TEXAS PROPERTY AND CASUALTY LICENSING

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TEXAS PROPERTY AND CASUALTY LICENSING

EXAM ACTUAL EXAM COMPLETE 250

QUESTIONS WITH DETAILED VERIFIED

ANSWERS (100% CORRECT ANSWER S) /

ALREADY GRADED A+

Which of the following is the Federal Fair Credit Reporting Act responsible for?

• Prevents money laundering
• Regulates consumer reports
• Protects customer privacy
• Regulates telemarketing

Correct answer: B

What type of compensatory damages will pay for pain and suffering and disfigurement?

• General
• Special (specific)
• Tort
• Normal

Correct answer: A

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An insured's home is mortgaged by the local bank. He is required to carry insurance on the home showing the bank as the mortgagee. Which of the following is true if the home is damaged by a covered peril?

• The additional premium required for the mortgage

endorsement must be paid by the mortgagee

• Losses will be paid to the mortgagee and the mortgagor as

their interest appears

• Coverage is suspended if the building is mortgaged and the

insurer is not told of this indebtedness

• The mortgagee must settle with the mortgagor in the event of

a loss

Correct answer: B

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

• $0

B. $30,000

C. $32,000

D. $40,000

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Correct answer: B

Which of the following entities is not an insurer but an organization formed to provide insurance benefits for members of an affiliated lodge or religious organization?

• Stock Company
• Reciprocal association
• Fraternal benefit society
• Mutual company

Correct answer: C

According to the appraisal condition of a homeowners policy, what procedure may be followed if the insured and the insurer do not agree as to the size of a loss?

• The parties must pursue a lawsuit
• The policyholder is allowed to hire an appraiser, and the

insurer will pay the amount determined

• Each side selects its own appraiser, and the appraisers select

an umpire to settle any differences between the appraisers

• The insured is required to accept what the insurer is willing

to pay

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Correct answer: C

Losses caused by continuous or repeated exposure to conditions resulting in injury to persons or damage to property that is neither intended nor expected is the definition of which of the following terms?

• Peril
• Hazard
• Accident
• Occurrence

Correct answer: D

Under the additional living expenses coverage, if a civil authority prohibits the insured from using the dwelling because of direct damage to a neighboring location from a peril covered

in the insured's policy, loss would be covered for up to:

• 1 Month
• 90 days
• 1 week
• 2 weeks

Correct answer: D