in 5 a 5 given 5 state. Non-Resident 5 Agent 5 - 5 ans-- ✔✔An 5 agent 5 licensed 5 in 5 a 5 state 5 in 5 which 5 the 5 agent 5 is 5 not 5 a 5 resident. Texas 5 Temporary 5 Insurance 5 License 5 - 5 ans-- ✔✔Good 5 for 5905 days. 5 Must 5 take 5405 hours 5 of 5 insurance 5 coursework 5 within 5145 days 5 of 5 obtaining 5 it. Managing 5 General 5 Agent 5 - 5 ans-- ✔✔An 5 authorized 5 agent 5 of 5 the 5 primary 5 insurer 5 that 5 manages 5 all 5 or 5 part 5 of 5 the 5 primary 5 insurer's 5 insurance 5 activities, 5 usually 5 in 5 a 5 specific 5 geographic 5 area Fiduciary 5 capacity 5 - 5 ans-- ✔✔When 5 the 5 business 5 a 5 person 5 transacts 5 or 5 the 5 money 5 or 5 property 5 which 5 he 5 handle s 5 is 5 not 5 for 5 his 5 own 5 benefit 5 but 5 for 5 another 5 person Agent/producer 5 represents 5 the 5 insurance 5 company Texas 5 Automobile 5 Insurance 5 Plan 5 Association 5 - 5 ans-- ✔✔Assigned 5 Risk 5 Pool 5 for 5 high 5 risk 5 drivers. 5 Insured 5 must 5 attempt 5 to 5 obtain 5 insurance 5 from 525 insurance 5 companies 5 prior 5 to 5 being 5 eligible 5 for 5 the 5 Texas 5 Automobile 5 Insuran ce 5 Plan 5 Association Texas 5 Property 5 and 5 Casualty 5 Insurance Guaranty 5 Association 5 - 5 ans-- ✔✔Pays 5 for 5 claims 5 of 5 insurance 5 companies 5 that 5 are 5 insolvent 5 the 5 most 5 they 5 will 5 pay 5 f or 5 any 5 one 5 claim 5 is 5 $300,
Liquidated 5 Demand 5 - 5 ans-- ✔✔In 5 the 5 event 5 of 5 a 5 Total 5 Fire 5 loss 5 the 5 full 5 Coverage 5 A 5 amount 5 will 5 be 5 paid. 5 No 5 stick s 5 no 5 bricks 5 due 5 to 5 fire 5 full 5 vaule 5 paid. at 5 a 5 minimum 5 the 5 department 5 must 5 examine 5 a 5 carrier 5 at 5 least 5 once 5 every 5 - 5 ans-- ✔✔ 55 years who 5 enacts 5 new 5 insurance 5 laws 5 - 5 ans--✔✔the 5 legislature what 5 % 5 of 5 business 5 can 5 be 5 controlled 5 business 5 - 5 ans--✔✔75% HO 555 - 5 ans--✔✔Comprehensive 5 Form/broadest 5 cov./open 5 perils 5 on 5 dwelling/ other 5 struct/and 5 pers 5 prop HO-2 5 - 5 ans-- ✔✔Broad 5 Form; 5 Named 5 perils 5 policy 5 that 5 insures 5 the 5 dwelling, 5 other 5 structures 5 and 5 p ersonal 5 property 5 against 5 loss 5 from 5 certain 5 listed 5 perils HO-3 5 - 5 ans-- ✔✔special 5 form; 5 provides 5 open 5 peril 5 coverage 5 for 5 loss 5 to 5 dwelling 5 and 5 other 5 structure s; 5 broad 5 coverage 5 for 5 personal 5 property DP-1 5 - 5 ans--✔✔Basic 5 form, 5 fire, 5 lightning, 5 internal 5 explosion for 5 an 5 additional 5 fee 5 can 5 add 5 the 5 extended 5 coverage 5 perils 5 (WC 5 SHAVER) 5 and 5 vanda lism 5 and 5 malicious 5 mischief coverage 5 A 5 - 5 ans--✔✔dwelling 5 - 5 including 5 all 5 those 5 attached 5 structures 5 and 5 outdoor 5 personal 5 property 5 or 5 equipment 5 u sed 5 to 5 maintain 5 or 5 service 5 the 5 premises coverage 5 B 5 - 5 ans--✔✔other 5 structures 5 10% 5 of 5 A coverage 5 C 5 - 5 ans-- ✔✔personal 5 property. 5 if 5 you 5 flip 5 the 5 house 5 upside 5 down 5 everything 5 that 5 fell 5 out 5 of 5 it coverage 5 D 5 on 5 an 5 HO 5 policy 5 - 5 ans-- ✔✔additional 5 living 5 expenses, 5 hotel, 5 food 5 costs 5 etc 5 if 5 home 5 is 5 not 5 livable coverage 5 D 5 on 5 a 5 DP 5 policy 5 - 5 ans-- ✔✔20% 5 of 5 A 5 pays 5 for 5 the 5 loss 5 of 5 rent. 5 fair 5 rental 5 value Coverage 5 F 5 on 5 a 5 DP 5 policy 5 - 5 ans-- ✔✔additional 5 living 5 expenses, 5 hotel, 5 food 5 costs 5 etc 5 if 5 home 5 is 5 not 5 livable. 5 only 5 on 5 a 5 D P2 5 and 5 DP
