1 Texas General Lines- Property and Casualty Latest Update 2024/ Actual Exam Questions with Correct Verified Answers/ Rated A+
Policy structure - ANSWER - DICE (Declarations, insuring agreement, conditions, exclusions)
Declarations - ANSWER - May also be called the declarations page, declarations sheet, or face policy, "information sheet", Purpose-tailors the policy to meet the specific needs of an insured, contains the 6 Ps (Policy number/Parties: named insured and insurer, mortgage or lien holder/Property description and its location/Policy term: effective and expiration dates most policies are one year/ Policy limits and deductibles/ Premium)
insuring Agreement - ANSWER - dice- contains the insurer's promise to pay which includes the covered perils if a property policy (named perils, open perils, a combination of named perils and open perils, if the policy covers liability the insurer's duty to pay for a defense for the insured is covered here "Duty to defend")
Conditions - ANSWER - dice- "Rules of the game"- contains the duties and rights of the parties: insured duties in the event of a loss, insured subrogation rights; mortgagees rights, other provisions in conditions- termination provisions, loss settlement provisions including other insurance clauses and dispute resolution processes, the territory where coverage applies
Other common conditions - ANSWER - Assignment- insured may not transfer the policy to another person unless insurer has given written consent Liberalization clause- broadens or extends coverage either due to company voluntary action or legal determination, no additional premium is charged Legal actions against us- insured may sue the insurer within two years and one day of loss in Texas 1 / 3
2 Type of licenses - ANSWER - agent, adjuster, surplus lines broker, managing general agent, nonresident agent, temporary, conditional
Agents represent - ANSWER - the insurer, not the insured
Adjuster - ANSWER - Any person who adjusts, investigates or negotiates settlement of claims arising under insurance contracts on behalf of the insurer or the insured.
Surplus lines broker - ANSWER - Any person who, as an independent contractor, procures insurance on behalf of clients with Surplus Lines insurers such as Lloyds of London.
fine for each credit hour not completed - ANSWER - $50
Temporary license - ANSWER - commissioner may issue a temporary resident agents license without examination
Temporary license may be obtained- Before a person passes the state exam for a permanent license if a person completes a 40-hour course before applying for the license or withing 14 days after applying.
Is only good for up to 90 days
Conditional licenses - ANSWER - Without having to wait for results of a criminal history search (fingerprint check). Can be revoked if something is found in applicant's criminal background. If nothing is found, a temporary License will become permanent.
All newly issued licenses have a term of - ANSWER - 2 years
Renew a license - ANSWER - Complete 30 hours (including 2 hours of ethics) of continuing education/ If held license for at least 20 years, exempt from continuing education requirements 2 / 3
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How long do you have to renew? - ANSWER - What are the consequences of lateness?90 days late: renewal fee must be paid; More than 90 days: cannot be renewed but do not need to do exam with new license, subject to a late fee; More than 12 months: considered new and must take the exam
Exclusions - ANSWER - dice- contains the property and the perils that are not covered:
ex: flood, contraband, intentional acts by the insured
Endorsements - ANSWER - change a policy: add coverage, modify coverage, take
away coverage; only an authorized officer of the company can change a policy. The insured or agent can request a change
Limits - ANSWER - limit of liability: maximum amount of coverage agreed to be paid per loss; aggregate limit; the maximum amount of the total of all claims paid per period; aggregates are usually found on commercial policies
Shall comply with Law if it contains minimum required limits of: - ANSWER - -Split limits of $30,000 for bodily injury to any one person -$60,000 for bodily injury of two or more people -$25,000 for property damage -Combined single limit of at least $85,000
Uninsured/Under insured Motorists Coverage - ANSWER - -Minimum limits are $30,000 per person -$60,000 per occurrence for Bodily injury liability -$25,000 per occurrence for Property Damage liability
Uninsured Motor Vehicles are defined as - ANSWER - -Hit and run vehicles -Vehicles operated in violation of state Financial Responsibility Law -Insured vehicles insured by insolvent insurers
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