TEXAS PROPERTY AND C ASUALTY
INSURANCE, INSURANCE PRACTICE
EXAM, P&C TEST BANK, TEXAS
INSURANCE EXAM PREP, PROPERTY
CASUALTY QUESTIONS, INSURANCE
TEST
Question : Which of the following would NOT qualify as a
hired auto?
An auto hired by an employer
An Auto leased from a commercial rental company
An Auto rented for personal use
An Auto borrowed from an employee
Correct Answer: An auto borrowed from an employee
Question : What method of premium computation relates an
employer's losses, payroll, and premiums to the rating bureau's classifications of operations?
Correct Answer: Experience modification factor
Question : The proof of loss statement must be
Correct Answer: In writing
Question : For insurance purposes, when an insured loses
property to another because the person used violence or threat of violence to gain the property, this is defined as
Correct Answer: Robbery
Question : What special liability coverages will provide
protection to managers of a corporation for claims arising from a wrongful act committed by the manager while in an official capacity?
Correct Answer: Directors and officers liability
Question : What is NOT a consideration when paying an
inland marine claim?
market value when the property was first purchased
cost to replace the property
actual cash value on date of loss
cost to repair or restore the property
Correct Answer: Market value when the property was first
purchased
Question : A plaster has finished a job. What kind of liability
coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly?
Correct Answer: Completed operations
Question : Property insurance that provides $100,000
coverage for a building and $50,000 coverage for personal property at a single location is called?
Correct Answer: Specific coverage
Question : Frank's steaks furnishes meat to steakhouses. An
accident on the premises causes the building to lose refrigeration for 32 hours. The state inspectors will not allow the meet in the refrigerator units to be sold for human consumption, and Frank loses $18,500 in disposing of the meat coverage under Frank's BOP policy will cover the loss?
Correct Answer: Utility service - direct damage
Question : What type of information would be found in a
policy's insuring agreement?
insurer's address
location of premises
renewal dates
policy limits
Correct Answer: Renewal dates
Question : How does the mobile home endorsement affect the
other coverage of law or ordinance in a homeowners policy?
Correct Answer: It removes the coverage
Question : Workers compensation rating is developed by
applying a rating bureau job classification rate to each?
Correct Answer: $100 of payroll
Question : What act protects consumers against the
circulation of inaccurate, obsolete, personal or financial information?
Correct Answer: The fair credit reporting act
Question : The Mail Coverage Form is always written on a
reporting form basis; after the end of each reporting period shown in the declarations, reports are due within?
Correct Answer: 31 Days
Question : In return for premium and insurance company
must
Correct Answer: Be fair in underwriting and pay covered
losses.