pg. 1 Exam FX Insurance Practice Exam Questions with Correct Verified Answers – Latest Update 2024/ Rated A+.
An insured works outside the home. The insured's sister lives with him and cares for his four children.When the insured's home is severely damaged by fire, the family moves into an apartment while repairs are being made. The largest apartment available in the area has two bedrooms, so the insured's sister has to stay at a motel. How much will the HO-3 form pay for these additional living expense? - ANSWER - All of the expense up to the Coverage D limit
The causes of loss insured against in an insurance policy are known as - ANSWER – Perils
An employee may be eligible for supplemental income benefits upon - ANSWER - The expiration of the impairment income benefit period.
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.
Which of the following best describes a misrepresentation? - ANSWER - Issuing sales material with exaggerated statements about policy benefits
If a licensed agent in Texas receives a criminal conviction, that information must be reported to - ANSWER - Department of Insurance.
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.
An insurer must acknowledge receipt of a Notice of Claim within how many days? - ANSWER - 15
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pg. 2 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
Which of the following would NOT be considered rebating? - ANSWER - Giving a client a $25 pen with the insurer's logo during the insurance application process
An employee who refuses services or refuses to cooperate with services provided by the Rehabilitation Commission will - ANSWER - Lose entitlement to supplemental income benefits.
The Texas Windstorm Insurance Association provides windstorm and hail insurance - ANSWER - In the seacoast territory of this state only.
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 - ANSWER - Misrepresentation.
Before an insurer will pay any loss under a policy, what is usually required from the insured? - ANSWER - Proof of loss
All of the following statements concerning coinsurance are true EXCEPT - ANSWER - The coinsurance formula will also be applied to total losses.
What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? - ANSWER - Other insurance
What is the purpose of the coinsurance clause found in property insurance policies? - ANSWER - Encourage the insured to insure the property closer to its full value
With respect to the business of insurance, a hazard is - ANSWER - Any condition or exposure that increases the possibility of loss.
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