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TEXAS PROPERTY CASUALTY INSURANCE
PRACTICE EXAM TEST BANK 2025 ACTUAL EXAM
COMPLETE 400 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
An insured is found liable for a $100,000 bodily injury claim as a result of a car accident. Her insurance company incurred $25,000 in expenses defending the insured against the suit. The insured's auto policy limit is $100,000. How much will the insurance company pay for the bodily injury? - ANSWER-
$100,00
An employee is delivering packages for her employer but is using her own vehicle. The employee hits a pedestrian. The employer may be held liable because of the doctrine of _____. - ANSWER-vicarious liability
Payments for losses that cannot be precisely measured, such as the loss of companionship of spouse from another, are called ____. - ANSWER-general damages 1 / 4
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Bob has a liability policy in the amount of 300/500/100. How much coverage does he have per occurrence for property damage liability? - ANSWER-$100,000.00
Several unsupervised young children wander about your neighborhood. Although you have fenced your yard and pool, they climb both fences and swim in your pool. You've called their parents to complain and tell them that you will not be responsible if one of the children is injured or killed. When a child drowns in the pool, what type of liability would apply to you? - ANSWER-Absolute liability
An insured owns a small neighborhood grocery store. During a storm, a piece of the roof falls on the sidewalk. Several people are in the store at the time, but no one is injured. Under the insurance definition of negligence, such an insured would be held ______. - ANSWER-not legally liable
Liability policies provide certain supplementary payments that are paid _____ to the policy's regular limit of liability. - ANSWER-in addition
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An insured owns a pet lion that is caged on the homeowner's property. The owner takes great care to warn neighbors of the possible danger by posting signs, fencing the yard, and locking the cage at all times. When a neighbor's child manages to open the cage and is bitten, what type of liability would apply to the lion owner? - ANSWER-Absolute liability
An occurrence is best described as something that may take place over _____. - ANSWER-time
A person becomes seriously ill after eating unrefrigerated raw oysters from a street vendor. When the vendor is sued for negligence, what defense might best be used? - ANSWER- Assumption of risk
A Tort is a civil wrong against _____. - ANSWER-an individual
Contributory - injured party contributed to loss; and Comparative - blame is split are both types of _____. - ANSWER-negligence
Assumption of risk, Intervening cause and Statute of limitations are all types of ____. - ANSWER-defenses for negligence 3 / 4
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Direct, vicarious, contractual, and absolute are all types of _____. - ANSWER-liability
The dwelling, structures attached to it, materials and supplies used to build or repair it, or service it are covered under _____. - ANSWER-Coverage A - Dwelling
Buildings on the premises not attached to the dwelling are covered under _____ at 10% of property limit. - ANSWER- Coverage B - other structures
Fire, lightening and internal explosions are covered by ____. - ANSWER-DP1 - the basic form
The ____ covers the same as DP1 plus vandalism, and malicious mischief, air conditioners, heaters, plumbing, ice/snow, falling objects, and plumbing issues. - ANSWER-DP2 - the broad form
Additional living expenses are covered with an endorsement on DP1 by _____. It is included on DP2 and DP3, but limited to 20% of coverage A. - ANSWER-Coverage E
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