Download Texas Property & Casualty License Exam Questions and Answers and more Exams Nursing in PDF only on Docsity!
Answers (Latest 2024 Update)
Property vs Casualty: What is considered property? - Correct Answer ✅Structure & Personal Property Property vs Casualty: What is considered casualty? - Correct Answer ✅Non- property losses. Legal liability to others. 3rd Party Risk - Correct Answer ✅uncertainty of financial loss Pure Risk - Correct Answer ✅Chance of Loss Speculative Risk - Correct Answer ✅Chance of Loss or Gain (Gamble) Insurance (covers which type of risk?) - Correct Answer ✅Pure Risk Only How does the law of large numbers apply in insurance? - Correct Answer ✅Actuaries use the law of large numbers to estimate claims
Answers (Latest 2024 Update)
What is the law of large numbers? - Correct Answer ✅as the number of a similar loss exposure increases, the more accurate claims can be predicted from the group. What is a peril? - Correct Answer ✅cause of loss What is a hazard? - Correct Answer ✅things that increase the chance of a peril happening Three types of hazards - Correct Answer ✅Physical: visible characteristic (dead tree) Moral: Dishonest tendencies Morale: Attitude of carelessness Proximate Cause - Correct Answer ✅First cause in an unbroken chain of events Elements of a legal contract (CALC) - Correct Answer ✅C - Competent parties (18/Right frame of mind)
Answers (Latest 2024 Update)
What are the four major parts to an insurance policy structure? (DICE) - Correct Answer ✅D - Declarations Page (First Page) I - Insuring Agreement (Insurers promise to pay) C - Conditions (Rules) E - Exclusions (Not covered) What information is on the declarations page? (Remember 6 Ps) - Correct Answer ✅Policy Number Parties Property Description/Location Policy Term Policy Limits/Deductibles Premium What is Limit of Liability? - Correct Answer ✅The max amount of coverage agreed to be paid per loss What is Aggregate Limit? - Correct Answer ✅The max amount of the total of all claims paid per policy period
Answers (Latest 2024 Update)
Insuring Agreement? - Correct Answer ✅Insurers promise to pay Conditions - Correct Answer ✅Contains the duties and rights of both parties What are the Insured's duties after a loss? - Correct Answer ✅Submit a proof of loss or sworn statement within 91 days. Protect property from further damage. Cooperate with the insurer. What is the Mortgage Clause? - Correct Answer ✅Nothing the insured does, even dishonestly, can prevent the mortgagee from collecting under the policy What are the two types of termination of a policy? - Correct Answer ✅Cancellation - occurs when the insured/insurer cancels the contract before the end of the policy period. Non-Renewals - occurs at the end of the policy period.
Answers (Latest 2024 Update)
What does vacant mean? - Correct Answer ✅Empty building. No people/No contents for 60 days. What does unoccupied mean? - Correct Answer ✅No people present when loss occurs but contents still remain. Abandonment - Correct Answer ✅insured cannot abandon partially damaged property and expect to be paid for its full value What is salvage value? - Correct Answer ✅after paying the insured for a loss as if it was totally destroyed the insured must give the insured what's left. What is the most common casualty coverage? - Correct Answer ✅Liability (3rd party) What is the definition of liability? - Correct Answer ✅Individual or organizations maybe held responsible for action resulting in bodily injury or property damage to others.
Answers (Latest 2024 Update)
What are the two types of liability? - Correct Answer ✅Criminal & Civil What is a tort? - Correct Answer ✅A civil wrong Direct Liability - Correct Answer ✅Insured is the wrongdoer (Tortfeasor) Vicarious Liability - Correct Answer ✅Insured is responsible for the actions of the wrongdoer Contractual Liability - Correct Answer ✅Insured assumes another's liability under a written agreement Absolute Liability - Correct Answer ✅Liability without fault (Child drowns in pool) Strict Liability - Correct Answer ✅Product defect claims Negligence - Correct Answer ✅Failure to do or not to do something that ordinarily should be or not be done that results in a loss
Answers (Latest 2024 Update)
What is occurrence? - Correct Answer ✅an event that happens over time Compensatory Damage - Correct Answer ✅To indemnify the injured party Punitive Damages - Correct Answer ✅To punish the wrongdoer due to gross negligence Domestic - Correct Answer ✅Same state Foreign - Correct Answer ✅Another state Alien - Correct Answer ✅Another country Stock Insurers - Correct Answer ✅Owned by stockholders/shareholders For profit company Mutual Insurers - Correct Answer ✅Owned by policyholders
Answers (Latest 2024 Update)
Incorporated/Managed by board of directors chosen by policy holders Self-Insurance - Correct Answer ✅Business organizations that set up their own savings accounts to pay for their own claims, property damage, or liability. Residual Markets - Correct Answer ✅Government (Fed & State) help provide insurance that is not ordinarily available from private insurers. Fed Ex. National Flood Insurance Program (NFIP) and Federal Crop and Hail Insurance State Ex. Texas Auto Insurance Plan Assoc (TAIPA), Texas Windstorm Insurance Assoc (TWIA), Joint Underwriting Assoc (JUA), and Fair Access to Insurance Requirements (FAIR) Three Federal Regulation Sources - Correct Answer ✅Fair Credit Reporting Act Terrorism Risk Insurance Act Gramm Leach Bliley Act
Answers (Latest 2024 Update)
Governed by a board of directors - 5 members from insurers and 4 members from the public Private Companies not TDI that publish the financial strength ratings include:
- Correct Answer ✅A.M. Best (A++ to F) Moody's Standard and Poor's Definition of agent - Correct Answer ✅Anyone who solicits insurance or aids in placing risk, delivering policies, or collecting policies on behalf of an insurance company. Temporary Agents License - Correct Answer ✅Issued for period of 90 days; No renewal Only 1 every 6 months Cannot be paid any commission for sales Must have a company or agent sponsor Must complete 40hrs of study within 14days of applying for the license No test required
Answers (Latest 2024 Update)
License Renewals - Correct Answer ✅Most renew every 2 years on anniversary date If license lapse: -May renew within 90 days, subject to $50 late fee penalty -If license expires after 90 days, may apply for new license without having to retest, up to 1 yr following the expiration -After one year, if still expired, must reapply and retest Continuing Education - Correct Answer ✅30 hrs required during license cycle 50% Classroom setting/ Classroom equivalent 2 hrs of Ethics Keep records for at least 4 yrs in case of audit No grace period given for completing continuing education Termination of Appointment - Correct Answer ✅If an agency contract has been in place for two years or longer agent is entitled to a 6 months advanced notice. Reason for termination must be provided
Answers (Latest 2024 Update)
Adjusters must meet the following time requirements in Texas - Correct Answer ✅-15 days to acknowledge claim, commence investigation and request all information (Proof of loss notice) -15 business days to accept or deny the claim, once all required information is received -5 business days to write the check after liability is determined -The above requirements may be modified, if suspected arson or weather related catastrophe Persons Insured - Correct Answer ✅Any person driving with the insureds permission Includes residents spouses permission Part A (personal auto policy) - Correct Answer ✅Liability Part B one (personal auto policy) - Correct Answer ✅Medical Payments
Answers (Latest 2024 Update)
Part B two (personal auto policy) - Correct Answer ✅Texas Personal Injury Protection Part C (personal auto policy) - Correct Answer ✅Uninsured and Underinsured Motorist Part D (personal auto policy) - Correct Answer ✅Damage to your auto Bodily Injury (personal auto policy) - Correct Answer ✅Bodily harm, sickness or disease including death Bodily Injury covers injuries caused by the insured including what? - Correct Answer ✅Medical Expenses, Lost Wages, Pain & Suffering Property Damage (personal auto policy) - Correct Answer ✅Includes physical injury to, destruction of, or loss of use of tangible property
Answers (Latest 2024 Update)
Other Insurance Clause - Correct Answer ✅Any insurance the company provides for a vehicle that is not owned by the insured will be considered excess to other insurance Medical Payments - Correct Answer ✅Pays for: Insured occupying an auto or as a pedestrian Pays regardless of fault up to three years Minimum limit is $500 per person Texas Personal Injury Protection (PIP) - Correct Answer ✅Pays for: Insured occupying an auto or as a pedestrian Insures the guest passenger Pays regardless of fault up to three years Medical and funeral expenses 80% of lost wages OR essential services A person cannot collect both lost wages and essential services Minimum limit is $2500 per person
Answers (Latest 2024 Update)
(must be included with all minimum limits of liability policies issued in Texas unless rejected in writing) Uninsured Motorist Coverage - Correct Answer ✅Provides coverage when at- fault third party does not carry liability insurance Includes hit and run Physical contact with another vehicle must occur Underinsured Motorist Coverage - Correct Answer ✅Provides coverage when at-fault third party does not carry enough liability insurance Uninsured/Underinsured Coverage Limits - Correct Answer ✅Min 30/60/ or combined single limit of $85, Must be included in all liability policies issued in Texas unless the insured rejects the coverage in writing Collision (Physical Damage) - Correct Answer ✅Covers specified perils only (collision with another veh or object) Upset of the vehicle (overturned)
